Interdepartmental Networks

Interdepartmental networks can be defined as the system of actors working together within organizational departments and their planned or emergent relations. The term is frequently found in literature associated with terms like matrix and project organization, and refer to a cross-functional organization bringing members together from separate organizational functional areas to take on tasks on a temporary basis (as in a project team) or on a relatively permanent basis (as in a matrix organization). In an ever changing environment the need to coordinate activities of organizational members is significantly greater than in the past, and this makes growing and supporting formal and informal inter-departmental networks a key lesson for managing continuous change. In a context where matrix and project-based structure are commonly used, interdepartmental networks are described as a channel through which good ideas flows. Common advantages reported in literature of inter-departmental linkages include the creation of lateral communication channels not available in the bureaucratic organization form, solving this way an information processing problem. Cross-functional structures are described in management literature as a governance model able to build a flexible organization, to promote individual and team entrepreneurship, to allow quick decision making based on a multidisciplinary approach. Hierarchical organizations have the limitation of making communication between functional departments more difficult: when the information exchanged is complex, centralized communication can generate dysfunctional effects on the organization.