 Dear students, we are talking about the divisional organizational structures and within that we have discussed the matrix and the mixed organizational structure and now we are going to talk about various different other structures which exist beyond the type of structure that is covered under the matrix and mixed organizational structures. The first one in that domain is the heterarchy. Heterarchy from its name it is a combination of two words heterogeneous and arky. So managing your organization in a heterogeneous way which means that there is not a hierarchy there is heterarchy in a heterogeneous way. So there are mixed type of structures existing in your organization and not a single hierarchical structure which is in one line. In a heterarchy the multinational organization it has different kinds of center apart from the headquarters and why does that happen? That happens because it's not essential that a competitive advantage is available only in one country or only in the parent country. It is possible that when you are working on the global level operating on the global level where you have different competitive advantages in different areas for example in some places you get a very cost effective raw material, in some places you get a very cost effective labor, in some areas you get technological advances and R&D where you get a very good opportunity. Apart from that it is possible that in some areas your market is very big for example if you are working in India or you are working in Pakistan and you are working in consumer goods then you have a huge market. So that is a competitive advantage which is not present in let's say a Scandinavian country or in Finland or in France because there are very few populations as compared to the India-Pakistan region. So that means that competitive advantage is not limited to one country and therefore you may have different centers, power centers which are driving your organization from various different forces and your organization is not just being managed through the headquarters. In this particular type of structure from HRM perspective you have to adopt a normative system of control for rewards and punishment rather than a hierarchical setup. So you have got to go to a normative system, normative system is one which operates on norms based on norms rather than what your rules, policy and job description says. So in that kind that is a kind of system which is more flexible which is more open which is more organic and in that you need to have a more normative system which is your norms and your culture and your traditional, your organizational traditions based on your strict hierarchy because you are trying to tap particular competitive advantages from different places. So you cannot say that the manager here, the manager in Pakistan should have as much salary as in a small, very less populated country because that person is looking after a very large population in a consumer market setup so that has to vary accordingly. So normative system of rewards and punishment has to be established in that kind of a heterarchy. It demands skillful and experienced HR managers who can create this normative system of control and reward. It's not always easy to, you know, if you have a set of system written down rules and policies written down system to follow it's always easier to follow that but if you are working on a more flexible on a normative system in which you have to satisfy your employees as an HR manager while you are going for a certain way of controlling the rewards and punishment you have to be a lot more skilled and experienced HR manager. All right then another type of organizational structure is the transnational. Transnational is an advanced level of multinational organization and transnational when you call an organization a transnational organization it means that it is operating on a global strategy and global philosophy of globalization. So it's not actually, you can't define the boundaries that this is a multinational and this is a transnational but transnational is a different philosophy of looking at international functions and international business. In that you actually inculcate in your organization the idea and the philosophy of being globally integrated and locally responsive. So a transnational combines the dimensions of being globally integrated and locally responsive. The transnational it also recognizes the fact that resources and responsibilities are interdependent across national boundaries. So it's not necessary that what happens in Pakistan is totally independent of what happens in the neighboring countries what happens in China or in Afghanistan or in India it's interdependent on the national boundaries. And when you are working in an international context you have to take into account all the resources which are available globally. You can't just say that the resources which are available in a particular domain in a particular country those need to be tapped. You need to look at the, actually you need to look at the entire world as a source of resource and responsibilities. And that is interdependent. And then finally the third type of organization structure is the networked organization. Now networked is also a same type of description as a heterarchy is but in a heterarchy you have a limited you know centers of power but you do have a very strong headquarters. But if you look at a networked organization you can see that the headquarters they are a part of a network and there are nodal units and centers which exist in the boundaries of the corporate headquarters and they are almost having the same kind of power and influence on the rest of the functions on the rest of the areas of the organization. So the corporate headquarters is just named headquarters but the power and the interdependence of the nodal units and centers they have a huge influence on the networked organization.