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structures as parts of a larger organization. Some authors have argued that firms should be understood as virtual organizations, organized around a core set of top-down management functions, and governed by a set of core resources and generic competencies. These organizational structures closest to the ideal and most closely related to the activities in which they engage. These top-down management functions or competencies are also referred to as organizational capabilities, core competencies, or core resources.
Nohria, in his (Nohria, 2003) book, argues that firms are also hierarchical in nature in that their control structure tends to divide tasks into lower-level activities and processes, which are managed mainly through middle management. Here, lower level management consists of either lower and middle-level supervisors or workers. The development of skills and competency at the worker level occurs through job specialisation, mentoring, and continuous practice- focused learning; developmental and mission-related activities. At this level, the management of employees is called'support', and it is in this arena that the vast majority of employee learning occurs. Most management learning is "individual" in nature, and the number of positions in the organization that a manager enters and the amount of learning required are directly related to the skill and competency set he or she will need to bring to any new job.
Firms are also hierarchical in nature, though for other reasons. The reasons a firm is hierarchical in nature may be related to the needs of a firm's activities such as competitive advantage or efficiency. In other firms, the reason may be related to the hierarchical nature of the division of labour within the firm or the division of labour across products or markets. The more intricate is a firm's division of labour and the more complex its product each organizational level needs to cover more and more aspects of production and services. The desired end goal of a firm's structure is to provide optimal differentiation, coordination and efficiency for a wide range of products. The efficiency of a product does not always match the efficiency of its components at different organizational levels, and the process by which products or services are designed can also affect the efficiency of the entire process. d2c66b5586
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