Aarav Textiles Pvt. Ltd., a global apparel company, faced a revenue decline due to a pandemic. To sustain operations, it outsourced key functions…

OR Aarav Textiles Pvt. Ltd. is transitioning into a network structure, a modern and flexible organisational design. This structure is particularly suitable in times of uncertainty and disruption, such as during a global pandemic. Its essential features include: It is sometimes called a “non-structure” as it eliminates many in-house functions and extensively outsources them.Organisations adopting this model are often referred to as “virtual organisations", comprising a set of project teams or external collaborations connected through non-hierarchical, web-like structures.This structure is highly effective in unstable environments where rapid innovation and quick responses are needed.Instead of maintaining a large permanent workforce, the company may contract individuals or agencies for specific projects or time periods.Long-term contracts with suppliers, manufacturers, and logistics partners replace traditional in-house operations. Disadvantages Aarav Textiles may face in the future under this structure include: Managing a wide array of potential partners can become complex and may result in quality or consistency issues.Ensuring effective coordination among diverse, independent business units spread globally is a significant managerial challenge.Employees may feel less connected to the organisation, leading to reduced motivation or reluctance to engage in learning and development initiatives.