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Wednesday, November 16, 2011

Organization Theory - 38 (Buffering and Boundary Spanning)


In the last blog, we looked at a framework for understanding the relation between complexity, change and uncertainty. In today's blog we look at how organizations handle the need for information through buffering and boundary spanning roles. We begin with understanding and then better it with 2 examples.

Buffering involves protecting the internal operations of the organization from interruption by the environmental shocks such as material, labor, capital shortage etc. Organizations generally create a role to handle this sort of shocks. Through their efforts, uncertainty associated with a complex or changing environment is absorbed, freeing those in the production centers from concerns that might distract them from their work.

Boundary spanning is the name given to environmental activities including passing needed information for decision makers. It also covers the activities representing the organization o its interests to the environment.

The difference between the 2 is that while Buffering deals with the material requirements of the organization, while boundary spanning is more of information need. Many a times the 2 roles are seen to overlap - we take 2 examples in here.

A sales person, for example is responsible for transferring the organization's output to its customers, but they also bring important information about changing customer demands into the organization and represent the organization’s capabilities and reputation to the customer.

Purchasing agents in organizations too combine buffering and boundary spanning roles. As they transfer required raw materials etc into the organization, they also gather information on new supplies and techniques and techniques of production from their suppliers.

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