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'Jobless' structures
.
 
The employee becomes not a job-holder but a seller of skills. This is a 
concrete expression of the concept of 
employability
, which says that a person needs to have a 
portfolio of skills which are valuable on the open market. 
(f) 
Virtual organisations
. The organisation may consist of individuals, teams, companies or 
stakeholders. Members are geographically dispersed and the organisation usually only exists 
electronically on the internet, without any physical premises. This creates cost savings from not 
having the costs associated with physical locations, such as rent. For example, Amazon operates 
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CHAPTER 5
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BUSINESS ORGANISATION, STRUCTURE AND STRATEGY 
 
135 
as a virtual retailer without incurring the cost of retail premises. These organisations are entirely 
reliant on their technology and any problems could affect the operation of the organisation. 
(g) In 
a 
hollow organisation 
people and activities are split between core and non-core competencies. 
All non-core processes and activities are outsourced. For example, the sports shoe and clothing 
manufacturer Nike outsources production to sub-contractors – but the activity seen as core and 
key, product design, is retained in-house. Such organisations can then focus on their core 
activities, but this structure depends on being able to find reliable subcontractors. 
(h) In 
modular organisations 
different elements or components of the product or service the 
organisation produces are outsourced to different suppliers. The retained people within the 
organisation assemble or combine these elements to produce the final product or service. This 
structure enables the organisation to be more flexible and to respond to market needs more 
quickly, but also depends on reliable suppliers. For example, a motor vehicle dealership may 
recognise that its sales, repair and customer service modules are performing well, but that its 
finance and accounting services are inefficient. The dealership may, as a result, outsource that 
module.
(i)