OSI Network Model analogy for Business Management Organization Structure
updated Apr 27, 2008 6:00 pm | 6,898 views
OSI reference network model is a network protocol standard and generically describes the network communication protocols for most network types and network devices. Taking the roles of the seven layers of OSI model an analogy can be established corresponding to a general Business Management Organization Structure.
Beginning with a mnemonic to recall the seven layers of OSI, bottom to layer up, saying that “ Please Do Not Take Seriously Peculiar Analogies”, we list these as follows:-
Level 7) Layer 1) Physical Layer
Level 6) Layer 2) Data link Layer
Level 5) Layer 3) Network Layer
Level 4) Layer 4) Transport Layer
Level 3) Layer 5) Session Layer
Level 2) Layer 6) Presentation Layer
Level 1) Layer 7) Application Layer
A CEO functionality in a management organization structure is analogous to the “Application layer” which based on the mission of the business enterprise communicate with the Presentation layer which comprises of senior management including CIOs, CFOs etc. The role of a CEO in a business organization is application oriented which carries responsibility of running and governing the business according to the vision of business enterprise.
Just like in a Network architecture, an “Application layer” provides services to user defined application processes and issues instruction to the underneath “Presentation Layer”, a CEO owns accountability to demands of the business environment including customers/clients, business partners, suppliers/vendors, employees, compliance/regulatory authorities etc.
Just like in a Network architecture, an “Presentation layer” receives the instruction from the “Application layer” by way of establishing context depending upon the nature of application level protocol and transferring instruction to the underneath “Session layer” into session protocol application units for further action, the Senior level management also work on a business plan confidential to the upper level and instruct the Middle Management including department managers such as Finance Manager, Marketing Manager, Sales and distribution Manager, Production Manager, HR Manager etc. for co-ordination for the business activities which is analogous to “Session Layer”.
Just like in a Network architecture, an “Session layer” control sessions of the applications between the connection points (user interfaces) or computer terminals and issue instructions to the underneath “Transport Layer” for transferring of data between end users and also monitor reliability of linkages for efficient implementation of application processes, in an business organization, the Senior Officers and operational executives ensure the efficient running of the business processes by taking tactical decisions and delegating responsibilities to the Executives including sales, supervisory and customer support executives which are analogous to “Network Layer”.
Just like in a Network architecture, an “Network layer” on getting instructions from “Transport Layer provides the means of connecting and transferring variable data sequences over the network to different network nodes maintaining an appropriate QoS (Quality of service), similarly the business executives liaison and execute the business tasks taking help of the subordinates such as field workers, office staff etc. which are analogous to “Data Link Layer”.
Just like in a Network architecture, an “Data Link layer” operates between network entities point to point and checking/reporting errors in the data transmission using the specification for network devices and connection defined in it’s underneath “Physical Layer” , the operational staff make use of the operational resources to execute the tasks assigned to them which are analogous to “Physical Layer” of OSI model.
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