Others include advances in manufacturing, information technologies, which speed up communication and lower costs, and greater political and social freedom. Manager, consultants and academics are initiators of NFO; however, through effective implementation, managers are facilitators (Ricart, Sieber, Svejenova 1999).
Andrew M. Pettigrew, professor of Strategy and Organisation in the Business School at Warwick University and Silvia Massini, lecturer of Economics and Technology Management at the University of Manchester Institute of Science and Technology in the United Kingdom agree. However, both suggest that the explanations for organisation change are more in depth than that of the efficiency motives of managers and entrepreneurs. New forms of organising are due to the convergence of economic, technological, informational, industrial and political factors. There is increased international competition in the global economy; the need to reduce costs; pressures to concentrate manufacturing resources regionally; and to make the complex matrix structures simpler by de-emphasizing country organisations. To accelerate the transfer of skills and knowledge, international organisations are strengthening internal networks between functions, divisions, countries, and regions. Many are investing in alliances and other partnerships to compete through co-operation.
There is a necessity for more flexibility in organisations since technological changes have shortened the product life in many industries. Furthermore, the advances in information and communication technologies enable network formation and utilisation, and allow quantity and quality of hierarchical control and lateral knowledge sharing. Deregulation has increased economic competition, and influenced cultural and people change. Even industries, previously protected from competition, have had to acquire new skills, knowledge, attitudes and standards (Pettigrew, Massini 2003). However, the results of the Organising for the 21st Century Research Project (OCRP) indicate that knowledge intensity and international exposure are the explanations for implementing NFO.
Because of structural and organisational changes that have taken place since 1992, Javier Quintanilla and Carlos J. Sanchez-Runde, authors of New Forms of Organising through Human Resource Management: The Case of Fremap, suggest that Fremap is an excellent example of NFO. In addition, they indicate that corporate culture and human resource management played a significant role in the transformation of the company.
Influenced by new forms of competition and internal pressures, companies such as Fremap implemented new ways of organising company activities. With the use of horizontal mechanisms such as the development of teams, decentralisation, and flexible work arrangements, decision-making power was delegated throughout the organisation.
Established in 1933, Fremap is a