Traditional organizations are characterized by a hierarchical structure with clear levels of authority and decision-making power. They follow a top-down approach where authority and control are concentrated at the top levels of management. Communication flows vertically from top to bottom, and decisions are made by higher-level managers.
Traditional organizations also have clearly defined job roles and responsibilities, with employees working within their specific departments or functions. There is a rigid division of labor, and employees have limited autonomy or flexibility in their work.
In contrast, modern organizations have a more flexible and dynamic structure. They emphasize collaboration, teamwork, and cross-functional communication. Modern organizations often adopt a flatter organizational structure with fewer hierarchical levels. Decision-making is more decentralized, with authority and responsibility distributed across various levels and teams.
Modern organizations also encourage innovation and creativity. They prioritize adaptability and agility to respond quickly to changes in the environment. They aim to foster a culture of continuous learning and improvement.
Furthermore, modern organizations are more focused on customer needs and satisfaction. They aim to be customer-centric and prioritize delivering value to their customers. They may employ customer feedback mechanisms and invest in technologies to gather and analyze customer data.
Overall, modern organizations prioritize flexibility, collaboration, adaptability, innovation, and customer-centricity, while traditional organizations tend to follow a more rigid, top-down, and departmentalized approach.
2.2. Owing to rapid changes in the environment (IT, globalisation, customer needs, etc.), modern
organisations need to be flexible in order to accommodate the changes.
2.2.1. Describe the characteristics of traditional and modern organisations designs both summarised
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