2.2. Owing to rapid changes in the environment (IT, globalisation, customer needs, etc.), modern

Question

organisations need to be flexible in order to accommodate the changes.
2.2.1. Describe the characteristics of traditional and modern organisations designs.

Answer 1

Traditional Organizational Design:
1. Hierarchical Structure: Traditional organizations have a centrally controlled hierarchy where decision-making authority is concentrated at the top levels.
2. Specialized Departments: Different functions, such as finance, operations, marketing, etc., are organized in separate departments.
3. Departmental Silos: Each department operates independently, resulting in limited communication and collaboration across departments.
4. Centralized Decision-Making: Important decisions are made at the top levels of management, with little involvement of lower-level employees.
5. Fixed Job Roles: Employees have predefined roles and responsibilities that are narrowly defined.
6. Formal Communication Channels: Communication flows mostly through formal channels, following a strict chain of command.
7. Stable and Predictable Environment: Traditional organizations operate in stable and predictable environments and are resistant to change.

Modern Organizational Design:
1. Flat Structure: Modern organizations have fewer hierarchical levels and encourage greater employee involvement in decision-making.
2. Cross-Functional Teams: Instead of separate departments, modern organizations encourage interdisciplinary teams to collaborate and work towards shared goals.
3. Collaboration and Integration: Modern organizations emphasize communication and collaboration across different departments and teams.
4. Decentralized Decision-Making: Decision-making authority is delegated to lower-level employees, empowering them to make quick decisions.
5. Flexible Job Roles: Employees are encouraged to take on multiple roles and responsibilities, encouraging flexibility and adaptability.
6. Informal Communication Channels: Modern organizations promote informal communication channels such as chats, forums, and knowledge-sharing platforms.
7. Dynamic and Agile Environment: Modern organizations operate in a rapidly changing environment and are quick to adapt to market trends and customer needs.

Overall, modern organizations focus on creating a flexible and agile work environment that can quickly respond to changing market conditions and customer requirements. They encourage collaboration, employee empowerment, and flexibility in roles and responsibilities, while traditional organizations are more structured, hierarchical, and resistant to change.