Traditional organizations typically have hierarchical structures with a clear leader and subordinates, and power flows vertically. Contemporary organizations employ more flexible structures like teams, matrices, and boundaryless designs. Coca-Cola maintains a traditional structure with regional hierarchies, centralized decision-making, and defined job roles. Google uses a contemporary cross-functional structure without strict vertical management, instead organizing employees into project teams not bounded by time or location. This flexible structure helps Google efficiently achieve strategic growth objectives and better serve customers.
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FOM Assignment 2
Traditional organizations typically have hierarchical structures with a clear leader and subordinates, and power flows vertically. Contemporary organizations employ more flexible structures like teams, matrices, and boundaryless designs. Coca-Cola maintains a traditional structure with regional hierarchies, centralized decision-making, and defined job roles. Google uses a contemporary cross-functional structure without strict vertical management, instead organizing employees into project teams not bounded by time or location. This flexible structure helps Google efficiently achieve strategic growth objectives and better serve customers.
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Traditional and contemporary organization
A basic concept of traditional organization is that the structures usually have a
leader and multiple layers of subordinates, and the organizational structure in a business is hierarchical, meaning power flows vertically and upward. Contemporary organizations are designs that would include team structure, matrix structure, project structure, boundary less organization, and the learning organization.
Coca cola as Traditional Organization.
Coca cola is believed as a traditional Organization due to following aspects. The brand has its ambition of maintaining the same taste that has been the same since more than last 125 years. The maintenance of this criteria is a status quo for them that makes the company stable. They surely are cultural oriented. Coca Cola follows the decentralization within centralization model of organizing itself. This means that while the global headquarters retains its overall decision making, the corporation is divided into regions and geographical territories in which it operates. The key to understanding the organizing function at Coca-Cola is to recognize that employees with similar skills and common work functions are grouped together. , the General Manager is at the top of the regional hierarchy who in turn reports to the country head. These general managers have other managerial subordinates such as the ones referenced for this article who have mentioned how the organization practices behavioral leadership that is based on acting on the specifics of the situation at the micro level. The degree to which a worker will share information with a colleague depends on that colleague's reputation for returning the favor. Employees fall in to a hierarchy of system from the top authorities to central or middle managers to line man to marketers to suppliers and all way down. Every person have defined job description and specified working hours. This helps to build hierarchical relationship within the organization.
Google as a contemporary organization.
Contemporary designs would include team structure, matrix structure, project structure, boundary less organization, and the learning organization. . Google is well known for its cross-functional organizational structure. The traditional corporate structure is to have employees at the bottom, supervisors above them, middle managers above supervisors and top management above all. This is the vertical approach to management. The company has been taking bigger and bigger bets in the past few years that have very little to do with the company's original mission of organizing the world's information. In contrast, a company’s organizational or corporate culture is the set of beliefs, values, behavioral tendencies, and expectations among employees. The case of Google is an example of aligning and effectively using corporate structure and corporate culture to achieve strategic objectives in developing competencies for business growth. Since 2015, more than 2,000 Googlers from 102 offices in 45 countries have driven more than 220 projects as part of Diversity Core, a formal program in which employees contribute to the company’s diversity efforts. this is how the diversity could be seen in a customer oriented organization. Google workers are not time bounded to the jobs as per day. They are assigned projects within a time frame that is however a team work and not relevant to each day job restrictions. These employees are not bound of place like offices to run, neither work hours oriented. However these people are creating network relationships, a social web. It works real time for its customers and provide efficient and relevant answers to the solutions. There was a time when google search used to take days to figure out answers. This is the evolvement as an alive organization. Google is counting both the delighted and the satisfied when it claims that 90% of its customers are satisfied with the support they receive.