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This document discusses traditional and contemporary organizational designs. Traditional designs are hierarchical with clear roles and chains of command, allowing for specialization, stability, and control but being rigid and hindering innovation. Contemporary designs are flexible networks that encourage collaboration and innovation but can lack structure and be difficult to coordinate. Overall, the best design depends on an organization's goals, industry, and environment, with many adopting hybrid approaches combining elements of both.

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Maarij
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20 views

1

This document discusses traditional and contemporary organizational designs. Traditional designs are hierarchical with clear roles and chains of command, allowing for specialization, stability, and control but being rigid and hindering innovation. Contemporary designs are flexible networks that encourage collaboration and innovation but can lack structure and be difficult to coordinate. Overall, the best design depends on an organization's goals, industry, and environment, with many adopting hybrid approaches combining elements of both.

Uploaded by

Maarij
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

Decision making process


2. Planning tools (environment scanning,
forecasting, benchmarking, budgeting,
scheduling)
3. Elements of organizational designs.
4. Traditional and contemporary
organizational designs and their advantages
and disadvantages
5. Differentiation between groups and
teams
6. Stages of group development
7. Importance of motivation and early
motivational theories (Maslow’s theory of
needs; x and y; and two factory)
8. Importance of controlling and steps in
control process.
Organizational design refers to the arrangement of tasks, roles,
relationships, and structures within an organization to achieve its
objectives effectively. Both traditional and contemporary organizational
designs have their own approaches and characteristics. Let's explore the
advantages and disadvantages of each:

Traditional Organizational Design:


Traditional organizational designs are often hierarchical and
bureaucratic in nature. They have well-defined roles, a clear chain of
command, and formal communication channels. Some common
traditional designs include functional, divisional, and matrix structures.

Advantages of Traditional Organizational Design:

Clear Hierarchy: Traditional designs provide a clear chain of command


and well-defined roles, which can reduce confusion and clarify decision-
making authority.
Specialization: Functional structures allow employees to specialize in
specific tasks, leading to greater expertise and efficiency.
Stability: Traditional designs are often more stable and resistant to
frequent changes, which can provide a sense of security for employees.
Control: Hierarchical structures enable better control and coordination
of activities, especially in larger organizations.
Efficiency: Specialization and standardized processes can lead to
efficient operations and cost savings.
Disadvantages of Traditional Organizational Design:
Rigidity: Traditional designs can be inflexible and slow to adapt to
changes in the external environment.
Communication Barriers: Formal communication channels may create
bottlenecks and hinder quick information flow.
Lack of Innovation: Hierarchical structures may discourage innovation
and creativity by limiting decision-making to top levels.
Conflict: Clear divisions between departments can lead to silos and
interdepartmental conflicts.
Employee Dissatisfaction: Limited decision-making authority and lack of
empowerment may lead to employee dissatisfaction and reduced
morale.
Contemporary Organizational Design:
Contemporary organizational designs are more flexible and adaptive.
They focus on collaboration, innovation, and responsiveness to changes.
Some common contemporary designs include flat structures, network
organizations, and virtual teams.

Advantages of Contemporary Organizational Design:

Flexibility: Contemporary designs are more agile and can respond


quickly to changes in the market or industry.
Innovation: These designs encourage creativity and innovation by
promoting open communication and diverse perspectives.
Employee Empowerment: Flat structures and decentralized decision-
making empower employees and promote a sense of ownership.
Cross-Functional Collaboration: Network structures and virtual teams
facilitate collaboration across different departments and locations.
Adaptability: Contemporary designs are better equipped to handle
dynamic and uncertain business environments.
Disadvantages of Contemporary Organizational Design:

Lack of Structure: The flexibility of contemporary designs can lead to


ambiguity and confusion about roles and responsibilities.
Coordination Challenges: Collaborative structures may face challenges
in coordinating activities and maintaining accountability.
Communication Overload: Open communication channels can result in
information overload and reduced efficiency.
Resistance to Change: Employees accustomed to traditional structures
may resist the changes associated with contemporary designs.
Risk of Disintegration: The lack of hierarchy may result in a lack of
direction or focus if not managed effectively.
In summary, both traditional and contemporary organizational designs
have their own advantages and disadvantages. The choice of design
should align with the organization's goals, industry, culture, and
external environment. Many organizations today are exploring hybrid
approaches that combine elements of both traditional and
contemporary designs to strike a balance between stability and
adaptability.

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