The differences between the traditional and modern organization and why clearly defining organization helps managers. The traditional organizationonal structure was established and became popular in the first part of the 20th century, a time, where multilayered beauracracies were seen as the most effective and efficient approach to manage large, complex corporations. Constarints on transportation, modest education levels among the workforce, and the limited technical ability to collect, display, and transmit information were but some of the factors that led to the creation of a strong, centralized management system where managers did the thinking and workers were expected to do the assigned work without a question. The traditional organization was therefore causal and goal orientated.
This means that the incentives and objectives could be clearly defined and the controlling was easy, since everything in the business process was predictable. The traditional model of an organization serves to establish managerial control, provide workers with job instructions and enables managers to gather information for planning. Managers run the organization by hierarchy, authortity, control and rules. We could cpompare the traditional model to an effective, well-built machines, with clearly differentiated functional components working reliably and timely accurate to accomplish predetermined goals, for example efficency and productivity.
The modern organization on the other hand emphasis on strategic management and takes the growth of the decentralized organization into perspective. Motivation and creativity as well as the influence of politics and power force organizations to undergo a drastical structural change. The informational flow in the modern organization is not directed in just one way. This means that a communication between the management and the workforce can take place. In contrast to the traditional organization, the modern organization has variables instead of defined objectives, that lead to more complex and diverse structures.
The modern organization also has fewer layers than the traditional structure. This means that the hierarchy is not so complex and therefore not so specifically defined. This makes it more difficult for the management and for department managers to control and regulate thier departments, since the chain of command is not as clear as in the traditional organization. In modern organization the goals are not so causal as in traditionl organization, that means that they are more diverse and are influenced by a lot of factors, such as strategic planning, teamwork, crativity and individual responsibility towards the incentive of the organization itself. By clearly defining the organizational structure of an organization managers have the ability to plan strategic monoevers.
Companies who clearly define their organizational structure and post their Organizational flow chart, along with the job descriptions and responsible authorities in each department of the corporation, can be sure that the employees and therefore also the management can establish a better communication and working relationship. This enables a clearly defined structure, where the duties an, guidelines, responsibilities and hierarchical structure, and therefore the own position in the company, are easy to see. This helps the management and also the workforce to understand the company and to know what place they hold in the corporation. Problems will alwys occur when managers don't know their competences or aren't sure what the strctural proceedings expect from them regarding their function and authority. This has great impact on the productivity of an organization and should therefore be clear. Word Count: 548
