Organization and Types of Organization, Traditional and Modern

Introduction to the topic

Organizations are built to accomplish some specific goals. And for building such organizations three components are required. First of all to build an organization one must have some clear vision or the purpose of organization which is brought forward due to some “objective or goals” to be achieved. Objective vary form organization to organization i.e University a type of organization built for the purpose to have graduated outcome and a hotel to sever people and in return to get some incentives in the form of reputation and money.

(People are placed in a specific Place in an Organization)  

Secondly a “deliberate structure” must be created for an organization so that it can run smoothly, effectively and efficiently. A deliberate structure is necessary to prevent the infringement and collision of duties and responsibility of entities/individuals of organization (each individual have assigned job to be fulfilled effectively and efficiently). Without a proper structure proper distributions of duties and assigning responsibilities is quit impractical. Each unit/individual in the structure is responsible for its own function (some time they influence other individuals  but this influence is also pre-assigned).

Thirdly to gave a running status to the organization, deliberate structure which is made must be fulfilled with the provision of “people”. Almost every organization from entrepreneurial Start ups to complex organizations and corporations requires human need to fulfill their day to day activities.

Some Major Differences which differentiate Traditional and Modern or Contemporary Organizations

Now a day there are two types of concept based organizations. One which is based on classical management theories and base on concept of 20^th century are called Traditional Organizations. And others are based on the concept of modern management of this running century are called modern or contemporary Organizations. Main difference between Traditional and Modern organizations are:

Stability

Traditional organizations are sort of stable and static, having their strategies focused on a single point and preset plans and rules which they are unable to break. While Modern organizations are dynamic with multiple strategies. They need multiple progresses and constant changes.

Flexibility

Modern organizations are always flexible to change their workflow, focuses and connectivity. They adopt in a well manner according to the situations and conditions. They have always space for contingency approach, considering that same rules can’t be followed everywhere. Their rules are not bible sentences which are to be followed as it is everywhere. Instead traditional organizations are rigid and follow some predetermined plans, which can’t be compromised. Those biblical rule can’t be compromised even in different conditions and complex situations.

Technology

Modern Organizations are technology based having a broad working realm which is usually boundary less (some time no office or centralization). At the other hand traditional organization have a proper structure where the presence of the employee is necessary and are centralized. In Modern organization entities or individuals are usually connected with technology which is not the case with traditional organizations.

Hierarchy

Modern organizations follow “Flat Hierarchy” while Traditional organizations follow “Tall Hierarchy”. Traditional Organizations is Tall Hierarchy in which power flow increase from bottom to top level management. Traditional style of management is more comparable to the military style of management – very hierarchical, organized, disciplined, and sort of - "I am the boss, I tell you, you do. No questions asked". Strictly follows the direct chain of command.

Employee Morale

As in traditional organization there the hierarchy is Tall and bosses considered all in all. Here the subordinates or usually suppressed with low exposure and with low chances of grooming. Their morale is usually down which usually is linked with low productivity. Where in modern organizations the hierarchy is Flat even some time with no differentiation of manager or boss. Here the boss work as team lead provide all the guidance and appreciate the subordinates which lead the morale of employee to be high and increase productivity.

Risk Management

In traditional organizations the employees are trained so tackle a some defined problem and uncertain situations. They are not papered for array of different type of problem. But in Modern organizations they tackle the challenges in a nice manner due to their grooming and organizational behavior.

Diversification

Diversification show heterogeneity of members or entities of  organization in terms of personalities,  gender, attitudes, background and experience level. Diversity has a major role in the creativity and decision making, and provide strong bases to organization in this regard. Modern organization are diversified and traditional organizations or less or even lacking this behavior.