Hiring skillful employees is only the first step towards building a high-performing organization. You need to make every team member fit in. You need a clear organizational structure.
Large enterprises require an established, organized structure to coordinate large numbers of employees and avoid chaos. But smaller businesses and startups rarely think of designing an organizational structure in the first place.
This lack of structure leads to miscommunication, work delays, poor process flows, low morale, and other serious consequences that stunt business growth. In contrast, a strong organizational structure helps to coordinate teamwork, reduce conflicts, and boost productivity.
Before even considering becoming a digital organization, some necessary changes are needed in the organizational structure. There are many structural variations that organizations can take on, but there are just a few main patterns relevant to be marked as a modern enterprise.
Stability
Modern organizations are more dynamic with multiple business strategies. Believing that traditional organizations are stable this might be true, and since their activities are planned upfront it does not allow for progress and change, meaning these strategies can become outdated
Flexibility
Unlike traditional organizations which are fixed, inflexible and planned, modern organizations are more flexible for change in every aspect of their work environment: from knowledge and skills, to approaches and workflows.
Risk management
Traditional organizations maintain specific policies and standards in order to mitigate any kind of risk. They are risk-averse, unlike modern enterprises which are risk-takers with well-defined calculations which assess risks from multiple dimensions. This is not only applied for a given issue at a certain point in time that has already occurred, instead, they look at the possibility of potential risk.
Technology
Traditional organizations are centralized and (too) careful to accept advanced methodology and technology. With this rapid pace in technological innovation, the chances to survive with ever-changing market demands are much harder, maybe even impossible. Going modern means switching to a contemporary mindset, focused on what is happening now. Companies that do not accept technological modernization and new ways of working will be anchored in the past.
To keep up with these dynamic market demands, organizations need to transform their business by introducing new products and services with digital signatures and augment their existing portfolio to fit in the digital ecosystem.
Typical differences
In this mini-series, we’ll discuss the technological revolution and the future of integration. In this blog, you read about the comparison of traditional and modern organizations. Click here for the next blog in this series, where we talk about the transformation to digitalization. Follow us on LinkedIn to keep in the loop.
Learn more about MuleSoft
Need help with setting up or optimizing your MuleSoft Anypoint platform? Our 75+ Certified MuleSoft experts have around 25 years of integration experience and can guide you in the most difficult challenges. Contact us to learn more.
Get in touch
Join our open & innovative culture
Open, accessible and ambitious are the keywords of our organizational culture. We encourage making mistakes, we strive to do better every day and love to have fun. Doing work you love with brilliant people is what it’s all about.
Today there are two main flows of organization run concurrently; One Traditional Organization, established in between 20th century another is Modern Organization emerged in this ongoing century. There are huge differences between these two trends. Why the traditional organization criticizes the modern as a misguided and vulnerable organization? What’s the real fact?
Generally the meaning of organization is an entity comprising multiple people, such as an institution or an association that has a collective goal and is linked to an external environment.
Traditional organization represent the organizational structure in a business is hierarchical, meaning power flows vertically and upward, and employees are departmentalized. All employees follow a chain of command. Such as a manager is the chief coordinator of all department. Each department has a head who report to the manager. Like the military system-very hierarchical, organized, disciplined. Every department has its own rules and regulations as well as and every employee has own job description and accountability to his superior. There’s strictly follow their own business strategy that’s set in annual economic year. All the goal achievement plan are set before and difficult to change. Always traditional organization is fixed and rigid.
Modern Organization means a boundaryless organization which are networking together and collaborating more than ever before. They are well-suited for rapid innovation and therefore ideal for companies in the growing technology industry. Its main concept is to diversify its activities and connectivity as a result it can accept new challenges and can set a goal frequently. Modern style of management largely depends on soft skills – consensus building, relationships, listening, and understanding, taking the team along with you willingly than dragging them along with you.
The main points of disagreement:
Stability: People believe that traditional organizations are stable in their activities and progress. On the other hand modern one is more dynamic with its multiple business strategy. They need multiple progress and constant changes.
Flexibility: Modern Organizations are always flexible to change their workflow, focuses as well as connectivity. There the organization is need to update their competitive advantages and the employees are required to upgrade their knowledge and skills. Traditional Organizations are fixed, inflexible and planned.
Hierarchy: Modern Organizations flow “Flat Hierarchy” and Traditional flow “Tall Hierarchy”
Teamwork: Team work is the main concept of modern organization. The organization who build more effective team can gain more. On the other hand a traditional one follows a chain of command where every employee should be obeyed to his superior.
Employee Morale: As an employee of a modern organization get more freedom and flexibility to exchange his or her assessment. Consequently in this type of organization you find high employee morale. Traditional is a job oriented organization so you are not sure about the matter of employee morale.
Risk Management: Traditional organization maintain a specific policy to protect any kind of risk that would be hampered for the organization or its employees. So employees are more educated about the matter thus can take any step. Modern organization are slightly brave in this matter. Though they are always ready to take new challenges so everyone here prepared to face any risk instantly.
Diversification: Moreover the main contradiction between the modern and traditional organization is their business policies. Traditional organizations are slightly conservative and they try to follow traditional rules and regulation. They always flow a static business strategy and make a workflow model maintaining a traditional marketing policy and employee management system. A modern organization is doing modification, rescheduling, flexible entity management and dynamic business strategy.
Technology: Modern Organization is more technology based and boundaryless. So the number of employee or the office compartment doesn’t matter. But traditional organizations are centralized and backward to accept advanced technology.
So today is the right time to think about the business model of your organization. In present situation public demands are unlimited and their attention become diversified. So you should be more dynamic, more virtual and more advanced in modern technology.
Newslets.com a unique social marketing communication media will be the right platform for you, if you want to increase the credibility and flexibility of your business strategy, if you want to dynamic your marketing policy and boost your accessibility to all kinds of customers in the whole world. Because only Newslets give the opportunity to reach your post to all your followers and following even the headlines of your business initiative will be appeared into the universal stream of viewers as micro-blog.