Question

1. Choose one Traditional organizational structure and one modern organizational structure, explain them in detail with one real time organization that made it's shift from traditional structure to modern structure and 3 issues it faced, during transition.

Answer 1

answer-

The traditional organization structure 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.

Modern organizational structure is divisional organization structure which is a type of organizational structure that groups each organizational function into a division.Each division contains all the necessary resources and functions within it to support that product line or geography .

the real example of organization strucure change is Alphabet company which was Hierarchical first but after increase its business and acquiring many companies like Google,Nest,Verily,Calcico etc then it turns to divisional organization structure.

for example Google owned by Alphabet operate completely separate company as division like new company.

the three issues which it faced during transition is power and authority conflict between top managers like who will manage the all separate division. would there be new CEO in each or one CEO manage all division.

second issue was dual reporting which increase stress in employees because employees has to report to many top authorities as there were many seniors of one employee to whom they have to report.

third issue is increase requirement of talented managers who can manage each division so compensation of managers and CEO of each division was in millions like CEO of google has the highest compensation like $188.9 millions approx now.so this create financial issues at transition time.