Exploring Management: Literature Review on Structure and Intelligence

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Literature Review
AI Summary
This literature review provides an overview of management principles, organizational structures, performance metrics, collective intelligence, and human consciousness. It begins by examining traditional versus contemporary organizational structures, highlighting differences in centralization, flexibility, and hierarchy. The review explores the role of self-governance, HR processes, and organizational culture in shaping employee performance and innovation. Furthermore, it delves into performance indicators such as economic profit, value creation, productivity, and efficiency. The study also discusses the significance of collective intelligence, emotional intelligence, and motivational theories like Maslow's hierarchy of needs. Finally, it touches on human consciousness, world vision, and sustainability, emphasizing the importance of personal development within organizations. Desklib provides access to this and other solved assignments to aid students in their studies.
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Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note
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Table of Contents
Literature Review.......................................................................................................................2
Introduction............................................................................................................................2
1. Organizations.........................................................................................................................2
Structure.................................................................................................................................2
Self-Governance.....................................................................................................................4
HR Process.............................................................................................................................6
Culture....................................................................................................................................7
2. Performance...........................................................................................................................9
Economic profit......................................................................................................................9
Value creation......................................................................................................................10
Productivity..........................................................................................................................11
Efficiency.............................................................................................................................12
Innovation............................................................................................................................13
3. Collective Intelligence.........................................................................................................14
Emotional Intelligence.........................................................................................................14
Maslow’s theory of needs....................................................................................................15
Schultz, the theory of fears...................................................................................................16
Trust, Responsibility, Freedom, Motivation........................................................................17
4. Human consciousness..........................................................................................................18
World Vision........................................................................................................................18
Human evolution..................................................................................................................18
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Sustainability........................................................................................................................19
Personal Development.........................................................................................................19
Conclusion................................................................................................................................20
References................................................................................................................................22
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Literature Review
Introduction
In the present scenario, the different organizations are transforming themselves
wherein the phrase applies that “Transforming a caterpillar to butterfly." It is the respective
process which is being implemented by them as to convert themselves into contemporary,
organic, individualized and learning corporation. The model of the organizational structure is
the process which is not permanent as depending on the conditions of the environment, it is
changing, and it affects the parameters of the organization.
The structure of the organization is modified and changed as per the proportional
development of the company, and the other name of the organizational structure is the macro
organizational structure. For instance- Jack Welch is one of the unique examples which
helped in turning General Electric in the modern organization par excellence which helped
and resulted in the overall excellence of the company. Furthermore, it resulted in the
extraordinary performance along with annual growth of the stock rate of 18.1% since the year
1981.
1. Organizations
Structure
Aziri, Zeqiri, and Ibraimi (2014), have commented that the contemporary architecture
of organizations does not recognize the different or new principles of the organization which
are not known from the traditional models of the structure of organizations. Furthermore, Van
Wart (2013), has hypothesized that in conventional organizational structure is based on
centralization and concentration and the range of control is narrow. However, in the
contemporary business model is decentralized wherein there is a wide range of power with
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the implementation of a flexible structure. On the other hand, Tilly and Welfens (2011), has
commented that traditional organizational structure has a rigid structure which affects the
overall productivity of the firms.
Additionally, Thompson (2017), has commented that traditional organizations help in
representing the organizational structure in business which is hierarchical, meaning the flow
of power is vertical and upward, and the employees are departmentalized. For instance- The
manager is the chief coordinator of the different departments and employees are required to
follow the chain of command.
From the example, Shi and Wilson (2010), have hypothesized that traditional
organizational structure is like the military system, it is hierarchical, organized and
disciplined. The different departments have different rules and regulations, and the
employees have their accountability and job description to their superior. The hard kind of
structure of the organization has been tiresome from the perception of employees working in
the organization.
On the other hand, Muzio and Tomlinson (2012), have opined that the modern
organizational structure is the boundaryless company which is networking together and
collaborating more in comparison to the traditional corporate structure. These kinds of
organizations are well suited and apt for rapid innovation, and it is ideal for the organizations
in the growing technology industry.
Georgakopoulos, Wilkin, and Kent (2012), have hypothesized that the central concept
in the respective organization structure is to diversify the different activities along with
connectivity which has resulted in accepting the new challenges and they can set a goal more
frequently. According to Baruch (2006), the modern organizational structure largely depends
on the different soft skills which are inclusive of consensus building, listening, understanding
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and taking the team and involving them in the decision-making process to make them feel
wanted in the different approaches of making the decisions useful.
As per Aziri, Zeqiri, and Ibraimi (2011), there are different points of disagreement
which are being discussed as follows:
Stability- Different individuals believe that the traditional hierarchical organization
structure is stable in performing various activities along with progress. On the other hand,
modern organizational structure is dynamic with different business strategies, and there is
multiple progress which will be beneficial for the overall success of the firm (Kopp 2016).
Flexibility- The modern organizations are flexible in their approach to change the
overall workflow as they mainly focus on engaging the different employees in the decision-
making process to gain a competitive advantage. On the other hand, the traditional
organizational structure is fixed and inflexible which is planned (Ashkenas et al. 2015).
Hierarchy- In traditional organization structure, the company follows the “Tall
Hierarchy” Structure, on the other hand, the modern or contemporary organization structure
follows the “Flat Hierarchy” structure (O'Neill, Beauvais and Scholl 2016).
Diversification- The major contradiction between the traditional and modern
organizational structure is the business policies which are being followed by them. In the
traditional corporate structure, the different systems are conservative, and they try to follow
the conventional procedures and regulations. On the other hand, the modern organizational
structure has flexible entity management along with dynamic business strategy by performing
a modification that will be beneficial for the success of the organization.
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Self-Governance
Baruch (2006), has hypothesized that the self-governance plays a vital role wherein
the employees can manage themselves. While self-governance can be loose or unstructured,
however, it is just the opposite as the self-governance helps in creating a positive working
environment for the different employees to perform the various activities appropriately.
Muzio and Tomlinson (2014), have commented that in the traditional organizations, there has
been low self-governance or self-esteem among the different employees as they are not being
involved in the decision-making process by the leaders. However, on the contrary, Child
(2015), has hypothesized that in contemporary organizations, there is enormous self-
governance and self-efficacy among the employees as it increases the involvement of
employees with the work.
Baruch (2006), has commented that the goal of self-efficacy helps the employees in
managing the goals themselves without any control of the leaders. The learning along with
exerted effort can play a consistent role in maintaining the self-efficacy beliefs which helps
the employees in performing new tasks as they are confident that they will be successful.
However, such kind of self-governance lacks in the traditional organizational structure as the
employees do not have freedom in managing the tasks effectively. The leaders take the
appropriate decisions on their own, and the employees do not have any role to play in the
decision-making process.
Van Wart (2013), has opined that trial and error is the other method of the learning in
contemporary organizations as it creates healthy efficacy which allows the different
employees as to test behaviors along with patterns which will provide a proper understanding
of the task which is learned by the various employees in the organization. The self-cognitive
theory is the part of the social-cognitive theory which is the other method to increase and
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create learning opportunities which will allow the workers in modeling their behavior and
gain competitive advantage.
HR Process
Muzio and Tomlinson (2014), have commented that the human resource management
policies in the traditional companies are rigid and it is required to be followed by the
employees on a mandatory basis. In the traditional personnel management perspectives, the
employees are expected to know what is allowed and not allowed in the workplace and there
are HR guidelines which are being followed by the companies and the employee handbooks
are being distributed regarding behavior and expectations. Rather than allowing the problem
to arise, the professional employer organization tries to take advantage of the track record of
the different issues and address the various challenges which will help in managing the
overall scenario appropriately. Furthermore, O'Neill, Beauvais and Scholl (2016), have
commented and opined that the traditional HR management focuses on the increasing
production while keeping the employees satisfied.
Additionally, Vicente (2016), has commented that traditional organizations follow the
different aspects such as hiring internally as the company feels it is one of the most natural
methods as to hire the right person for the right post. Furthermore, there has been the
inclusion of temporary employment agencies for shortlisting candidates which has been
tiresome, and it is time-consuming in the approach as well.
However, Lind (2018), has commented that modern HR management which is being
followed by the contemporary organizations help in hitting the mark of productivity and
profitability benchmarks by fostering the supportive workplace culture which will assist in
promoting effective strategies across the board. The modern HR management makes sure that
problems are not being generated from the dissatisfaction within by fostering the employee
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feedback mechanisms and provide the managers effective methods to keep a proper track of
the internal temperature of the company.
On the other hand, Bolman and Deal (2017), have commented the organizations
which follows the modern organizational structure recruit the candidates through social
media channels which is inclusive of Facebook and Twitter are the important platforms
which are being utilized to gain potential candidates, and it helps in updating the job
requirements of the candidates.
Culture
Bolman and Deal (2017), have opined that in the traditional organizational structures,
the communication starts at the top of the organization and the employees do not have any
role to play in the same. There is the inclusion of formal discussion which is inclusive of
newsletter, email and the other collateral of the company. However, Parker and Crona (2012),
have commented that in the team based or contemporary organizational structure, there is the
inclusion of the less structured and informal process of communication which will be more
flexible and it improves the morale of the employees as to perform the different activities
appropriately.
For instance- There can be the usage of social media technology which can be blog
or forum to share various information and make separate announcements and report the status
updates appropriately.
Haigh et al. (2015), have further commented that the bureaucracy in the traditional
organizational structure can hinder the innovation and creativity which is not effective
advice which is required to be followed in the modern corporate structure. The managers in
the traditional organizational structure need to make different decisions without consulting
the different subordinates. On the contrary, the organizational structure which is being
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followed in the modern corporate structure, the leaders try to seek the overall participation of
the other employees which will improve their presence and it includes the brainstorming
meetings as to gather the information appropriately.
As commented by Qrunig and Qrunig (2016), in the traditional organizational
structure, the different managers play a significant role in scheduling and leading the
meetings. The manager tries to control and handle the different agenda without consulting the
various employees who are working in the organization. However, Havar-Simonovich and
Simonovich (2016), have commented that in the team-based structure, the leaders try to seek
the overall participation of the different employees along with conducting brainstorming
meetings as to gather the changed information. In the team-based contemporary
organizations, the teams approach the process of decision-making differently. This is
inclusive of identifying the various individuals who need to participate in discussions along
with strategies for choosing the various alternatives.
From the comparison of the traditional and contemporary organizational structure and
culture, Ashkenas et al. (2015), have opined that the main advantage of the modern corporate
structure is that the employees have the overall freedom to implement the own different
decisions along with making changes as per the situation. The employees have the right to
take ownership of the work without interference from the senior management and the middle
management. Loock and Hinnen (2015), have commented that with the implementation of
freedom, it has led to an increase in the overall productivity, work quality is excellent, and
there has been the uptick in the satisfaction among the different employees.
Additionally, Sayles (2017), has hypothesized that under this structure, the employees
form stronger bonds with their peers along with their leaders as they rely on the expertise of
one another along with talent as to accomplish the different goals. There is an excellent level
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of communication among the employees working in the company as every employee is
dependent on the success of the other employees working in the group. As commented by
Child (2015), the major disadvantage of the traditional organizational structure is due to the
hierarchical system, and authoritarian regime wherein the employees do not have any
interference on the decision-making capabilities. The employees are expected to carry out the
different orders which are being provided by the employer or leader.
2. Performance
Economic profit
Pedersen and Thibault (2018), have commented that the financial profit/loss is the
difference between the revenues which have been received from the overall sale of the output
along with the opportunity costs of the inputs which have been used. In calculating the
economic profit or loss, the opportunity costs will be deducted from the revenues which have
been earned by the company. Bolden (2016), has commented that in the traditional
organizational structure, there is the number of organizations which incurred a loss due as the
different customers were not satisfied with the model of the hierarchical organization which
affected the overall efficiency negatively.
However, in the present scenario, Pedersen and Thibault (2018), have commented that
the contemporary organizations are becoming sustainable by offering the customers with
various innovations which have encouraged the company in creating new products which are
durable and profitable. Craven and Harris (2017), have opined that the economic profits have
encouraged contemporary firms n cutting costs and increasing the overall efficiency which
helped them in becoming more appropriate in performing the different operations.
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Craven and Harris (2017), have hypothesized that economic profit is being utilized to
calculate the total production of the company along with total value. The economic benefit is
often used for merger negotiation and sales as well as gaining profitability in comparison to
the other competitors. In contemporary organizations, there is a considerable level of
sustainability in the market that has assisted them in conducting the training of the staff’s
initiatives which has been helpful in becoming competitive.
Value creation
As commented by Schaltegger, Hansen and Lüdeke-Freund (2016), the traditional
organizations did not create and provide value for the customers in the market. Bolden
(2016), has hypothesized that in contemporary organizations, business begins with value
creation as it is the primary purpose of the institution which will create and deliver value and
it is the way to generate profit after cost. As hypothesized by Ferguson and Souza (2016), the
new value theory has emerged which places a significant emphasis on improving economic
and organizational performance by increasing overall capacity for value creation. In the 21st
century, there are various organizations which use the different strategies to create value for
the customers appropriately.
Ferguson and Souza (2016), have commented that most of the customers in the 21st
century expect more value at fewer prices from the different producers or suppliers. To
achieve the same, the organizations are reorganizing the structure to meet the expectations of
the various customers. In the contemporary organizational structure, the work is performed in
a flexible manner wherein all employees are working towards achieving the common goals.
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Figure 1: Conceptual Framework of Value Creation
(Source: Serrat 2017)
From the framework, it can be analyzed that Craven and Harris (2017), commented
that the company is maintaining the value creation among the customers within series of the
interrelated activities within different departments of which the collaboration is vital for
creating value and gain the competitive advantage in the market. Serrat (2017), has opined
that decision-making approach is essential and plays a crucial role in carrying out the process
which will create a direct impact on the customers and it is possible in the modern
organizational structure as the employees have freedom in managing the decision-making
approach appropriately.
Productivity
Serrat (2017), has commented that contemporary organizations are maintaining
productivity as the employees have space and freedom to provide their own opinions in the
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process of the decision-making approach in the organizations. The liberty which has been
presented to the employees have been one of the primary reasons that have helped the
companies in increasing the overall productivity and gain a competitive advantage in the
market as well. Ferguson and Souza (2016), have opined that in the modern organizational
structure, every employee working in the company holds specific value which is required to
be understood by the employer.
Furthermore, according to Ferguson and Souza (2016), it can be analyzed that in
modern organizational structure, the employees are being set with various targets and leave it
to the employees for completing the same. In this regard, the different employees should have
the liberty of considering productive measures as per the efficiency and strategize the
different tasks accordingly. The employees are being acknowledged and respected as their
opinions are being considered as they are the vital part of the organizational culture. Sayles
(2017), has hypothesized that the teamwork plays a critical role n ensuring that all the team
members are working in collaboration with one another and it will increase more than 50% of
the overall revenue which will automatically increase the productivity of the employees
appropriately.
Efficiency
As commented by Loock and Hinnen (2015), there is a lack of proper competence in
the organizational stricture which is traditional, and there is a lack of sustainability in the
approach. As commented by the authors, in conventional organizational structure, the
procedure is top-down, and it is mostly one-way communication wherein the influence is
indirect, and the management is responsible for motivating the individuals.
However, Child (2015), has opined that the traditional organizational structure lacks
efficiency among the tasks which are being performed by the organizations along with the
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corporate functions. Sayles (2017), has hypothesized that there is a lack of big-picture view
and poor communication which has led to inconsistency in the market and there is a lack of
acknowledgment in the organizations as well. However, on the other hand, Schaltegger,
Hansen and Lüdeke-Freund (2016), have commented in the modern organizational structure,
there is sustainability and effective efficiency among the employees as the employees are
being valued and they have their own space to make the decisions appropriately.
Innovation
Havar-Simonovich and Simonovich (2016), have opined that the traditional
organizational structures are being challenged negatively by the growth of the different new
companies which have uniquely structured their operations as to meet the changing needs of
the customers rapidly. The innovative techniques which are being used in the contemporary
organizational structure include coordination, collaboration, open-software along with
outsourcing which are the keys for the overall success of the firm and shapes the new
business structures. Child (2015), has commented that innovative organizational structure is
less formal as it is likely to allow the creative input from the teams along with individuals.
As commented by Ashkenas et al. (2015), the traditional organizations have a simple
organizational structure which has less departmentalization and there is little formalization.
These kinds of construction are not useful as the top management officials take the different
responsibilities and there is no such delegation of tasks. Therefore, when the organization
becomes large, it is complex and grows out of the simple structure. On the other hand, Loock
and Hinnen (2015), have opined that the in the new contemporary organizations, there is
disruptive innovation which involves the application of new technology along with processes
to the company in the current market.
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Moreover, Child (2015), has hypothesized that the contemporary design of the
organization flattens the traditional pyramid structure which facilitates the overall flow of the
information in the organization and it helps in reducing the response time to the internal and
external demands. There is a horizontal flow of the information which is being followed as
it is the matrix structure and there can be decentralization of the decision-making power that
helps and allows the report along with innovation which flows horizontally through more
inter-reliant kind of organizational structure.
Additionally, it has been seen that in the contemporary organizational structure, the
conflicts are being solved positively through providing proper training to the employees by
the skilled corporate management trainers and this helps in managing the overall efficiency of
the firm. In the contemporary organizations, as to gain sustainable, the companies follow the
flat hierarchy wherein all employees are in contact with one another in different departments
which brings flexibility. The tasks performed by the employees are focused and based on
skills which improve the motivational aspects among the employees (Khalili 2016).
3. Collective Intelligence
Emotional Intelligence
Qrunig and Qrunig (2016), have opined that emotional intelligence is one of the major
aspects which helps in managing the stress and is essential in promoting teamwork along with
cooperation which assists in gaining knowledge in the relationships among the leaders and
employees. As opined by Bolman and Deal (2017), it can be hypothesised that in the
traditional organizational structure, there have been different kinds of negative emotions
which were inbuilt inclusive of poor working conditions as there was no flexibility in the
workplace along with constant fear of change in the organization which led to resistance to
change among the employees working in the traditionally structured organizations.
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Additionally, due to the traditional organizational structure, there was massive conflict
among workers, and due to inadequate supervision among employees, it led to poor career
prospects.
On the other hand, Qrunig and Qrunig (2016), have commented that in the
contemporary organizational structure, the employees are being provided with positive team
spirit and the assistance which are being delivered to the employee's help in managing the
emotions. The contemporary organizational structures are emotionally intelligent, and
therefore the staffs working in such organizations are motivated and productive in completing
the tasks. Emotional intelligence is essential for gaining excellence as it helps them in
working together as to maximize the overall effectiveness. As commented by Bolman and
Deal (2017), the emotionally intelligent employees are better in motivating themselves as
they have the greater ability to self-regulate and enable them in focusing on achieving the
long-term goals.
Maslow’s theory of needs
As commented by Maslow’s, he felt such needs are similar to the instincts, and they
play a major role n positively motivating the behavior. The different employees have various
requirements which are required and expected by them to be fulfilled in the workplace. In
contemporary organizations, Child (2015), has commented that all the elements are being
followed in the modern organizational structure which motivates the employees for uniquely
performing their tasks.
Physiological Needs- It is inclusive of salary, and stable employment which is present
in the contemporary organizational structure and the employees feel motivated. However, in
traditional corporate structure, there was less motivation as due to lack of flexibility.
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Security Needs- The individuals prefer stable working environment which includes
different benefits such as safe working environment and fair work practices that helped the
organizations in motivating their employees for performing the various activities.
Belongingness Needs- There is the inclusion of cooperation in the present working
environment as it will include teamwork and motivation from leaders in performing the
different tasks appropriately.
Esteem Needs- In contemporary organizational structure, there is positive self-image
along with respect for one another in the organization such as job titles and nice workspace
available to the different employees which motivates them and it increases the overall
flexibility and productivity.
Self-Actualization Needs- There are different challenging and achievement issues
which is inclusive of workplace autonomy and another related status job that helped in
managing their overall effectiveness in the organization.
From the Maslow’s Hierarchy Theory, it can be seen that all the elements of
Maslow’s Hierarchy Needs are being followed which helped in managing the overall
effectiveness. However, there has been a lack of such needs in traditional organizational
structure as employees did not have such flexibility in presenting their opinions in front of the
top management officials.
Schultz, the theory of fears
As commented by Schultz, it can be seen that team development is one of the major
aspects which is required to be considered in organizational development. The first aspect of
behavior which is inclusive of flexibility that has helped in managing the overall
organizational effectiveness. As per the particular theory, there is inclusion and openness in
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the working environment as it will motivate the employees to perform better which will be
beneficial for controlling the environment aspects appropriately.
While implementing the change in the organization, it is essential that the employees
know one another and they feel comfortable in the working environment. In the
contemporary organizational structure, to improve the overall effectiveness and it increases
the productivity. On the other hand, O'Neill, Beauvais, and Scholl (2016), have commented
that there is a huge fear of change and it leads to resistance to change in the organization
which follows the traditional organizational structure that has affected the overall
productivity.
Trust, Responsibility, Freedom, Motivation
Ashkenas et al. (2015), have commented that in traditional organizational structure,
there is the inclusion of low trust, freedom, and motivation among the employees as the
fabric is rigid and employees do not have the power to speak their own opinions. However,
Kopp (2016), has opined that it is different in case of the contemporary organizational
structure as there is strong mutual respect between the employees and the leaders. The
employees are provided with proper autonomy and power to make decisions and implement
the changes themselves. There is a lack of motivation among the employees as they do not
have freedom in achieving their choices and it affects the overall efficiency negatively.
As commented by Ashkenas et al. (2015), there is a delegation of tasks among the
employees is being done in the contemporary organizational structure to accomplish the goals
and the freedom has led to massive productivity in the market. Due to the freedom among the
employees, it has increased the motivational aspects among employees, and they gained a
competitive advantage in managing the overall effectiveness. However, the primary
disadvantage in contemporary organizational structure is that it leads to disorganization as
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there has been a reduction of the superior authority and it affects the productivity at times.
The employees are being empowered in the contemporary organizational design, and they are
being motivated to perform the activities appropriately.
4. Human consciousness
World Vision
Ashkenas et al. (2015), have commented that previously the traditional organizations
were only working towards the achievement of the goals and profitability in the market.
These kinds of organizations followed the authoritarian system which does not allow the
employees in the management of the decision-making process. However, Ferguson and
Souza (2016), have commented that in the present scenario, the stakeholders in the company
prefer and demand strong economic performance and they prefer the companies should be
sustainable and environmentally friendly. In the current situation, the businesses prefer to
become viable in performing the business, and they value the satisfaction of the employees as
teamwork is the essential aspect which is required to be managed by the organizations.
Human evolution
Ashkenas et al. (2015), have commented that in the contemporary organizations, the
main growth which has taken place is the usage of the technologically advanced services and
products which will be motivating the different individuals appropriately. As the
contemporary organizational structure, the flatter organizational structure is being followed
wherein all the employees are in contact with one another which provides them with
motivation in managing the business activities. Battilana, Fuerstein, and Lee (2016), have
commented that technology has made it possible for businesses as to operate efficiently with
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the minimal workforce which has helped the companies in reducing the cost of performing
the activity.
For instance- Walmart is one such example wherein advancement of technology has
been used as to improve the overall service provided to customers through implementing the
store app wherein the customers can purchase food items and grocery items online, and they
can pay the bill later on.
Sustainability
Vicente (2016), has commented that sustainability is one of the major aspects which
are being followed by the contemporary organizational structure in comparison to traditional
organizational structure. Lind (2018), has hypothesised that sustainable business practices are
an essential element of corporate risk management as embracing environmentally sustainable
business practices have number of significant benefits as the customers in the present
scenario prefer companies which are sustainable business environment as ethical business
practices are the significant aspect which is being followed in the current situation.
As commented by Bolman and Deal (2017), the stakeholders in the present scenario
prefer the strong economic performance in addition to the companies are required to be
environmentally sustainable. In addition to the profitability of the organization, they should
focus on managing the different ethical in the business practices which will help in achieving
the overall sustainability in the scenario. In the current era, there are various businesses that
prefer to engage themselves in sustainability-related activities which will improve the total
value of the firm appropriately.
For instance- Woolworths Limited have engaged themselves in various
environmentally friendly activities which are beneficial for the community and benefit from
the same. The employees are highly involved in performing the different operations which
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improve their position in implementing ethical behavior. The employees are ethical in their
practice as there is no such workplace bullying and there is no such discrimination among the
employees.
Personal Development
Haigh et al. (2015), have commented that personal development is one of the major
aspects which allows the employees in assessing the different skills along with qualities
which are being done as to achieve the goals appropriately. As opined by Child (2015),
personal development at workplace s closely connected by developing different skills which
are required in the respective role. In the contemporary organization, The personal
development is incorporated in the organizational structure which motivates the employees in
performing the different activities as employees are aware of their strengths and weaknesses
and skill level which will increase their motivation levels in the long run.
As commented by Haigh et al. (2015), in the traditional organizational structure, there
is no such motivation and personal development of the employees as due to the rigid
corporate structure. Furthermore, the contemporary corporate setting, it has enabled the
employees in mastering the goal-setting as they are being provided with freedom in taking
their own decisions appropriately. Personal development is the most crucial element which
has been developed in the flatter organizational structure, and it has enabled the employees in
performing effectively and gain competitive advantage. As opined by Sayles (2017), personal
development is closely related to the success of the organization as it helps in achieving the
desired results by advancing the desired skills which are mandatory to be provided to the
employees working in the organizations.
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Conclusion
Therefore, it can be concluded that the modern organizational structure plays a vital
role in managing the overall sustainability of the organization effectively. In the
contemporary organizational structure, the employees have the freedom to perform the
different activities and engage themselves in the delegation of the tasks appropriately.
However, there is a lack of authority among the employees which affected the overall
sustainability of the organizations negatively.
However, on the other hand, in comparison to the traditional organizational structure
have an authoritarian system wherein the employee’s decisions are not being considered, and
this affects the morale of the employees and affects the overall productivity. Lastly, the
sustainability, innovation and personal development are the major aspects which are being
maintained in the organizations which follow the contemporary organizational structure as to
improve their sustainability appropriately.
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