Introduction
The fields of organizational structure and management are highly complex and dynamic, requiring on-going research and analysis by organizational researchers in order to remain current and effective. In the past decade, there has been a shift away from traditional structural paradigms to new, more holistic, and efficient approaches. This paper examines the emergence of new organizational structures through an analysis of theory, research and practice. It will look at several new paradigms and draw conclusions about which approach or approaches may be most beneficial for organizations today.
Analysis of Theories and Research
Organizational structure theorists have long proposed that traditional, hierarchical structures are not effective in today’s business environment and have proposed that a new, flat structure may be beneficial. Flat organizations are less bureaucratic, less hierarchical, and often more agile and flexible than traditional structures (Groth et al., 2013).
Systems theory provides another perspective on organizational structure. This approach suggests that organizations should be seen as complex, interconnected systems with multiple external and internal factors that must be taken into consideration when making strategic decisions (Castelle et al., 2018). This approach emphasizes the need for companies to be adaptable and to be able to anticipate and respond quickly to changes in the environment.
Organizational scholars have conducted extensive research to explore the relative advantages of various new forms of organizational structure. Studies have found that flat, networked and virtual organizational structures are more efficient than those with hierarchical layers due to the lack of bureaucracy (Lam & Law 2000; Glanville & Foord 2005). Other benefits include greater employee autonomy, increased creativity and innovation, as well as reduced costs (Kirkwood 2006; Tesar & Dvir 2005).
Finally, a third approach focuses on designing organizations for the digital age. The “digital organization” is characterized by a highly collaborative, knowledge-sharing environment that uses technology to facilitate faster decision-making and more effective communication (KPMG, 2019). Digital organizations are able to leverage their people, processes, and technologies to be more innovative and responsive.
Practice
New organizational structures have been adopted by a wide variety of organizations. Companies such as Amazon, Apple, and Google have implemented lean and flat structures to reduce bureaucracy and speed up decision-making. Networked organizations such as Airbnb and Uber leverage their networks of customers and suppliers to facilitate more efficient operations. Finally, companies such as Dell and Microsoft are experimenting with digital organizational structures that leverage technology to aid in communication and collaboration.
Conclusion
Organizational structure has undergone significant changes in the past decade and organizations now have a number of options to choose from. Traditional hierarchical structures have been replaced with flat, networked, and digital structures that provide greater efficiency and agility. While each organization must consider its particular needs and context before deciding on an appropriate structure, the benefits of new organizational structures make them an attractive option for many businesses.
