Trends in Organizational Design Companies Embrace

Emerging Trends
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Emerging Trends
Some of the top trends affecting modern organizational design are downsizing, agile structures, virtual teams, and customer orientation. Modern organizations have a growing tendency to eradicate hierarchical structures in favor of decentralized power structures that allocate more responsibility and autonomy to small teams and employees in coordinating and handling work assignments. More organizations realize that bureaucratic structures impede faster decision-making, reduce employee engagement levels, and hamper the free flow of information and ideas (Hernaus, 2010). Flatter structures with less managerial oversight are becoming the norm also because organizations are looking to cut operating costs in terms of the number of managers employed per unit of output.
Tied to this trend is that of agile organizational structures: the world is rapidly changing, and various macro forces are forcing organizations to become more adept at changing faster, more often, and in a more significant manner than before. It is becoming ever more common for organizations to disband, create, merge, or redefine their production units in line with broader industrial changes. Because surviving in the increasingly intricate, competitive, and turbulent business environment requires an agile organizational design, organizations are learning to constantly reengineer their business processes to improve product quality, cost control, production speed, and customer service. Another trend affecting modern organizational design is the rapid technological changes that revolutionize business structure through virtual corporations.
More companies embrace the virtual structure to form critical alliances with other companies and entrepreneurs to effectively meet production and marketing needs. Strategic partnerships are now happening virtually, mainly because internet te...