Introduction
The dramatic changes of the 21st century are forcing modern organizations to become more flexible. According to Abby Levene (2020), the new era is challenging organizations to rethink their structures to meet new demands. The primary difference from the previous model is the departure from the strictly hierarchical structure that was effective throughout the industrial age (Levene, 2020). Factors that may persuade a company to change its organizational structure are increased competition, the need to be prepared for drastic changes, and the emergence of a more just society.
Modern Challenges for Business
In the modern world, more companies realize that human resources are the most valuable. Organizations now need not only to ensure employees’ work, but also to make them want to work for the company (Levene, 2020). With increasing competition and the emergence of new companies daily, businesses must compete for employees’ attention. This may be an opportunity to adopt a more flexible organizational structure, characterized by remote, project-based, and non-hierarchical arrangements.
The crises of the 21st century underscore the need for companies to rapidly adapt to significant changes (Levene, 2020). This factor may be a reason to reconsider the structure, shifting from a hierarchical to a network-based approach that enables employees to work effectively on different tasks. Finally, the new ethic requires companies to contribute to social development to increase social and economic equity. This need may prompt a company to adopt a new, employee-centric, and more inclusive structure.
Conclusion
In conclusion, the 21st century presents organizations with new challenges that require changes to an organizational structure that may have previously worked effectively. Abandoning an outdated hierarchical structure can become necessary in the face of rapid development and the constant new responsibilities that confront modern organizations. More flexible structures will enable businesses to attract and retain more employees, contribute to modern society, and be better prepared for radical changes.
Reference
Levene, A. (2020). What is the right organization structure for the 21st century? Dropbox.