The Disadvantages of a Traditional Organization
Today, companies around the world are selling ideas just as much as they are selling products and services. This approach requires businesses to work quickly and innovate at a much more rapid pace than in years past. Yet, the traditional organizational structure presents the following disadvantages:
Long decision-making times: when a business has many layers of management, it can take a substantially long time for decisions to come across the desks of the people who need to weigh in. Further, the decision-making process becomes increasingly complicated when the input of multiple managers also requires negotiating some level of compromise so no one feels as though their opinion is being ignored.
Lack of employee autonomy: in a traditional organizational structure, authority is assigned to the position over the individual. This approach requires leaders to constantly check how well individuals are functioning in these positions – and if they even have the actual skills needed for the job.
Misinterpretation of messages: As objectives move through a traditional hierarchy, the original message may get lost in translation as it is communicated through each management level.
Over-specialization: in a traditional organization, employees have a tendency to stick to the responsibilities outlined in their job description, which leaves little room for flexibility. This tendency can also kill problem-solving and spontaneity, which further holds the organization back from creative solutions and out-of-the-box ideas.