20th century organizations and 21st century organizations Structure

20th century organizations

• bureaucratic;

• multileveled;

• organized with the expectation that senior management will manage;

• characterized by policies and procedures that create many complicated internal interdependencies.

• depend on fewer performance information systems;

• distribute performance information to executives only;

• offer management training and support systems to senior people only.

• inwardly focused;

• centralized;

• slow to make decisions;

• political;

• risk averse.

Our thoughts:

• directive;

• visionary;

• charismatic;

• participative at top levels only.

21st century organizations

• nonbureaucratic, with fewer rules and employees;

• limited to fewer levels;

• organized with the expectation that management will lead, lower-level employees will manage;

• characterized by policies and procedures that produce the minimal internal interdependence needed to serve customers.

• depend on many performance information systems, providing data on customers especially;

• distribute performance information widely;

• offer management training and support systems to many people.

• externally oriented;

• empowering;

• quick to make decisions;

• open and candid;

• more risk tolerant.

Our thoughts:

• scanning and interpreting environmental changes;

• encouraging connectedness;

• giving meaning and purpose.

Source: adapted from Kotter (1996)