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Contemporary organisation management practices have evolved in the past decade. External business factors such as changing markets, higher competition and globalisation have created constraints in this continually changing world of business. It is, therefore, inevitable for organisations to consider new and more flexible models and business frameworks in management to adapt to this dynamic environment. This report critically evaluates how classical organisational functions including planning, organising, leading and controlling have impaired successful business practices. Additionally, challenges will be presented, and insightful recommendations are provided on how the situation at hand can be managed effectively to revitalize the practices in the contemporary business world. Ultimately, if organisations want to thrive in the future, they need to be adopt models that are flexible and allow for modern approaches to planning and leadership. The hierarchical organisational structure is a traditional structure of organisations that may no longer be sufficiently innovative in this modern business world. This structure is based on vertical flow of leadership, with senior leaders at the top of the hierarchy, followed by managers and supervisors, and employees placed at the lowest level. In this structure, communication flows from the top to bottom, meaning that innovative employees have no ownership in the decision making process, thus could significantly hinder the competitiveness of the organisation (Diefenbach 2013). Additionally, bureaucracy, which increases lagging in initiation of operations due to departmental paper processing and flow of instructions, could create problems in talent retention (Dube et al. 2014). Therefore, this organisation structure implies vulnerability in today’s organisations. |
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