21st Century Trends

Stephen P. Borgatti identified five organizational trends which influence the workplace of the 21st century. The five key 21st century organizational trends which he identified are Globalization, Diversity, Flexibility, Flat, and Networking.

1. Globalization
Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries. McDonalds restaurants around the world is an example of globalization; the fact that they adapt their menus to suit local tastes is an example of globalization.

Whether or not the establishment of the global marketplace will be beneficial is in dispute.
Supporters believe that globalization has the potential to create greater opportunities for growth throughout the world, benefiting the developed nations while leveling the playing field everywhere else; Critiques of globalization believe that it will merely increase the opportunities for the wealthier nations to take advantage of the poorer ones and, furthermore, could eradicate regional diversity and lead to a homogenized world culture.

2. Diversity
By having workers from culturally diverse backgrounds into their workforce companies become much stronger. However, many firms don’t understand the importance or challenges of workplace diversity. Diversity needs to be seen as an integral part of the business plan, essential to successful products and increased sales. This is especially true in today’s global marketplace, as companies interact with different cultures and clients. Example of a well diversified company would be Google wherein there is a very good mix of cultures and diverse backgrounds in their workforce. Among the advantages of diversity in the workplace are: increased creativity, increased productivity, new attitudes, new language skills, global understanding, new processes, and new solutions to difficult problems.

3. Flexibility
Flexibility is the quality of adaptability of an organization to different situations. Flexibility of an organization plays a major role in it's success. In this ever changing business environment of today, every organization should be flexible or must be able to adapt to the changes in the environment to run smoothly. Flexibility in an organization helps it achieve:
a) Funding for diversification and acquisations
b) Programs that meet changing needs
c) Efficient management and planning
d) Proper implementation of innovation
Some examples of companies that are flexible are Toyota and Dell.

4. Flat Organizational Structure
A flat organizational structure is one in which there is relatively fewer layers of managers between the top level managers and the normal employees. There is a very less chain of command in such kind of an organization. Applying such an organizaional structure has many benefits such as:

a) More effective and simpler communication processes. Minimal bureaucracy.
b) Increased flexibility to cope with changing circumstances through more decentralized authority to take decisions.
c) Matches the needs of the modern knowledge worker to have more responsibility, autonomy and authority.
d)Smaller resource commitments to the task of employee supervision.
e)Improved customer relation management through more personal contacts and quicker decision-making.
f) Most beneficial for R&D companies as there is more freedom.
Yahoo has a flat organizational structure. This helps them in being more creative as they are more independent to make their own decisions and have both the responsibility and authority to do what they think is right for the company.

5. Networking
Networking is process of establishing mutually beneficial relationships with other business people, potential clients and customers. Effective networking need good communication within the organization.
Benefits of a Networked Organization
a) Being closer to the customer - there is rapid communication between those at the sharp-end and those who support them.
b) Maximizing the knowledge potential of an enterprise; network members tap into expertise wherever it may reside.
c) Minimizing disruption; a network has resilience to operate even if some parts fail (e.g. in a natural disaster).
d) Responsiveness and adaptiveness. Like an amoeba, a network is sensitive to stimuli and adjusts accordingly.
Microsoft is a very good example of a company having strong social networks with people and organizations.

References:
http://www.analytictech.com/mb021/trendsin.htm
http://www.ethnoconnect.com/html/articles_09.html
http://www.skyrme.com/insights/1netorg.htm
http://www.12manage.com/