Using a typical organization as example, explain the main differences between a modern organization

and a post-modern organization.

Introduction,

The terms “Modern” and “Post-Modern” were developed in the 20 th century. “Modern” is the term that
describes the period from the 1890s to 1945, and “post-modern” refers to the period after the Second
World War, mainly after 1968. Generally, the meaning of an organization is an entity comprising
multiple people, such as an institution or an association that has a collective goal and linked to an
external environment. An example of a modern organization is the Social Security and National
Insurance Trust (SSNIT) in Ghana, and that of a post-modern organization is Apple in the USA. The
purpose of this essay is to explain the main differences between a modern organization and a post-
modern organization. Four (4) differences between modern and postmodern organizations are
explained below:

1. Hierarchy – Modern organizations follow a ‘tall hierarchy’ whilst post-modern organizations follow a
flat hierarchy. For modern organizations, power flows vertically and upward, with employees
departmentalized and following a chain of command. However, a post-modern organization is
boundaryless and there is more collaboration or teamwork as compared to a modern organization.

Harold J. Leavitt writing in the Harvard Business Review (2003) argue that hierarchies are terribly flawed
and inevitably foster authoritarianism and its destructive offspring: distrust, dishonesty, territoriality,
toadying, and fear. One of the most common indictments of hierarchical organizations is that they are
outdated – too slow, too unbending for the turbulence of the modern world. However, many large
postmodern organizations have prospered in large part because they have been flexible and responsive
to their changing environments. For example, a letter from another company that needs approval could
be on the managers desk for days because the manager is out on leave, whilst for a postmodern
organization, even a letter would be unthinkable.

It has however been argued that hierarchy is not just an organizational construct, but a phenomenon
intrinsic to the complexity of the natural world. Hierarchies add structure and regularity to our lives by
giving us routines, duties and responsibilities. Hierarchies are also nature’s way of helping us to process
complexity. Another reason is that people want to be evaluated, and hierarchies offer us report cards in
the respectable form of performance appraisals, salary increases, promotions, bonuses, etc.

In summary, there are arguments for and against how modern and postmodern organizations adopt
hierarchy as an organizational structure. Each of them has their own advantages and disadvantages.

2. Stability – People believe that modern organizations are stable in their activities and progress. In
Ghana, a lot more people would prefer to work in modern organizations like SSNIT rather than post-
modern ones like Google or Facebook because of the apparent job security. Modern organizations are
characterised by stringent control and efficient fulfilment of pre-defined and coordinated tasks under
the assumption that the environment is stable and predictable. Most of the workforce in modern
organizations is usually engaged in repetitive tasks that require low intelligent effort. Similarly,
organizational creativity is mostly depleted on internal problems (systems and procedures), with the
internal procedures consuming more resources than market-oriented activities. For example, one could
work in SSNIT their whole life because of the ‘stable and predictable environment’.

On the contrary, continuous learning is a condition for job security in postmodern organizations. All
employees are stimulated, through systematic and regular meetings with managers, to share their ideas
and express ‘tacit knowledge’, which might be very useful for continuous re-definition of tasks.

In summary, some people would prefer to work in modern organizations because of the predictable and
stable nature of the environment. However, in postmodern organizations, continuous learning serves as
job security and a justification for inclusion.

3. Flexibility – Flexibility and organizational responsiveness are getting crucial, and postmodern
organizations have recognized the necessity of introduction of more adaptable arrangements such as
homework, teamwork, cross-training, job switching, multiskilling and multi-tasking, subcontracting,
outsourcing, contingent employment contracts, etc. For instance, previously, Ghanaian telecom
companies used to sell scratch cards, but this has now ceased.

There are, however, downsides to flexibility in postmodern organizations. In organizations with loosely
defined goals, watered organizational culture, low-level of self-discipline, insufficiently capable
leadership, the application of this concept may result in anarchy and chaos, which may lead to increased
costs of decision-making and decision-implementation. Employees are also subjected to greater load of
responsibility and stress and are held responsible for outcomes that were once the exclusive
responsibility of supervisors and managers.

In sum, post modern organizations are seen to be flexible and adaptable, with a flat organizational
structure, modern organizations are seen to be rigid, with a tall hierarchical structure.

4. Technology –Modern organizations are centralized, backward and do not easily deploy advanced
technology, with employees required to be present at work. It is argued that that is the best way for the
hierarchical nature of the system function.

On the contrary, postmodern organizations rely heavily on technology, and are boundaryless, with
employees allowed to work from anywhere around the world. Leading-edge information technology is
used to monitor the location of products, provide detailed information about work performance, and
build in quality control mechanisms.

For example, an employee in a modern company may be in the office between 8am and 5pm but be less
productive compared to an employee in a postmodern organization who could be working from home
and be more productive. The difference is in the adoption of technology by postmodern organizations
which allows employees to work anywhere around the world.

The counter argument is that in such high technology environments where everyone watches everyone,
it can feel like having a hundred bosses. Moreover, different workloads for the same paid jobs may
exacerbate the atmosphere. This may be a source of insecurity to employees and result in abstinence,
sabotage, strikes, etc.
In summary, postmodern organizations are boundaryless with location not a barrier to productivity.
Modern organizations, on the other hand, are centralised and are not technology driven.

In conclusion, the differences between modern and postmodern organizations can be seen in several
factors such as hierarchy, stability, flexibility, and technology. Whilst modern organizations are said to
be hierarchical, and somewhat stable, post-modern organizations are flexible and much more
technology driven. These differences were more pronounced considering the two companies cited as an
example of each, SSNIT and Apple of USA.