Difference between traditional organisation and modern organisation

It is easily recognizable that there are lots of differences between the traditional organization and the new modern organizations And somehow the modern organizations are more practical and flexible than traditional organizations in case of their productivity and case of their skills of employees.

What is a traditional organization

Normally, traditional organizations are the organizations that are established in the 20th century. These traditional organizations follow a business structure design that is hierarchical. That means the power of the organization goes vertical and upward. All of the employees of this type of organization follow a chain of command, where a higher position gets more value in the organization. and each of the departments has its own departmental head, and all of the employees of that particular department reports to the departmental head. And the departmental head reports to the Manager. In this way, the hierarchical organization structure is followed in these types of traditional organizations.

What is a modern organization

Modern organizations are those organizations, which have emerged in this ongoing century. Type of organization believes in-network relationships and collaboration so that they can produce great results for their organization. This type of modern organization rapidly improves their technology and working pattern, so that they can keep their organization up-to-date with the modern evolving world.

Here is the difference between traditional and new organization

Here is a comparison between traditional organisation and modern organisation. This comparison will help us with a better understanding. Thease are some of the key points of the comparison of traditional and modern organisation.

Title Traditional Organization Modern Organization
Type Stable Dynamics
Flexibility Inflexible Flexible
Point of Focus Job Oriented Skill Oriented
Task Operation Style Individual Team Orientated
Employment Type Permanent Jobs Temporary Jobs
Relationship Tall Hierarchy Flat Hierarchy
Workdays and working Time Workdays Defined Flexibility in workdays and workplace

Difference between traditional organization and modern organization
Difference between traditional and modern organization
When we talk about the traditional under today's organization, there is a lot of difference between this organization's & the Primitive organizations, which used to exist before the Industrial Revolution, which was very different from today's organization. Let's just go through certain differences.

1. Flexibility

Where traditional organizations were stable. Whereas today's organizations are Dynamic. Why do we say dynamic because of the changes in technology and several different changes coming because of globalization in the organization? This keeps on changing according to the changing scenario, whereas the derivative organizations, were very stable and they had some particular methodology of working as they were rigid they were not ready to adapt to the changes. That is the reason we think that traditional organizations were inflexible. Whereas today's organizations are flexible.

2. Point of Focus

Traditional organizations are job-focused whereas today's organizations are skill-focused. Why do we say skill focus because when an organization today, gives certain work to the employees, they give the work based on the competency of the employee? That means they look into the skill sets of the employee and then that particular work is given part of the perimeter of organizations. They just looked into whatever work needs to be done irrespective of the competency of an individual that particular work was given and were told to the individual that you need to accomplish this particular work. So of course as skill-focused organizations are better because if one individual has that particular skill, for example, If an individual possesses marketing skills, he definitely should be given work related to marketing and not related to HR or any technical operations.

3. Task Operation Style

In traditional organizations, work was defined by job positions. Whereas a new organization work is defined in terms of tasks to be done, which I have already explained traditional organizations were individual-oriented. Well as new organizations are team-oriented people work in teams. These teams can be virtual. These teams can be cross-functional teams depending upon the requirement of the organization teams are made and people work in the team's traditional. Visions are welcomed, new organizations are involvement-oriented where we talk about the involvement. That means in today's organization even employees are asked to give suggestions while the decision is made whereas in primitive organizations most of the decisions are made by the senior employee. It was just that directions were given to the individuals or the employees and they were not asked for their suggestions because his employees were not happy in those organizations and that belongingness factor was missing.

4. Employment Type

Generally in the case of traditional organization people receives a permanent job. That's means in traditional organizations the firing rate is very low, just like a government organization. But in the case of modern organizations jobs are becoming temporary. The organization provides vacancies for a single project. After the project ends there is no connection between the employee and the company. Again he has to apply for the next project for that organization and then only he can continue that job. As in modern age, the population is increasing day by day and that's why there are lots of qualified people around the city. And the amount of vacancies is very less than the number of applicants. that's why an employee can be found very easily for any organization.

5. Workdays and working Time

In the case of the traditional organization, there was a limited workload for every employee. and also the working days for a week is also predefined. That's why there was a similar rule to work from 9 a.m. to 5 p.m. on every working day. And he was fully allowed to take a rest at the weekend. But where in the new organization there is no fixed working time. as in modern days, technology is also increasing day by day. and every organization is also adapting to the new technology. In the case of old age, an employee can not work online or there was no concept of work from home. but in modern age employee can work from his home. that's why in the case of some new organization there is no fixed working time. An employee just has to finish his work within his deadline. in the case of some new organization, they also pressurize their employee with some extra workloads that they have to complete beyond the office work hour.

6. Decision-Making criteria

Traditional organization managers always made decisions, whereas in a modern organization's employee participates in decision-making new organization focused on customer orientation. They look into what is the requirement of the customer. What are the preferences of the customer and according to that decisions are made by traditional organizations? They had a relatively homogeneous Workforce. Whereas today's organizations. They have Workforce diversity because there are a lot of people who are coming from different backgrounds different countries, and they work together.

7. Relationship

International organizations, they were hierarchical relationships wherein today's organizations, they are more focused towards literal and network relationships and hierarchical relationship. You will find that there was a tall hierarchy is a lot of levels were there because of the decision making the slope and the empowerment of the employees but not that much but when we talk about today's organizations, then they are usually horizontal or lateral and networked. We're in Employee is empowered to take decisions at their level.


While comparing traditional organization vs modern organization, I have found that the structure of the traditional organization is simpler than any modern organization. It is very easy to understand their duties and responsibility for any employer of a traditional organization. Normally they have fixed responsibilities, that's why it becomes easier to work in a traditional organization.

Note: You can also read about some good preparation habits to become more productive

Where in the case of modern organizations they have complex policies, which become challenging to understand for any new employee. But they are more focused on networking and collaborating that's why rapid Innovation and continuous growth in skill development can be found in modern organizations. That's why the employees working in a modern organization become more flexible, self-confident, and quick problem solvers.

compare and contrast between the traditional organization and the modern organization
comparison and contrast between the traditional organization and the modern organization
So in conclusion, I must say that there is a lot of differences between the traditional organization and modern organization. Both of the organizations have some positive points and some down points. And according to me it totally depends upon the employee that in which organization he wants to take part or work. if a person relies on job security then definitely he should go for the traditional organization but if a person prefers to adopt the latest technology and to stay updated and to be more productive then the modern organization is the right choice for him.

Frequently Asked Questions / FAQ

  • The similarities anyone can find between the traditional and modern organization structure design, that both of the organizations are concerned about the division of workload. Every employee of that organization is assigned a particular role and they have to fulfill some particular tasks that have been assigned for them. A hierarchy of authority can also be found in both organizations. That's why top-level Management is the most valuable path for both organizations. Teamwork or coordinated effort are also be used in both organizations to increase their productivity. These are the similarities you can find in both of the organizations.
  • Here the difference between the design of the two organizations means the difference between the structure of the two organizations. That's why the answer to this question will be the same that is mentioned in the respective article.
  • There are three types of traditional organization. Such as the line Organisation, functional organization, line and staff organization.
  • General Electric is a good example of a modern organization. It is an American multinational company, its headquarters is situated in New York. you can find more details in Google about General Electric company or from its official website ge.com

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