Pyramid Organizational Structure
According to Kinicki (37), private business hierarchies and public business hierarchies sustain a distinct management pyramid. Individuals are ranked differently within the organization, such that each rank is higher than the preceding rank. At every stage in the pyramid, one individual has a number of employees directly under him or her. A large number of individuals compete for the few vacancies on the hard way to the peak. According to the modern literature, an individual deserves a promotion when he or she can be able to demonstrate greater expertise and specialization as compared to the potential competitors (Kinicki 34). These elements are crucial for the substantiation of appointments (Kreitner 5). The person who rises to the higher level is said to have been preferred over his or her competitors from the perspective of talents and knowledge relative to the given position of organizational management. The passage from a given level to the next higher level of the pyramid is the beginning of advancement and generally needs an individual to demonstrate specialization at the present lower level and to have his or her professional status declined before he or she can expect to attain a position similar in importance to the position he or she occupied in the former pyramid (Kinicki 24). Due to advancement in technology, the traditional management pyramid has been reshaped into a more flat structure.
The various computers in today’s world have some influence on at least every industry and occupation in the economy of the United States, unlike the previous days’ technology which normally affected some specific occupations. Computers are seen as the most advanced technology from the era when Industrial Revolution was ignited by steam power. Computer technology is changing the nature, form, and the future course of the economy of the United States (Drucker 532). This has been found to increase to demand the flow of commodities, creation of entirely new commodities and services changing the way firms react to demand, and inducing the commencement of financial markets and globalization of commodities. In addition to altering the techniques of production in various firms, the computer technology is altering the relationship between organization and labor. The traditional management pyramid of most corporate firms is as a result of the Industrial Revolution, which is considered to have moved work from the family unit or individual up to an organizational structure (Kinicki 33). This traditional management hierarchy has been challenged by computer technology as many organizations are moved from pyramid-like structure to another structure that is flatter.
In the traditional organizational structure, a decision was made to the top management and passed to the lower management layers. Nowadays, the computer technology allows companies to pass information instantaneously throughout the organizations without considering the structures for traditional management. This wider dispersion of authority in various companies has emphasized on encouraging deficiency of labor as it replaces fragmented occupation with integrated employment opportunities. This can result in upgrading the skills of the worker, as changing flexibility in the production of different commodities and services needs highly trained and experienced personnel. Computer manufacturing is defined as an industry whose new rules of production results in changing the value of a given commodity for which there is a decrease in the cost of raw technology.
In the previous two centuries, the technological improvements in manufacturing and agriculture have improved productivity, increased the yield, and bettered living standards in the industrial economies. It appears that this was the case in the previous days because technological improvements can only be applied when the industry has got a certain as well as capital intensity. Because of the versatility of computer technology and its declining cost, it has been employed in various unrelated industries such as power utilities, banking, health services, and wholesalers (Kinicki 32). The reshaping of the traditional organizational structure has its advantages as well as disadvantages.
The reshaping of the traditional organizational structure has been considered very important since the technological improvements in manufacturing and agriculture have improved productivity, increased the yield, and bettered living standards in the industrial economies. The prices of various goods are declining because of cheaper methods of production. However, other parties in various societies are negatively affected by the reshaping of the traditional organizational structure. This wider dispersion of authority in various companies has emphasized on encouraging deficiency of labor as it replaces fragmented occupation with integrated employment opportunities, and therefore some individuals in various societies are experiencing a lack of job opportunities.