Posted on by Amy Hurford My recent thinking has been shaped by my peripheral involvement in discussions between colleagues at the University of Ottawa.
The theorists argue that Mechanistic versus organic structures need different kinds of structure to control their activities that will allow the company to adapt and react to changes and uncertainties in their environment.
Changes in environment can be analyzed through a pestel analysis, where changes in the factors found in the pestel analysis may either stabilize or destabilize the environment of a given company. Companies facing a dynamic and uncertain environment may have to develop or maintain an organic organizational structure, whereas companies operating in a stable environment may benefit from developing or maintaining a mechanism organizational structure.
The reason behind this is that organic structures can process and distribute information and knowledge faster within the organization, which then results in an increased ability to respond or react to changes in the environment.
However, mechanistic structures may act as an effective and efficient organizational structure for companies operating in a more stable and certain environment.
Companies operating in a stable environment may not need to make decisions quickly. Likewise, many of the day-to-day decisions and operating procedures may be formalized and centralized, because there is no inherent need for constant change or innovation.
Organizational structure can inhibit or foster creativity and innovation. The problem with organizational structure, however is that it is resultant of many factors including history, organic growth, strategy, operational design, product diversity, logistics, marketing, client base, supplier base and so on.
Therefore, what managers need, are not recipes for complete structural change, but insights into the properties of fostering structures that can be adapted into the existing structure.
In our case of investigating Mechanic and Organic structures, Mechanic structures include centralized control and authority, clearly defined tasks, vertical communication links, obedience to supervisorsrigidity and inflexibility.
Organic structures, which are more generally preferred, focus on decentralisation of authority, loosely defined, horizontal communications, greater individual authority, flexible and acceptable.
Mechanistic and organic structures are two possibilities at opposite ends of the organizational spectrum.
They give shape to the concept of the factors of organizational structure. A mechanistic organization is characterized by the following structural factors: Degree of work specialization is high Departmentalization is rigid Managerial hierarchy has many layers Span of control is narrow Decision making is centralized Chain of command is long Organizational structure is very tall While an organic organization is characterized by the following factors: Degree of work specialization is low Departmentalization is loose Managerial hierarchy has few layers Span of control is wide Decision making is decentralized Chain of command is short Organizational structure is flat.Characteristics of mechanistic and organic structures.
Leadership - Mechanistic and Organic Organizational Structures. Retrieved November 15, , Leadership - Mechanistic and Organic Organizational Structures ashio-midori.com Mechanistic versus Organic Structures ashio-midori.comistic Structure is appropriate for organizations focusing on a cost- minimization strategy through tight control, extensive division of labor, high formalization and centralization.
The information network is limited and employees rarely participate in decision making process. b. Organic Structure is . 2 Contingency Factors Question—To what degree should an organization be organic or mechanistic?
Contingency Variables Strategy Strategies which have element of risk, demand flexibility etc require organic structures Ex: Diversification, Integration strategies Strategies which maintain the status quo or require tight control fit nicely in mechanistic organizations.
Mechanistic versus Organic Organization Figure 10–5 6. Structural Contingency Factors• Structural decisions are influenced by: – Overall strategy of the organization • .
The organic organization structure is flexible in nature and takes into account the external knowledge from third parties. The type of organization structure exists where all employees are. 1 Organic Structure of Organizational Design; Mechanistic structures are also a valid choice when a company’s strategy requires efficiency, steadiness and cost leadership.