Organizational structure is a type of framework used in businesses. Its purpose is to find the most effective way to delegate roles, power, and responsibilities to its employees and departments. It also controls and coordinates how information flows between different departments and levels of management in an organization. Having a proper organizational structure will allow a company to implement better operating procedures, and dictate which employees help in making decisions or shaping the organization. Based on an organizations goals and objectives it may be structured in many different ways. Two important structures include Mechanistic and Organic structures. Mechanistic structures are mainly for companies that operate in a stable environment, use a centralized approach of authority, and maintain strong loyalty for management. Organizations that use a Mechanistic type of structure generally do not need to change or adapt their structure. This is mainly due to lack of innovation, creativity, and quick decision analysis not needed. Examples of organizations using Mechanistic structures include colleges and universities. If you think about it, they have long and strict registration procedures, rarely have to adapt or change in order to keep students enrolling, and most students tend to maintain high loyalty or obedience toward their instructors. Mechanistic Structures Include: – Belief upper management is better capable of making decisions – Management instructions must be followed – Communication and control must proceed through hierarchical routes – More emphasis toward completing a task opposed to achieving company goals – Employees are more jobs specialized and placed into certain departments – Low differentiation of tasks Organic structures are used in organizations facing unstable environments and must possess the ability to change accordingly. They have the ability to process, analyze, and distribute information and knowledge very quickly. This ensures that they stay competitive against other businesses. Businesses using Organic structures need to communicate effectively and quickly by spreading information. This is done by departments and different functional areas being closely integrated with one another. Also, by implementing decentralized decision making, employees of lower ranking will have the ability to make important decisions. This will help empower employees leading to greater creativity and better problem solving. Google Corporation is a great example of an Organic structure based business. Their employees are encouraged to use creative problem solving skills and develop new products. Organic Structures Include: – Large network of authority, control, and communication – Problem solving is encouraged by all employees – Employees are more goals oriented than job orientated – Employee empowerment is encouraged The structure of an organization will dictate how people interact with each other and their relationship of roles in the organization. If a structure is out-dated or not implemented correctly in a business, it will lead to many problems. These include conflict among employees or departments, confusion of employee roles, and lack of communication / coordination among departments. In the past managers have simply tried to reorganize or work with the current structure of a business rather than addressing the necessary issues. This could lead to greater complexity rather than solving structural flaws
1 – Is the problem the structure or the way management is managing it? 2 – Does the structure match out strategy? 3 – Has organization design been compromised due to accommodating to personalities? Have you ever worked in a company and thought about these 3 questions? . Ashkenas,R. Harvard Business Review. Solving the Rubik’s Cube of Organizational Structure. Retrieved June 28,2011 from http://blogs.hbr.org/ashkenas Corkindale,G. Harvard Business Review. The Importance of Organizational Design and Structure. Retrieved June 28,2011 from http://blogs.hbr.org/corkindale Kotter,J. Forbes Business. Hierarchy and Network. Retrieved June 28,2011 from http://blogs.forbes.com. For the most part, mechanistic organization is applied to most all business structures but is predominant in manufacturing while organic organization is best applied to businesses that apply a more open business structure such as online business platforms. MECHANISTIC ORGANIZATION DEFINITION: According to Black’s Law Dictionary mechanistic organization is “the organization is hierarchical and bureaucratic. It is characterized by its (1) highly centralized authority, (2) formalized procedures and practices, and (3) specialized functions. Mechanistic organization is relatively easier and simpler to organize, but rapid change is very challenging. Contrast to organic organization.” CHARACTERISTICS: Employees are found to work separately and on their own assigned tasks. There is a definite chain of command and decisions are kept as high up the chain as possible. Communication is a process between managers and supervisors up to executives, there is little daily interaction if any. There are strict company policies or operating standards with an abundance of documentation. This structure is considered the more stable of the two structures. STRUCTURE: Companies in a mechanistic organization structure typically hold tight control, over processes and employees; with an iron fist so to speak. Rules are implemented and rarely deviated from while there is also a very clear chain of command to delegate responsibilities and power throughout the organization. Again, it is manufacturing companies that are well known for this type of structure but there are other groups that benefit from mechanistic organization; like universities. ORGANIC ORGANIZATION DEFINITION: According to BusinessDictionary.com, organic organization is characterized by “(1) Flatness: communications and interactions are horizontal, (2) Low specialization: knowledgeresides wherever it is most useful, and (3) Decentralization: great deal of formal and informal participation in decision making.” CHARACTERISTICS: Employees are often found working in groups and share input on tasks. There are usually teams that handle one task. Communication is open between employees, managers and executives though they are typically just known as ‘the owner’. There is a greater scale of verbal communication between parties. There is also more face-to-face time within the hierarchy of power. STRUCTURE: Companies in an organic organization structure typically have a more open communication and contribution to tasks at hand. The structure of the business is more adaptable and flexible to changes. The environment is unpredictable but because of the freedom afforded the employees and management it is better maintained. Good examples of this type of structure would be Google and the coveted positions that lie within the Facebook Corporation. Organic organizations have quickly realized that a happy workplace makes for a happy employee.
The mechanistic organizational structure is one of the formal structures as it is an amalgamation of bureaucratic as well as hierarchal systems. The organizations that deal in mass production are most equipped to handle this kind of structure as it can take advantage of economies of scale. The organization is named mechanistic because of its similarity to a machine that works systematically without any divergence from its standard path. What is organic organization?The organic organizational structure is a flat structure where every activity is horizontal by nature. It is a complex system because there are no formal rules, regulations, and guidance in place. Every employee has treated equal hence interactions; communications dealings are placed at the same levels. The organic organization structure is most suitable for external environments that are unpredictable by nature as the structure can adapt itself to any given situation. Difference between Mechanistic and Organic organizationBoth mechanistic and organic are two of the most common types of organizational structures. They are very different from each other in terms of structure, characteristics and even in the matter of guidelines which it follows. The points of difference between the two organizations are described below.
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