In: Operations Management
Organizational structure is a framework used in organizations to find the most effective way to delegate roles, power, and responsibilities to its employees and departments. A proper organizational structure allows organizations to implement better operational procedures, and finalize which employees help in making decisions. Choosing a structure depends upon the organization's goals and objectives. Two important organizational structures are Mechanistic and Organic Structures. Let us take each of the structure types individually for features:
Mechanistic Structure: Companies that operate in a stable environment, use a centralized approach of authority, and maintain strong loyalty for management would choose this structure. Organizations that use this structure are the ones who do not have to change their structure in the long term as there is no need for quick decisions or creativity. Examples would be colleges are universities. The main features of the Mechanist structure are:
- In this structure, it is believed that the upper management is
better capable of making decisions
– In this structure, upper management instructions must be
followed
– There is a hierarchical route for communication and control
– Task completion is the primary task rather than pursuing company
goals
– In this structure employee jobs are specialized
Organic structures: Companies or organization that allows for horizontal communications and interactions and is more suited to creative businesses choose this structure. This structure is decentralized and gives employees at all levels a chance to participate in business-related decision making. Google Corporation is a great example of an Organic structure-based organization. The main features of Organic structure are:
- It has a large network of authority, control, and
communication
- Problem-solving is encouraged at every level
- Employees are goal-oriented rather than job oriented
- Employee empowerment is of paramount importance
In which environmental contexts is each of these two types of structure more effective?
Mechanistic structures are best suited for organizational environments that are either stable or simple to low-moderate uncertainty. Organizations are characterized by top-down hierarchies of control and are rule-based. In this structure, the chain of command is centralized and uses formal authority. Tasks are clearly defined and differentiated to be executed by specific specialized experts.
In comparison, organic structures are far more flexible and are the best fit for rapidly changing environments. These structures are more effective if the environment is dynamic, requires frequent changes within the organization to adjust itself to the change. Organic organizational structures are considered to be a better form of organization as employees can have openness, change, support for creativity and innovation, and opportunities to try new approaches.