Premium Essay

Mechanistic Versus Organic Structures

In: Business and Management

Submitted By shie
Words 748
Pages 3
Mechanistic versus Organic Structures

a. Mechanistic 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 decentralized and has low complexity and formalization. It has an extensive information system, and employees rarely participate in decision making. It tends to be flexible and adaptive.

c. Structure in function of the organization’s fundamental strategy.

1) Innovation Strategy focuses on developing important new product or services. An organic structure provides the flexibility for this strategy.

2) Cost-minimization Strategy imposes tight controls over expenses and reduces product prices. The mechanistic structure is appropriate.

3) Imitation strategies are not adopted by true innovators but rather by organizations that move into new markets after smaller competitors have demonstrated the potential for success. Limitation best suited to a structure that combines mechanistic and organic.

d. Structure is also a function of

1) Size. Larger organizations tend to be mechanistic because greater formalization is needed. Strategies also change as sizes changes. Growing organizations often expand activities within their industry.

2) Technology. An organic structure may be best for coping with non-routine technology because formalization is low.

3) Environment. In general, the more stable the environment, the more mechanistic the organization. A mechanistic structure is appropriate when the environment has little capacity for growth. Dynamic environments require an organic structure because of their unpredictability. Moreover, a complex environment also...

Similar Documents

Premium Essay

Student different structures. Organizations can operate with blended approach between mechanistic and organic structures that need to change within some of structural traits as organizations change and mature. A success factor for organizations has the ability to adapt different structures, systems and processes to capture new market and expand. The organization design is a critical determinant of strategic competitive advantage. The importance of organization design for business leaders will also determine how effective is their strategies. Discussions The two structures for organization are basically the organic and mechanistic organization. A mechanistic organization has a rigid structure that is inflexible. Meanwhile, an organic organization is loosely designed with few levels of hierarchy and a lot of flexibility. The two structures will impact the effect of an organization. The contingency factors of organizational design decisions can affect the strategy and structure that can facilitate the achievement of goals. The innovation is a free flow of information that is based on organic organization. The cost minimization that seeks efficiency, stability, and control is under the mechanistic organization. The technological aspect of an organization in both mechanistic and organic supports the routine and non-routine technology, respectively. The output of every technology depends on the production types. Mechanistic Versus Organic Organization Design Mechanistic Organization...

Words: 630 - Pages: 3

Premium Essay

Intro to Management

...DESIGNING ORGANIZATIONAL STRUCTURE— BASIC DESIGNS 10 Copyright © 2014 Pearson Education, Ltd Copyright © 2016 Pearson Education, Ltd. 10-1 10 - 1 LEARNING OBJECTIVES 1. Describe six key elements in organizational design.  Know how to delegate work to others and develop your skill at delegating. 2. Contrast mechanistic and organic structures. 3. Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design. 4. Describe traditional organizational designs. Copyright © 2014 Pearson Education, Ltd Copyright © 2016 Pearson Education, Ltd. 10-2 10 - 2 DESIGNING ORGANIZATIONAL STRUCTURE  Organizing – arranging and structuring work to accomplish an organization’s goals.  Organizational Structure – the formal arrangement of jobs within an organization. Copyright © 2014 Pearson Education, Ltd Copyright © 2016 Pearson Education, Ltd. 10-3 10 - 3 DESIGNING ORGANIZATIONAL STRUCTURE  Organizational chart – the visual representation of an organization’s structure.  Organizational Design – a process involving decisions about six key elements: • • • • • • Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization Copyright © 2014 Pearson Education, Ltd Copyright © 2016 Pearson Education, Ltd. 10-4 10 - 4 EXHIBIT 10-1 PURPOSES OF ORGANIZING Copyright © 2014 Pearson Education,......

Words: 1456 - Pages: 6

Premium Essay


...Mechanistic Versus Organic Organizational structures vary in designs depending to the extent or type of key elements they have. The designs that will be discussed are “matrix structures”, “organic structures”, “hollow design” and one of the recent structure is “virtual organization” design. Designs can either be describe as “mechanistic” or “organic”. Keep in mind that there were decades in the past that reflect a certain organizational designs because of the change in environment or situations. This in turn made an impact on members of organizations. Mechanistic Mechanistic structure work on more stable environment, low differentiation of tasks, low integration of departments and functional areas, centralized decision-making and formalized and standardized tasks (Burns & Stalker, 2010). Organic Organic structures work on uncertain and dynamic environment, tasks is more differentiated, different department and functional sections are closely integrated, lower levels of staffs are empowered and therefore decision making is decentralized, and minor tasks is standardized and formalized (Burns & Stalker, 2010). Google adopts this type of model that aligns with their culture (Deutschman, 2010). Althougth supervisors are responsible in managing employees, these employees see their supervisors as leaders than managers because they choose their metric for tracking to achieve their goals (Deutschman, 2010). The employees sense the cross-functional leadership environment within...

Words: 1207 - Pages: 5

Free Essay


...Chapter 10 Defining organisational structure and design Organisational structure The formal arrangement of jobs within an organisation. Organisational Structure and Design Organisational design A process involving decisions about six key elements: Work specialization Departmentalization Chain of command Span of control centralisation and decentralisation Formalization Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 2 Organisational structure Work specialisation The degree to which tasks in the organisation are divided into separate jobs with each step completed by a different person. Overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover. Departmentalisation by type Functional Grouping jobs by functions performed Process Grouping jobs on the basis of product or customer flow Product Grouping jobs by product line Customer Grouping jobs by type of customer and needs Geographic Grouping jobs on the basis of territory or geography Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 3 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 4 1 Functional departmentalisation Geographical departmentalisation • Advantages • Efficiencies from putting together......

Words: 1604 - Pages: 7

Premium Essay

Organisational Structure

...chapter Organisational Structure and Design . 9.1 Defining Organizational Structure •  •  Describe each of the five forms of departmentalization. •  Differentiate, authority, responsibility, and unity of command. •  Sandra Carlos Discuss the traditional and contemporary views of work specialization, chain of command, and span of control. Explain how centralization – decentralization and formalization are used in organizational design. Organising 9.2 Mechanistic and Organic Structures •  Contrast mechanistic and organic organizations. •  Explain the contingency factors that affect organizational design. o  -the process of organising an organisation’s structure o  -undergone lots of changes in the last few years 9.3 Common Organizational Designs •  Contrast the three traditional organizational designs. •  Describe the contemporary organizational designs. •  Discuss the organizational design challenges facing managers today. Exhibit 9–1 Purposes of Organizing •  Divides work to be done into specific jobs and departments. •  Assigns tasks and responsibilities associated with individual jobs. •  Coordinates diverse organizational tasks. •  Clusters jobs into units. •  Establishes relationships among individuals, groups, and departments. •  Establishes formal lines of authority. •  Allocates and deploys organizational resources. Organisational Structure -formal framework by......

Words: 2603 - Pages: 11

Premium Essay

Organizational Culture- Real Estate

...Organizational Structure and Roles | “All the world's a stage And all the men and women are merely players They have their exits and their entrances And one man in his time plays many parts” – by William Shakespeare | | | | | 06-May-12 | Contents Title 3 Executive Summary 3 Introduction 3 Roles 3 Attitudes and relationship of Attitudes with Roles 3 Organizational Structures 3 Organizational Structures Effect on Roles and Attitudes 3 Mechanistic Structure 3 Organic Structure 3 Moderate Mechanistic and Organic Structure 3 Phases of innovation, Mechanic versus Organics 3 Case study, Sunshine Real Estate 3 Sunshine Real Estate organizational design 3 Sunshine Real Estate organizational culture 3 Implications of Sunshine Real Estate’s three structural properties on employee role perception and attitudes 3 Work Specialization 3 Centralization 3 Formalization 3 Conclusion 3 References 3 APPENDIX 3 A: Organizational Structure Elements and Types of Structures 3 B:Elements Associated with Roles and Attitudes 3 C: Survey Analysis 3 Title The project attempts to explore the relationship between organizational structure, roles and attitudes under distinct corporate structural conditions. Executive Summary Organizational design in a sense is similar to the structure of bones in human body. It is a skeleton or framework upon which organizations are built and maintained. Organizations in creating organizational......

Words: 8879 - Pages: 36

Premium Essay


...achieve its goals, an organization must successfully respond to environmental factors. How can the effectiveness of an organization be measured? Various models of determining organizational effectiveness exist because organizations face different environments, they produce different products, their organizational members are made up of different kinds of people, and the organizations are at different stages of development. Each model is most useful to an organization having a particular combination of these environmental and organizational attributes. Two different underlying dimensions may be considered to develop models of organizational effectiveness. The first is the organization’s internal versus external focus. The second dimension is the organization’s emphasis on flexibility versus control. Flexibility allows faster change, whereas control allows a firmer grasp on current operations. When these two dimensions are drawn at right angles to each other, the first four models of organizational effectiveness can be plotted. They are the rational goal, open system, internal process, and human relations models. According to the rational goal model of effectiveness, an organization is effective to the extent that it accomplishes its stated goals. For example, the formal goals of the Toronto Blue Jays are to win their division, the American League pennant, and the World Series. With an open system model an organization is effective to the degree that it acquires inputs......

Words: 4088 - Pages: 17

Premium Essay

Business Management

...Organisational culture is defined as the shared values and beliefs that interact with an organisations’s structure and control systems to produce behavioural norms (Uttal 1983). Strategic management consists of the analysis, decisions, and actions an organistion undertakes to sustain a competitive advantage (Gregory 2005) . Scholars, such as a Drucker, argue that “culture eats strategy for breakfast”, meaning organisational culture is far more significant and influential compared to strategic management. No matter how brilliant your strategy is, it won’t be accomplished if it is not supported by your ogranisation’s culture. However, some scholars argue that due to the intermittent challenges facing organisations in the contemporary business enivornment, culture can often be influenced by strategy. An organisation’s culture is extremely influential to business success. The organisation’s values and beliefs affect marketing, productivity and customer interaction. A strong organisational culture is achieved through the use of language, rituals and symbols to communicate key values throughout the organisation. A weak organisational culture exists when core values are not clearly defined, not clearly communicated or not widely accepted within the organisation. This can lead to inconsistant customer experiences and a unfavourable business reputation. (1) presents a strong organisational culture as a competitive advantage, “ A strong culture helps you attract and keep top talent,...

Words: 1461 - Pages: 6

Premium Essay

The Case of Sony

...Sony is a famous Japanese multinational corporation, which specialized in manufacturing the electronics (such as televisions, refrigerators, gaming...), entertainment, game, etc. Sony is also one of the leading manufacturers in this industry globally (Wikipedia, n.d.). In 2000s, strong competitors of Sony such as LG, Apple, Samsung continuously launched new technologies such as LCD, GPS, 3D displays, mobile digital music, etc. that made Sony's technologies become obsolete. As a result, Sony was in a big trouble and gradually lost its leading competitive position in the electronic market. In 2005, top managers of Sony decided to choose a non-Japanese to lead their company and help the company overcome difficulties. Finally, Howard Stringer - a Welshman was chosen (Jones, 2013). 1. Environmental constructs Management culture, not making new product’s culture: There was very little coordination, unity and harmony between different divisions of Sony. Leaders of various divisions as well as hundreds of product teams at Sony did not talk to each other and they were allowed to pursue their own innovations, Sony also empowered to their engineers in order to pursue their own ideas. The intense competition between the leaders of various divisions usually occurred for the purpose of protecting their own power and interests. Leaders tried their best to achieve the funding as much as possible for their teams in order to develop products successfully and achieve functional goals.......

Words: 1099 - Pages: 5

Premium Essay


...BUS1001 – Introduction to Management and Organisations: Examination Guidance & How to tackle specific questions The Exam Wednesday 21st May 9.30 – 11.30. Three venues: * Sports Centre Hall * Sports Centre Multi Purpose Room Level 1 * Tyne Suite. Premier Inn * Make sure you know which venue you are in and where it is and turn up in good time * 2 hours * 3 questions from a choice of 7 * 40 minutes per question * make sure you do THREE questions 7 questions - 7 areas of management activity * Management generally * Organisation design, structures and processes * Groups and teamwork in the Organisation * Decision Making * Motivation * Leadership * Organisational Culture 2009/10 Paper 1. What are the main features of an organic organisation? In what situations might this type of organisational form NOT be appropriate? Justify your answer with reference to appropriate theory. 2. Explain why, with reference to motivation theory, Performance Related Pay may have limited impact upon an employee’s motivation at work. 3. Why is team-working considered important in modern organisations and what are the problems that may be encountered when trying to introduce such an approach? 4. (Brooks, 2006) states that “an intimate knowledge and awareness of culture should improve our ability to analyse organisational behaviour and to manage and lead” Explain why knowledge of organisational......

Words: 947 - Pages: 4

Premium Essay

Ot Environment

...Task 1: Individual Assignment Completed by: Cheryl Tan Hui Ting S3449942 Word Count: 1836 Organizations are dependent on the environment for their survival. The organizational environment has been defined as all the factors that exist out of the organization that has the potential to affect parts, if not all, of the organization. The effects of their relationship can cause an organization to dictate the structure of their processes and functions in a particular manner that can ensure productivity, effectiveness and maximize gains. In this essay, we will focus on two paradigms that can help shed light in understanding how Coca Cola relate to its environment. The first paradigm that will be explored is the Modernist Perspective. The modernist approach embraces objective ontology and positive epistemology, where theorists believe organizations exist even if there is no knowledge of it. They seek out the truth through tests, assessments and statistical methods to fulfill the purpose of being effective, more productive and to gain power, control and structure within the organization (Hatch & Cunliffe 2013). Modernist theorists define the environment as an objective entity living outside the organization’s boundary. Stakeholders, who have a role to play in the survival of the organization where they provide materials, resources, capital, equipment and regulate law, are part of the environment. These stakeholders form the inter-organizational network of the......

Words: 2011 - Pages: 9

Premium Essay


...describes the four types of change technology, product, structure, people—occurring in organizations, and how to manage change successfully. The organization structure and management approach for facilitating each type of change is then discussed. Management techniques for influencing both the creation and implementation of change are also covered. The final section of the chapter looks at barriers to change and implementation techniques managers can use to overcome resistance. The Strategic Role of Change If there is one theme or lesson that emerges from previous chapters, it is that organizations must run fast to keep up with changes taking place all around them. Large organizations must find ways to act like small, flexible organizations. Manufacturing firms need to reach out for new, flexible manufacturing technology and service firms for new information technology (IT). Today’s organizations must keep themselves open to continuous innovation, not only to prosper but merely to survive in a world of disruptive change and increasingly stiff competition. There are three types of change: 1. Episodic change 2. Continuous change 3. Disruptive change Stages of Disruptive Innovation Strategic Types of Innovation and Change Managers can focus on four types of change within organizations to achieve strategic advantage. These four types of change are summarized as technology, products and services, strategy and structure, and culture. * Technology changes are changes......

Words: 4290 - Pages: 18

Premium Essay


...Management and Industrial and Systems Engineering, University of Southern California, Los Angeles, CA 90089, USA Abstract This paper reviews the literature on the social impacts of programmable manufacturing technology (PMT). Several perspectives on the social impact of technology are identified ranging from simple additive models that view technology as having a set of individual and independent causal impacts to a contingency perspective which views the impact of technology as dependent on technical and organizational characteristics. The paper statistically summarizes 30 empirical studies within the 1986-1990 period and finds common trends in findings as well as contradictory evidence. The common trends are that PMT tends to lead to more organic organizations, but also meets with negative employee attitudes, stress, and perceptions of reduced job security and mobility. The contradictory evidence is that most studies report simple, additive effects, while a substantial portion find that the impacts depend on a wide range of contingency variables. The authors argue that simplistic views of PMT as being a homogeneous set of technologies with unidirectional, non-contingent social impacts is neither realistic nor useful. A number of future research directions in this area are suggested. Keywords. Social impacts of technology; Programmable ing; Sociotechnical systems; Organizational design automation; CAD/CAM; Manufactur- 1. Introduction The microelectronics revolution in......

Words: 14431 - Pages: 58

Premium Essay

Finding the Leader in You

...because they have to. With that being said, it is important for leaders to use self-assessment tools to understand their strengths and weaknesses. To begin my journey of becoming the best leader I can be, I developed a personality characteristics and assessment profile, summarized the results of several self-assessment exercises, and analyzed how attributes speak to my relationships and career choice. Personality Characteristics and Assessment Profile I am a twenty-first-century manager that can still improve on many basic management foundations. I am more of a transactional leader by nature. I need to improve on my intuitive abilities, however, I am good with solving conflicts. I excel with time management and prefer a more mechanistic organizational structure. The best cultural fit for myself is “the academy”. Summary of Assessments A Twenty-First-Century Manager I scored a 7 on this test, leaving plenty of room for growth. Leaders must work hard to continually grow and develop these basic management foundations. The test allowed me to easily see which areas I need to strengthen throughout my work career. “TT” Leadership Style Assessment Transformational leader: Scoring a 3 on this part of the self-assessment test is surprising because I agree with McGregor for the most part. People will want to work hard if they are given the right conditions. I considered myself to be the type of leader that would want to give my...

Words: 950 - Pages: 4

Premium Essay

Case Analysis: Coca-Cola Co

...1. Situation Analysis Case Background Created in 1886 by Dr. John Pemberton, Coca-Cola has gone through many changes, some good and some bad, but in the end has become the worldwide leader in its industry (Graham, 2011). The company boasts a lineup of approximately 500 different drinks, including soft drinks, teas, coffees, juices, and waters. Soft drinks are their “cash cow” with around two billion cans and bottles sold each day (Graham, 2011). The syrup originally was designed as a "cure-all tonic" and contained coca leaves (Davis, 2004). Two years after creating the mixture, and just before he died, Dr. Pemberton sold the rights to the beverage to Asa Candler. Due to increasing demand Joseph Biedenharn started bottling Coca-Cola and bottled distribution of the soda began; within five years large scale bottling operations became available. Throughout the company's history, and even today, it has faced and overcame many challenges. Coca-Cola was, until recently, the world’s most valuable brand (Elliott, 2013), but is still the worldwide leader in the beverage industry. Through all the successes, Coca-Cola has encountered some challenges along the way. Coca-Cola has been criticized for discrimination against minority employees, poor working conditions of migrant workers, and even assassinations of trade union leaders and union-affiliated workers that provoked protests (Raman, 2007). Another emerging issue the company is facing is criticism that their products are......

Words: 5834 - Pages: 24