What is a mechanistic structure?
Efficient, rigid, predictable, and standardized organizations that thrive in stable environments. Features: High specialization, rigid departmentalization, clear chain of command, narrow spans of control, centralization, high formalization
What is an organic structure?
Flexible, adaptive, outward-focused organizations that thrive in dynamic environments. Features: Cross-functional teams, cross-hierarchical teams, free flow of information, wide spans of control, decentralization, low formalization
How does work specialization differ between mechanistic and organic structures?
Mechanistic: High degree of specialization, narrow view of tasks. Organic: Low specialization, broad view of tasks
How does authority differ between mechanistic and organic structures?
Mechanistic: Very clear lines of authority, employees know exactly whom they report to. Organic: Although chain of command may exist, employees think more broadly about where responsibilities lie
How does decision-making differ between mechanistic and organic structures?
Mechanistic: High hierarchical control, managers’ consent needed. Organic: Decentralized, employees encouraged to make own decisions when appropriate
How does communication differ between mechanistic and organic structures?
Mechanistic: Vertical communication between employee and supervisor. Organic: Lateral communication encouraged, focusing on information and advice vs orders
What are the 4 factors that drive the decision to choose mechanistic or organic structure?
- Company strategy
- Company size
- Technology
- Business environment
What are the 3 types of organizational strategies?
- Innovation Strategy (emphasizes new products/services) - Organic fits best
- Cost-minimization Strategy (tight cost controls, price cutting) - Mechanistic fits best
- Imitation Strategy (moves into new products/markets after viability proven) - Either structure works
What structure should small companies choose?
Small companies should choose Organic structure
What structure should large companies choose?
Large companies should choose Mechanistic structure
What is Open System’s View of the organization?
The perspective that an organization is not isolated, but constantly interacts with its external environment, taking inputs (resources, information, people), transforming them through internal processes, and producing outputs (products, services, results)
What structure fits routine vs nonroutine technologies?
Routine technologies = Mechanistic. Nonroutine technologies = Organic
What is business environment?
Institutions or forces outside the organization that potentially affect the organization’s performance
What are the 3 dimensions of business environment and how do they impact structure choice?
- Capacity (degree environment can support growth): High = Organic, Low = Mechanistic
- Volatility (degree of instability): High = Organic, Low = Mechanistic
- Complexity (degree of heterogeneity): High = Organic, Low = Mechanistic
What are the 7 elements needed in modern day structures?
- Work Specialization
- Departmentalization
- Chain of Command
- Span of Control
- Centralization/Decentralization
- Formalization
- Boundary Spanning
What is Work Specialization?
To what degree are activities subdivided into separate jobs?
What is Departmentalization?
On what basis will jobs be grouped together?
What is Chain of Command?
To whom do individuals and groups report?
What is Span of Control?
How many individuals can a manager efficiently and effectively direct?
What is Centralization/Decentralization?
Where does decision-making authority lie?
What is Formalization?
To what degree will there be rules and regulations to direct employees and managers?
What is Boundary Spanning?
Do individuals from different areas need to regularly interact?
What is a simple structure?
Organizational form where decision-making is concentrated in one leader or small team, allowing flexibility and quick adaptation. Features: Low specialization, minimal formalization, little hierarchy, centralized decision-making
What is a bureaucratic structure?
Organizational form that emphasizes clear rules and procedures to ensure consistent, efficient, and predictable operations
