Mechanistic and Organic Structure

Mechanistic Organic
 High Specialization  Cross – Functional Teams
 Rigid Departmentalization  Cross – Hierarchical Teams
 Clear Chain of Command  Free Flow of Information
 Narrow Spans of Control  Wide Spans of Control
 Centralization  Decentralization
 High Formalization  Low Formalization

Mechanistic Structure - is a rigid and tightly controlled structure

- tend to be efficiency machines, well-oiled by rules, regulations,
standardized tasks, and similar controls
- tries to minimize the impact of differing personalities, judgments, and
ambiguity because these human traits are seen as inefficient and
inconsistent

Organic Structure - is a highly adaptive and flexible a structure

- allows jobs and regulations to change rapidly as needs require
- have division of labor, but the jobs people do are not standardized
- Employees are highly trained and empowered to handle diverse job
activities and problems, and these organizations frequently use employee
teams
- require minimal formal rules and little direct supervision
- high levels of skills and training and the support provided by other team
members make formalization and tight managerial controls unnecessary

Contingency Factors Affecting Structural Choice

Appropriate structure depends on four contingency variables: the organization's strategy, size,
technology, and degree of environmental uncertainty.

Strategy - because goals are influenced by the organization's strategies, it's only logical
that strategy and structure should follow strategy
- innovation, cost minimization, and imitation
Example: Imitators use structural characteristics of both—the mechanistic structure to maintain tight
controls and low costs and the organic structure to pursue new and innovative directions.
Size
Technology
Environmental
Uncertainty
 Traditional Organizational Designs
Traditional Organizational
Advantages
Designs
- Fast
- flexible
Simple Structure
- inexpensive to maintain
- clear accountability
- Cost-saving advantages from
specialization
- employees are grouped with
others who have similar tasks
Functional Structure
- Focuses on results—division
managers are responsible for
Divisional Structure
what happens to their products
and services
Disadvantages
- Not appropriate as
organization grow
- reliance on one person is risky
- Pursuit of functional goals can
cause managers to lose sight of
what's best for overall
organization
- functional specialists become
insulated and have little
understanding of what other
units are doing
- Duplication of activities and
resources increases costs and
reduces efficiency