MechanlsLlc vs Crganlc CrganlzaLlonal SLrucLure (ConLlngency 1heory)

1hls arLlcle deals wlLh descrlblng Lhe dlfferences beLween mechanlsLlc and organlc organlzaLlonal
sLrucLures 1he arLlcle ls based upon Lhe work done by Lhe LheorlsLs 1 8urns and CM SLalker
(1961)

1he LheorlsLs argued LhaL organlzaLlons need dlfferenL klnds of sLrucLure Lo conLrol Lhelr acLlvlLles
LhaL wlll allow Lhe company Lo adapL and reacL Lo changes and uncerLalnLles ln Lhe envlronmenL
Changes ln Lhe envlronmenL can be analyzed Lhrough a LS1LL analysls where changes ln Lhe
facLors found ln Lhe LS1LL analysls may elLher sLablllze or desLablllze Lhe envlronmenL of a glven
company

Companles faclng a dynamlc and uncerLaln envlronmenL may have Lo develop or malnLaln an organlc
organlzaLlonal sLrucLure whereas companles operaLlng ln a sLable envlronmenL may beneflL from
developlng or malnLalnlng a mechanlsLlc organlzaLlonal sLrucLure

1he reason for Lhls ls LhaL organlc sLrucLures can process and dlsLrlbuLe lnformaLlon and knowledge
fasLer wlLhln Lhe organlzaLlon whlch Lhus resulLs ln an lncreased ablllLy Lo respond or reacL Lo
changes ln Lhe envlronmenL

Powever mechanlsLlc sLrucLures may acL as an effecLlve and efflclenL organlzaLlonal sLrucLure for
companles operaLlng ln a more sLable and cerLaln envlronmenL Companles operaLlng ln a sLable
envlronmenL may noL need Lo make declslons qulckly Llkewlse many of Lhe dayLoday declslons
and operaLlng procedures may be formallzed and cenLrallzed because Lhere ls no lnherenL need for
consLanL change or lnnovaLlon

Some characLerlsLlcs for each Lype of organlzaLlonal sLrucLure are llsLed below

MechanlsLlc SLrucLure
SLable envlronmenL
1hls organlzaLlonal sLrucLure works besL when Lhe envlronmenL ls relaLlvely sLable

Low dlfferenLlaLlon of Lasks
1asks wlll noL be dlfferenLlaLed much because each subLask ls relaLlvely sLable and easy Lo conLrol

Low lnLegraLlon of eg deparLmenLs and funcLlonal areas
uue Lo Lhe sLablllLy of Lasks Lhere wlll be low lnLegraLlon beLween deparLmenLs and funcLlonal
areas because Lasks sLay relaLlvely sLable and because Lhe funcLlonal areas are noL heavlly
dependenL on each oLher

CenLrallzed declslonmaklng
When Lhe envlronmenL ls sLable Lhere ls no need for complex declslonmaklng LhaL lnvolves people
aL lower levels 1herefore declslonmaklng ls cenLrallzed aL Lhe Lop of Lhe organlzaLlon

SLandardlzaLlon and formallzaLlon
When Lasks are sLable Lasks should be sLandardlzed and formallzed so LhaL operaLlons can run
smooLhly wlLhouL breakdowns


Crganlc SLrucLure
uynamlc and uncerLaln envlronmenL
1hls organlzaLlonal sLrucLure works besL when Lhe envlronmenL ls relaLlvely dynamlc and uncerLaln

Plgh dlfferenLlaLlon of Lasks
8ecause Lasks are ofLen changlng Lasks may need Lo be dlfferenLlaLed so speclallsLs each
responslble for one or few Lasks are able Lo respond qulckly

Plgh lnLegraLlon of eg deparLmenLs and funcLlonal areas
ln complex envlronmenLs rapld communlcaLlon and lnformaLlon sharlng ls necessary 1herefore
deparLmenLs and dlfferenL funcLlonal areas need Lo be LlghLly lnLegraLed

uecenLrallzed declslonmaklng
When Lhe envlronmenL ls dynamlc and uncerLaln Lhere ls a need for complex declslonmaklng LhaL
lnvolves people aL lower levels 1herefore declslonmaklng power should be dlsLrlbuLed Lo lower
ranks whlch should geL empowered ln maklng declslons

LlLLle SLandardlzaLlon and formallzaLlon
When Lasks change rapldly lL ls unfeaslble Lo lnsLlLuLe sLandardlzaLlon and formallzed procedures
lnsLead Lasks should be muLually ad[usLed so LhaL each subLask ls balanced wlLh oLher subLasks


As sald 8urns and SLalker sLudles show buslness leaders LhaL organlzaLlons should deslgn Lhelr
sLrucLure Lo maLch Lhe dynamlsm and uncerLalnLy of Lhelr envlronmenL