Management Structure Analyzing Mechanical and

Management Structure Analyzing Mechanical and Organic Management Structures Assessing mechanistic vs. organic organizational structures and their relative benefits and limitations is the intent of this analysis. Examples of organizations based on each of these organizational structures are also assessed. The extent to which an organization can stay agile during periods of economic turbulence yet structurally consistent often determines their long-term viability (Waldersee, Griffiths, Lai, 2003). Given the quickening pace of change in many industries the role of organizational structure has become a critical aspect of competitive agility and long-term growth (Dougherty, 2001).

Differences between Mechanistic and Organic Management Structures Mechanistic organization structures are defined by a high degree of individual specialization, a hierarchy of authority that is well defined that supports centralized decision-making processes and a high level of process standardization. The organizational structure requires a high degree of written communication and has clearly defined organizational and chain-of-command reporting hierarchies. This type of organizational structure is best used in businesses where variability is costly and standardized processes are required to drive costs down.

Organic organizational structures often have job definitions and roles where there is joint specialization on given tasks and roles, rely on complex integrating mechanisms and have a decentralized framework of reporting and working relationships. There is a high level of verbal communication and status is conveyed more on intelligence and insight than on seniority or place in the hierarchy. Often organizations over time form a network-based model where there are associations and interactions throughout the company based more on information and knowledge need, less on formalized chain-of-command reporting (Wang, Ahmed, 2003).

Often this type of organizational structure is used for software start-ups that require intensive levels of cross-knowledge sharing and the use of insight and creativity to drive new services development. Benefits and Limitations of Mechanistic and Organic Mgmt. Structures the benefits of the mechanistic structure include clear lines of authority, a definite command-and-control structure for making decisions, and very clear role definitions. This organizational structure is excellent for business models where variability is costly and there needs to be a high degree of conformity of processes overall.

The downside of this organizational structure is the lack of agility and flexibility, the tendency to limit employee's initiative and creativity, and lack of opportunity to rise on intelligence and creativity instead of seniority. Examples of companies with mechanistic organizational structures include process-goods manufacturing including steel, textile and chemical processing. In addition, armed forces are highly driven by mechanistic structures.

Organic organizational structures have the advantages being very flexible and agile in response to opportunities and threats an organization faces, in addition to support for multi-directional communication and flexibility in job and role definition. There is also a much greater potential for employees to contribute and excel on their creativity and intelligence. The downside of the organic.