BUS603: Managing People

Two models of organizational structure occupy two opposite poles with respect to each other, the opposite poles with respect to each other, the mechanistic and the organic. Dickson, Resick and Hangs studied the case of enterprises in different business environments and focused on identifying the features of environments and focused on identifying the features of mechanistic structures. In such a structure, jobs are highly differentiated and specialized, rules and procedures are clearly identified, and a military style of hierarchy systems is adopted. On the other hand, the organic structure is the opposite polar of the mechanistic structure characterized by less specialized tasks, overlapped responsibilities, more generalized positions where there is no specificity of work requirements for each position, behavior is managed by a set of shared values and goals rather than rules and instructions. Communication from top management is a sort of counsel and support, and upward messages tend to take the form of reporting and updating on the decisions that have been made at the lower management. Hatch and Cunliffe who did several studies on the application of mechanistic structure, argued that this structure is that such rigid, complex and formal processes with high centralization of business activities that characterize this structure. It encompasses application of strong rules, specialization, narrow range of control and vertical communication where superiors give orders to subordinates. There are clear job descriptions, responsibilities and prestige accompanied with each position. In such a structure, initiatives towards improving work processes are not encouraged causing creativity and innovation to be limited. This suggests that in this type of structure, accountability and responsibility are forced to the top and the employee's major role is to follow the already established rules and procedures. In a study of the relationship between the organization structural characteristics and conditions of economy and markets, Lawrence and Lorsch identified major characteristics of companies that apply the organic structure. Companies with characteristics of the organic structure present few rules and procedures, ambiguous responsibilities with subjective system and complex needs to motivate employees. According to Adestam and Gunmmo, these types of structures are characterized by being less complex, less formalized, offering a higher level of decentralization and freedom. The number of managerial levels is few while the range of control is wider with a horizontal system of communication. Authority is based on expertise and knowledge rather than hierarchical level. In this structure, an effective interaction among the team members allows for problem solving and redefinition of roles and responsibilities according to the situation. Meanwhile, organizational management encourages devil advocate thinking and the use of creativity and expertise. Departments never work in Silo and employees seek consultation from each other rather than instructions. This structure supports innovative thinking and thus it is very effective in a highly turbulent environment.