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Mechanistic and organic organisational structures

4 important questions on Mechanistic and organic organisational structures

What is the difference between a mechanistic structure and an organic structure? What choices define the structures?

Mechanistic: Designed for people to behave in predictable way

Individual specialisation

Employees work separately

Simple integrating mechanisms

Hierarchy of authority

Centralisation
Standardisation

Work process is predictable

Organic: Promotes flexibility to quick adaption to changes

Joint specialisation

Employees work together

Complex integrating mechanisms

Task forces and teams

Decentralisation
Mutual adjustment

Work process is unpredictable

How should an organisation decide the organisational design according to the contingency approach?

The sources of uncertainty the organisation faces. The organisation has to design accordingly to the environment it operates in.
Design internal structure to control the external environment

What did Lawrence and Lorsch find out about organisational structure and the external environment an organisation operates in?

Unstable environment -> More flexibility (Organic)
Stable environment -> Little need for change (Mechanistic)

Organisations must adapt their structures to match the environment in which they operate if they want to be effective.