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Comparative

study of
Organic and
Mechanistic
structures-A
Report
Organizational Behaviour II
– Presentation Report

Submitted by:

Rohit Krishnan-14PGP041
Rajesh Jangam-14PGP034
Sravana Kumar-14PGP045
Somal Kant-14PGP043
Sounak Saha-14PGP044

Hence the structure is more centralized in nature. There is extensive use of Standard operating procedures and rules and regulations are to be strictly adhered to which makes the organisation highly standardized akin to a bureaucratic way of working. . making communication vertical in nature. The decision making is kept top down and thus is very high. Innovation is very difficult in such model. IBM is one such example of an organisation. employees are known to work as a team and there is immense coordination among the team members to achieve their objectives which can be defined as joint specialization. In this model. There is lot of mutual adjustment among team members and they are more accommodating in nature. The status of a person in such an organisation is determined by the position or rank he holds in the organisation which is a manifestation of the hierarchical nature of such model. various team interact with various other teams to complete a task which makes it a complex integrating mechanism.Organic vs. thus saving a lot of time and decision making is very quick in nature. It has a decentralized way of working in which tasks are delegated to team members and the freedom to take decisions is very much there with the team and the communication in such model is lateral in nature which makes it easier for different teams to communicate with each other. In an organic model. Most of the communication is done using written mode and thus verbal communication has very less significance in such model. In this model. Google is an example of an organic model. The organisation is seen as a network of various departments working separately to achieve their objectives. It is the seniors who lay down the policies and the juniors have to abide by them rather strictly which makes deviation from rules virtually impossible. Mechanistic model of Organizational Structure Mechanistic model focuses on individual specialization where employees work separately (silo based approach) and specialize in one particular task and are required to limit their work to their own task and not to get into other people's work in the same organisation. Here the hierarchy of authority is very well defined which makes the integrating mechanisms very simple and the scope of questioning someone senior to oneself is not encouraged and virtually non. an employee's performance and brilliance determines his status in the organization. Most of the communication occurs in verbal form. Here the work process is unpredictable and thus there is lot of room for innovation as team members are allowed to think freely without any hindrance. This model is a network of various teams working together to achieve a common goal and thus the silo based approach is avoided.existent.

Innovation & creativity are the key elements of Google’s success. The company’s organizational culture plays a vital role in driving innovation. According to Fortune business magazine. Google Maps and the Google Chrome Web browser. It helps the company retain its employees &attracts the best talent available in the industry. It is also listed as the top company to work for in both 2007 and 2008. It’s known for its unconventional organizational culture. Primarily Google follows a flat organization structure and employees are more autonomous. . which is designed to encourage both loyalty and creativity.Google .A few words Google – a company worth billions which made its way into the oxford dictionary is one of the most innovative companies on earth. Founded in 1998 by Larry Page and Sergey Brin. it’s the fourth-most admired company in the US. This emphasis on innovation has resulted in the development of numerous path breaking products such as the Google search engine. For a company to be continuously innovative the workforce needs to be motivated and Google’s culture exactly does the same. Google has been disrupting the world of technology. It is a mix of few standard models customized to suit the company. The Leadership Structure Google’s corporate structure cannot be particularly categorized as an organic structure or a mechanistic structure.

such as CCO(Chief Culture Officer) and CIE(Chief Internet Evangelist). Legal& Finance) report to the same unit with few layers of hierarchy in between. Wide spans of control: Multiple departments (Engineering. Promotes corporate transparency . Minimal Bureaucracy: Bureaucracy is at it its minimum in google. Sales.Unique leadership positions: A few unique leadership positions are a part of Google’s structure.Employees are able to witness and contribute to the leadership function The 70/20 /10 Rule Google advocates the “70-20-10 rule” encourages the employees to take risks and be creative. Product. . 70% of time in office to official projects assigned by management 20 % of time in office to new projects or ideas related to their core projects 10 % of time in office to any new ideas they want to pursue regardless of what they might be.

Open communication policy . They are encouraged to develop . If the projects are successful the employees leave the company to start their own business No Formalized control structures Google follows quite informal approach and encourage employees to communicate openly without any restriction. There are no restricted departments. instead of through more formal channels. Ratings & KRA: On contrary to many organizations goal setting is done by employees themselves and not the supervisors.Criticism: Critics such as Gene Munster from the Piper Jaffray Investment Bank charge that most of the products that were built from the ideas generated from employees have not produced any substantial new revenue. The top management is quite approachable and no formal channels or restrictions apply. discuss with any other department of team. Accountability: Employees are more accountable to themselves than to the management. Functions Employees are allowed to change the parameters of their jobs when needed. No rigid departmentalization is in place. No specific job roles are assigned to the employees.Encourages employees and managers to work directly with each other. This promotes open work culture and free flow of information. Flexibility: Employees have flexible work timings and are free to avail benefits when they work during odd hours. every employee has the freedom to work. Cross-functional approach: Google supports cross functional management.

They also have access to company daycare facilities. Culture Employee retention is an important for a company like Google. So it spends a good amount of revenue of wellness of the employee. They are provided with bus rides to work and are allowed to travel through the building on scooters and bicycles. Google also offers stock plans and higher wages compared to other companies Google’s Motto Don't Be Evil: Unofficially Google’s motto is not to be evil and all of its corporate policies and decisions are based on this and Google always tries to live up to this motto. Instead of departmental silos. According to a New York Times article from 2005. In a highly competitive business environment it may seem eccentric to pursue such an approach but this approach has been the reason for Google’s enormous success and excellent employee retention. This promotes interest in the employees and this assures them career growth and work satisfaction.multifunctional skills and are free to work on any new technology. . employees are advised to choose the projects of their interest. Most of the employees in other organization complain about working in some uninteresting domain which in turn leads to low productivity and less loyal employee.      Google provides a lot of perks to the employees aimed at creating a fun and creative atmosphere. The employees report feeling very differently about working at Google as opposed to other companies. They receive free food cooked by the company chefs and . Google employees interviewed said that they felt a sense of being personally invested in the company's sense of mission and future success. exercise gyms and other amenities. There is no wonder Google is consistently ranked among the top 5 best companies to work in US.

5 most appreciated organization (Fortune). Kenexa (2012) and SPSS (2009) and associations.S. The organization has experienced a few authoritative changes following its initiation. IBM makes designs and markets all sorts of computer hardware and software programming. 1 organization for pioneers (Fortune). and auctioning off product offerings like its PC and server organizations to Lenovo (2005. 2 biggest U. United States. IBM has 12 exploration research facilities overall and. and Watson computerized reasoning. No. 2014). Pwc's counseling business (2002). the organization was positioned the No. and logo. Its workers have accumulated five Nobel Prizes.000 around the world). and No. six Turing Awards and five National Medals of Science. for example. the hard plate drive. the RDBMS and SQL. 4 biggest as far as business promotion. SABER carrier reservation framework. 1 green organization around the world (Newsweek). 2 best worldwide brand (Interbrand). bundling. All around. with home office in Armonk. the Universal Product Code (UPC). firm in number of representatives (435. ten National Medals of Technology. . The organization was established in 1911 as the CTR Company (Computing Tabulating Recording) through a merger of three organizations: the International Time Recording Company. and the No. CTR renamed to the name International Business Machines in 1924. and the Computing Scale Company. the No. No. has held the record for most licenses produced by an organization for 20 back to back years. Securities investigators nicknamed IBM Big Blue in identification of IBM's basic utilization of blue in items. No. New York. the social database. obtaining organizations. 9 most productive. the attractive stripe card. Fortune positioned IBM the No. utilizing a name formerly assigned to CTR's auxiliary in Canada and later South America. Different rankings for 2011/2012 incorporate No. In 2012. the monetary swap. 2 most regarded organization (Barron's).IBM Introduction: The International Business Machines Corporation (IBM) is an American multinational innovation and counseling company. DRAM. the Tabulating Machine Company. No. 18 most imaginative organization (Fast Company). facilitating and counseling administrations in zones going from centralized server machines to nanotechnology. and also offers foundation. 31 biggest as far as income by Forbes for 2011. 19 biggest firm as far as income. the floppy circle. for example. Outstanding creations by IBM incorporate the robotized teller machine (ATM). the No. starting 2013. turning off organizations like Lexmark (1991).

they did not change with the changing globalization. . That resulted in a huge dip in their revenues. IBM began to slip as a global powerhouse. Their complex organizational structure resulted in lot of red tape. In early days IBM followed extremely hierarchal structure.The Early IBM Organizational Structure During the late 1980s and early 1990s. Though this provided good returns in early days.

led to emergence of Microsoft as a player which uprooted IBM from its perch at the top.Formalization With this rigid structure at IBM employees followed instructions that were passed down from the top management. A dark (or gray) suit. white shirt. And lack of innovation and flexibility. Excessive formalization and lack of flexibility eventually led to the fall of IBM Specialization: At IBM Departments work as Silos. and a "sincere" tie was the public uniform for IBM employees for most of the 20th century. Employees specialized in particular jobs were placed into those particular departments. At IBM departments used to . Company also maintained a corporate constitution and all employees were expected to follow rules and regulations to the letter.

Yet commercializing these thoughts has been an issue previously. In learning associations. IBM is an organization that has no trouble concocting new thoughts. Meanwhile. IBM in Recent Days Today IBM is more of a learning organization where obtaining information and changing conduct as an after effect of the recently obtained learning. It is one where gaining learning and changing conduct as a consequence of the recently picked up information are a piece of an association's outline. This is genuine because of the method for recognizing future open doors. In these structures. and thinking about new learning are the standards. To change this circumstance. this is attained by taking very fruitful business directors and placing them responsible for developing Emerging Business Opportunities (EBOs). experimentation and testing possibly better operational techniques are energized. . At IBM Corporation. the organization started exploring different avenues regarding the thought of EBOs.work independent of each other and poor coordination between departments. there are numerous strategies and frameworks set up that encourage learning at the authoritative levels. testing.rivalry within the organization cost them really lot. as confirm by the quantity of licenses it holds. owing to an accentuation on fleeting results. adapting new things. is a piece of an organization’s outline.