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Management theory 1
There are two structures used in organizations, mechanistic and organic structures. A
mechanistic structure is one that is highly formalized and centralized through hierarchy and
where communication flows through specific channels. This type of organizational structure
gives its employees specific jobs roles. While very efficient and ideal for businesses such as
schools and hospitals, mechanistic structured organizations often lack employee motivation and
Companies that use organic structures are decentralized and allow for more employee autonomy
with higher levels of employee satisfaction. This type of structure is ideal for innovation and
entrepreneurship. Since organic structures are decentralized, decisions are made at a lower level
typically on a case by case basis. However, this type of structure is not as efficient as
mechanistic structure.
Take Kentucky fried chicken for example. KFC is a mechanistic organization with high
centralization and very specific channels for communication. At KFC, decisions are generally
made at the higher level and employees are not able to move with very much autonomy and they
have to follow specific guidelines and are expected to operate within their designated roles. We
have employees that get paid for their work in their designated positions. Above the employees,
are the shift managers/leaders that are the ones responsible for the shift they are currently
working on. All the employees and shift managers answer and are responsible to the Managing
Partners.The Managing Partner is responsible for his or her team doings and responds to the Area
Coach. The Area coach duties are to have the Managing Partners store doing all the things
correctly and efficiently. The Area coach responds to the director of KFC. The director follows
what Corporate needs. Illustrated in the chart below are the levels of hierarchy that KFC follows
Corporate
Director
Area Coach
Managing
Partners
Figure. 1 shows how Kfc is structured. Corporate is at the top, that is where all important
decisions are made. Then information and power flows down to the directors who are
responsible for overseeing several districts of kfc locations. Next are the area coaches which are
responsible for 7 to 10 locations and ensure that managing partners are following all procedures.
At the individual locations there are managing partners who oversee the store in its entirety.
They are responsible for making general decisions for the store such as ordering supplies for the
week. It is here that we also see shift managers which are responsible for their employees and
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ensuring the product is as it should before it reaches the customers hand. This organization is
highly structured and allows for little freedom and innovation. However, this type of structure is
incredibly efficient and allows for KFC’s product to be distributed at the highest level possible.
Unlike mechanistic structure, Organic structure allows for more flexibility and a
decentralized organization. This is ideal for organizations that value innovation and
entrepenurialship. This type of structure is also known as flat structure since decision making is
typically made at the lower levels and are often made on a case by case basis. This allows for
employees to have a better relationship with their company and give them a sense of autonomy
in their roles.
One company that is in the mainstream that uses an organic structure is Google. Google
is too large to follow such a rigid structure as mechanistic. Since the market that they are trying
to fill is constantly changing it is necessary for their employees to be able to communicate these
ideas at a moment's notice to resolve any issues that may arise as quickly as possible.
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figure
.2
In figure. 2, We see how Google structures just one division of their company.
Information flows down from the general manager to the team leads which are the software
director and strategic planning. From there, each department has the ability to work
departmentalization because each different department is responsible for different tasks. With
Google being as large as it is, it needs many different departments operating with autonomy to
ensure that any issues that arise are swiftly dealt with.
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References
https://www.coursehero.com/study-guides/principlesmanagement/7-2-organizational-
structure/