Mechanistic &

Organic Structure

Gargi | Gowri | Gowtham | Gowthaman | Harish Guptha | Harish Kumar | Ranganath

1 Organizational Structure OVERVIE
2 Structure Types W

3 Hybrid Structure

4 Impact of Non-Structural Factors

5 Implications
 Organizational Structure?
⮚ Outlines how activities are directed to achieve
the goals
⮚ Explains flow of Information between levels
⮚ Gives definition for Employee’s job

Components

Complexit Centralization
Formalization
y

Need for it?

❖ Attract and retain Employees ❖ Better decision making among managers

❖ Avoid confusion among employees ❖ Provide ideal results for a business

 Organic
Structure Types Mechanistic
Structure Structure
Tom Burns and G M Stalker
- Studied on 20 Industrial firms
- Nature of Organization’s Environment
- Labeled Two Structures

Key Findings
Effective structure - adjust to the environment’s requirements
- Mechanistic Structure - Stable and Certain Environment
- Organic Structure - Dynamic and uncertain Environment
These 2 structures form two extreme ends
- Purely mechanistic or purely organic is not possible
- Either tend toward mechanistic or organic
 Sneak Peek into the Key Differences

Pyramid Shaped Flat/Fluid

Rigid Departmentalization Cross-functional Teams

Centralization MECHANISTI ORGANIC Decentralization

C

Narrow Span of Control Wide Span of Control

Stable
Innovative
 Can Organic and mechanistic
organizations coexist?

Simply changing structures back and forth (organic to

mechanistic or vice versa) would be adequate for meeting
changing environmental demands!

How then, can one

resolve this paradox?

Hybrid Structure
✔ Combination of non-redundant elements of both departmentation and
centralization
✔ Perform well in most environments
✔ Successfully adapt when they are required to switch on both elements of
structure
 WHAT
Post-it

Scotch
tape
Sandpaper,
Industrial
Tools
It Does

An organisation known for innovation

The Result?- It’s a hybrid, a mix of both
A Large organisation with a few routine manufacturing ❖- Size of 91000+ employees force it to become more
technologies mechanistic, with complex hierarchical structure.

Multiple departments such as health, office products and ❖- However, department of innovation enjoys a
construction slightly flat structure, with horizontal communication

The need for innovation suggest an organic structure whereas

the big size suggests a more mechanistic one
 Impact of Non-Structural Factors

Bigger – Mechanistic Routine – Mechanistic

Smaller - Organic Non-routine - Organic
Size Technology

01 02 03 04 05
Strategy
Environment Life Cycle
Strategy influences
Stable - mechanistic Birth/Young – Organic
structure and vice-versa.
Dynamic – organic Maturity - Mechanistic
IMPLICATION
S

Industry Organizational Managerial Employee

- Efficient technological - Increases

- Led to obtain high accountability; helps - Allows to perfect their
transfer & co-operative
performance levels identifying easy functional skills
research relationships
- Departmentalization resolution to defects - Enables direct
- Augmentation in the
brings about high skilled - Explores the range of communication channels;
competitiveness
workers; increasing possible future trends facilitating guidance &
productivity expertise they need
readily available
Thank you