Organic Structures and Mechanistic Structures
Organic Structures:
Informal
Flexible and fluid (easy to change)
Favours verbal communication
Associated with decentralised decision-making and empowerment
Find change easier to handle
Benefits of Organic Structures:
Promotes cohesion and relationship
Working together towards a common goal
High motivation of employees due to their inclusion in the decision-making process (which increases productivity)
Employees can learn new skills since they're working in teams
When there's a bad solution to a task, it is easy to help them since they're not the only one with that skillset
In case of an illness, the task still gets finished since that employee is not the only one working on that task
Drawbacks of Organic Structures:
Due to the lack of specialisation, it is sometimes hard to get high-quality results
The decision-making process is slow since everyone is included
In the case of a bad final solution to a task, it is often hard to determine who is at fault
Promotion can get difficult since it is not always clear who is best suited or does the best work
Examples:
Tech companies:
Companies like Google or Spotify have adopted more organic elements in certain areas, encouraging innovation through less hierarchy and more employee autonomy, especially within project teams.
Creative agencies:
Advertising, design, or marketing agencies tend to operate with an organic structure.
Mechanistic Structures:
More formal and bureaucratic
Associated with centralised decision-making and supervision
Formal communication methods
Favours standardised policies and procedures
Little perceived need to change
Benefits of Mechanistic Structures:
Clearly defined paths/ tasks
High specialisation of employees
Usually good results (due to high specialization)
Tasks are usually delivered within the provided time
It ensures that rules and regulations are followed
Promotion processes may be easy (it is clearly visible who is suited and does good work)
Drawbacks of Mechanistic Structures:
High specialisation of employees
If someone has a bad solution for a task, it is hard to correct it or do better due to the high level of specialisation
In the case of an illness, the tasks just do not get done since nobody is able to finish them
Demoralises employees as they're not included in the decision-making process
A stiff structure that doesn't allow employees to learn new tasks
Examples:
General Motors:
This automotive company has a mechanistic structure with a clear hierarchy and a centralised decision-making process.
McDonald's:
McDonald's operates with a mechanistic structure, especially in its restaurants, where tasks are highly specialised and there is a clear chain of command.