Top managers typically think long and hard about what structure will work best.

Exhibit 8–7

Mechanistic versus Organic Organizations

Mechanistic OR Organic18

Mechanistic organization (or bureaucracy)

• Rigid and tightly controlled structure

• Combines traditional aspects of all six elements of organization structure

  • High specialization

  • Rigid departmentalization

  • Clear chain of command

  • Narrow spans of control leading to taller structure

  • Centralization

  • High formalization

Organic organization

• Highly adaptive and flexible structure

• Collaboration (both vertical and horizontal)

• Adaptable duties

• Few rules

• Informal communication

• Decentralized decision authority

• Wider spans of control leading to flatter structures

• Loose structure allows for rapid adjustment to change19

  

1. 1 Strategy → Structure

   • Based on work of Alfred Chandler20

   • Goals are important part of organization’s strategies; structure should facilitate goal achievement

   • Simple strategy ➛ simple structure

   • Elaborate strategy ➛ more complex structure

   • Certain structural designs work best with different organizational strategies21

     • — Passionate pursuit of innovation ➛ organic

     • — Passionate pursuit of cost control ➛ mechanistic

     

2. 2 Size → Structure

   • Considerable evidence that size (number of employees) affects structure22

   • Magic number seems to be 2,000 employees

   • LARGE organizations (> 2,000 employees)—mechanistic

   • When an organization reaches this number, size is less influential; adding more employees has little impact as structure is already fairly mechanistic

     

     

3. 3 Technology → Structure

   • Technology is used—by every organization—to convert inputs into outputs (See Exhibit 8–8 in the Classic Concepts in Today’s Workplace on p. 243.)

     Exhibit 8–8

     Woodward’s Findings on Technology and Structure

     	UNIT PRODUCTION	MASS PRODUCTION	PROCESS PRODUCTION
     Structural characteristics:	Low vertical differentiation	Moderate vertical differentiation	High vertical differentiation
     	Low horizontal differentiation	High horizontal differentiation	Low horizontal differentiation
     	Low formalization	High formalization	Low formalization
     Most effective structure:	Organic	Mechanistic	Organic

     Your smartphone or tablet

     

     Your résumé

     

     Your bottle of ibuprofen

     

4. 4 Environment → Structure

   • Environment is a constraint on managerial discretion

   • Environment also has a major effect on an organization’s structure

     • — Stable environment: Mechanistic structure

     • — Dynamic/uncertain environment: Organic structure

   • Helps explain why so many managers today have restructured their organizations to be lean, fast, and flexible.23