Organizational Structure (Balancing Precision with Flexibility)

Organizational Structure — Mechanistic, Organic, Diverse, Matrix

Design Foundations

Organizational design should be determined based on the organization's overall mission and strategy, taking into consideration:

Environment
Size
Pace of technology

Precision vs Flexibility Balance

Precision vs Flexibility

In determining how an organization should be structured, it is important to balance:

The need for precision — need to maintain order, decrease ambiguity, and ensure direction is followed
The need for flexibility — potential need to adapt quickly and encourage innovation

Four Organizational Structures

4 Org Structures.

Mechanistic (Bureaucratic)
Organic
Diverse
Matrix

Mechanistic (Bureaucratic) Structure

Mechanistic Structure

A mechanistic or bureaucratic organizational structure is vertically arranged; communication and decision-making begin at the top and then filter downward.

Mechanistic Characteristics

In this type of organizational structure:

Very little involvement of low-level members in decision-making
Employees work in teams based on task specialty
Heavy reliance on rules

When Mechanistic Works Well

When Mechanistic Works

The mechanistic system lends itself well to organizations where:

Strategy or goals are geared toward efficiency
Tasks need to be accomplished quickly and accurately
A stable environment that requires little flexibility
Size is intermediate to large — more structure may be necessary

Mechanistic Drawback

Unfortunately, organizations with a mechanistic structure may find that job satisfaction suffers because subordinates basically do as they are told with little to no contribution to how things are done.

Organic Structure

An organic organization has horizontal and vertical communication, allowing communication to occur:

Up and down
Across departments and among co-workers
WITHOUT bureaucratic lines

Organic Encourages

Cross-talk and opinions are encouraged among employees to allow:

More involvement in decision-making
Contribution into how things are done

Organic Flexibility

The flexibility involved in day-to-day operations:

Facilitates technological advancements
Allows employees to be more adaptable as changes arise

When Organic Works Well

When Organic Works

The organic organization's strategy is often geared toward:

Innovativeness
Creativity

Software Industry Example

The computer software industry is a good example of one that requires a creative design.

Organic Environment

Environment is unstable, with change being the norm rather than the exception.

Organic Size + Tech

Organizations with organic structure are most often:

Small to moderate
Apply new technology through adaptation rather than compliance
Employ research and development that is creative rather than restrictive

Organic Benefits

Sharing of information and the participative environment:

Increases worker satisfaction
Often produces well-rounded decisions

Organic Drawbacks

Unfortunately, an organic structure may:

Slow down the implementation process
Lead to low efficiency
Reduce standards

Diverse Structure

Because there are advantages and disadvantages of mechanistic and organic organizations, organizations with a diverse design incorporate BOTH mechanistic and organic structures to accomplish the mission.

When Diverse Works

The diverse design is used when the organization needs:

The rigid structure of the mechanistic organization in some areas
The flexibility of the organic organization in others

Diverse Example

For example, administrative sections often have specific rules to follow when processing performance reports, decorations, and orders — for this purpose, a mechanistic system would be appropriate.

Diverse Training Example

In the same organization, a training section may be hindered by a rigid mechanistic system; therefore, an organic system would be more effective to allow for more frequent innovation in how training is delivered.

Matrix Structure

The matrix design is basically an organizational design or team within a mechanistic, organic, or diverse organization.

Matrix Use Case

A matrix design is usually best for addressing a temporary need within an organization; therefore, it is:

Short-lived
The overall organizational structure remains intact

What Matrix Brings Together

Matrix Brings Together

A matrix design brings workers from different sections or organizations together to serve a particular function.

Two Bosses

Matrix 2 Bosses

Within the matrix design, employees or team members have two bosses:

The functional boss — writes their performance report and schedules normal duty hours
The project boss or team leader — ensures the task at hand is accomplished appropriately

Matrix Strengths and Weaknesses

Matrix Strengths/Weaknesses.

Strength: Pooling of expertise and resources
Weakness: Confusion of who is in charge