The nature, size and environment of the organization is not always the same to that of others. They may be unique in terms of these paramaters which may be analysed by PESTAL of SWOT analysis. Organistic and mechanistic organizations are the two models that helps in adopting the change and make the work process more efficient.
Companies facing a dynamic and uncertain environment may have to develop or maintain an organic organizational structure, whereas companies operating in a stable environment may benefit from developing or maintaining a mechanistic organizational structure.
The reason for this is that organic structures can process and distribute information and knowledge faster within the organization, which thus results in an increased ability to respond or react to changes in the environment.
However, mechanistic structures may act as an effective and efficient organizational structure for companies operating in a more stable and certain environment. Companies operating in a stable environment may not need to make decisions quickly. Likewise, many of the day-to-day decisions and operating procedures may be formalized and centralized, because there is no inherent need for constant change or innovation.
Some characteristics for each type of organizational structure are listed below: Continue reading
Rameshtalks 