The composition of any firm has a definite impact on both employee behavior and its performance Organizational Structure as Determinant of Organizational Performance: Uncovering Essential Facets of Organic and natural and Mechanistic Structure. On the other hand, an organizational framework provides an guide about the hierarchy of levels, functions and responsibilities, specialists, communication programs, etc. Mechanistic organizational structure has a degree of bureaucratic features such to be a rigid framework, centralized in decision making, having well identified job tasks and well-defined communication channels. These features ensure high efficiency in stringent processes and types of procedures. Furthermore, it reduces flexibility and learning opportunities. The success of the mechanistic composition depends largely after the exterior environment and also efficiency in increasing organizational performance.
It is very important to understand the definition of the organizational structure since it impacts both employee behavior and organizational performance (Organizational Structure as Determinant of Organizational Performance: Uncovering Essential Facets of Organic and Mechanistic Framework). Organizational composition is known as a method consisting of duties and electricity allocated amongst users and exactly how work steps are completed included in this. (Nahm et al. , 2003). In addition, it includes the tiers of hierarchy, centralization of specialist, and horizontal integration. However, an organizational framework is a multi-dimensional construct which illustrates the section of work (assignments or responsibilities including specs), departmentalization, centralization, intricacy, communication or coordination mechanisms including standardization, formalization and versatility (How does organizational structure impact performance through learning and invention in Austria and China). Two main types of organizational set ups can be identified as mechanistic and organic and natural. The next paragraph would provide an summary of the mechanistic organizational framework whilst talking about its character and characteristics.
Mechanistic structure is hierarchical and bureaucratic naturally. It's structure, functions and roles are considered as a machine where each part of the organization will what it is supposed to do. Three main features could be determined. Particularly highly centralized power, formalized steps and practices & specialised functions (Businessdictionary. com). Thus, a mechanistic composition has a clear, well-defined, centralized, vertical hierarchy of command word, expert, and control. It achieves efficiency and predictability through field of expertise, standardization, and formalization. Rigidly identified jobs, solutions, and processes are final results of such mechanical organizational structure. Mechanistic structure aspires to achieve efficiency thorough small control (Enotes/Studymaster).
Characteristics for mechanistic organizational structure are listed below:
Stable environment
This organizational structure is most effective when the surroundings is relatively steady.
Low differentiation of tasks
Tasks will never be differentiated much, because each subtask is relatively stable and easy to regulate.
Low integration of e. g. departments and efficient areas
Due to the stability of tasks, you will see low integration between departments and functional areas, because duties stay relatively stable, and because the functional areas are not heavily dependent on each other.
Centralized decision-making
When the environment is stable, you don't have for complicated decision-making which involves people at lower levels. Therefore, decision-making is centralized near the top of the organization.
Standardization and formalization
When tasks are stable, duties should be standardized and formalized, so that businesses can run well without breakdowns.
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Mechanistic organizations prefer formalized structure anticipated to two significant reasons. It reduces the variability within the business and enhances predictability in the organization somewhat than being ambiguous (Mintzberg, 1979). An extremely formalized mechanistic structure demands almost all processes and steps to be administratively certified. Alternatively, it considers operations and methods outside to the people approved protocols as variances that ought to be brought in order meaning that decision making in every dealings should be done through the use of such provided strategies, policies, guidelines or instructions (Enotes/Studymaster).
A mechanistic structure enables worker behaviour more predictable while boosting standardization within the business. For example, an employee is well alert to controlling customer sales comes back or accepting charge card payments. Formalization enables organizations to boost performance (Hahn, 2007). On the other hand, it also curbs any opportunities for technology and fresh ideas, since variants aren't allowed or inspired. As a result, a mechanistic framework will not support or adapt quickly to changes in the external environment. Hence a mechanistic type of organizational structure is most effective for large organizations which operate in more steady environments where it can help to maximize the organizational efficiency while minimizing the price through formalization and centralized decision making (Carpenter et al, 1969). Traditional management theories perceive an organization as a 'machine' (Fayol, 1949; Taylor, 1911). Traditional theories emphasis the need for bureaucracy within organizations producing having less space towards creativity and innovativeness. Thus, Classical management ideas encourage a mechanistic kind of an organizational composition (Organizational Composition as Determinant of Organizational Performance: Uncovering Essential Facets of Organic and natural and Mechanistic Framework).
However, organizations that operate in a swiftly changing environment requires to frequently change their procedures and steps with the changes that happen in the exterior environment. Moreover, it needs taking action based on the situation to be able to enhance adaptability to environment. Thus, formulation and specialist which exist in mechanistic buildings will not encourage deviating from described processes and procedures. Therefore, mechanistic kind of organizational structure is not effective for organizations that operate in a dynamic environment.
It can be seen, that mechanistic organizations increase efficiency when responsibilities and technology are relatively stable. Meaning that stable environments and technology allow work to be clearly described and differentiated. A clinical method should be used to separate work process to recognize precise jobs, assign tasks to be able to employees and keep an eye on employee performance (Fayol, 1949; Taylor, 1911). Work activity of a mechanistic organization is separated into specific duties. A particular job position is established by assigning a number of specific duties which requires rigidly described group of skills, technique and procedure to perform careers. Furthermore, specific obligations or expert is designated to each job function. Line managers and lower-level personnel are to totally perform assigned jobs according to demanding types of procedures whereas few higher-level managers screen their performance. (Organizational Composition as Determinant of Organizational Performance: Uncovering Essential Facets of Organic and natural and Mechanistic Framework). Professionals perform as planners and monitors in a mechanistic type of organization. This brings about high degrees of efficiency by clear instructions to execute specific tasks. On the other hand, it offers fewer opportunities for innovation. Thus, innovation is fixed to attain efficiency in the processes. However, this can be more suitable to improve efficiency in a well balanced environment alternatively than depending on innovative ideas. For example, ''Few customers, for illustration, would wish a McDonald's worker to use imagination in getting ready their hamburger. Instead, the repetitiveness and stableness of the procedure needed to prepare a hamburger is better when the staff follows established techniques and customers can trust that every hamburger they purchase will taste the same'' (Enotes/Studymaster).
In contrast, a quickly changing exterior environment requires progressive ideas to face external environment demand. Furthermore, it requires more versatility in steps and processes to meet needs from the exterior environment. Employees would get more flexibility to deal with their customers meaning that lower level employees would have a certain amount of liberty to be sure decisions in order to face the problem and solve problems. Thus, the mechanistic structure is less effective for organizations that operate in challenging conditions.
Centralized decision making in mechanistic type organizations enable few higher management workers to actively be involved in decision making. Clear communication stations allow formal communication or information flows throughout or vice versa. 'Traditional theorists' offers a view point that centralized decision making boosts organizational efficiency and definitely ends up with better organizational performance' (Gulick and Urwick, 1937; Weber, 1947). Classical theorist's focus was more on hierarchical authority and pays off less or no attention to the degree of employee participation in decision making. Employee engagement in decision making is certainly an important aspect of any organizational framework and which straight affect organizational performance (Carter and Cullen, 1984; Khakani et al, 2012). Furthermore, centralized decision-making leads to the effective and efficient functioning of any bureaucratic set ups (Goodsell, 1985). Scientific management of organizations is possible only when decision-making is restricted to few employees (higher level management) within organizations as mentioned in the concept of Taylor (1911) (Mansoor, Aslam (2012).
However, centralized decision making is more fitted to steady and large organizations. Thus, in highly active external environments, organizations require to do something fast in order to endure within the in environment in which it works. Therefore, specific amount of decision making ability must decentralize and enable lower level employees. This helps them to react to quick changes that take place in the external environment. It is obvious that the mechanistic kind of structure wouldn't normally sufficiently support organizations up to anticipations when they are employed within challenging external surroundings. Therefore, the degree to which formalization is accessible within an group depends upon the technology, size and the organizations' traditions (Robbins 1990, Burton and Obel, 1998 (Mansoor, Aslam (2012).
In a mechanistic structure, the clear distance between employees and management provide fewer opportunities to generate new ideas by subordinates. Furthermore, those who bring change can be threaded in line with the X theory of Douglas McGregor. Therefore, amount of resistance to improve is high and invention is not so much inspired in organizations developing a mechanistic kind of firm hierarchy. (Armstrong, 2008). However, organizations face immense competition in today's challenging and active exterior environment. Therefore, organizations with mechanistic composition face various troubles when launching quick changes because of the highly formalized nature of the hierarchy itself. However, learning is a crucial factor that affects organizational development. The below diagram displays steps that are honored in sole loop learning.
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Mechanistic kind of organizations can use this model to boost efficiency in their techniques. The one loop model targets analyzing actions and feedback to identify the distance between where were and where we need to be. Therefore, changes are carried out as actions but not as governing variables (Create benefits). Kolb's (1984) basic interpretation of learning concisely describes the "single-loop learning" process and is considered a simplified version of the medical method (Kolb 1984, Armstrong 2008).
As talked about above, learning and implementing change requires overall flexibility within systems and types of procedures. The rigid composition in mechanistic organizations will not facilitate comfortable execution of changes. A well-defined composition demands authorization of all changes and formal communication within organizations. In mechanistic type of structures communicating and formalizing all necessary changes requires a considerable effort and time where dynamic exterior environment wants quick changes. Therefore, companies face various problems in altering to the external environment. Furthermore, execution of change requires changing tasks or roles where employees withstand since their knowledge is more specific to a task or set of tasks. Alternatively, change may necessitate training needs and considerable time to adapt which intern has an impact on efficiency of procedures. Moreover, the quantity of bureaucracy seen in mechanistic structures helps it be difficult to present change. In conjunction, it reduces participation opportunities for employees in lower levels when choosing changes. Clear distance between hierarchical degrees of the business and communication lines reduces recognition about such changes. Therefore, employees dread change and withstand to creativity.
It is very important to consider the pace of changes in technology and the exterior environment while deciding on the quantity of formalization and expertise used within the mechanistic framework. Considering each one of these factors it can be decided a mechanistic framework provides less space for rapid changes. Therefore, it is more suitable for large organizations functioning in comparatively stable environments. Moreover, the type of organizational structure cannot be precisely identified nearly as good or bad since it depends on the firm's interior and external surroundings. An organization structure that suits a particular industry will necessarily be fitted to another industry due to many external factors such as competition and technical impacts.
A mechanistic framework naturally is highly formalized and particular with well described procedures, operations and jobs. Centralized decision making is one of the main features in a mechanistic framework. Higher level professionals are involved in decision making whereas their subordinates are anticipated to carry out specific activity or tasks within the team. Therefore, the mechanistic structure provides fewer opportunities for learning. However, the versatility in the structure is an integral to promote learning. Learning and technology is highly required when dealing with changing and powerful environments. Mechanistic framework will not provide enough flexibility to change or enhance decision making relating to situations. Therefore, a mechanistic type of structure is highly useful for an organization which manages in a far more stable environment. These features of mechanistic structures reduce opportunities for learning. Modifying the level of mechanistic characteristics will help a firm to increase learning opportunities somewhat.
