Foundations of Organising, Types of Organisational Structures Mechanistic (bureaucratic) High in formalisation, centralisation, work specialisation, with narrow spans of control Organic Low in formalisation, centralisation, work specialisation, with wide spans of control Can you think of examples and advantages of each? Change is ongoing in an organisation. Drivers include: External factors Internal factors Can you think of an internal and external factor that might drive change? How will it cause change in an organisation?
Organising- Organising is to create opportunities with structured in-depth plans in order to achieve the desired goals or targets.
Types of Organisational structures-
1.Functional structure- People who possess a similar skill set and who can perform similar tasks are grouped into a functional structure. The advantages of this kind of structure include quick decision making and quick learning due to the great levels of communication because of similar skill sets.
2.Divisional structure- In this structure, the management will create a team specific to cater to a particular customer or to a specific group of customers. This time of structure ensures greater output of varieties of similar products.
3. Matrix structure- In this type of a structure, people are divided into two categories based on the function they perform and the product team that they are working with. This improves the productivity, the creativity and helps the managers to solve decision-making problem with the help of group discussions.
4. Project Organization structure- In this structure, the team is formed considered the number of people required to produce the product or complete the project.A significant number of factors are taken into consideration to ensure that the right team is set up.
Mechanistic- This is a type of organizational structure which has a high degree of formalization, centralization and work specialization with narrow spans of control. This type of a structure is highly complex as it uses a hierarchical structure, division of labor and member- task specialization. It has a high degree of formalization where organization activities and decision making are governed by a system of organization rules and procedures. It has a high degree of centralization meaning it has a strong hierarchical structure where decisions are taken from the top level. One advantage of this structure would be that the top level management would have complete control. Example- Universities
Organic- This structure is low in formalization, centralization, work specialization with wide spans of control. Employees here are often found working in groups and share inputs on tasks. There is a lot of open types of communication between employees, managers, and executives. The advantage would be there will be a lot of freedom to express his/her views on the work and also have a direct form of communication with the people in power.
Internal factor that would drive change would be better employee management as only a satisfied employee would put in all their efforts to ensure they achieve their targets which would result in the overall growth of the company. External factor would the nation’s economy as a good economy can help any business propel to great heights and vice- versa.