First of all, it is essential to explain what is meant by a management type. By management type or organizational structure is understood as a system that defines a hierarchy in an organization. It demonstrates each position, its function, and to whom it reports (Friend, 2019). Establishing a clear organizational structure is vital. It allows the company to react and adapt to uncertainties and changes adequately, manage decision-making processes, and meet its aims. A suitable organizational structure depends on a company’s type and goals.
The idea of the two organizational structures (mechanistic and organic) belongs to Tom Burns and G. M. Stalker. Their theory explained which organization form is suitable for specific conditions of change and stability (Godwyn & Gittell, 2012). Mechanistic form implies organizations with centralized decision-making, formal rules, specialized tasks, reporting relationships, strictly defined duties, and a hierarchical structure that organizes a company’s operation routine. It can be imagined as a pyramid, the top of which is the CEO, and all processes occur from the top down. General Motors is a vivid example of an organization that employs the mechanistic form. The organizational structure fits companies of such immense size ideally and eases their decision-making process. Moreover, as the car market exists in a relatively stable environment, the company can be highly hierarchical, as rapid strategic moves are not required to be profitable.
Concerning the organic form, these kinds of organizations do not imply a strict structure, job definitions and functions are flexible, decision-making is decentralized; tasks are less specific and more general. Moreover, information is freely exchanged among different levels of employees. Google is one of the most illustrative examples of an organic organizational structure. This kind of structure allows Google to adapt quickly and successfully to a fast-changing business environment. Moreover, a loose atmosphere inside the company increases the efficiency of employees.
References
Friend, L. (2019). What is the meaning of organizational structure? Chron. Web.
Godwyn, M., & Gittell, J. H. (Eds.). (2012). Sociology of organizations: Structures and Relationships. Sage.