Organic organizational structure is a flexible approach to business that allows companies to react to unpredictable environments. It emphasizes decentralized decision-making, integration between departments, and growth. This approach is more effective in today’s complex business environment than the traditional machine-like structure.
Organic organizational structure is a concept in the business world that attempts to account for the increasing complexity of a developing organization. The theory basically states that a company should have considerable flexibility to react to business environments that can be unstable and unpredictable. Such a structure flies in the face of the point of view – based on the Industrial Revolution – which imagines companies as machines. Some of the important features of this type of structure are flexibility in assigning tasks, integration between departments and decentralized decision-making.
The theory behind organizational structure in business has evolved dramatically as business has become more complex. Among other things, the overwhelming impact of technology and computers, the increasing globalization of businesses and the advanced sophistication of customers have increased the demands of businesses worldwide. Fortunately, these companies too now have greater resources to meet those needs. An organic organizational structure may be the best concept for business in the modern age.
In the past, the idea of a business as a machine was more than acceptable to deliver what customers needed. The business environment was relatively stable, and as such, an assembly-line mentality to the organizational structure was quite effective. Such an approach would likely be lacking in today’s increasingly unstable and ever-changing economic environment. As a result, an organic organizational structure, which sees the business almost as a living thing, has become much more popular and useful.
It makes sense to use an organic organizational structure, as it is more effective at using the resources available to companies than previous models. For example, modern employees have a much more diverse skill set than their past counterparts. If so, giving them more responsibility for making decisions that will impact the entire enterprise is an effective strategy.
While there is no standard way to approach organic organizational structure, there are some aspects that are usually at play in most of these structures. In addition to the aforementioned democratic decision-making, organic structures usually blur the lines between departments, which is made possible by technology enabling improved communications. Most organic structures also focus on growth, meaning the structure is malleable enough to transform in the future to meet unexpected demands.
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