Organic Organizational Structure ? It is a form of organizational structure in which all company employees are arranged at the same organizational level, meaning that there is no traditional hierarchy of upper, middle, and lower management. The process of employee communication takes place in order to exchange and share views, reports, and information among each other in a horizontal manner, and the decision-making process takes place by consensus of the company’s employees.
Characteristics of companies that use an organic organizational structure
- Companies that rely on an organic organizational structure are distinguished by their wide and noticeable application of the concept of cooperation, teamwork, and participation between their various departments and divisions, instead of the prevailing atmosphere in the company being more like isolation and ambiguity.
- The company becomes more flexible and is able to adapt to the conditions of the dynamic external environment surrounding it.
- The employees of these companies are distinguished by their multi-talents and skills, and therefore they can perform many tasks professionally, accurately, and efficiently, which helps to raise and enhance the levels of productivity in the company.
- Relying heavily on applying leadership concepts at work.
- The authority that governs the workflow in an organic organization is decentralized, i.e., all employees can be involved in formal and informal decision-making processes, which leads to a more harmonious and collaborative work environment.
Advantages of the organic organizational structure
- The work environment that depends on the organic organizational structure is characterized by the availability of a huge amount of information that can be used in order to make rational decisions that are compatible with the surrounding conditions and unstable environments.
- Streamlined and flexible communication of information, directives, and instructions among the company’s employees.
- Promote employee belonging and loyalty. As a result, they feel that their decisions and suggestions are taken seriously by the company’s managers.
Disadvantages of the organic organizational structure
- Slow decision-making and approval of the final decision. This is because this process necessarily depends on the consensus of all employees, and this in turn will negatively affect the company’s position in the event of sudden crises.
- It can create confusion and inconsistency because not every employee knows the nature of the role or task he occupies within the organization.
- Decisions can be ambiguous and complex at times.
- Misunderstandings may arise between team members in the company, which may negatively affect the performance of the work entrusted to them.
- It requires employees with high-level skills and competencies, which, in turn, will incur very high administrative costs for the company.
The difference between the organic organizational structure and the mechanical or automated organizational structure
- In terms of meaning: the organic organizational structure is a structure that arranges all employees within the same organizational level and horizontally, with the aim of enhancing the spirit of cooperation and teamwork, creating a more homogeneous atmosphere among employees, and applying the concept of decentralized management. While the mechanical organizational structure is a form of the traditional organizational structure on which any new company relies, it consists of a hierarchy that starts with the upper management, then the middle, and finally the lower one. Through the hierarchy, powers and responsibilities are delegated, and orders and decisions are issued from the upper divisions to the lower ones.
- In terms of the method of communication: the communication process between employees in organic structures takes place in a horizontal manner, and the communication process usually takes place in an oral manner. In the mechanical structure, the communication process takes place in the traditional way, that is, from top to bottom, and written communication methods are usually used.
- In terms of leadership style: the organic structure is based on decentralized leadership, unlike the mechanical structure, which is based on a centralized leadership approach. The mechanical structure may limit creativity and innovation, unlike the organic structure, which encourages and supports creativity and excellence.
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