Answer to Question 1
Mechanistic structures are designed to induce people to behave in predictable, accountable ways. Decision-making authority is centralized, subordinates are closely supervised, and information flows mainly in a vertical direction down a clearly defined hierarchy.
Organic structures promote flexibility, so people initiate change and can adapt quickly to changing conditions. Organic structures are decentralized so that decision-making authority is distributed throughout the hierarchy. People assume the authority to make decisions as organizational needs dictate. Roles are loosely defined and people continually develop new kinds of job skills to perform continually changing tasks.
Answer to Question 2
The challenge facing all organizations, large and small, is to design a structure that achieves the right balance between standardization and mutual adjustment. Standardization is conformity to specific models or examples that are considered proper in a given situation.
Mutual adjustment, on the other hand, is the evolving process through which people use their current best judgment of events rather than standardized rules to address problems, guide decision-making, and promote coordination. The right balance makes many actions predictable so that ongoing organizational tasks and goals are achieved, yet it gives employees the freedom to behave flexibly so they can respond to new and changing situations creatively.
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