- 10 Marks
Question
An appropriate organizational structure should reflect the size and complexity of an entity.
Required:
Using the management study of Burns and Stalker that identified two categories of organization structure—a mechanistic structure and an organic structure—explain the differences between the two types of structures and determine which of the two is suitable for LCH.
(10 marks)
Answer
Mechanistic Structure:
- Authority is delegated through a hierarchical management structure. Power over decision-making is obtained from a person’s position in the management hierarchy.
- A bureaucracy is typical of a mechanistic structure.
- Communication is vertical, up and down the chain of command.
- Jobs are specialized, and individuals focus on their specialist areas.
- Job descriptions are precise, and tasks are governed by instructions from superior managers.
Organic Structure:
- There is a network structure of control where individuals influence decisions based on their knowledge and skills, regardless of their position in the organization.
- Control is cultural, not bureaucratic.
- Communication is more horizontal, and specialist knowledge is shared to contribute to the entity’s common task.
- Job descriptions are less precise, and there is a focus on contributing to the common task, not just specific job roles.
Suitability for LCH:
- Burns and Stalker found that an organic structure is better suited to an entity that needs to be responsive to changes in its products and markets, and in its environment.
- A mechanistic structure is more suited to an entity in a stable environment where change is gradual.
- Hospitals like LCH typically operate within a mechanistic structure due to their hierarchical and divisional setup. The structured nature of task performance and role distribution makes LCH a mechanistic organization.
(8 marks for discussion and explanation; 2 marks for conclusion)
- Topic: Strategy, stakeholders, and mission
- Series: MAR 2023
- Uploader: Theophilus