Question

What is an organic organization ? A mechanistic organization? How does the environment influence organic and mechanistic systems and deigns? The concept of business ecosystems implies that organizations are more interdependent, aotopoietic, than ever before. From personal experience or your research do you agree? Explain and discuss the autopoietic nature of organizations and systems. Discuss open versus closed systems.

Answer 1

answer-

An organic organization is a type of informal organization originally described by British theorists Tom Burns and George Stalker. According to Burns and Stalker, an organic organization is one that is very flexible and is able to adapt well to changes. Its structure is identified as having little job specialization, few layers of management, decentralized decision-making, and not much direct supervision.

A mechanistic structure, also known as a bureaucratic structure, describes an organizational structure that is based on a formal, centralized network. The mechanistic structure is best suited for companies that operate in a stable and certain environment. In general, a mechanistic structure is easy to maintain and rarely needs to be changed when an organization operates in a stable environment.

In mechanistic organizations, authority reflects a well-defined hierarchy where top-level managers make the majority of the decisions. Because the environment is relatively stable, complex decision-making processes that involve multiple parties are not required. Subordinates are expected to follow the directions of management and not question their rationale. Communication, much like decisions, also flows through hierarchical routes, or from the top down.

The organization’s environment is a constraint on managerial discretion. It also has a major effect on the organization’s structure. Essentially mechanistic organizations are most effective in stable environments. Organic organizations are best matched with dynamics and uncertain environments.

The evidence on the environment – structure relationship helps to explain why so many managers have restructured their organizations to be lean, fast, and flexible. Global competition, accelerated product innovation by all competitors, knowledge management, and increased demands from customers for higher quality and faster deliveries are examples of dynamic environmental forces. Mechanistic organizations tend to be ill equipped to respond to rapid environmental change. As a result, managers, such as those at Samsung Electronics, are redesigning their organizations in order to make more organic. As a result, Samsung has witnessed significant increases in sales and net profits.

I think business ecosystem is not independent and aotopoietic because it means that organizations are able to maintain themselves and can work on their own without the need of management which is not true. an autopoietic system is autonomous and operationally closed, in the sense that there are sufficient processes within it to maintain the whole. from my personal experience, organizations need management to put the organization in right direction like top management uses their conceptual skills to create vision, mission and objectives and directs the organization to that. the management is like muscle to the organization.

I think business is not closed system like autopoietic because there are forces or external factors which affects the work and maintenance of business sytstem which makes it open system. the forces which makes it open system are environmental factors, political/legal factor, social factor, technological factors etc.so i would say that organization ecoysystem is like open system not autopoietic or closed.