In an organic organization, there is greater emphasis on vertical communication.

We’ve spent some time now understanding the elements of an organizational structure, and the types of structures an organization might choose to use when organizing their work and employees. Some of those structures are very strict and hierarchal, like the bureaucratic model, and some of the structures, like boundaryless, are pretty loose and free-wheeling. They all have their advantages and disadvantages.

When managers combine the basic components and elements of an organizational structure together, the result has certain characteristics that are best understood by looking at it through the lens of organic and mechanistic organizations.

Organic Organizations

Organic organizations look a lot like boundaryless organizations. They allow for employees to cultivate more ideas and be more creative because the business is not as rigidly structured. Organic structures are used in dynamic, unstable environments where the business needs to quickly adapt to change, as the structure gives the organization the flexibility to deal with fast-paced environmental change and many different elements.

A good example of an organization that uses an organic structure might be a consulting firm. A consulting firm responds to customer issues as they come up, and those issues change with the business environment. Consulting firms want to respond to change quickly, so by choosing an organic structure they’re able to be nimble and address their customers’ needs.

Mechanistic Organizations

Mechanistic organizations have centralized decision making and formal, standardized control systems. Essentially, they are bureaucracies.

Mechanistic organizations work well in stable, simple environments. Managers integrate the activities of clearly defined departments through formal channels and in formal meetings. Often, they feature many hierarchical layers and a focus on reporting relationships.

General Motors

General Motors is a good example of an organization using the mechanistic model. Why do they use that? For one, they’re very large, and when that many people and functions are involved, order is needed. But they’re also in a stable, if not somewhat simple, environment. The car market fluctuates with the economy, yes, but the company builds cars and trucks. Across all their divisions, that function is basically the same.

DMV

Another example of a mechanistic model is the Department of Motor Vehicles. When you get your new driver’s license, you go from one department to another, taking a written test, taking an eye exam, taking an actual driving test, filling out the paperwork, and then finally, getting your driver’s license. The structure for this is very mechanistic—every person looking to get a driver’s license has to be treated exactly the same. It’s simple and stable.

Here’s a table comparing the basic characteristics of both models:

OrganicMechanisticGeneral tasksSpecialized tasksLoosely defined departments and hierarchyWell-defined departments with clear hierarchyDecentralized decision making by many individualsCentralized decision making by a few peopleIntegration achieved by managers and employees interacting and exchanging information as neededIntegration achieved by formal manager meetingsFlexibility and capability of rapid changeClear and efficient reporting relationships

Most companies find themselves falling somewhere in between the two extremes of organic and mechanistic. Each organization designs its structure to enable its mission, goals, and strategy. If the structure fits with other contextual elements, it has a better chance of being effective in supporting the organization.

Practice Question

Now that we fully understand the difference between organic and mechanistic structures, let’s use those to gain a better understanding of what kind of organizational structures work best for different organizations—and why.

Now we understand what communication is, and a message is encoded by a sender, decoded by a receiver, all while navigating noise and providing feedback. Organizations communicate to ensure employees have the necessary information to do their jobs, feel engaged, and be productive.

Communication travels within an organization in three different directions, and often the channels of communication are prescribed by the direction in which the communication is flowing. Let’s take a look at the three different directions and types of communication channels used.

Vertical Communication

Figure 1. Downward and upward communication

Vertical communication can be broken down into two categories: downward communication and upward communication.

Downward Communication

Downward communication is from the higher-ups of the organization to employees lower in the organizational hierarchy, in a downward direction. It might be a message from the CEO and CFO to all of their subordinates, their subordinates, and so on. It might be a sticky note on your desk from your manager. Anything that travels from a higher-ranking member or group of the organization to a lower-ranking individual is considered downward organizational communication.

Downward communication might be used to communicate new organizational strategy, highlight tasks that need to be completed, or they could even be a team meeting run by the manager of that team. Appropriate channels for these kinds of communication are verbal exchanges, minutes and agendas of meetings, memos, emails, and even Intranet news stories.

Upward Communication

Upward communication flows upward from one group to another that is on a higher level on the organizational hierarchy. Often, this type of communication provides feedback to organizational leaders about current problems, or even progress on goals.

It’s probably not surprising that “verbal exchanges” are less likely to be found as a common channel for this kind of communication. It’s certainly fairly common between managers and their direct subordinates, but less common between a line worker and the CEO. However, communication is facilitated between the front lines and senior leadership all the time. Channels for upward communication include not only a town hall forum where employees could air grievances, but also reports of financial information, project reports, and more. This kind of communication keeps managers informed about company progress and how employees feel, and it often provides managers with ideas for improvement.

Horizontal Communication

When communication takes place between people at the same level of the organization, like between two departments or between two peers, it’s called horizontal (or lateral) communication. Communication taking place between an organization and its vendors, suppliers, and clients can also be considered horizontal communication.

Figure 2. Horizontal communication

Even though vertical communication is very effective, horizontal communication is still needed and encouraged, because it saves time and can be more effective—imagine if you had to talk to your supervisor every time you wanted to check-in with a coworker! Additionally, horizontal communication takes place even as vertical information is imparted: a directive from the senior team permeates through the organization, both by managers explaining the information to their subordinates and by all of those people discussing and sharing the information horizontally with their peers.

Not all organizations are set up to facilitate good horizontal communication, though. An organization with a rigid, bureaucratic structure—like a government organization—communicates everything based on chain of command, and often horizontal communication is discouraged. Peer sharing is limited. Conversely, an organic organization—which features a loose structure and decentralized decision making—would leverage and encourage horizontal communication.

Horizontal communication sounds like a very desirable feature in an organization and, used correctly,  it is. Departments and people need to talk between themselves, cutting out the “middle men” of upper management in order to get things done effectively. Unfortunately, horizontal communication can also undermine the effectiveness of downward communication, particularly when employees go around or above their superiors to get things done, or if managers find out after the fact that actions have been taken or decisions have been made without their knowledge.

Practice Question

Now that we understand the three directions in which communication can travel, let’s take a look at types of communication and how they’re employed within an organization.

Which of the following is a characteristic of an organic organization?

For which type of environment should organizations adopt an organic structure?

Which is a characteristic of mechanistic models of organizational design?

What are three characteristics of an organization with a simple structure?