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Organisational Design

Organisational design examines issues like how to organise, criteria for organising etc. Organisational design is decision making process to bring about coherence between goals of organisation, the pattern of division of labour and inter unit coordination among people who will do the work (Galbraith, 1977). Some common patterns of organisational designs are discussed here. 

Bureaucratic Organisation  

Weber (1947) suggested that this kind of organisation has following characteristics : 

  1. Work of organisation is differentiated on functional basis in company. Total work is divided into series of functions. Each function is responsibility of a particular division. 
  2. Organisational positions and officers qe known by their designations, not by personal  of those who occupy the positions. 
  3. A formal system of rule and regulation to govern official action and division of work. 
  4. Objective and impartial recruitment and selection of personnel. 
  5. Reward on the basis of merit and performance.   

Burns Stalker (1961) developed organic and mechanistic conceptualization of organisation. Mechanistic form is similar to bureaucratic organisation. 

Mechanistic Structure 

It has following characteristics : 

  1. Specialised differentiation of function. 
  2. Formal means of communication. 
  3. Precise definition of authority and responsibility. 
  4. Hierarchical structure of control authority and communication. 
  5. Vertical interaction and downward pattern of communication. 

Organic Structure 

It has following characteristics : 

  1. Adjustment and redefinition of task as required by situation in organisation. 
  2. An informal network of control authority and communication. 
  3. Communication between people of different ranks resembling consultation rather than conundrum.
  4. Content of communication consisting of information and advice. 
  5. Ability to adjust to changing condition of environment. 

It should be noted that mechanistic organisation is suitable for stable environment and organic organisation is suitable for rapidly changing environment. 

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