Company Structure and Innovation – Pill 022

In Pill 017 I’ve shared the A-B-C concept about how to shape culture of change and innovation, but that depends on the company’s structure within we are moving.

Company structure are fundamental to shape culture of sharing and innovation. We can talk about two configurations of organizational structures, mechanic structures and organic structures

Mechanistic structures are those that resemble a bureaucracy. These structures are highly formalized and centralized. Communication tends to follow formal channels and employees are given specific job descriptions delineating their roles and responsibilities. 

In contrast to mechanistic structures, organic structures are flexible and decentralized, with low levels of formalization. 
In organizations with an organic structure, communication lines are more fluid and flexible. 

Employee job descriptions are broader and employees are asked to perform duties based on the specific needs of the organization at the time, as well as their own expertise levels. 
Organic structures tend to be related to entrepreneurial behavior and innovation.

Mechanistic organizations are often rigid and resist change, making them unsuitable for innovation and taking quick action.