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CHAPTER SIXTEEN
Organizational Structure and Change
CHAPTER SUMMARY
This chapter covers several concepts dealing with how leaders develop and shape
organizations. It described the process of organizational design, which involves setting
up organizational structures to address the needs of an organization. Organizational
change refers to the constant shifts that occur within an organizational system while
organizational development (OD) is the label for a field that specializes in change
management. Understanding these concepts can help managers know how to create
and direct organizations that are positioned to successfully accomplish strategic goals
and objectives.
Students are introduced to bureaucratic and organic structures. Bureaucratic structures
are a strongly hierarchical form of organizing that is designed to generate a high degree
of standardization, centralization, and specialization. In contrast, an organic
bureaucratic structure relies on the ability of people to self-organize and make decisions
without much direction such that they can adapt quickly to changing circumstances.
The needs of an organization change over time as the organization ages. Different
organizational structures are needed at different stages as an organization develops.
Change management is the process of designing and implementing change.
Organizational development (OD) is the specialized field that focuses on how to design
and manage change.
Common change models include Lewin’s Change Model, Kotter’s Change Model,
Appreciative Inquiry, and Common Adaptive Systems. These change models can be used
together, and they should not be considered as mutually exclusive. These models can be
used in different combinations to design change processes that meet the needs of a
particular context.
LEARNING OUTCOMES
10.1 Organizational Structures and Design
1. What are mechanistic versus organic organizational structures?
The organizational structure is designed from both the mechanistic and the
organic points of view, and the structure depends upon the extent to which it is
rigid or flexible. Flexible structures are also viewed as more humanistic than
, Organizational Behavior
mechanistic structures. The mechanistic organizational structure is similar to
Max Weber’s bureaucratic organization. Organic structures are more flexible in
order to cope with rapidly changing environments. These structures are more
effective if the environment is dynamic, requiring frequent changes within the
organization in order to adjust to change. It is also considered to be a better
form of organization when employees seek autonomy, openness, change,
support for creativity and innovation, and opportunities to try new approaches.
All organizations need structures to accomplish their work, and they need an
ability to change in order to sustain and renew themselves over time
10.2 Organizational Change
2. What are the fundamental dimensions of change?
It is often said that the only constant is change. Managers need to have the
ability to understand the dimensions of change, know what drives change, and
know how to implement changes to meet and exceed organizational goals. The
three types of change are structural, technological, and culture changes.
Managers need to understand change as organizations evolve and grow over
time.
One of the key responsibilities of management is to design organizational
structures that will allow an organization to accomplish its primary objectives.
The structure should always match the need for coordination. Often, managers
cannot tell what form the organization should take until they experience the
informal organization that determines how work is actually accomplished. Only
then can they understand how to draw on the concepts of bureaucracy to
appropriately design a structure that will maximize the likelihood of
organizational success.
10.3 Managing Change
3. How do managers deal with change?
As an organization grows and matures, change becomes necessary to its
sustained viability. Thus, another key responsibility for most leaders is the task of
designing and managing change. We have reviewed several questions that
should be considered when designing a change process, and we have explored
several approaches that may be used to guide the development of organizational
change.
The field of knowledge about how to change and develop organizations is vast
and can be somewhat confusing to the novice learner. The material presented in
this chapter provides an overview of key ideas, but there is so much more to
learn. Should you wish to become an influential leader of change, it is important
to learn more about this very important field of research and practice.
May 12, 2019 2
must be attributed to OpenStax, Rice University and any changes must be noted.
CHAPTER SIXTEEN
Organizational Structure and Change
CHAPTER SUMMARY
This chapter covers several concepts dealing with how leaders develop and shape
organizations. It described the process of organizational design, which involves setting
up organizational structures to address the needs of an organization. Organizational
change refers to the constant shifts that occur within an organizational system while
organizational development (OD) is the label for a field that specializes in change
management. Understanding these concepts can help managers know how to create
and direct organizations that are positioned to successfully accomplish strategic goals
and objectives.
Students are introduced to bureaucratic and organic structures. Bureaucratic structures
are a strongly hierarchical form of organizing that is designed to generate a high degree
of standardization, centralization, and specialization. In contrast, an organic
bureaucratic structure relies on the ability of people to self-organize and make decisions
without much direction such that they can adapt quickly to changing circumstances.
The needs of an organization change over time as the organization ages. Different
organizational structures are needed at different stages as an organization develops.
Change management is the process of designing and implementing change.
Organizational development (OD) is the specialized field that focuses on how to design
and manage change.
Common change models include Lewin’s Change Model, Kotter’s Change Model,
Appreciative Inquiry, and Common Adaptive Systems. These change models can be used
together, and they should not be considered as mutually exclusive. These models can be
used in different combinations to design change processes that meet the needs of a
particular context.
LEARNING OUTCOMES
10.1 Organizational Structures and Design
1. What are mechanistic versus organic organizational structures?
The organizational structure is designed from both the mechanistic and the
organic points of view, and the structure depends upon the extent to which it is
rigid or flexible. Flexible structures are also viewed as more humanistic than
, Organizational Behavior
mechanistic structures. The mechanistic organizational structure is similar to
Max Weber’s bureaucratic organization. Organic structures are more flexible in
order to cope with rapidly changing environments. These structures are more
effective if the environment is dynamic, requiring frequent changes within the
organization in order to adjust to change. It is also considered to be a better
form of organization when employees seek autonomy, openness, change,
support for creativity and innovation, and opportunities to try new approaches.
All organizations need structures to accomplish their work, and they need an
ability to change in order to sustain and renew themselves over time
10.2 Organizational Change
2. What are the fundamental dimensions of change?
It is often said that the only constant is change. Managers need to have the
ability to understand the dimensions of change, know what drives change, and
know how to implement changes to meet and exceed organizational goals. The
three types of change are structural, technological, and culture changes.
Managers need to understand change as organizations evolve and grow over
time.
One of the key responsibilities of management is to design organizational
structures that will allow an organization to accomplish its primary objectives.
The structure should always match the need for coordination. Often, managers
cannot tell what form the organization should take until they experience the
informal organization that determines how work is actually accomplished. Only
then can they understand how to draw on the concepts of bureaucracy to
appropriately design a structure that will maximize the likelihood of
organizational success.
10.3 Managing Change
3. How do managers deal with change?
As an organization grows and matures, change becomes necessary to its
sustained viability. Thus, another key responsibility for most leaders is the task of
designing and managing change. We have reviewed several questions that
should be considered when designing a change process, and we have explored
several approaches that may be used to guide the development of organizational
change.
The field of knowledge about how to change and develop organizations is vast
and can be somewhat confusing to the novice learner. The material presented in
this chapter provides an overview of key ideas, but there is so much more to
learn. Should you wish to become an influential leader of change, it is important
to learn more about this very important field of research and practice.
May 12, 2019 2
