In order to operate efficiently and systematically, a suitable organizational structure is essential to successful implement proper operating procedures and decision-making processes in accomplishing the company’s goals. McDonald has a famously mechanistic structure where the work can be highly controlled and employee jobs are highly formalized to achieve unprecedented growth in the fast food industry in the past. The following analysis provides recommendations for McDonald on whether to change its organizational structure.
Mechanistic structure is based on a formal, centralized network to improve efficiency. Thus, The mechanistic structure is best suited for companies that operate in a stable environment and for routine tasks and technologies. In mechanistic organizations, it is typical for each person to be assigned one task that is relatively stable and easy to control.
However, there are several criticisms made about mechanistic organizations. First, while focusing on task concerns such as efficiency and standardization, mechanistic organizations tend to ignore human needs and dynamics. Second, innovation are restricted by the rigidity of formalization. In addition, as a result of the stability of tasks, there tends to be low integration between functional areas or departments in organizations that use a mechanistic structure.
Raymond noted that cellular organizations are built on the principles of entrepreneurship, self-organization, and member ownership. Cellular structure is flexible and decentralized, with low levels of formalization. In cellular organizations, cross-department communication is more fluid, creativity is encouraged on the part of employees. Thus, cellular structure will be used in situations requiring continuous learning and innovation. (Organizing in the knowledge…