Page 197 - Fundamentals of Management Myths Debunked (2017)_Flat
P. 197

2   Size            Structure
                       •  Considerable evidence that size (number of employees)

                           affects structure 21                                                      ORGANIC

                       •  Magic number seems to be 2,000 employees
                                                                                                  fewer than 2,000
                       •  lARGe organizations (> 2,000 employees)—mechanistic                  employees can be organic

                       •  When an organization reaches this number, size is less
                           influential; adding more employees has little impact as

                           structure is already fairly mechanistic

                        A smaller organization with
                        a more organic structure                                              MECHANISTIC

                        becomes more mechanistic                                      more than 2,000 employees forces
                        if a significant number of new                                  organizations to become more
                                                                                               mechanicstic
                        employees are added to it.


                   3    Technology                  Structure

                        •  Technology is used—by every organization—to convert inputs into outputs

                           (See Exhibit 6–8 in the From Past to Present box on p. 197.)














                        TAlex/Fotolia

                                                        Fet/Fotolia                           Rvlsoft/Fotolia


                    Your smartphone or tablet              Your résumé                   Your bottle of ibuprofen
                       standardized assembly line       custom design and print         continuous-flow production process

                   4   environment                    Structure


                       •  Environment is a constraint on managerial discretion

                       •  Environment also has a major effect on an organization’s structure
                           — Stable environment: Mechanistic structure

                           — Dynamic/uncertain environment: Organic structure
                       •  Helps explain why so many managers today have restructured their
                           organizations to be lean, fast, and flexible. 22

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