EMERGING TRENDS

IN ORGANIZATIONAL STRUCTURE
Except for the matrix organization, all the traditional structures focus on the vertical
organization; that is, who reports to whom, who has responsibility and authority for
what parts of the organization, and so on. Such vertical integration is sometimes
necessary, but may be a hindrance in rapidly changing environments. A detailed
organizational chart of a large corporation structured on the traditional model would
show many layers of managers; decision making flows vertically up and down the
layers, but mostly downward. However, there is critical trend, lately, modifying the
way managing people being processed, which is the utilization of organic model of
organization structure.

Organizational structure characterized by (1) Flatness: communications and

interactions are horizontal, (2) Low specialization: knowledge resides wherever it is
most useful, and (3) Decentralization: great deal of formal and informal participation
in decision making. Organic organizations are comparatively more complex and
harder to form, but are highly adaptable, flexible, and more suitable where external
environment is rapidly changing and is unpredictable. Also called open
organizations, they are contrasted with mechanistic organizations.

A common way that modern business organizations move toward the organic model
is by the implementation of various kinds of teams. Some organizations establish
self-directed work teams as the basic production group. Examples include
production cells in a manufacturing firm or customer service teams in an insurance
company. At other organizational levels, cross-functional teams may be established,
either on an ad hoc basis (e.g., for problem solving) or on a permanent basis as the
regular means of conducting the organization's work. Aid Association for Lutherans
is a large insurance organization that has adopted the self-directed work team
approach. Part of the impetus toward the organic model is the belief that this kind of
structure is more effective for employee motivation. Various studies have suggested
that steps such as expanding the scope of jobs, involving workers in problem
solving and planning, and fostering open communications bring greater job
satisfaction and better performance.

COMPRHENSION:

1. What was the reading about?

A. New method of managing people.
B. The critical of mechanistic organizations.
C. How organization structure defying the success of a company.
 D. Criteria of managing people.
2. According to paragraph 1, each of the following is a characteristic of
traditional organization structures EXCEPT:
A. The structures involve numerous layers of managers.
B. Decisions flow vertically.
C. Seemingly have many challenges in fast-growing world.
D. They are not used anymore.
3. According to paragraph 2, what can be inferred about organic model of
organization structure?
A. The other term describing organic organization structure is open
organization.
B. Communication ideally flows more freely throughout the organization.
C. It is contrasted with mechanistic organizations.
D. Decisions are made in shorter time.
4. According to paragraph 3, Why does the author mention Aid
Association for Lutherans?
A. To illustrate how the organic structure works.
B. To exemplify a utilization of self-directed work teams
C. To cast doubt on the efficiency of the model.
D. To give an example of mechanistic organizations.
5. Choose best illustration for Organic model of organization structure?
A.
B.

C.
D.

6. Direction: Complete the table by selecting the appropriate

phrases below. Select the appropriate phrases from the list of
phrases and decide which are more connected to the Organic
Organization Structure or the Traditional Organization Structure.
TWO of the answer choices will NOT be used.

Organic Organization Traditional Organization

Structures Structures

A. De-emphasize job specialization.

B. Decentralize authority.
C. Have many layers of managers.
D. Emphasis on job specialization.
E. Have gone viral recently.
F. Create greater motivation and satisfaction for workers.
G. Have positive effects on organizations.