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european journal of social sciences issn: 1450-2267 - EuroJournals

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Dynamic<br />

Environment<br />

Certain<br />

European Journal <strong>of</strong> Social Sciences – Volume 5, Number 3 (2007)<br />

Figure 2: Environmental Forces on Organizational Structure<br />

100% Mechanistic<br />

The key to effective human resource planning lies in the timing and process <strong>of</strong> restructuring<br />

from either <strong>of</strong> the well-defined mechanistic/organic structures. When firms move from a more<br />

mechanistic to organic structure, levels <strong>of</strong> management flatten and spans <strong>of</strong> control grow. This, in turn<br />

has implications for changes in communication, motivation and rewards structures. Authority and<br />

accountability create relationship changes in this transition and decision-making becomes more<br />

decentralized (Jones, 2004). Without the properly aligned workforce, structures designed to facilitate<br />

work coordination and flow will almost certainly fail.<br />

Implications for HR<br />

Turbulent environments require flexibility. More organizations are encountering turbulence in their<br />

industries and are therefore moving toward organic structures. The transition to an organic structure<br />

directly impacts the derived demand linkage and human resource planning process. The entire span <strong>of</strong><br />

selection, training, and rewarding criteria must become aligned with the requirements <strong>of</strong> the new<br />

structure. The implications for these contrasting structures are important.<br />

Under the organic structure conditions, employees require less direct supervision. The<br />

effectiveness <strong>of</strong> employees in these circumstances is directly related to selection methods used to hire<br />

the employees. For example, when hiring, organizations can use valid tests to select for appropriate fit<br />

characteristics like locus <strong>of</strong> control, need for autonomy, and independence (Hough & Oswald, 2000).<br />

In moving toward the organic type structure, delegation <strong>of</strong> authority becomes very critical. Typical<br />

mechanistic firms employ spans <strong>of</strong> control around seven. Under a more organic structure spans <strong>of</strong><br />

control can reach as high as seventy-five (Gailbrath, 2002). Moving toward a more organic structure<br />

requires the development and deployment <strong>of</strong> self-managing work teams that end up training, selecting<br />

and rewarding their respective members. Such a structure requires a complete re-vamping <strong>of</strong><br />

supervisory skills and characteristics. For successful operations in these organic firms, managers<br />

require training on how they can provide substantial coaching skills rather than directing skills<br />

(Gailbrath, 2002).<br />

92<br />

Structure<br />

100% Organic

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