Business Structure Analysis

As shown in the figure, this type of arrangement is based on a formal, centralized system where employees work independently on their respective responsibilities. It is characterized by a well-defined chain of command and decisions are made by top-most managers. In this example, the Senior Vice President and the Treasurer make the majority of decisions about the company (Kessler 548). Subordinates in various departments are expected to follow instructions from the management without questioning their rationale. According to the hierarchical routes in the company, communications and decisions flow vertically from the top management down to junior employees. Part 2 Organizational Design Preference The mechanistic organizational structure provides regular outcomes of the company’s goals. It ensures high productivity and predictability of the workforce since each department, and individual workers are assigned specific duties in their area of specialization (Kessler 541).

The work methods and procedures are specified making it easier to manage a mechanistic type of organization due to the feature of centralized and definitive leadership. Decisions are made fast at the top management. It ensures that the company works towards a common objective. For example the T-Mobile incorporates the use of the TEX model to weigh both individual and team performance (Dixon n. p). It is a different mode of evaluation from the old schemes which only measured individual performances. The TEX model encourages employees to look out for each other. The company’s senior accountant explains that the old system of evaluation made each staff to take sole responsibility for their poor performance “…it was a sink or swim on your own” (Dixon n.