The concept of the organic organizational structure was first introduced by Tom Burns and G.M Stalker in the late 1950 and the purpose or the theme of the organic organizational structure is to understand the rapidly growing complexity of a developing and nourishing business or organization. The purpose of the theory is to make it understandable for the business owners, that a business should have a level of flexibility that will make it able to move normally or efficiently in a commercial environment, which is unpredictable and unstable. The major characteristics of an organic organization structure are flexible in assigning routine tasks, interdepartmental integration and formal and informal participation in the process of decision-making or in other words a decentralized system. The organic organization structure is complex enough as compared to other structures however it is more flexible in nature, is adaptable and is suitable in an unstable external environment. Organic organizational structure is a best choice for open organizations where one can never predict anything.
The organic organization structure is the most proposed structure for organizations but unfortunately it is hard to find it in real. It is because in an organic organization structure, there is no concept of different job levels and all the workers of an organization must have equal levels and responsibilities without having any job classification and description. The communication in an organic organizational structure is in the form of hub network where everyone is free to access the main body of the organization. In an organic organization structure, the tasks are highly and mutually adjusted by the workers because there is no concept of formalization or standardization. Organic organizational structures are found very effective in communication as everyone is free to communicate with the relative person of another department, it is not only making the communication faster but at the same time lessen the chances of misrepresentations due to personal conflicts.
The organizations or companies having an organic organizational structure are highly adaptive because the decision making of such companies involves both upper and lower level of employees and so everyone can easily change to a new circumstance. As everything he sits pros and cons, the same is the case of an organic organizational structure. The organic organizational structure has also a number of disadvantages that are stopping people from introducing this structure in their organizations. There are no specific rules, organizational culture and work boundaries in an organic organizational structure because the culture, rules and boundaries are changing all the time with the change in environment. At the same time, an organic organizational structure is not as productive as an organizational structure should because the employees sometimes become stuck with a rapidly changing environment and even sometimes seriously facing difficulties in adjusting a new environment. There is no concept of an effective leadership because all the employees are equal in level and the power lies in their hands and so they never respond to any change that is implemented by the leader. The biggest issue in an organic organizational structure is the self-governance of employees.