What is meant by the ‘Organic effect’ in terms of the decision making process in business management?
Although I have not found literature references to the “Organic
Effect” in business management, there are articles on “Organic Organization” of business management endeavors. The referenced study describes two forms of business management, “mechanistic” and “organic”.
The “organic” form of organization of business management recognizes the constant changes affecting business organizations. The problems that must be addressed in the business management plan are in a continual state of flux, and they require adaptive management strategies of which a few will be generally described here.
In contrast to “organic”, the “mechanistic” model of organization of business management assumes a static (unchanging) situation and a simple vertical relationship of superior and subordinate. It is a non-adaptive, and by current standards, non-productive model.
The “organic” approach recognizes change. It provides for continual adjustments based on management’s special knowledge and experience of the task of the company. It appreciates the realistic over the theoretical. It disallows shifting of responsibility to others, and demands accountability. Instead of valuing only loyalty to the company and obedience of superiors, the “organic” model values commitment to the task, and has a goal of progress and expansion. Information and advice are valued over instructions and decisions.