What kind of companies should use the machine bureaucracy form of structure?

This type of structure is normally used in businesses that are well established. These businesses have rules, standards, and guidelines that are defined by the businesses. Some examples of these types of businesses are giant manufacturers, prisons, and security businesses.

Because it is almost impossible to suss out whether a person will be able to learn a new job or be able to fit in with the rest of the work crew just by interviewing and reviewing resumes. And more specifically, in a unionized situation, if probation did not exist it could be virtually impossible and extremely time consuming to justify terminating employment once someone is hired on.