Greater influence is accorded people who demonstrate ability to add value. You can imagine how the working atmospheres differ. In the Mechanically managed and structured organization people in one department know little of the missions and contributions of the others. Since work is highly specialized and interdepartmental communication leaves much to be desired, things that need to be coordinated slip through the cracks. Problems as well as opportunities go unnoticed.
Blame is placed on others.
We-they conflicts develop. Teamwork is likely to be poor. But since the leadership paradigm, the reward systems, and the organization's structure all proceed from the Mechanical mentality, little changes. Large organizations are highly susceptible to this. They get overrun by restrictive regulations, over-elaborated procedures and incredibly convoluted work processes.