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design :
fashion or fit
?
By Henry Mintzberg
Agenda
Problem in
organizational
design
Components of
organization
Parameters of
context
Organizational
configuration 2
Introduction
According to Henry Mintzberg there
are five organizational structures
1. Simple structure
2. Machine bureaucracy
3. Professional bureaucracy
4. Divisionalised form
5. Adhocracy 3
Problem in organizational design
4
• Assumption that all organizations are alike
• Ex: A hospital or an University has a totally different
organizational design when compared to a factory
floor.
• Assumption that effectiveness drives design and
coherence amongst the components when it's
other way round
Components of organization
5
Strategic Apex Take Strategic Decisions with respect to
organization
Operating Core Basic work of an organization
Middle line Intermediate management
Techno structure Operational Design of core activity of
organization
Support staff Every other service required for an
organization
6
Paramete
rs of
context
• Size and age
• Technological
dependence
• Environmental
factor
• Stable /unstable
• Simple/ complex
• Power
• External
• Internal 7
5 context- 5 structures
8
Direct
supervision
Ex. Small
grocery
store
Standardizati
on of work
Ex.
Assembly
line
Standardisat
ion of skills
Ex. Hospital ,
schools
Standardizati
on of
outputs
Ex. Car
company
Mutual
adjustment
etc.
Ex. Airplane
manufacture
r
Simple
structure –
CEO
Machine
bureaucracy
-
Professional
bureaucracy
–
Divisionalised
form –
Middle line
Adhocracy –
No
distinctions
context
structure
9/3/20XX Presentation Title 9
Mintzbergs five
organisation types
Simple structure
Characteristics
• Less standardization, formalization
• Minimal planning, training or liaison
• Very less middle management
• They buy then make
• Ex. Startup
10
advantages
• Lean and flexible
• operates in dynamic and
complex environment
• Highly centralized - rapid
innovation in simple kind
happens Not suitable for
• Generally young and small
• They often die young
because of heavy obsession
of its leaders
• Under severe pressure
organizations revert back to
this structure
11
MACHINE BUREAUCRACY
• Off spring of industrialization High standardization - low
skilled, highly specialized jobs
• Elaborate administration with many analysts which in turn
leads to horizontal decentralization
• Conflicts out of rigid departmentalization and hierarchy is
required to oversee it
• Stable environment or stabilize the environment around by
vertical integration
• Size drives organization to bureaucratize and vice versa
• External controls encourage bureaucratization and 12
Professional bureaucracy
• Standardization of skills rather than work processes .
• Relies on trained professionals for its operating tasks .
• Operating core , standardization of skills , vertical and
horizontal decentralization .
• Effective for organizations that are stable yet have
complex environments .;
• Standardization – great strength as well as great
weakness. 13
Divisionalised form
• System in which a company segmnets its employees based on
products or markets , as opposed to job roles.
• A small central core provides guide lines for business units that
enjoy a high degree of autonomy .
• Organisation has teams dedicated to a specific region or product .
• Relatively simple and stable but having market diversity .
• Examples – large corporations
14
Adhocracy
• Task or project based and has to respond quickly and flexibly to
changing demands .
• Emphasizes individual initiative and self organisation in order to
accompalish tasks .
• Support staff , mutual adjustment , selective vertical and
horizontal decentralization .
• Complex and dynamic organisation
• Examples – consulting firms , advertising agencies , chemical
firms , space agencies. 15
The Conclusion: fashion
or fit ?
• A configuration according to the context of the organization
should be chosen but competency that contrasts its
configuration should not be expected
• Organization's structure represents its effort to align internal
processes with its external environment while balancing
structural dilemmas
• Consistency , coherence and fit –harmony are critical factors in
organizational design
16
Thank you
17
Prachi verma
22BAMMA158
Sana Fatima
22BAMMA151

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Organization design fashion or fit by Henry Mintzberg

  • 1. design : fashion or fit ? By Henry Mintzberg
  • 3. Introduction According to Henry Mintzberg there are five organizational structures 1. Simple structure 2. Machine bureaucracy 3. Professional bureaucracy 4. Divisionalised form 5. Adhocracy 3
  • 4. Problem in organizational design 4 • Assumption that all organizations are alike • Ex: A hospital or an University has a totally different organizational design when compared to a factory floor. • Assumption that effectiveness drives design and coherence amongst the components when it's other way round
  • 5. Components of organization 5 Strategic Apex Take Strategic Decisions with respect to organization Operating Core Basic work of an organization Middle line Intermediate management Techno structure Operational Design of core activity of organization Support staff Every other service required for an organization
  • 6. 6
  • 7. Paramete rs of context • Size and age • Technological dependence • Environmental factor • Stable /unstable • Simple/ complex • Power • External • Internal 7
  • 8. 5 context- 5 structures 8 Direct supervision Ex. Small grocery store Standardizati on of work Ex. Assembly line Standardisat ion of skills Ex. Hospital , schools Standardizati on of outputs Ex. Car company Mutual adjustment etc. Ex. Airplane manufacture r Simple structure – CEO Machine bureaucracy - Professional bureaucracy – Divisionalised form – Middle line Adhocracy – No distinctions context structure
  • 9. 9/3/20XX Presentation Title 9 Mintzbergs five organisation types
  • 10. Simple structure Characteristics • Less standardization, formalization • Minimal planning, training or liaison • Very less middle management • They buy then make • Ex. Startup 10
  • 11. advantages • Lean and flexible • operates in dynamic and complex environment • Highly centralized - rapid innovation in simple kind happens Not suitable for • Generally young and small • They often die young because of heavy obsession of its leaders • Under severe pressure organizations revert back to this structure 11
  • 12. MACHINE BUREAUCRACY • Off spring of industrialization High standardization - low skilled, highly specialized jobs • Elaborate administration with many analysts which in turn leads to horizontal decentralization • Conflicts out of rigid departmentalization and hierarchy is required to oversee it • Stable environment or stabilize the environment around by vertical integration • Size drives organization to bureaucratize and vice versa • External controls encourage bureaucratization and 12
  • 13. Professional bureaucracy • Standardization of skills rather than work processes . • Relies on trained professionals for its operating tasks . • Operating core , standardization of skills , vertical and horizontal decentralization . • Effective for organizations that are stable yet have complex environments .; • Standardization – great strength as well as great weakness. 13
  • 14. Divisionalised form • System in which a company segmnets its employees based on products or markets , as opposed to job roles. • A small central core provides guide lines for business units that enjoy a high degree of autonomy . • Organisation has teams dedicated to a specific region or product . • Relatively simple and stable but having market diversity . • Examples – large corporations 14
  • 15. Adhocracy • Task or project based and has to respond quickly and flexibly to changing demands . • Emphasizes individual initiative and self organisation in order to accompalish tasks . • Support staff , mutual adjustment , selective vertical and horizontal decentralization . • Complex and dynamic organisation • Examples – consulting firms , advertising agencies , chemical firms , space agencies. 15
  • 16. The Conclusion: fashion or fit ? • A configuration according to the context of the organization should be chosen but competency that contrasts its configuration should not be expected • Organization's structure represents its effort to align internal processes with its external environment while balancing structural dilemmas • Consistency , coherence and fit –harmony are critical factors in organizational design 16