The document discusses different types of organizational structures, focusing on adhocracies. It describes the matrix structure, noting that it adds flexibility to the bureaucracy form. The document outlines when a matrix is appropriate to use and discusses two types: temporary and permanent matrices. It also discusses Theory Z organizations, the collateral form, network structures, and other examples of adhocracies like task forces, committees, and the collegial form.

1. © 2010 Dorling Kindersley India Pvt. Ltd.
All rights reserved.
PowerPoint Presentation by Rajeesh Viswanathan
Jansons school of Business
Organization Theory
Structure, Design, and Applications
Third Revised Edition
Stephen P. Robbins and Mary Mathew
C H A P T E R
12
PART III: ORGANIZATIONAL DESIGN: CHOOSING THE RIGHT
STRUCTURAL FORM
Adhocracy: A Closer Look

2. After reading this chapter, you should be able to:
• Describe the strengths and weaknesses of the matrix.
• Identify the characteristics of Theory Z organizations.
• Describe how structure can facilitate innovation.
• Explain how network structures work.
• Contrast temporary and permanent forms of adhocracy
• Assess the role that adhocracies will play in the design of future
organizations.

3. MATRIX
• Matrix is a structural design that assigns
specialists functional departments to work on
one or more interdisciplinary teams, which
are led by project leaders.
• It adds a flexibility dimension to bureaucracy’s
economies of specialization.
• This flexibility dimension – places the matrix
into the adhocracy classification.

4. WHEN SHOULD YOU USE THE MATRIX?
• Matrix is designed to have a dual focus, such
as functions and products.
• Conditions that favor the matrix:
 Environmental pressure from two or more critical
sectors.
 interdependence between departments
 economies of scale in the use of internal resource

5. TWO TYPES OF MATRIX STRUCTURES
• TEMPORARY MATRIX
When new contracts are secured
 Exists only for the life of the project on which it is
working
• PERMENANT MATRIX
 Stay relatively intact over time
 Evident usually in colleges, large retail chains, etc.
 Provides clear lines of responsibilities for each
product line.

6. STRENGTH OF THE MATRIX
• Able to facilitate coordination when the
organization has a multiplicity of complex and
interdependent activities.
• Increased ability to respond rapidly to changes in
the environment .
• Cost control with the organization’s needs for
economic efficiency.
• An effective means for balancing the customers
requirement for project completion.

7. WEAKNESSES OF THE MATRIX
• Confusion
• Propensity to foster power struggles
• Stress it places on individuals.
• Confusion and ambiguity create the seed for
power struggles.
• Reporting to more than one boss introduces
role conflict.

8. THEORY Z ORGANIZATION
• Long-term employment
• Moderately specialized career paths
• Consensual decision making
• Individual responsibility &infrequent appraisal
• Implicit, informal appraisal with explicit,
formalized measures
• Slow promotion
• Comprehensive concern for people.

9. THE COLLATERAL FORM
• It is a loosely structured organic appendage
designed to coexist side by side with a
bureaucracy on a relatively permanent basis.
• They are typically small teams or separate
business units that are given the
independence and resources to experiment.

10. THE NETWORK STRUCTURE
• It is a small central organization that relies on
other organizations to perform
manufacturing, distribution, marketing, or
other crucial business functions on a contract
basis.

11. OTHER EXAMPLES OF ADHOCRACY
• The Task Force:
A temporary structure form to accomplish a
specific, well defined and complex task that
involves a no: of organizational sub units.
• The Committee Form
• The Collegial Form.

12. The Committee form
Another example of adhocracy is the committee form of organization.
When it is desired that a broad range of experience and backgrounds be
brought to bear on a decision, when those who will be affected by a
decision are allowed to be represented, when it is believed desirable to
spread the work load, or during periods of management transition when
no single individual is ready to lead the organization, committee
structures may be highly effective.
The Collegial Form
• A structural form of adhocracy fashionable in universities, research labs,
and other highly professional organizations is the collegial form. Its
unique characteristic is full democracy in the making of all important
decisions. This is in contrast to the task force or committee structures that
utilize representative decision making