A Typology of Organizational Structure

1. A Typology of Organizational Structure Henry Mintzberg

2. Organizational Structure “one best way” 1930s “it all depends” Contingency theory “getting it all together” Configuration

3. Five Organizational Structure • Simple Structure • Machine Bureaucracy • Professional Bureacracy • Divisionalized Form • Adhocracy

4. Ways to effect Coordination • Direct supervision • One person gives direct orders to others • Standardization of work processes • One person designs the general work procedures of others to ensure that these are all coordinated. • Standardization of output • One person specifies the general outputs of the work of another. • Standardization of skills • A person is trained in a certain way so that he or she coordinates automatically with others. • Mutual adjustment • Two or more people communicate informally among themselves to coordinate their work.

5. Five Basic Parts • Operating core • The basic work of producing the organization’s products and services gets done. • Strategic apex • The home of top management • Middle line • Managers who stand in a direct line relationship between the strategic apex and the operating core. • Techostructure • The staff analysts who design the systems by which work processes and outputs are standardized in the organization. • Support staff • The specialists who provide support to the organization outside of its operating workflow.

7. Design Parameters • Job specialization • Behavior formation • Training and indoctrination • Unit grouping • Unit size • Planning and control systems • Liaison devices • Vertical and horizontal decentralization

8. Five types of decentralization • Vertical and horizontal centralization • All power rests at the strategic apex. • Limited horizontal decentralization • The strategic apex shares some power with the technostructure that standardize everybody else’s work • Limited vertical decentralization • Managers of market-based units are delegated the power to control most of the decisions concerning their line units. • Vertical and horizontal decentralization • Most of the power rests in the operating core, at the bottom of the structure. • Selective vertical and horizontal decentralization • The power over different decisions is dispersed widely in the organization.

9. The Contingency Factors • Age and Size • Technical System • Environment • Power factors

10. Simple Structure • Strategic Apex, direct supervision, vertical and horizontal centralization • simple and dynamic, sometimes hostile • Entrepreneurial firm

11. Machine Bureaucracy • Technostructure, standardization of work process, limited horizontal decentralization • simple and stable • Mass-production firms, service firms with simple, repetitive works

12. Professional Bureaucracy • Operating core, standardization of skills, vertical and horizontal decentralization • complex and stable. • School systems, social-work agencies, accounting firms

13. Divisionalized Form • Middle line, limited vertical decentralization, standardization of outputs • Relatively simple and stable; market diversity • Large corporations, government

14. Adhocracy • Support staff, mutual adjustment, selective vertical and horizontal decentralization • complex and dynamic. • Consulting firms, advertising agencies, chemical firms, space agencies

15. Discussion • In Adhocracy, the supporting staff is mixed together. What if there is a separate supporting staff part? • Organization structures seems to evolve more complicate and combined. Then these five separate organization structure will be still meaningful in future ?

16. Henry Mintzberg • Cleghorn Professor of Management Studies, Faculty of Management, McGill University, Canada • Ph.D. Sloan School of Management, M.I.T., 1968. • Current Work : focuses on the development of a family of programs for educating practicing managers, as well as a book entitled Developing Managers, not MBAs, and a pamphlet called Getting Past Smith and Marx… toward a Balanced Society. • http://www.henrymintzberg.com/

17. Books • Managing: 29 Days in the Lives of Managers (in preparation) - a return to the subject of my first book, in this case based on 29 days in the lives of managers • Getting Past Smith and Marx… toward a Balanced Society (pamphlet, in preparation) - using my knowledge of organizations to seek a balance in society between the economic, the political, and the social • Developing Managers, not MBAs (in preparation) - nearing completion of several years of collecting, contemplating, and writing on my views about the education and development of managers • Why I Hate Flying (Texere, 2001) - spoof of the flying and the managing businesses, and of commercialism in general. • Managing Publicly (with Jacques Bourgault; Institute of Public Administration of Canada, Toronto, 2000) - based on study I did of 8 Canadian public sector managers, published with commentaries • Strategy Safari (with Bruce Ahlstrand and Joe Lampel, Free Press and Prentice-Hall International, 1998) - as the subtitle says, "A Guided tour Through The Wilds Of Strategic Management"

18. Articles • Managing to Innovate, in Leading for Innovation (Volume Two of the Drucker Foundation Wisdom to Action Series, (forthcoming in 2001) -low key approach to stimulating innovation • Do MBAs make better CEOs? (with Joseph Lampel) Fortune (February 19, 2001) -not how they get there but how they perform there: not impressively! • Analysis: Framing and Frame Breaking (with Kunal Basu) to appear in Mindsets for Managers (Book in preparation) • Educating Managers Beyond Borders (with Jonathan Gosling-submitted for publication)-about our masters program for practicing managers • Managing Health and Disease-Up and Down, In and Out (submitted for publication)-a day in the lives of seven health care managers • The Yin & Yang of Managing Organizational Dynamics (forthcoming in 2001)-a day in the life of the male head of Médecins sans frontiers and the female head of Paris's fashion museum