A Typology of Organizational Structure Henry Mintzberg

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

Five Organizational Structure Simple Structure Machine Bureaucracy Professional Bureacracy Divisionalized Form Adhocracy

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.

Five Basic Parts Operating core Strategic apex Middle line 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.

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

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.

The Contingency Factors Age and Size Technical System Environment Power factors

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

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

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

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

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

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 ?

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/

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"

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