Public Management Organizational Structure Thursday, July 02, 2015 Hun Myoung Park, Ph.D. Public Management & Policy Analysis Program Graduate School of International Relations

2 Dimensions of Structure Centralization: the degree to which power and authority concentrate Formalization: the extent to which rules and procedures are formally established Red tape refers to burdensome administrative rules Complexity: measured in terms of numbers of subunits, levels, specialization

3 Influences of Structure Size Environment Technology and tasks Information technology Strategic choice

4 Galbraith’s Design Strategies Hierarchy of authority Rules and procedures Narrowing the span of control Planning and goal setting

5 Functional Structures Organized according to major functions E.g., marketing, R&D

6 Organization Chart

7 Product Structures Product and hybrid structures Separate divisions for each product line Major product divisions with some functional units (accounting) are hybrid.

8 Product Structures Tech, Inc CEO Medical Instruments Personal Computers Small Electronic parts

9 Matrix Designs People with similar skills are pooled for work assignments. All engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a project manager while working on that project. Each engineer may have to work under several managers to get their job done.

10 Matrix Designs

11 Other Structures Market and customer –Focused designs, orientation toward groups of customers Geographical designs –Bases of operation by region, part of world Process structures –Organized around process such as new development

12 Mintzberg’s Structures 1  Simple Structure: Entrepreneurial setting; relies on direct supervision from the strategic apex; new small government agencies  (Public) Machine Bureaucracy: Large organizations; relies on standardization of work processes by the techno-structure; agencies with political oversight.  Professional Bureaucracy: The professional services firm; relies on the standardization of skills and knowledge in the operating core.

13 Mintzberg’s Structures 2  Divisionalized Form- Multi-divisional organization (e.g., manufacturing & marketing); relies on standardization of outputs; middle- line managers run independent divisions.  Adhocracy- Project organizations; highly organic structure with little formalization; relies on mutual adjustment as the key coordinating mechanism within and between these project teams (e.g. NASA)

14 Structure & Environment stable dynamic complex PROFESSIONAL BUREAUCRACY decentralized; bureaucratic; standardized skills (law firm R&D firm) ADHOCRACY decentralized; organic; mutual adjustment simple MACHINE BUREAUCRACY centralized; bureaucratic; standardized work processes; direct supervision from strong strategic apex (new agencies, start up entrepreneurial companies SIMPLE STRUCTURE centralized; organic; direct supervision

15 Images of Organization Gareth Morgan (1996) Organizations as machines Organizations as organisms Organizations as brains Organizations as political systems Organizations as cultures, psychic prisons, flux and transformation, and instruments of domination

16 Images of Organization Organizations as organisms are assumed to be able to adapt themselves to environmental conditions that change over time. Terminator, a highly intelligent machine, may fall in this category in a sense he can find ways to kill the target, which is determined by his boss, by transforming himself (in case of a more advanced terminator) or changing strategies in response to environmental changes. What kind of terminator do you need?

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20 Images of Organization Organizations as brains are learning systems that have single-loop and double-loop processes. Organizations, unlike those as machines, can evaluate if the target determined by their boss is really what they have to kill (double-loop). Such organizations are considered a broken one from the machinery perspective because a machine have to do only what is ordered. A machine may not determine its target, but just follow order without any question about the target (single-loop process only).

21 Images of Organization Bureaucracy as a machine (organism) is well designed (programmed) to achieved efficiently its goal given by outsiders. Weber's ideal type bureaucracy is close to the image of machines or organisms. Remember the terminator became popular at that time because the machine was an ideal type that did not exist in reality.