Download presentation
Presentation is loading. Please wait.
Published byMartin Holland Modified over 9 years ago
1
Environment has three dimensions Stability-Dynamism Simple-complex Abundant and scarce
2
Dynamic environment means rate at which environment is changing is high i.e. volatility is high Environment capacity means if resources available in environment are scare or abundant Complexity: Degree of heterogeneity in the elements of environment
3
More the dynamism of environment lesser the formalization, centralization and complexity (by virtue of division of labor) as more of cross functional team work would be required. Social complexity could be high depending upon nature of business
4
More the complexity of environment lesser the formalization, centralization and complexity However, more the capacity of environment more the formalization, centralization and complexity (by virtue of division of labor)
5
Operating core: Employees who perform basic work related to production Strategic Apex: Top level managers who are charged with overall responsibility of organization Middle line: Managers who connect operating core to strategic apex
6
Techno structure: Analysts who have responsibility of effecting certain forms of standardization in the organization Support staff: People who fill the staff units who provide indirect support services for the organization
7
Informal power: strategic apex Formalization: low Size: small Centralization: high Complexity: low (no need of division of labor) Example: small retail outlet
8
Size : large Formalization: high Centralization: high Informal power/ key part of design: Technostructure Techno structure is responsible for bringing in standardization of jobs like preparation of job description, time and motion study engineers etc.
9
Most suitable in stable and simple environment and where technology can be standardized Mass production firms like steel and energy firms follow machine bureaucracy
10
Combines standardization with decentralization Centralization: Low Formalization: Low (it is actually internalized by virtue of professional degree) Complexity: high (by virtue of social complexity)
11
Example: hospitals, universities, engineering design firms Informal power: rests with operating core as they have critical skills that organizations needs Most appropriate in stable and complex organization and technology is engineering type
12
Each division set of autonomous units having machine bureaucracy configuration Informal and formal power: with middle management Central headquarter provides support services like taxation, legal
13
Should be used when strategy opted is of diversification Environment is simple and stable Standardization: high Formalization: high Centralization: moderate (operational decentralization, strategic centralization)
14
Formalization: low Centralization: low (mostly decentralization) complexity: Low (by virtue of division of labor as one has to work in team) high in terms of social complexity Informal power: All experts Environment: Dynamic and complex
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.