(SHORT
NOTES FROM STRATEGY TOOLS:
Organization
Design at http://www.mindtools.com)
Mintzberg's Organizational Configurations
An organization's structure can make a
real difference to the way it performs. Successful
organizations are those that have figured out the best way to integrate and
coordinate key internal and external elements. According to renowned management theorist Henry
Mintzberg, an organization's structure emerges from:
·
the interplay of the organization's
strategy,
·
the environmental forces it experiences,
and
·
the organizational structure itself.
Different structures arise from the
different characteristics of these organizations.
|
Mintzberg's
Organizational Types
|
|
The Entrepreneurial Organization
·
has a
simple, flat structure
·
consists of
one large unit with one or a few top managers
·
relatively
unstructured and informal
·
lack of
standardized systems allows the organization to be flexible
·
fast,
flexible, and lean
|
|
The Machine Organization (Bureaucracy)
·
defined by
its standardization
·
Work is
very formalized
·
many
routines and procedures
·
decision-making
is centralized
·
tasks are
grouped by functional departments
·
Jobs will
be clearly defined
·
there will
be a formal planning process with budgets and audits
·
procedures
will regularly be analyzed for efficiency
·
has a tight
vertical structure
·
Functional
lines go all the way to the top
·
top
managers maintain centralized control
|
|
The Professional Organization
·
very
bureaucratic
·
rely on
highly trained professionals who demand control of their own work
·
high degree
of specialization
·
decision
making is decentralized
·
complex
·
lots of
rules and procedures
|
|
The Divisional (Diversified)
Organization
·
has many
different product lines and business units
·
central
headquarters supports a number of autonomous divisions that make their own
decisions, and have their own unique structures
·
allows line
mangers to maintain more control and accountability
·
day-to-day
decision-making decentralized
·
central
team can focus on "big picture" strategic plans
|
|
The Innovative Organization
("Adhocracy")
·
bring in
experts from a variety of areas to form a creative, functional team
·
Decisions
are decentralized
·
power is
delegated to wherever it's needed
·
maintain a
central pool of talent from which people can be drawn at any time to solve
problems
·
work in a
highly flexible way
·
Workers
typically move from team to team as projects are completed and as new projects
develop
·
adhocracies
can respond quickly to change
|
There's no one "right"
organizational structure. When
considering your organizational structure, analyze the environment, assess your
internal needs and capacities, and then make sure your structure is a good fit
with your strategy and environment.
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