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1 Economics and Organsations Week 6 Mintzbergs Contingency Approach – Structural Configurations.

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Presentation on theme: "1 Economics and Organsations Week 6 Mintzbergs Contingency Approach – Structural Configurations."— Presentation transcript:

1 1 Economics and Organsations Week 6 Mintzbergs Contingency Approach – Structural Configurations

2 2 5 Basic Pulls within an Organisation See H6b Fig IV-1

3 3 5 Basic Pulls within an Organisation Strategic Apex-Centralise Operating Core-Professionalise Middle Line -Balkanise (divide and rule) Technostructure-Standardise Support Staff-Collaborate

4 4 Structural Configurations Combinations of the building blocks to form the actual structural forms organisations 5 structural forms Each structural form has: –A dominant part of the organisation –A key coordinating mechanism –One of the 5 basic pulls is dominant Each structure is a logical configuration Not all organisations fit exactly into one of the 5 There is a strong systems approach

5 5 The Simple Structure Diagrams on H7

6 6 Simple Structure Prime coordinating mechanism Key Part Main Design Parameters Contingency factors Direct supervision Strategic Apex Centralisation, organic structure Young, small, non- sophisticated technical system Simple dynamic environment Possibly extreme hostility Not fashionable

7 7 Features of simple structure Risky - depends on single person Strong sense of mission/purpose Can be seen as restrictive, undemocratic

8 8 Machine Bureaucracy

9 9 Prime coordinating mechanism Key Part Main Design Parameters Contingency factors Standardisation of processes Technostructure Behaviour formalisation, job specialisation, functional grouping,large units Old, large, regulating non- automated technical system, simple stable environment external control not fashionable

10 10 Features of Machine Bureaucracy Obsession with control Highly efficient for repetitive tasks in conditions of certainty Serious people problems – nature of work – conflict between engineering efficiency and individual satisfaction Does not react well to change – may need to revert to simple structure to accomplish major change

11 11 Professional Bureaucracy

12 12 Professional Bureaucracy Prime coordinating mechanism Key Part Main Design Parameters Contingency factors Standardisation of skills Operating Core Training, Horizontal job specialisation, decentralisation Complex, stable environment Non-regulating, non- sophisticated technical system Fashionable

13 13 Features of Professional Bureaucracy Frequently seen as a repertoire of standard programmes, resulting in pigeon-holing High levels of decentralisation, little control of output or processes, SO recruitment is vital Large expenditure on training and development Democratic and gives staff autonomy and empowerment Not good at innovation

14 14 Divisionalised Structure

15 15 Divisionalised Structure Prime coordinating mechanism Key Part Main Design Parameters Contingency factors Standardisation of outputs Middle line Market grouping, Performance control, limited vert. Decentralisation Diversified markets (products), old and large, high power needs of middle- managers, fashionable

16 16 Structure of Divisionalised firm

17 17 Development of divisionalised firm Integrated form By-product form Related product form Conglomerate form

18 18 Features of Divisionalised Structure Divisions as quasi-autonomous units Each division can take an appropriate structural form – most common id machine bureaucracy Contrast divisionalised with decentralised Sharp distinction between HQ and divisional staff – Strategy and Operations Divisionalised structure solves many of the problems of the large machine bureaucracy Divisions can be seen as portfolio of operations, or an integrated set of units

19 19 The Adhocracy

20 20 Prime coordinating mechanism Key Part Main Design Parameters Contingency factors Mutual adjustment Support staff (operating core in Operating adhocracy) Liaison devices, organic structure,selective decentralisation, horizontal job specialisation, market and function together Complex, dynamic environment, often young, sophisticated operating system - automated

21 21 Two types of Adhocracy OPERATING ADHOCRACY – Innovates and solves problems directly on behalf of its clients. Admin work and operating work are blended together e.g. consultancy firm, advertising agency ADMINISTRATIVE ADHOCRACY Undertakes projects to serve itself, so it has its own operating core e.g. Research department, Hi-tech companies

22 22 Features of Adhocracy Strategy formation is widespread Semi-independent and ever-changing work constellations Youth is a condition of adhocracy – so is there a limit to size? Ad has more democracy and less bureaucracy There will be ambiguity, interdependence, ever- changing relations, few procedures, demanding personal relationships Poor at routine tasks


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