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