1. COMMUNICATION AND ORGANIZATIONS
FROM SIMPLE TO MACHINE TO DIVERSIFIED: DEEPER,TALLER AND WIDER ORGANIZATIONS
LECTURE 6a-b

2. SUMMARY: FUNCTIONS AND ORGANIZATION SIZE AND AGE
IN LARGER, MATURE ORGS. FUNCTIONS ARE SEPARATED AND HIGHLY SPECIALIZED INTO DEPARTMENTS (DIFFERENT PEOPLE GROUPED TOGETHER BY FUNCTION)
DELEGATION OF AUTHORITY COMES WITH NEW STRUCTURE

3. THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW
PRES.
Vp. Sales
Vp. Fin.
Vp. Mfg.
Mgr.
Mgr.
Mgr. S S S
= FUNCTIONAL D.O.L.
SPECIALIZ’ TION FORMAL JOB DESCRIPS.
ADDING LAYERS FORMAL COMMUNIC.

4. ENVIRONMENTAL OVERVIEW: BOX 2
SIMPLE, STABLE: LOW PERCEIVED UNCERTAINTY
ENVIRONMENT:
SMALL NUMBER OF COMPONENTS
COMPONENTS SOMEWHAT SIMILAR
REMAIN BASICALLY THE SAME
SO, STANDARDIZATION OF WORK
APPROPRIATE STRUCTURE:
HIGH DIVISION OF LABOR (DOL) - HIGH JOB SPEC.’ZATION (MANY PEOPLE DO DIFF. WORK)
HIGH FORMALIZATION (DEPEND ON WRITTEN RULES)
HIGH CENTRALIZATION (AUTHORITY AT TOP)

5. THE MACHINE ORGANIZATION Communication Flow: Vertical
THE MACHINE ORGANIZATION Communication Flow: Vertical THE MACHINE ORGANIZATION Communication Flow: Vertical
PRES.
Mfg
Mktg $
COMMUNICATION FORMAL
5 FUNCTIONS SEPARATED

6. THE MACHINE ORGANIZATION (MINTZBERG MODEL)
THE MACHINE ORGANIZATION Mintzberg’s Model
THE MACHINE ORGANIZATION (MINTZBERG MODEL)
STRATEGIC APEX
MIDDLE
LINE
TECHNO-
STRUCTURE
SUPPORT
OPERATING CORE

7. THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW IN SALES
PRES.
Mgr. Sales
Mgr. Fin.
Mgr. Mfg.
EAST
CENTRAL
WEST

8. THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW
PRES.
Mgr. Sales
Fin.
Mfg.
Regional Sales
Director
EAST
CENTRAL
WEST
B.C.
M & S
Alta.

9. THE MACHINE ORGANIZATION DEEPENING THE AUTHORITY-COMMUNICATION FLOW
PRES.
Vp. Sales
Vp. Fin.
Vp. Mfg.
Gen’l Mgr. Sales
Western Canada
EAST
CENTRAL
WEST
B.C. Director of Sales
Sales Manager
Vancouver
Other B.C.

10. ISSUES (INTERNAL ENVIRONMENT):
MACHINE ORGANIZATION
ISSUES (INTERNAL ENVIRONMENT):
EFFICIENT, RELIABLE, PRECISE, BUT
OBSESSION WITH CONTROL LEADS TO COORDINATION PROBLEM
FOCUS ON RULES: (STANDARDIZATION OF WORK)
WHAT TO DO
WHO TO TALK TO
RULES CAN’T COVER EVERY SITUATION
CONSTANT STRUGGLE BETWEEN TAKING INITIATIVE AND FOLLOWING RULES

11. MACHINE ORGANIZATION ISSUES (INTERNAL ENVIRONMENT) :
OBSESSION WITH CONTROL LEADS TO COORDINATION PROBLEMS, CONFLICT BETWEEN DEPARTMENTS
AS EACH FUNCTION TRIES TO CONTROL ITS PROCESSES IT COMPETES WITH OTHER UNITS
ORG. SUCCESS LEADS TO ISSUES IN EXTERNAL ENVIRONMENT
NEED MORE CONTROL OF ENVIRONMENT
BOUNDARY SUPPORT FUNCTION ISSUES
CONTROL COSTS OF PROCURING INPUTS AND DISPOSING OF OUTPUTS