Entrepreneurs without Money The Structuring of Organizations (H.Mintzberg)
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1 Entrepreneurs without Money The Structuring of Organizations (H.Mintzberg) 13 Sept Eleonora Escalante-all rights reserved 1
2 01 Basic Parts of the Organization 02 Basic Coordinating Mechanisms 03 Essential parameters of design 04 Situational Factors 13 September Eleonora Escalante-all rights reserved 2
3 01 Basic Parts of the Organization 02 Basic Coordinating Mechanisms 03 Essential parameters of design 04 Situational Factors We are here! 13 September Eleonora Escalante-all rights reserved 3
4 12 September Eleonora Escalante-all rights reserved 4 Basic parts of the Organization Parts of the Organization Strategic Apex Technostructure Support Staff Middle Line Operating Core Ideology Example positions Board of Directors, Chief Executive Officer Strategic Planning, Personnel Training, Operations Research, Systems Analysis and Design Legal Counsel, Public Relations, Payroll, Mailroom Clerks, Cafeteria Workers VP Operations, VP Marketing, Plant Managers Sales Managers Purchasing Agents, Machine Operators, Assemblers, Sales Persons, Shippers Traditions, beliefs, culture
5 5 01 Basic Parts of the Organization 02 Basic Coordinating Mechanisms 03 Essential parameters of design 04 Situational Factors We are here!
6 6 Basic Coordinating Mechanisms Every organized human activity-from the making of pottery to the placing of a man on the moon, or a country-gives rise to two fundamental and opposing requirements: 1. The division of labor into various tasks to be performed 2. The coordination of those tasks to accomplish the activity The structure of an organization can be defined as the total amount of the ways in which its labor is divided into different tasks, and then its coordination achieved among those tasks. Traditionally, there are 6 types of mechanisms of coordination: 1. Direct supervision 2. Mutual Adjustment 3. Standardization of work 4. Standardization of outputs 5. Standardization of skills 6. Standardization of norms
7 7 Basic Coordinating Mechanisms These coordinating mechanisms can be considered the most basic elements of structure, like the glue that holds organizations together.
8 8 Basic Coordinating Mechanisms 1. Mutual Adjustment Coordination of work by the simple process of informal communication. Mutual adjustment is used in the simplest of organizations. The people who do the work interact with one another to coordinate, much as when two canoeist in the rapids adjust to one another s actions. 2. Direct Supervision. One person coordinates by giving orders to others, tends to come into play after a certain number of people must work together. For example 11 football players cannot coordinate by mutual adjustment, they need a leader, who by virtue of instructions coordinates their work.
9 9 Basic Coordinating Mechanisms 3. Standardization of work processes means the specification- of the content of the work directly, or the procedures to be followed. The coordination is typically the job of the analysts or techno-structure to program the work of different people in order to coordinate tightly. 4. Standardization of outputs exists when the results of the work are specified. It means the interfaces between several type of job-roles is predetermined: These rules of the roles or standards generally emanate from the techno-structure.
10 10 Basic Coordinating Mechanisms 5. Standardization of skills, as well as knowledge. Exists when the kind of training necessary to do the work is specified. The worker is taught a body of knowledge and asset of skills which are subsequently applied to work. This takes place outside of the organization. For example in a professional school of a university before the worker takes his-her first job. 6. Standardization of norms: Means that the works share a common set of beliefs and can achieve coordination based on it. For example, in a religious organization, if every member shares a belief in the importance of attracting new converts, then all will work together to achieve this aim.
11 11 01 Basic Parts of the Organization 02 Basic Coordinating Mechanisms 03 Essential parameters of design 04 Situational Factors We are here!
12 11 The essential parameters of design Job Specialization Horizontally specialized Vertically specialized Unskilled Jobs Skilled or professional Behavior formalization Standardizati on of work processes by the imposition of operating instructions, job descriptions, rules, regulations. Bureaucratic Organic Training Use of formal instructional programs to standardize in people the requisite skills and knowledge for particular jobs Training is key for designing organizations Indoctrination Programs and techniques by which the norms of the employees are standardized Unit Groupings Choice of the bases by which positions are grouped together into units, and those units into higherorder units. Groupings can happen by function or by market served. Interdepend ecies must be defined Unit size Number of positions contained in a single unit Planning and control systems Are used to standardize outputs Two types: Action planning systems, and performance control systems Liaison Devices Series of mechanisms used to encourage mutual adjustments There are four: liaison positions, task forces and standing committees, integrating managers, matrix structure Decentralization There are centralized structures, and others are relatively decentralized. We can distinguish vertical decentralization and horizontal decentralization Also there is a selective decentralization and parallel decentralization
13 13 01 Basic Parts of the Organization 02 Basic Coordinating Mechanisms 03 Essential parameters of design 04 Situational Factors We are here!
14 Situational Factors 14 Age and Size The older the organization, the more formalized The larger, the more formalized The larger, the more elaborate its structure The larger, the larger the size of its average unit Structure reflects the age of the industry from its founding Technical system The more regulating the technical system, more control, more formalized and more bureaucratic the operating core The more complex the technical system, the more elaborate and professional the support staff The automation of the operating core forms a bureaucratic administrative structure into an organic one Environment The more dynamic an organization environment: markets, political climate, economic conditions; the more organic its structure The more complex an organization environment, the more decentralized its structure The more diversified an organization markets, the greater the propensity to Split it into market-based units, divisions, given favorable economies of scale Extreme hostility in its environment drives it to centralize its structure temporarily Power The greater the external control, the more centralized and formalized its structure A divided external coalition will tend to give rise to a politicized internal coalition and vice versa Fashion favors the structure of the day and the culture, sometimes even when inappropriate
15 15 Mintzberg introduced six configurations of organizations (a 7 th one is included): Thank you!
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