Mintzberg s Organization Types

Transcription

1 Mintzberg s Organization Types Michael Benkovich Julia Kukielko Rafail Ivanov Natalie Leutner

2 Outline I. Henry Mintzberg II. III. IV. Organization Structure Theory Five Types of Organization Summary 1

3 Henry Mintzberg Born in 1939, Canada A professor of management studies Teaching since 1968 at McGill University in Montreal Internationally renowned academic Researcher on how managers work and organizations function Author on business and management (16 books, over 160 articles) 2 Source:

4 Mintzberg s Theory educated employed born Our world of organizations buried supply entertain govern harass 3 Source: Mintzberg, H., Mintzberg on management: Inside our strange world of organizations. Simon and Schuster.

5 Structure of an organization Two fundamental requirements arise: the division of labor into various tasks to be performed the coordination of these tasks to accomplish the activity 4

6 Division of Labor the key part of an organization Middle- & lower-level management Supervising Managers Provides indirect services Analysts Workers carrying out the tasks 5

7 Coordinating Mechanisms Mutual adjustment Direct supervision Standardization Informal communication e.g. Me and Natalie baking vegan cakes One person issuing instructions and observing e.g. Michael as a supervising manager Coordination achieved before the work is undertaken Work e.g. instruction for Ikea furniture Output e.g. taxi driver s destination Skills and knowledge e.g. surgeon and anaesthesiologist removing appendix 6

8 Structure of an organization the ways in which its labor is divided into distinct tasks + the ways the coordination is achieved among these tasks = 5 types of organizations: Operating core Middle line Strategic Apex Technostructure Support Staff Administration Mutual adjustment Direct supervision Standardization of: work output skills 1. Entrepreneurial 2. Machine Bureaucracy 3. Professional Bureaucracy 4. Divisionalized 5. Adhocracy 7

9 1. The Entrepreneurial Structure Prime Coordinating Mechanism: Direct supervision Key Part of Organization: Strategic apex Main characteristics: Simple and straightforward structure Centralized Small managerial hierarchy Low dependence on technostructure 8

10 1. The Entrepreneurial Structure Advantages: Disadvantages: Clearly defined goals Decisions taken quickly High reliance on a single person Lack of alternative leadership devices In case of a rapid growth the leader may feel overwhelmed 9

11 1. The Entrepreneurial Structure Small / New Businesses Autocratic Leadership Apple, 1976 Microsoft,

12 2. The Machine Bureaucracy Prime Coordinating Mechanism: Standardization of work processes Key Part of Organization: Technostructure Main characteristics: Highly standardized processes Strict rules & defined routines regarding work flow Sharp distinction between line management and staff 11

13 2. The Machine Bureaucracy Advantages: Disadvantages: Clearly set goals Constant supervision Simple and stable Discourages creativity and innovation Lack of satisfaction among employees High employee turnover rates 12

14 2. The Machine Bureaucracy Fast Food Chains Airlines Post Offices 13

15 3. The Professional Bureaucracy Prime Coordinating Mechanism: Standardization of skills Key Part of Organization: Operating core Main characteristics: Training Job specialization 14

16 3. The Professional Bureaucracy Advantages: Disadvantages: Objective Guarantee of knowledge Coordination between staff & professionals creates friction point Discretion: professionals vary in competence and conscientiousness Innovation: inflexible structure leads to difficulty accommodating change or new approaches 15

17 3. The Professional Bureaucracy Education System Healthcare System 15

18 4. The Divisionalized Form Prime Coordinating Mechanism: Standardization of outputs Key Part of Organization: Middle line Main characteristics: Market grouping Performance control system 17

19 4. The Divisionalized Form 18

20 4. The Divisionalized Form Advantages: Disadvantages: Quick response to customer needs/ changing market conditions/ technological advances Upper management has complete control over organization Competition between divisions Poor communication between departments 19

21 4. The Divisionalized Form 20

22 5. Adhocracy Prime Coordinating Mechanism: Mutual adjustment Key Part of Organization: Support staff Main characteristics: Created for a particular purpose Innovative Task oriented Lack of formal structure De-centralized decision making 21

23 5. Adhocracy 22

24 5. Adhocracy Advantages: Disadvantages: Suitable for project-based industries Encourages innovation Focuses on highly skilled employees Might be confusing and ambiguous Inefficiency due to high cost of communication Unbalanced workload 23

25 5. Adhocracy Film and TV Pharmaceuticals Technology 24

26 Conclusion Structure Coordinating Mechanism Key Part of Organization Entrepreneurial Direct Supervision Strategic Apex Machine Bureaucracy Standardization of Work Processes Technical Staff Professional Bureaucracy Standardization of Skills Operating Level Divisionalized Standardization of Outputs Middle Level Adhocracy Mutual Adjustment Support Staff 25

27 Conclusion Entrepreneurial Divisionalized Adhocracy Present 26

28 Conclusion Economies relied on large scale production More common today Will become more important due to technological advancements Entrepreneurial Divisionalized Adhocracy Present Machine Bureaucracy Professional Bureaucracy 27