Mintzberg- Organizational structure

Mintzberg

Simple organizational structures have characteristic of low degree of differentiation of subtasks and the leaders have wide variety of control. The authority is highly centralized in hand of single person. Sometime the simple organization is also known as, “Flat Structure”. This type of structure has only 2-3 vertical level and worker who can perform different kind of works. William Hewlett and David Packard began their business in a garage, and in starting they follow simple organisational structure. Start up generally follows this type of structure.

For routine or repetitive work, Machine Bureaucracy is the best model for the organisation. A key challenge is how to motivate and satisfy the workers in the operating core and repetitive work. For example, company like McDonalds adopt this model to manufacturer Hamburger. Mc Donald’s company give stress on consistency and uniformity of the repetitive work.

Mature company generally follow the professional bureaucracy structure. In professional bureaucracy, control relies heavily on professional training and indoctrination. Professionals are insulated from formal interference, feeling them free to apply their expertise. Bad part of this system is that professional bureaucracy responds slowly to external changes.

Divisional form of organization structure is most common form and generally use in company of US, dividing on the basis of work like production, finance, marketing and human resources. Divisional structure offers economies of scale, resources and responsiveness while controlling economic risk. It also creates some problem like Cat and Mouse game between division and Headquarter. 

Headquarters wants oversight, while divisional managers try to evade corporate control. Example of this form of structure is one of olden business house of US that is Berwind Corporation.

Adhocracy form of structure works well in smaller forms of organization. 

Adhocracy is a loose, flexible, self-renewing organic form tied together. Inconsistencies and contradictions in an adhocracy become paradoxes where a balance between opposites protects an organization from falling into an either-or trap. Examples are advertising agencies, think-tank consulting firms, and the recording industry.

References

Mintzberg, H. (1987). The strategy concept 1: five p's for strategy. U. of California.

Mintzberg, H. (1991). The effective organization: forces and forms. Sloan Management Review, 54.

Mintzberg, H. (1980). Structure in 5's: A Synthesis of the Research on Organization Design. Management science, 26(3), 322-341.