Mintzberg’s Organization Types · Disadvantages: High reliance on a single person ... Adhocracy Mutual Adjustment Support Staff 25. Entrepreneurial Divisionalized Adhocracy 1998

Michael Benkovich

Mintzberg’s

Organization Types

Rafail IvanovJulia Kukielko Natalie Leutner

I. Henry Mintzberg

II. Organization Structure Theory

III. Five Types of Organization

IV. Summary

Outline

1

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)

Source: www.mintzberg.org, www.goodreads.com2

http://www.mintzberg.org/

http://www.goodreads.com/

Mintzberg‘s Theory

„Our world of organizations“

employededucated

buried

supply harassentertain govern

Source: Mintzberg, H., 1989. Mintzberg on management: Inside our strange world of organizations. Simon and Schuster.

born

3

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

Source: Mintzberg, H., 1993. Structure in fives: Designing effective organizations. Prentice-Hall, Inc.4

Division of Laborthe key part of an organization

Supervising Managers

Workers carrying out the tasks

Middle- & lower-level management

Analysts

Provides indirect services


Coordinating MechanismsMutual 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


the ways in which its labor is divided into distinct tasks

the ways the coordination is achieved among these tasks+

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

Source: Mintzberg, H., 1993. Structure in fives: Designing effective organizations. Prentice-Hall, Inc.

Structure of an organization

= 5 types of organizations:

7

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


Disadvantages:

▪ High reliance on a single person

▪ Lack of alternative leadership devices

▪ In case of a rapid growth the leader may feel overwhelmed


Advantages:

✓ Clearly defined goals

✓ Decisions taken quickly




Small / New Businesses Autocratic Leadership

Apple, 1976 Microsoft, 1975

10

2. The Machine Bureaucracy

Prime Coordinating Mechanism: Standardization of work processes

Key Part of Organization: Technostructure


• Highly standardized processes

• Strict rules & defined routines regarding work flow

• Sharp distinction between line management and staff



Disadvantages:

▪ Discourages creativity and innovation

▪ Lack of satisfaction among employees

▪ High employee turnover rates

Advantages:

✓ Clearly set goals

✓ Constant supervision

✓ Simple and stable




Fast Food Chains

Post Offices

Airlines

13

3. The Professional Bureaucracy

Prime Coordinating Mechanism: Standardization of skills

Key Part of Organization: Operating core


• Training

• Job specialization



Disadvantages:

▪ 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

Advantages:

✓ Objective

✓ Guarantee of knowledge


Education System



Healthcare System

15

4. The Divisionalized Form

Prime Coordinating Mechanism: Standardization of outputs

Key Part of Organization: Middle line


• Market grouping

• Performance control system





Disadvantages:

▪ Competition between divisions

▪ Poor communication between

departments

Advantages:

✓ Quick response to customer needs/ changing market conditions/ technological advances

✓ Upper management has complete control over organization




5. Adhocracy

Prime Coordinating Mechanism: Mutual adjustment

Key Part of Organization: Support staff


• Created for a particular purpose

• Innovative

• Task oriented

• Lack of formal structure

• De-centralized decision making



5. Adhocracy

22

Disadvantages:

▪ Might be confusing and ambiguous

▪ Inefficiency due to high cost of communication

▪ Unbalanced workload

Advantages:

✓ Suitable for project-based industries

✓ Encourages innovation

✓ Focuses on highly skilled employees


5. Adhocracy

23

Film and TV

Technology

Pharmaceuticals


5. Adhocracy

24

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

Entrepreneurial Divisionalized Adhocracy

1998 2005 Present

Conclusion

26

Conclusion

Entrepreneurial

Present

Machine Bureaucracy

Divisionalized

Professional Bureaucracy

Adhocracy

Economies relied on large scale production

More common today Will become more important due to technological advancements


Mintzberg’s Organization Types · Disadvantages: High reliance on a single person ... Adhocracy Mutual Adjustment Support Staff 25. Entrepreneurial Divisionalized Adhocracy 1998

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