Mintzberg’s Five types of Organizational structure

Henry Mintzberg’s Five types of Organizational Structure: Theory

Erika Barron, Tennea Ware

Simple Structure

Or Entrepreneurial organization

– key part of strategic apex, Uses direct supervision and employs vertical and horizontal decentralization.

-Pros: fast, flexible, lean

-Cons: unstructured and informal, inadequate as decision makers , are at significant risk if owner leaves

Successful if: shared power and decision making

Machine Bureaucracy

- Techno structure is the key part

- Uses standardization of work process, prime coordinating mechanisms, and employs limited horizontal decentralization

-Pros: very efficient, jobs clearly defined, procedures regularly analyzed for efficiency, formal planning process

-Cons: formalization> specialization> functional units having conflicting goals that's inconsistent with corporate objectives

Mintzberg’s Five types of Organizational structure

Professional Bureaucracy

Three basic dimensions:

1. The Key part of the organization-plays major role in determining its success or failure

2. The prime coordinating mechanism- the major method the organization uses to coordinative activities

3. Type of decentralization- Extent to which the organization involves subordinates in decision making process

Discussion Questions

-Operating core as key part

-Uses standardization of skills and employs vertical and horizontal decentralization

-Enjoy efficiency benefits of a machine structure, even though professionals who have autonomy and power generate output

-Cons: complex, lack of control senior executives can exercise, power and authority is spread through hierarchy which makes it hard to change

Is there 1 right organizational type? Whats the best type?

If a company tried to duplicate a structure, what would happen to that company?

When choosing your organizational structure, what are 3 things to consider during the innovation process?

Divisionalized Form

Adhocracy Organization

-Middle line is its key part

- uses standardization of output as its prime coordinating mechanism and employs limited

vertical decentralization

-Pros: managers to maintain control and accountability, decision making is decentralized , focus on "big picture" strategic plans, ensures the necessary support structures are in place for success

- Cons: divisional structure (duplication of activities), divisions compete for limited resources from the headquarters, inflexible

(Innovative organization) -support staff is key

-Uses mutual adjustments as a means of coordination and maintains selective decentralization

- Pros: variety of experts that work in highly flexible way to solve problems, respond quickly to change

- Cons: bureaucracy, complexity, and centralization are far too limiting, conflict when authority/power is ambiguous, dealing with rapid change is stressful (difficult to find/keep talent), difficult to control due to decisions being decentralized and power being delegated to wherever its needed