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Dimensions
of Organizational Design
Organizations are open to the environment and try to close off some parts of the organization so that products and services can be produced. The history of organization design is a story about moving from an efficient organization that is highly closed off from the environment to a more flexible organization that is innovative and quick to adapt to a changing environment. Henry Mintzberg (The Structuring of Organizations, Englewood Cliffs, NJ: Prentice Hall, 1979) argued that organizations consisted of five parts: an operating core, a strategic apex, a middle line, a technostructure, and a support staff. These five parts had different importance in five types of organizations: a simple structure, a machine bureaucracy, a professional bureaucracy, a divisionalized form, and an adhocracy. There are a number of summaries of his ideas on the internet.
The simple structure has little staff and is concentrated in the technical core of the organization. A biotech company such as this one would be a simple structure.
The machine bureaucracy relies on routine and regulations to accomplish tasks
in a stable environment. There is a large technostructure and support staff.
The bureau of the
census would be an example of a machine bureaucracy.
A professional bureaucracy relies on professionals for its operating core. Hospitals
and universities are examples of professional bureaucracies. Boston College
would be a professional bureaucracy. Most universities have a dual administrative
hierarchy with a professional side relying on professional standards for conduct
and an administrative side relying more on rules and routines to accomplish
tasks. Note how the Boston
College organization chart is divided into two parts. The Provost and Dean
of Faculties is the top administrator for the
faculty side of the organization and Executive Vice President is in charge
of the administrative
side of the university.
The divisionalized form is exemplified by large corporations such as Microsoft
or General Motors. Here a number of divisions are incorporated into a large
organizations.
Finally, Mintzberg talked about the adhocracy, organizations that are young
and flexible. These days we talk about horizontal organizations, team-based
or process-based organizations. These organizations are designed to be flexible,
customer-centered, learning organizations able to adapt quickly to a turbulent
environment. Most organizations these days are trying to be as customer centered
and responsive to change as possible by reducing hierarchical levels and relying
on process owners and self-managed teams to make decisions.
This
page last modified on
1/12/09