Organizational Design Option

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Class Presention By Nischal Thapa

Dec 8, 2021 1
Design option

Alternative choice of structural configuration of


organization.

Each organization has its own


unique structure.

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Mintzberg’s Designs
Mintzberg has argued that there are five basic part to an
organization:

1.The operating core


2.The strategic apex
3.The middle line
4.The techno-structure
5.The support staff

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Design Configuration
There are five types of structural
configurations for organizations :
1. Simple Structure
2. Machine Bureaucracy
3. Professional Bureaucracy
4. Divisional Structure
5. Adhocracy

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Simple Structure
The simple structure is a centralized form of
organization that emphasizes the upper echelon
and direct supervision.
Most organizations pass through the simple
structure in their formative years. It is the riskiest
structure.

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Simple Structure - Feature
 Non routine task
 Low formalization
 High centralization

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A Basic Simple Structure

STRATEGIC
APEX

Operating core

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A Basic Simple Structure

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Simple Structure - conditions

Simple, dynamic environment


Newness/ formative stage – many
organisations start like this
One interesting variant – the crisis
organisation (extreme hostile environment)

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Simple Structure
Strengths
◦ Simplicity: fast, flexible, inexpensive
◦ Clear Goal

Weakness
◦ Works best in small organizations
◦ Can slow down decision making in larger
organization
◦ Can be risky as it relies on one person to make
all decisions

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Machine Bureaucracy

The machine bureaucracy is a moderately


decentralized form of organization that emphasizes
the techno-structure and standardization of work
processes.

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Machine Bureaucracy - Feature

 Highly Routine Job


 Moderately Decentralization
 High Formalization

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A Basic Machine Bureaucracy
Structure

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Machine Bureaucracy - condition

 Simple and stable environment


 At maturity stage
 Large organization

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Machine Bureaucracy
Strengths

◦ Standardizes activities in an efficient manner


 Economies of scale, minimum duplication
of personnel and equipment
 Lower quality employees are acceptable,
which reduces employment costs

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Machine Bureaucracy
Weaknesses

◦ Creates subunit conflicts


◦ Human problems
- Lack of motivation in the operating core
◦ Coordination problems in the administration
◦ Communication problem
-follow chain of command

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The end

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Reference
Robbins, S P, : “Organization Theory”
3/e

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