University of Tehran

Faculty of Management
November 2023

Henry Mintzberg
Organizational Structure Chester Barnard
• Sahra Shayan
• Parastou Abdi
• Maryam Esmail Beigi
Classifying Organizations

5 Basic Components
according to Mintzberg’s idea
5 Basic Components
according to Mintzberg’s idea

1. The Technostructure / Technical Core

• This group consists of technical specialists responsible for providing expertise and performing the
core functions of the organization.
• They play a crucial role in decision-making related to technical aspects.
 1. Technical Core (Operating Core)

5 Basic Components
according to Mintzberg’s idea

2. Support Staff
• This group is primarily responsible for support functions such as accounting, human resources,
procurement, and other support services.
• They assist other departments in executing operational tasks and decision-making.
 1. Technical Core (Operating Core)
2. Support Staff

5 Basic Components
according to Mintzberg’s idea

3. Middle Line
• Positioned between different departments, the middle line facilitates the flow of information and
decision-making between various sections.
• They contribute to the balance and coordination among different parts of the organization.
 1. Technical Core (Operating Core)
2. Support Staff
3. Middle Line
5 Basic Components
according to Mintzberg’s idea

4. Operating Core
• This section is directly involved in the primary operational and task-related functions of the
organization.
• For example, in a manufacturing company, the production line and related operations make up
this component.
 1. Technical Core (Operating Core)
2. Support Staff
3. Middle Line
5 Basic Components 4. Operating Core
according to Mintzberg’s idea

5. The Strategic Apex / Top Management

• This group typically includes the CEO and senior managers.
• They are responsible for making long-term and strategic decisions for the organization.
 1. Technical Core (Operating Core)
2. Support Staff
3. Middle Line
5 Basic Components 4. Operating Core
according to Mintzberg’s idea 5. Top Management

5 Basic Structures of
an Organization
 1. Technical Core (Operating Core)
2. Support Staff
3. Middle Line
5 Basic Structures of 4. Operating Core
an Organization 5. Top Management

1. Simple Structure
2. Machine Bureaucracy
3. Professional Bureaucracy
4. Divisionalized Form
5. Adhocracy
 When the strategic apex is dominant, control is centralized and
the organization is a

1. Simple Structure
Simple structure is low in complexity and has authority centralized in a single person who is typically
the founder or owner. There are few formal rules and procedures.

Key Features:
Example: Small startups, family businesses.
• Low formalization.
A small family-owned restaurant.
• Direct supervision.
The owner, who is also the founder, makes most of
• Quick and centralized the decisions, there are few formal rules and
decision-making. procedures, and direct supervision is prevalent.
1. Simple Structure
Strengths: Weaknesses:
• Simplicity • Limited applicability confronting increased size
• Fast and flexible and requires little cost to • Power concentration in one person and abuse
maintain of authority
• No layers of cumbersome structure • Risky about the health of one individual
• Accountability
• Minimum amount of goal ambiguity
When to Use:
• A few employees
• Small size and less repetitive work
• Starters
 Where the analysts in the technostructure are dominant, control will be through
standardization, and the resultant structure will be:

2. Machine Bureaucracy
In a machine bureaucracy, organizations are highly formalized with a clear hierarchy and
standardized processes. Decision-making is centralized at the top, and tasks are routine and well-
defined.

Key Features: Example: Large manufacturing companies, Banks,

• High formalization.
• Standardized tasks
(Rules & Regulations).
• Centralized decision-making.
Governmental offices,
McDonald's Corporation.
McDonald's has a highly standardized and
formalized organizational structure, with clear
hierarchies, standardized processes, and centralized
decision-making.
2. Machine Bureaucracy
Strengths: Weaknesses:
• Highly efficiently perform standardized activities • Subunit conflicts
• Pervasiveness of rules instead of managerial • New problems are unrecognized
discretion
• Little need for decision makers
• Similar expertise together
When to Use:
• A simple and stable environment
• Large scale and stable production/service
 If control lies with the operating core, decisions are decentralized.
This creates:

3. Professional Bureaucracy
Professional bureaucracy is characterized by a high degree of specialization and expertise while still
achieving the efficiencies from standardization. Professionals have significant autonomy in decision-
making, and there is a limited need for formal rules and procedures.

Key Features: Example: Law firms, hospitals.

• High specialization.
• Professional autonomy.
• Limited formalization.
• Combination of standardization with
decentralization
Law firms, such as Baker McKenzie.
In law firms, legal professionals have a high degree
of specialization and autonomy in decision-making,
and there is limited formalization beyond the legal
requirements.
3. Professional Bureaucracy
Strengths: Weaknesses:
• As efficient as Machine Bureaucracy • Subunit conflicts
(management wouldn’t prefer the
• New problems are unrecognized
• machine form)
• Sublimation of organization as a whole
• Autonomy of professionals
• Inspite of autonomy Standardization still exists

When to Use:
• Large size, complex and stable environment
 If middle management is in control, you'll find groups of essentially autonomous
units operating in:

4. Divisionalized Form
Divisionalized form involves organizing the company into set of autonomous units or divisions, each
typically a machine bureaucracy responsible for its own functions and decision-making coordinated by a
central headquarters. Bigpicture, strategic decision making is done at headquarters. They also provide
support services to the divisions.

Example: Large corporations with multiple product lines.

Key Features:
• Semi-autonomous divisions.
• Each division has its own functions.
• Decentralized decision-making.
General Electric (GE).
GE is a large multinational conglomerate with diverse
business divisions such as GE Aviation, GE Healthcare,
and GE Power. Each division operates somewhat
independently with its own functions and decision-
making processes.
4. Divisionalized Form
Strengths:
• Remediation of machine bureaucracy
prevention from overwriting goals
• Free up headquarters, so they focus on
long-term
• Poorly performing parts can be eliminated
Weaknesses:
• duplication of activities and resources
• Conflicts between divisions on supports
• Authority of division’s manager is less than the
responsibility
• Coordination problems

When to Use:
• Multiproduct or multimarket
• Complex and dynamic environments
• Increases in size of organization
 In those situations where the support staff rules, control will be via mutual
adjustment and the adhocracy arises.

5. Adhocracy
It’s characterized by high horizontal differentiation, low vertical differentiation, low formalization,
decentralization, and great flexibility and responsiveness.

Key Features: Example: Technology startups, research and

• Flexibility and adaptability.
• Decentralized decision-making.
• Emphasis on innovation.
development teams, film making.
Google (now Alphabet Inc.).
Google encourages innovation and creativity with a
decentralized organizational structure. Project
teams often have the autonomy to make decisions,
and employees are encouraged to spend a portion
of their time on personal projects
5. Adhocracy
Strengths: • Complex and dynamic environments
• Respond rapidly to change Weaknesses:
• Innovation • No clear boss-subordinate relationships
• Facilitate the coordination of • Lack of standardization
diverse specialists
• Ambiguities over authority and responsibilities
• No task-sharing
When to Use: • Sometimes inefficient
• Strategies of diversity, change, and high risk
Refferences
1. Robbins, S. P. (1990). Organization theory: Structures, designs, and applications, 3/e. Pearson
Education India.
2. Lunenburg, F. C. (2012). Organizational structure: Mintzberg’s framework. International journal
of scholarly, academic, intellectual diversity, 14(1), 1-8.
3. Oliveira, N., & Oliveira, N. (2012). Henry Mintzberg’s Five Basic Configurations. Automated
Organizations: Development and Structure of the Modern Business Firm, 27-37.
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