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Case Study: Organizational Structure:

Mintzberg’s Framework (21PGDM020)

HIGHLIGHTS

1. An organizational structure is a system that outlines how


allocation of tasks, responsibilities, and authority are directed in
order to achieve the goals of an organization.

2. Early organizational structures were often based either on


product or function.

3. Henry Mintzberg suggests that organizations can be


differentiated on three basic dimensions:

- The key parts of the organization - the part of the organization


that plays the major role in determining its success or failure.
● Strategic Apex
● Operative Core
● Middle Line
● Technostructure
● Support Staff
- Prime coordinating mechanism - the major method the
organization uses to coordinate its activities.
● Direct Supervision
● Standardization of work process
● Standardization of skills , output
● Mutual adjustment

- Type of decentralization used - the extent to which the


organization involves subordinates in the decision-making process.
It includes Vertical,horizontal and selective decentralization.

4. SIMPLE STRUCTURE :
- Key part of organisation- Strategic apex
- Prime Coordinating Mechanism - Direct supervision
- Vertical and horizontal centralization
- Example : Small enterprises

5. Machine Bureaucracy :

- Prime Coordinating Mechanism : Standardization of work


processes.
- Limited horizontal decentralization
- Key Part of Organization: Large technostructure and support
staff.
- Example - automobile manufacturers

6. Professional Bureaucracy :
- Prime Coordinating Mechanism : Standardization of skills
- Key Part of Organization : Operating core and large support
staff
- Vertical and horizontal lDecentralization
- Coordination problems exist
- Examples : universities, hospitals, and large law firms.

7. Divisionalized Form

- Limited vertical decentralization


- Prime Coordinating Mechanism : Standardization of outputs

- Key Part : Middle Line

- The technostructure and support staff is located to provide


services to all divisions.

- Example - Elementary and secondary school


districts that have consolidated but retained separate
administrative structures with one school board

8. Adhocracy
- Key part : Support staff
- Prime Coordinating Mechanism : Mutual Adjustment
- Selective decentralization
- Example - research and development firms

9. Strategy and Structure : Chandler's work, which was extended


by Mintzberg , set the foundation for understanding the
relationship between an organization's strategy and its structure.
10. CONCLUSION : As suggested by Mintzberg, the strategy
an organization adopts and the extent to which it practices that
strategy result in five structural configurations explained above.

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