Adhocracy

Mrunali Tikare

An adhocracy is characterized by:

Few rules, policies, and procedures. Substantial decentralization. Shared decision making among members. Extreme horizontal specialization. Few levels of management. Virtually no formal controls.

Organizational Theory
Matrix Structure The search for better and faster ways to develop products and meet customer needs led to the matrix structure. A matrix structure groups people and resources in two ways simultaneously: -by function and -by product
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When should you use the Matrix

More Environment Pressure More Interdependence between departments Economies of Scale in the use of internal Resources

CEO

Matrix Structure
Vice President Engineering Vice President Sales and Marketing Vice President Finance Vice President Research and Development Vice President Purchasing

Product A Manager

Product B Manager

Product Team

Product C Manager

Product D Manager

Two-boss employee

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Strength
Co-ordination of Complex and Interdependent Activities More Formalization More Flexibility Efficient allocation of Specialist Environment Change Enhance Technical Capability

Disadvantages of a Matrix Organization Violates one-boss principle Authority and responsibility lines are at times unclear Communication may be chaotic more effort and time are needed to initially define policies and procedures response time may be slow PM controls administrative decisions (when and what the people assigned to the project will do); functional managers control who will be assigned to the project

Theory A
American Bureaucracy Tight Control System Monitor High Rate of Turnover - More promotions Defined jobs Specialized Employee Easy Hire by giving more salary

Theory J
Japanese Model Low Turnover Job is like Marriage More Horizontal Relation Generalist Employee Team work and co-operation Informal Communication Discussion before DM Collective Responsibility Slow promotions

Theory Z
Japanese Model in American Culture Job Security Employee Assets Proper PA Low Formalization Slow Promotions Consensual DM

The Collateral Form

Intrapreneurship in Bureaucracy No rules Flexible Organic

The Task Force

Specific Task Task Well defined and structure Movement of members for task

The Committee Form

DM Experience and Background Single individual is not capable to take decisions Temporary or Permanent

The Collegial Form

University Department takes all decisions Faculty Minimum Guidelines

Organizational Theory
A recent innovation in organizational architecture is the use of network structures. A network structure is a cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy.

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Organizational Theory
Network structures often result from outsourcing.

Outsourcing is the process of moving activities that were previously performed inside the organization to the outside (where they are done by other companies).

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AKADE IE M SE INLIGT INGS DIENS ACADE IC INFORM A ION SERVICE M T