8/7/2019 Organizational Design Option

1/18

Class Presention By NischalThapa

OrganizationalOrganizational

Design OptionDesign Option

26-Feb-11 1

8/7/2019 Organizational Design Option

2/18

Design optionDesign option

Alternative choice of structural configuration of

organization.

Each organization has its own

unique structure.

26-Feb-11 2

8/7/2019 Organizational Design Option

3/18

Mintzbergs 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

26-Feb-11 3

8/7/2019 Organizational Design Option

4/18

Design ConfigurationDesign Configuration

There are five types of structural

configurations for organizations :

1. Simple Structure2. Machine Bureaucracy

3. Professional Bureaucracy

4. Divisional Structure5. Adhocracy

26-Feb-11 4

8/7/2019 Organizational Design Option

5/18

8/7/2019 Organizational Design Option

6/18

Simple StructureSimple Structure -- FeatureFeature

y Non routine task

y Low formalization

y High centralization

26-Feb-11 6

8/7/2019 Organizational Design Option

7/18

A Basic Simple Structure

26-Feb-11 7

Operating core

STRATEGIC

APEX

8/7/2019 Organizational Design Option

8/18

A Basic Simple Structure

26-Feb-11 8

BOSS /OWNER

R & DPRODUCTION

ACCOUNTINGAND

FINANCE

MARKERTING

8/7/2019 Organizational Design Option

9/18

Simple StructureSimple Structure -- conditionsconditions

y Simple, dynamic environment

y Newness/ formative stage many

organisations start like this

y One interesting variant the crisis

organisation (extreme hostile environment)

26-Feb-11 9

8/7/2019 Organizational Design Option

10/18

Simple StructureSimple Structure

y Strengths

Simplicity: fast, flexible, inexpensive

Clear Goal

y Weakness

Works best in small organizations

Can slow down decision making in largerorganization

Can be risky as it relies on one person tomake all decisions

26-Feb-11 10

8/7/2019 Organizational Design Option

11/18

Machine BureaucracyMachine Bureaucracy

The machine bureaucracy is a moderately

decentralized form of organization that emphasizesthe techno-structure and standardization of work

processes.

26-Feb-11 11

8/7/2019 Organizational Design Option

12/18

Machine BureaucracyMachine Bureaucracy -- FeatureFeature

y Highly Routine Job

yModerately Decentralization

y High Formalization

26-Feb-11 12

8/7/2019 Organizational Design Option

13/18

A Basic Machine BureaucracyA Basic Machine Bureaucracy

StructureStructure

26-Feb-11 13

President AndCEO

VP & Chief Of

Finance

Director OfAccounting

DirectorCorporate Tax

Manager OfInternal Audit

VP OfCorporatePlanning

CorporatePlanning

Associate

VP Of R&D

Manager Prod.

Design Engrg.

Manager PatentSection

Chief IndustrialDesign

VP Of LaborRelation

Manager LaborRel.

(Administration)

Manager LaborRel. P-2

Manager SafetyAnd Security

VP OfMarketing

Gen. SalesManager

AdvertisingDirector

Gen. ServiceManager

Exe. DirectorDirector Public

Relation

8/7/2019 Organizational Design Option

14/18

Machine BureaucracyMachine Bureaucracy -- conditioncondition

y Simple and stable environment

y At maturity stage

y Large organization

26-Feb-11 14

8/7/2019 Organizational Design Option

15/18

Machine BureaucracyMachine Bureaucracy

y Strengths

Standardizes activities in an efficient manner

xEconomies of scale, minimum duplicationof personnel and equipment

x Lower quality employees are acceptable,

which reduces employment costs

26-Feb-11 15

8/7/2019 Organizational Design Option

16/18

Machine BureaucracyMachine Bureaucracy

y Weaknesses

Creates subunit conflicts

Human problems- Lack of motivation in the operating core

Coordination problems in the

administration

Communication problem-follow chain of command

26-Feb-11 16

8/7/2019 Organizational Design Option

17/18

The end

26-Feb-11 17

8/7/2019 Organizational Design Option

18/18

ReferenceReference

y Robbins, S P, : Organization Theory 3/e

26-Feb-11 18