The organisational structure of Bazar is ‘family centric management’ while not interested
in changing the structure any time soon. It is important to recognise that the most suitable
organisation structure depends partly on circumstances and partly on management
preference. An organisation structure can therefore be changed.
Required:
Using the Mintzberg’s five building blocks for organizational configurations, explain and illustrate with a diagram to the management of Bazar, why management needs to review its current organization structure in order to coordinate its business activities and work processes effectively.

Mintzberg argues that an organization structure exists to coordinate the activities of different individuals and work processes and to implement plans into action. The nature of the organization structure varies with differences in processes and internal and external relationships. He suggested that there are five elements or ‘building blocks’ in an organization. The way in which any entity such as Bazar is organized most effectively depends on which of these elements is dominant.
Explanation of the five elements:

  • Strategic Apex
  • Operating Core
  • Middle Line
  • Support Staff
  • Technostructure

Diagram:

Mintzberg argued that the group that has the greatest influence determines the way in which the entity such as Bazar is organized, and the way that its processes and its relationships operates. When the strategic apex is powerful, the organisation is entrepreneurial. The leaders give the organisation the sense of direction and take most of the decisions. When the technostructure is dominant, the organisation often has the characteristics of a bureaucracy, with organizing, planning and controlling prominent activities. The organisation continually seeks greater efficiency.
When the organisation is divisionalised and local managers are given extensive authority to run their own division in the way that they consider best, the middle line dominant. Some organisations are dominated by their operating core, where the basic “workers” are highly skilled and seek to achieve proficiency in the work that they do. Example might be the store checkout point of sales since their interface with customers can have an exceptionally strong influence.

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