- 10 Marks
Question
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:
Mintzberg identified six different organizational configurations. Explain to Bazar management FOUR (4) of these organizational configurations suitable to support the change management process highlighting the differences.
Answer
Mintzberg identified different organizational configurations that mix the five building blocks, suggesting the most suitable configuration depends on the complexity of the work.
- Simple Structure
- Machine Bureaucracy
- Divisionalized Form
- Adhocracy
- Simple Structure
- Found in entrepreneurial companies.
- The strategic apex exercises direct control over the operating core, with no middle line.
- There is little or no support staff or technostructure.
- This structure is very flexible and can react quickly to changes because the strategic apex controls the operating core directly.
- Machine Bureaucracy
- The technostructure is the dominant element.
- The entity is controlled and regulated by the bureaucracy, with an emphasis on control through regulations.
- It is difficult for this type of organization to react quickly to environmental changes, making it more suitable for stable business environments.
- Divisionalized Form
- The middle line is dominant, characterized by powerful executive managers.
- The organization structure is divisionalized, each division led by a divisional manager.
- Divisional managers can be powerful and restrict the influence of the strategic apex on decision-making.
- Adhocracy
- This type of organization has a complex, disordered structure, using teamwork and project-based work.
- It is found in complex, dynamic environments where innovation is essential for success.
- External consultancies and experts may play a role, making the support staff element very important.
Differences Between Configurations:
The differences between these four organizational configurations can be highlighted as follows:
| Configuration | Business Environment | Internal Features | Key Element | Main Coordinating Factor |
|---|---|---|---|---|
| Simple Structure | Simple and dynamic | Small entity, simple task | Strategic apex | Direct control by strategic apex |
| Machine Bureaucracy | Simple and stable | Large and well-established, regulated processes | Technostructure | Standardized procedures |
| Divisionalized Form | Fairly static, diverse activities | Large and well-established, divided activities | Middle line | Standardization of output |
| Adhocracy | Complex and dynamic | Complex tasks, young entity | Support staff or Operating core | Flexibility and adaptation |
Each configuration supports the change management process differently, depending on how it coordinates its processes and responds to environmental factors.
- Tags: Change Management, Mintzberg, Organizational Configurations
- Level: Level 3
- Topic: Strategy implementation
- Series: AUG 2022
- Uploader: Theophilus