Chapter 8: Organizational Structure and Types

Organizational structure is the framework that defines the relationships among organization members. Depending on the environment and strategy, organizations take on various forms.

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1. Mintzberg’s Organizational Configurations

Henry Mintzberg proposed five types based on which part of the organization is the ‘center of power’.

Type	Key Part	Coordinating Mechanism	Characteristics
Simple Structure	Strategic Apex	Direct Supervision	Flexible, Centralized
Machine Bureaucracy	Techno-structure	Standardization of Work	Specialized, Efficient
Professional Bureaucracy	Operating Core	Standardization of Skills	Autonomous, High Skill
Divisional Form	Middle Line	Standardization of Output	Performance-based, Decentralized
Adhocracy	Support Staff	Mutual Adjustment	Creative, Problem-solving

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2. Mechanistic vs. Organic Structure (Burns & Stalker)

• Mechanistic Structure: Rigid hierarchy, formalized rules, narrow specialization. Suitable for stable environments.
• Organic Structure: Flexible roles, horizontal communication, wide specialization. Suitable for volatile environments.
• Features: Hierarchy, Division of Labor, Impersonality, Documentalism.
• Functions: Efficiency, Predictability.
• Dysfunctions: Red Tape, Goal Displacement, Sectionalism.

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3. Daft’s Organizational Design

Richard Daft shows the flow of development from functional structures to more flexible forms.

1. Functional Structure: Grouping people with similar expertise (High expertise but creates silos).
2. Divisional Structure: Organized by output, client, or region (Self-contained, easy coordination).
3. Matrix Structure: Combines functional and divisional structures (Dual chain of command, resource efficiency).
4. Horizontal Structure: Organized around core processes/teams.
5. Network Structure: Concentrates on core competencies while contracting out other functions.

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Key Checklist

• In Mintzberg’s theory, which organizational type relies on the skills of experts like in schools or hospitals? (Answer: Professional Bureaucracy)
• Which structure combines functional and divisional designs and features a dual chain of command? (Answer: Matrix Structure)
• As environments become more uncertain, is a mechanistic or organic structure more advantageous? (Answer: Organic Structure)

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