Structures
Support Staff
Middle
Line
Operating Core
Legal
counsel
P.R
I.R
R&D
Pricing
Payroll
Reception
Salesmen
Type of
Decentralization
Vertical and
Horizontal
centralization
Technostructure Limited horizontal
decentralization
Machine
Bureaucracy
Standardization of
work processes
Professional
Bureaucracy
Standardization of
skills
Operating Core
Divisionalized
Form
Standardization of
outputs
Middle Line
Adhocracy
Mutual
Adjustment
Support Staff
Vertical and
Horizontal
Decentralization
Limited Vertical
Decentralization
Selective
Decentralization
Simple Structure
Design Parameter
Situational Factor
Centralization
Young, small
Organic
environment
Possibly Hostile
Strong Power needs of
the manager
Simple Structure
Strength
Weakness
Flexible Decision
Inadequate information
Making
Rapid Response due
to Centralized power
Entrepreneurial
Strong Sense of
Mission
dissemination
Inadequate resource
allocation
Strategic orientation
subjugated due to
emphasis on operations
Too restrictive
Machine Structure
Design Parameters
Situational Context
Differentiation
High Specialization
High Formalization
Functional grouping
High Centralization
automated technical
system
Simple, Stable
environment
Machine Structure
Strength
Weakness
Efficiency
Predictability
problems at
administrative centre
Adaptation Problem at
the strategic apex
Professional Bureaucracy
Design Parameters
Situational Factors
Complex Environment
Professionals &
Administrators
Stable Environment
High Decentralization
Horizontal Job Specialization.
Pigeonholing predetermined
contingency to a standard
program
Professional Bureaucracy
Strength
Weakness
Autonomy
Coordination
Discretion
Innovation
Divisional Structure
Design Parameters
Situational Factors
Market grouping
Performance control for
standardization of
outputs
Limited vertical
decentralization
Services
Old & Large
Power needs of middle
managers
Divisional Structure
Strength
Weakness
Efficient Allocation of
Duplication of resources
and activities
Problems of coordination
Problems of head-qtrs
control
Inter division conflict
Ad-hocratic Structure
Main Design Parameters:
Highly Organic Structure with low formalization
High Horizontal Job Specialization
Functional grouping for house keeping purposes
coordination
Selective Decentralization: experts are distributed
Types of Adhocracy
Operating Adhocracy : Line and Support staff
Situational Context
Complex environment
Dynamic environment
Young
Sophisticated and automated technical systems
unstable environment
Provides opportunity for functional and product skill
development
Best in medium sized organisation with multiple products
training
Time consuming, frequent meetings, conflict resolution
sessions
Will not work unless participants understand and adopt
power balance
Thank You