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Questions and Answers
Why do managers design layers, hierarchies, roles, and teams in an organization?
According to Mintzberg's premise, how many natural configurations do many organizations fall close to?
What could be a consequence of poor organizational design as described in the text?
What happens when managers try to mix and match elements of different configurations according to Mintzberg?
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How does poor organizational structure affect managers according to the Corkindale quote?
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Which of the following is a reason why managers design layers and hierarchies?
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Where does power primarily reside in a Simple Organisation according to Mintzberg's Ingredients?
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Which type of organisation is likely to have a sharp division of labour and specialised work?
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In a Professional Organisation, where does power primarily lie according to Mintzberg?
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Which type of organisation is known for having individual structures and granting managers a lot of autonomy?
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When considering a machine bureaucracy, what is the primary source of power?
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Which type of organisation would most likely be project-based and have dispersed power among staff with complex expertise?
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Study Notes
Organisational Design
- Consistency and coherence are key to organisational design.
Mintzberg's Ingredients
- Simple Organisations: power resides in one powerful person, often found in start-ups but also in larger organisations.
- Machine Bureaucracy: usually large, mature organisations that mass produce, with power in the technostructure, characterized by formal procedures, specialized work, and sharp division of labour.
- Professional Organisation: found in hospitals, accounting firms, and law practices, with power in professionals, operating in complex but stable environments.
- Diversified Organisations: multi-nationals that were once machine bureaucracies but have diversified production, with divisions having individual structures and managers having a lot of autonomy (e.g. Amazon).
- Adhocracy: found in consulting firms, film making, and software development, with power dispersed and staff having complex expertise, often project-based.
Organisation Definition
- An organisation is an ongoing group of individuals who are formally recognised as associated with the group, with a common set of goals that they are systematically structured to accomplish (Griseri, 2013).
Why Managers Design Organisations
- To divide and allocate tasks
- To distribute rewards
- To make information flow
- To create a culture
Consequences of Poor Design
- Tasks are not clearly divided and no one knows who's doing what
- No reward for work done
- Lack of information about tasks
- No or toxic company culture
What Drives Organisational Structure
- Mintzberg (1981) premises: many organisations fall close to one of five natural configurations, with distinct structural designs, situations, and periods of history.
- Mixing and matching elements of different configurations can result in a misfit that won't work well.
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Description
Test your knowledge on why managers design layers, hierarchies, roles, and teams in organizations. Explore the consequences of failed organizational design such as unclear task divisions and lack of rewards.
