CAT / FIA FBT Syllabus B. Business Organisation Structure, Functions - Mintzbergs 5 building Blocks - Notes ^{1 / 7}

Henry Minztberg produced an organisational ideology divided into 5 organisational configurations

that help in understanding better how an organisation should be structured.  

It is important to add that these configurations may not exist in real world but can be very helpful for someone who would like to understand the realities of an organisational structure.

The groups are...

1. Strategic Apex = Top Management

    Strategic Apex has to do with the top management and those who make the rules (decision makers)

   It drives the direction of the business through control over decision-making.

2. Middle Line = Management

   – performs the managerial functions of control over resources, processes and business areas.

3. Operating Core = Normal employees of the firm

   – performs the routine activities of the organisation, also known as the “do-er's”.

4. Technostructure = No line management responsibilities. Produce systems manuals etc 

    These are the people who guide the operating core in being efficient in their jobs.

   They drive efficiency through rules and procedures.

5. Support Staff = Secretarial, cleaning, repairs, IT etc

   – support all the companies' activities and provides expertise and service to the organisation.

Remember that poor performance in a company may simply be due to having an inappropriate structure for the environment and the strategies it follows

Mintzbergs 6 Configurations

1. Simple Structure

   Entrepreneurial. Strategic apex gives direct control, little middle line, support staff or technostructure. Owner are often managers. Flexible, quick to react

2. Machine Bureaucracy

   Technostructure dominant. Controls through regulations. Slow to react to change

   Needs standardisation in simple, repetitive and stable environments. Typically found in large, mature organisations

3. Professional Bureaucracy

   Operating Core dominant. Highly skilled professionals abound

   Machine bureaucracy generates its own standards BUT  professional bureaucracy standards come from the outside 

   It's "the power of expertise"

4. Divisionalised

   Middle line dominant. Division leaders powerful and often able to restrict strategic apex influence

   The autonomy in the Professional Bureaucracy are individuals—BUT—in the Divisionalised Form they are units in the middle line

   Each division has its own structure.

   Divisions are created according to markets served

5. Adhocracy
   
   Complex and disordered. Extensive teamwork/project type work. Support staff very important as close relationship to external suppliers can be vital. Innovation is a strength here

   No standardisation

   Most suitable structure for innovative organisations which hire and give power to experts

   Project managers are particularly numerous

6. Missionary

   All member share a common set of beliefs. Difficult to accept change. Only suitable for small, stable environments