He identified the various organizations as a result of their blend of strategy, environmental forces and the organizational structure. The five organizational types are entrepreneurial, machine, professional, divisional and innovative. Entrepreneurial An entrepreneurial company has a loose organizational structure and is typically driven by entrepreneurial-minded or creative types of leaders. Startup companies managed by their founders commonly exemplify this organizational type.
Our article on Professional Services Organizations tells you more about working within this kind of structure. The Divisional Diversified Organization If an organization has many different product lines and business units, you'll typically see a divisional structure in place.
A central headquarters supports a number of autonomous divisions that make their own decisions, and have their own unique structures. You'll often find this type of structure in large and mature organizations that have a variety of brands, produce a wide range of products, or operate in different geographical regions.
Any of these can form the basis for an autonomous division. The key benefit of a divisional structure is that it allows line mangers to maintain more control and accountability than in a machine structure.
Also, with day-to-day decision-making decentralized, the central team can focus on "big picture" strategic plans. This allows them to ensure that the necessary support structures are in place for success.
A significant weakness is the duplication of resources and activities that go with a divisional structure. Also, divisions can tend to be in conflict, because they each need to compete for limited resources from headquarters.
And these organizations can be inflexible, so they work best in industries that are stable and not too complex. If your strategy includes product or market diversification, this structure can work well, particularly when the company is too large for effective central decision-making.
The Innovative Organization "Adhocracy" The structures discussed so far are best suited to traditional organizations. In new industries, companies need to innovate and function on an "ad hoc" basis to survive. With these organizations, bureaucracy, complexity, and centralization are far too limiting.
Filmmaking, consulting, and pharmaceuticals are project-based industries that often use this structure. Here, companies typically bring in experts from a variety of areas to form a creative, functional team.
Decisions are decentralized, and power is delegated to wherever it's needed. This can make these organizations very difficult to control! The clear advantage of adhocracies is that they maintain a central pool of talent from which people can be drawn at any time to solve problems and work in a highly flexible way.
Workers typically move from team to team as projects are completed, and as new projects develop. Because of this, adhocracies can respond quickly to change, by bringing together skilled experts able to meet new challenges.
But innovative organizations have challenges. There can be lots of conflict when authority and power are ambiguous. And dealing with rapid change is stressful for workers, making it difficult to find and keep talent.
However, given the complex and dynamic state of most operating environments, adhocracy is a common structural choice, and it's popular with young organizations that need the flexibility it allows. Mintzberg's classification is just one way of looking at the ways in which organizations are structured.
You can find out more about other aspects of structuring — and its relationship to strategy and growth — in our articles on Miles and Snow's Organizational Strategies.decentralization—Mintzberg suggests that the strategy an organization adopts and the extent to which it practices that strategy result in five structural configurations: simple structure, machine bureaucracy, professional bureaucracy, divisionalized form, and adhocracy.
Organizations exist to achieve goals. Mintzberg suggested entrepreneurial, machine, diversified, professional, innovative, missionary, and political organizations which are introduced to identify different structural configurations of an organization or organizational forms. According to renowned management theorist Henry Mintzberg's book, "The Structuring of Organizations," an organization's structure emerges from the interplay of the organization's strategy, the environmental forces it experiences, and the organizational structure itself.
When these fit together well, they combine to create organizations that can perform well. Mintzberg’s Five Configurations of Strategic Management The famous management expert, Henry Mintzberg, proposed a five configurations approach to strategic management wherein any organization can be broken down into five core elements or parts.
Mintzberg suggested entrepreneurial, machine, diversified, professional, innovative, missionary, and political organizations which are introduced to identify different structural configurations of an organization or organizational. The famous management expert, Henry Mintzberg, proposed a five configurations approach to strategic management wherein any organization can be broken down into five core elements or parts.
The interactions between these parts determine the strategy of the organization. The five parts according to.