Read_ Organisations 1_ Structure of Organisations (Mintzberg)

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  10/10/2014 Read: organisations 1: Structure of organisations (Mintzberg) 1/7 Go BackMain Menu OD TOOLKIT Read: organisations 1: Structureof organisations (Mintzberg) 1. Definitions of 'organisation'  a purposeful collaboration (goal, plans, organising, operation, control andcorrection)several people fulfilling several tasks leads to the necessity of a kind of transfer of  will (who decides what) and a kind of coordination ( who is doing what)division of activities;determination of decision making procedures; building communication channels.One can discern the formal and the informal organisation, complementary to each otheror undermining each other.Simple formulated: an organisation exists because the objective of the organisation ispursued by several people together. The combination 'several people and an objective'asks for division of tasks (horizontal or vertical division of tasks) and for agreements(coordination, transfer of will concerning the goal, or acting by order in a hierarchy).The variation in both, division of tasks and mechanisms of coordination, leads to a variety of different forms of organisations.For division of tasks below and for mechanisms of coordination see 2. Division of labour  Vertical differentiation : in levels, on the base of costs reduction, leading to highand low, to hierarchy.  Horizontal differentiation : the formation of divisions or sections, functionalcompartments.  Internal differentiation : F-division, functional. Division of labour according to the phases of the process or to the nature of theactivities, grouped along the lines of similarity. Organisational independency of sub processes. (purchase, processing, sale) Risk: disappearing coherence.  10/10/2014 Read: organisations 1: Structure of organisations (Mintzberg) 2/7 Necessity: collective coordination.  Internal specialisation : division of labour according to the goal of the activities orfunctions. (purchasers, salesmen) P-division, by products. (shoes, stocking, underwear,) G-division, by geographical place.(north and south department) M-division by market segment or consumer group.(adults, children) (Mintzberg adds: by time, by knowledge and skills, for example the night shift, thedoctors and nurses.) Advantages F-division: Concentration of similar activities.mechanising and acquisition of specialised equipment in behalf of the activitieshigh occupancy of people and machineshigh skills and routine, high expertise and knowledge on sub processes,similarities in working attitude and languageDisadvantages F:monotony, one-sidednesslow flexibility problems of coordination by a fragmented production process Advantages P-division: The end-product has a central position, that is why heterogeneous activities are broughttogether in one section fast flow of productsquick problem solving because of the build-in direct coordinationshort communication lines of communicationDisadvantages P:high costs because of the need for more machines and means, giving up the benefitof the combinationlow degree of functional expertiseConcluding: P: shorter delivery periods, higher reliability of delivery, higher degree of flexibility is opposed to sacrificing more means. 3. Organisational system Line, staff, line organisation with staff departments. *Line Originates from the disposal of tasks which contain more and more executive elements.  10/10/2014 Read: organisations 1: Structure of organisations (Mintzberg) 3/7 Everyone has a chief or manager to whom one is related in a power structure.Power of the line: ordering and controlling downwards, accountability upwards.Following the vertical line: Advantages:clearness and simplicity supervision and control from a -status- position;coordinating with chief or manager, before executing the orderDisadvantages:overburdening the vertical line (if all coordination goes that way);over strained expectations of expertise of managers, or a very small span of control. A solution could be to fit the horizontal line in a line organisation, preserving thehierarchical principal., for instance by institutionalise horizontal coordination on thesame hierarchical level, with feedback to the next level: contact passerelle *Variations of the line Staff functions: specialised knowledge on behalf of policy matters (economic investigation, marketstudy, legal advice etc.) Staff departments: specialised knowledge on behalf of the operational core (personnel department,administrative department, maintenance department, etc.)Staff is advisor. The efforts of the staff should be directed to get the advice accepted by the line.Staff department performs a part of the execution. Product of the staff is a coerciveinstruction, 'functional control'. The unity of order is abolished.The line says that something has to be done, the staff department how it has to be done. 'Entente' structure: Co-ordination in the construction of the organisation (operating on the same level). A  board in which the members share the responsibilities (colleagues?), independency in  10/10/2014 Read: organisations 1: Structure of organisations (Mintzberg) 4/7 individual areas of decision making, deliberation or consultation in areas of commondecision making. Matrix organisation: direct cooperation between functionaries from diverse areas of expertise. Project leader with operational authority. Workers fall under the functional manager who staysresponsible for the professional aspects. Project organisation: idem, but the project leader has operational and line authority over the workers. *Centralisation and decentralisation  Where are which decisions made. Who has got the authority to make which decisions.For instance: urgent and local conditions demand a spread of the authority to makedecisions: decentralisation.The need for coordination and the existence of important decisions demandconcentration of decision authority: centralisation. *Task, authority and accountability These three should always be inextricably bound up with each other. Being charged witha particular task should include the authority to make decisions within that task and theduty to be accountable over that task.Problems could arise if one of these three elements is lacking. 4.Organisational structures (Mintzberg) Mintzberg discerns five mechanisms of coordination: coordination by mutual adjustment  : agreements in a informal consultation; direct supervision : a person who gets the responsibility over the work of others,instructing them and controlling their activities; standardisation of working processes : f.i. instruction how to assemble a car; standardisation of output  : the result is fixed, not the way how to attain that result; standardisation of skills : a description what should be the necessary training forthe job (nursing).
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