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Organizational Structure Types

The document discusses different types of organizational structures: Pre-bureaucratic structures are common in small organizations and allow centralized control by the leader. Bureaucratic structures have more standardization and are better suited for larger, more complex organizations with hierarchical structures. Post-bureaucratic structures attempt to move away from bureaucracy through approaches like consensus-based decision making. Functional structures group employees by specialized tasks while divisional structures group functions into product-based divisions. Matrix structures combine functional and divisional approaches by grouping employees both by function and product.

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Ankur Jaiswal
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180 views

Organizational Structure Types

The document discusses different types of organizational structures: Pre-bureaucratic structures are common in small organizations and allow centralized control by the leader. Bureaucratic structures have more standardization and are better suited for larger, more complex organizations with hierarchical structures. Post-bureaucratic structures attempt to move away from bureaucracy through approaches like consensus-based decision making. Functional structures group employees by specialized tasks while divisional structures group functions into product-based divisions. Matrix structures combine functional and divisional approaches by grouping employees both by function and product.

Uploaded by

Ankur Jaiswal
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Organizational structure types

Pre-bureaucratic structures
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This
structure is most common in smaller organizations and is best used to solve simple
tasks. The structure is totally centralized. The strategic leader makes all key
decisions and most communication is done by one on one conversations. It is
particularly useful for new (entrepreneurial) business as it enables the founder to
control growth and development.

They are usually based on traditional domination or charismatic domination in the


sense of Max Weber's tripartite classification of authority.
Bureaucratic structures
Weber (1948, p. 214) gives the analogy that “the fully developed bureaucratic
mechanism compares with other organizations exactly as does the machine
compare with the non-mechanical modes of production. Precision, speed,
unambiguity, strict subordination, reduction of friction and of material and personal
costs- these are raised to the optimum point in the strictly bureaucratic
administration. Bureaucratic structures have a certain degree of standardization.
They are better suited for more complex or larger scale organizations. They usually
adopt a tall structure. Then tension between bureaucratic structures and non-
bureaucratic is echoed in Burns and Stalker distinction between mechanistic and
organic structures. It is not the entire thing about bureaucratic structure. It is very
much complex and useful for hierarchical structures organization, mostly in tall
organizations.
Post-bureaucratic
The term of post bureaucratic is used in two senses in the organizational literature:
one generic and one much more specific. In the generic sense the term post
bureaucratic is often used to describe a range of ideas developed since the 1980s
that specifically contrast themselves with Weber's ideal type bureaucracy. This may
include total quality management, culture management and matrix management,
amongst others. None of these however has left behind the core tenets of
Bureaucracy. Hierarchies still exist, authority is still Weber's rational, legal type, and
the organization is still rule bound. Heckscher, arguing along these lines, describes
them as cleaned up bureaucracies, rather than a fundamental shift away from
bureaucracy. Gideon Kunda, in his classic study of culture management at 'Tech'
argued that 'the essence of bureaucratic control - the formalisation, codification and
enforcement of rules and regulations - does not change in principle.....it shifts focus
from organizational structure to the organization's culture'.

Another smaller group of theorists have developed the theory of the Post-
Bureaucratic Organization .provide a detailed discussion which attempts to describe
an organization that is fundamentally not bureaucratic. Charles Heckscher has
developed an ideal type, the post-bureaucratic organization, in which decisions are
based on dialogue and consensus rather than authority and command, the
organization is a network rather than a hierarchy, open at the boundaries (in direct
contrast to culture management); there is an emphasis on meta-decision making
rules rather than decision making rules. This sort of horizontal decision making
by consensus model is often used in housing cooperatives, other cooperatives and
when running a non-profit or community organization. It is used in order to
encourage participation and help to empower people who normally
experience oppression in groups.

Still other theorists are developing a resurgence of interest in complexity theory and
organizations, and have focused on how simple structures can be used to engender
organizational adaptations. For instance, Miner et al. (2000) studied how simple
structures could be used to generate improvisational outcomes in product development.
Their study makes links to simple structures and improviseal learning. Other scholars
such as Jan Rivkin and Sigglekow[, and Nelson Repenning ] revive an older interest in
how structure and strategy relate in dynamic environments.
Functional structure
Employees within the functional divisions of an organization tend to perform a
specialized set of tasks, for instance the engineering department would be staffed
only with software engineers. This leads to operational efficiencies within that group.
However it could also lead to a lack of communication between the functional groups
within an organization, making the organization slow and inflexible.

As a whole, a functional organization is best suited as a producer of standardized


goods and services at large volume and low cost. Coordination and specialization of
tasks are centralized in a functional structure, which makes producing a limited
amount of products or services efficient and predictable. Moreover, efficiencies can
further be realized as functional organizations integrate their activities vertically so
that products are sold and distributed quickly and at low cost For instance, a small
business could start making the components it requires for production of its products
instead of procuring it from an external organization .But not only beneficial for
organization but also for employees faiths.
Divisional structure
Also called a "product structure", the divisional structure groups each organizational
function into a division. Each division within a divisional structure contains all the
necessary resources and functions within it. Divisions can be categorized from
different points of view. There can be made a distinction on geographical basis (a US
division and an EU division) or on product/service basis (different products for
different customers: households or companies). Another example, an
automobile company with a divisional structure might have one division for SUVs,
another division for subcompact cars, and another division for sedans. Each division
would have its own sales, engineering and marketing departments.
Matrix structure
The matrix structure groups employees by both function and product. This structure
can combine the best of both separate structures. A matrix organization frequently
uses teams of employees to accomplish work, in order to take advantage of the
strengths, as well as make up for the weaknesses, of functional and decentralized
forms. An example would be a company that produces two products, "product a" and
"product b". Using the matrix structure, this company would organize functions within
the company as follows: "product a" sales department, "product a" customer service
department, "product a" accounting, "product b" sales department, "product b"
customer service department, "product b" accounting department. Matrix structure is
amongst the purest of organizational structures, a simple lattice emulating order and
regularity demonstrated in nature.

 Weak/Functional Matrix: A project manager with only limited authority is


assigned to oversee the cross- functional aspects of the project . The functional
managers maintain control over their resources and project areas.
 Balanced/Functional Matrix: A project manager is assigned to oversee the
project. Power is shared equally between the project manager and the functional
managers. It brings the best aspects of functional and projectized organizations.
However, this is the most difficult system to maintain as the sharing power is
delicate proposition.
 Strong/Project Matrix: A project manager is primarily responsible for the
project. Functional managers provide technical expertise and assign resources
as needed.

Among these matrixes, there is no best format; implementation success always


depends on organization's purpose and function.

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