COMMUNICATION IN ORGANIZATIONSCOMMUNICATION IN ORGANIZATIONS

ENVIRONMENT, STRUCTURE AND ENVIRONMENT, STRUCTURE AND COORDINATIONCOORDINATION

Lecture 5a Lecture 5a

ENVIRONMENT AND ENVIRONMENT AND ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURE

• TWO DIMENSIONS FOR UNDERSTANDING TWO DIMENSIONS FOR UNDERSTANDING ENVIRONMENT:ENVIRONMENT:

SIMPLESIMPLE COMPLEXCOMPLEXFEW FACTORSFEW FACTORS MANY FACTORSMANY FACTORS

SIMILARSIMILAR NOT SIMILARNOT SIMILAR

ORGANIZATIONAL STRUCTURE VARIESORGANIZATIONAL STRUCTURE VARIESIN TERMS OF IN TERMS OF ENVIRONMENTAL DEMANDSENVIRONMENTAL DEMANDS

ENVIRONMENT AND ENVIRONMENT AND ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURE

• TWO DIMENSIONS FOR UNDERSTANDING TWO DIMENSIONS FOR UNDERSTANDING ENVIRONMENT:ENVIRONMENT:

SIMPLESIMPLE COMPLEXCOMPLEXFEW FACTORSFEW FACTORS MANY FACTORSMANY FACTORS

SIMILARSIMILAR NOT SIMILARNOT SIMILAR

STABLESTABLE DYNAMICDYNAMICNO/LOW CHANGENO/LOW CHANGE CONSTANT CHANGECONSTANT CHANGE

ORGANIZATIONAL STRUCTURE VARIESORGANIZATIONAL STRUCTURE VARIESIN TERMS OF IN TERMS OF ENVIRONMENTAL DEMANDSENVIRONMENTAL DEMANDS

ENVIRONMENT AND ENVIRONMENT AND ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURE

SIMPLESIMPLE COMPLEXCOMPLEXFEW FACTORSFEW FACTORS MANY FACTORSMANY FACTORS

SIMILARSIMILAR NOT SIMILARNOT SIMILAR

From a box manufacturer producing simple products with simple From a box manufacturer producing simple products with simple machines (simple) to a space agency that must use skill, machines (simple) to a space agency that must use skill, knowledge and tools from a variety of fields to achieve complex knowledge and tools from a variety of fields to achieve complex outputs.(complex)outputs.(complex)

Environment is complex to the extent that the org. must have a Environment is complex to the extent that the org. must have a great deal of sophisticated knowledge about customers, products, great deal of sophisticated knowledge about customers, products, etc.etc.

ENVIRONMENT AND ENVIRONMENT AND ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURE

STABLESTABLE DYNAMICDYNAMICNO/LOW CHANGENO/LOW CHANGE CONSTANT CHANGECONSTANT CHANGE

From a local woodcarver whose clients want the same pine carvings year after year (stable) to a CSI team who never know exactly what they will walk into.(dynamic)

Environments are made dynamic (unexpectedly changeable) by demands for novelty, creativity (ad agency or TV net); rapid changes in technology or knowledge base (tech firm); unpredictable changes in weather (farming).

In dynamic environment, the emphasis is on the unexpected or very rapid change.

FOUR ENVIRONMENTS: AN FOUR ENVIRONMENTS: AN OVERVIEWOVERVIEW

2.2.

3.3.

1.1.

4.4.

STABLESTABLE

SIMPLESIMPLE

COMPLEXCOMPLEX

DYNAMICDYNAMIC

ENVIRONMENTAL OVERVIEWENVIRONMENTAL OVERVIEW

2.2.

3.3.

1.1.

4.4.

STABLESTABLE

SIMPLESIMPLE

COMPLEXCOMPLEX

DYNAMICDYNAMIC

SIMPLESIMPLESTRUCTURESTRUCTURE

MACHINEMACHINEBUREAUCRACYBUREAUCRACY

2A.2A.DIVISIONALIZEDDIVISIONALIZEDBUREAUCRACYBUREAUCRACY

PROFESSIONALPROFESSIONALBUREAUCRACYBUREAUCRACY

THE ADHOCRACYTHE ADHOCRACY

CONNECTIONS BETWEEN CONNECTIONS BETWEEN FUNCTION AND STRUCTUREFUNCTION AND STRUCTURE

KATZ/KAHN KATZ/KAHN (FUNCTION)(FUNCTION) MINTZBERG MINTZBERG (STRUCTURE)(STRUCTURE)

1.1. PRODUCTIONPRODUCTION OPERATING COREOPERATING CORE

2. MAINTENANCE2. MAINTENANCE TECHNOSTRUCTURETECHNOSTRUCTUREAND SUPPORT STAFFAND SUPPORT STAFF

3. BOUNDARY SUPPORT3. BOUNDARY SUPPORT• PRO-DIS (THINGS)PRO-DIS (THINGS) TECHNOSTRUCTURE AND TECHNOSTRUCTURE AND

OPERATING CORE OPERATING CORE • PRO-DIS (PEOPLE)PRO-DIS (PEOPLE) TECHNOSTRUCTURE ANDTECHNOSTRUCTURE AND

SUPPORT STAFFSUPPORT STAFF

4. ADAPTIVE4. ADAPTIVE SUPPORT STAFF SUPPORT STAFF

5. MANAGERIAL5. MANAGERIAL STRATEGIC APEX AND STRATEGIC APEX AND MIDDLE LINE MIDDLE LINE

MINTZBERG: GRAPHIC MODEL OF MINTZBERG: GRAPHIC MODEL OF FUNCTIONSFUNCTIONS

STRATEGIC APEXSTRATEGIC APEX

OPERATING COREOPERATING CORE

TECHNOSTRUCTURESUPPORTSUPPORT

MIDDLE LINE

MATURE ORGANIZATIONS USE 5 STRUCTURALMATURE ORGANIZATIONS USE 5 STRUCTURALCOMPONENTS TO HANDLE THE 5 FUNCTIONS TO RESPOND TO THE COMPONENTS TO HANDLE THE 5 FUNCTIONS TO RESPOND TO THE

FOUR TYPES OF ENVIRONMENT.FOUR TYPES OF ENVIRONMENT.

THE SHAPE MATTERS - IT SHOWS YOU THE TYPE OF THE SHAPE MATTERS - IT SHOWS YOU THE TYPE OF ORGANIZATION.ORGANIZATION.

MINTZBERG’S STRUCTURAL MINTZBERG’S STRUCTURAL CONCEPTS AND REAL-TIME CONCEPTS AND REAL-TIME

ORGANIZATIONSORGANIZATIONS

Strategic Apex

Board of Directors, Chief Executive Officers (eg. Pres., CEO, COO, CFO, etc.)

Techno-structure 

Strategic Planning, Personnel Training, Operations Research, Systems Analysis and Design

Support Staff

Legal Counsel, Public Relations, Payroll, Mailroom Clerks, Cafeteria Workers

Middle Line

VP Operations, VP Marketing,etc., Plant Managers Sales Managers, Front Line Supervisors

Operating Core

Purchasing Agents, Machine Operators, Assemblers, Sales Persons, Shippers