Reframing Organizations 4 th ed Chapter 4 Structure

Reframing Organizations, 4 th ed.

Chapter 4 Structure and Restructuring

Structure and Restructuring n n n Structural Dilemmas Structural Configurations Generic Issues in Restructuring Why Restructure? Making Restructuring Work n Three Case Examples

Structural Dilemmas Differentiation versus Integration n Gaps versus Overlaps n Underuse versus Overload n Lack of Clarity versus Lack of Creativity n Excessive Autonomy versus Excessive Interdependence n Too Loose versus Too Tight n Goalless versus Goal bound n Irresponsible versus Unresponsive n

Structural Configuration n Mintzberg’s Fives n Strategic apex n Middle management n Operating core n Techno structure n Support staff

Mintzberg’s Structural Configurations n Simple Structure n Machine Bureaucracy n Professional Bureaucracy n Divisionalized Form n Adhocracy

Mintzberg’s Structural Configurations n Simple Structure n Machine Bureaucracy n Professional Bureaucracy n Divisionalized Form n Adhocracy

Mintzberg’s Structural Configurations n Simple Structure n Machine Bureaucracy n Professional Bureaucracy n Divisionalized Form n Adhocracy

Mintzberg’s Structural Configurations n Simple Structure n Machine Bureaucracy n Professional Bureaucracy n Divisionalized Form n Adhocracy

Mintzberg’s Structural Configurations n Simple Structure n Machine Bureaucracy n Professional Bureaucracy n Divisionalized Form n Adhocracy

Helgesen’s Web of Inclusion n Emphasis on lateral relationships rather than hierarchy n Leadership at the center rather than at the top n Web builds from the center out through a network of interconnections

Generic Issues in Restructuring: each component exerts distinct pressures Strategic apex: pushes for more alignment, centralization n Middle managers try to protect autonomy and room to run their own unit n Techno structure pushes for standardization, believes in measurement and monitoring n Support staff prefers less hierarchy, more collaboration n

Why Restructure? The environment shifts n Technology changes n Organizations grow n Leadership changes n Troubled firms n n Impulsive firms Stagnant bureaucracies Headless giants

Making Restructuring Work: Three Case Examples n Citibank’s Back Room n Kodak’s Black and White Division n Beth Israel Hospital

Conclusion n Organization’s structure represents its effort to align internal processes with its external environment while balancing structural dilemmas n Mintzberg: structural configurations align with different tasks and environments n Changes in environment pressure organization to realign structure n In the short term, restructuring produces resistance, confusion, performance gaps n Long run success depends on how well structure aligns with environment