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Understanding Simple Structure Organizations in Dynamic Environments

This lecture dives into the concept of simple structure organizations, particularly in dynamic environments characterized by high perceived uncertainty. The discussion includes key features such as low division of labor, low formalization, and high centralization of authority. It emphasizes the importance of direct supervision and mutual adjustment for coordination. While simple structures are agile and responsive, they are also vulnerable to information overload, especially in growing organizations. Effective communication flows in these environments, detailing the challenges and adaptations necessary for success.

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Understanding Simple Structure Organizations in Dynamic Environments

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  1. COMMUNICATION IN ORGANIZATIONS ENVIRONMENT AND THE TYPE ONE ORGANIZATION Lecture 5b

  2. ENVIRONMENTAL OVERVIEW 4. 3. COMPLEX 1. 2. SIMPLE STRUCTURE SIMPLE DYNAMIC STABLE

  3. ENVIRONMENTAL OVERVIEW: BOX 1 • SIMPLE, DYNAMIC: MODERATELY HIGH PERCEIVED UNCERTAINTY • ENVIRONMENT: • SMALL NUMBER OF COMPONENTS • SOMEWHAT THE SAME • IN CONTINUAL CHANGE • APPROPRIATE STRUCTURE: • LOW DIVISION OF LABOR (MOST DO SAME WORK OR ALL CAN DO DIFFERENT BUT FAIRLY SIMPLE WORK) • LOW FORMALIZATION (FEW WRITTEN RULES-MUTUAL ADJUSTMENT)HIGH CENTRALIZATION (AUTHORITY AT STRATEGIC APEX)

  4. OWNER ASST. ASST. THE SIMPLE STRUCTURECOMMUNICATION FLOW ASST. INFORMAL (ORGANIC) STRUCTURE FOR COMMUNICATION CENTRALIZED AUTHORITY STRUCTURE- MGR’L FNTN - OWNER

  5. The B.A.R and Grille

  6. MINTZBERG: GRAPHIC MODEL THE SIMPLE STRUCTURE Owner/ President No Separate Support Staff No Technostructure No Middle Line Members of the Operating Core

  7. MINTZBERG: THE SIMPLE STRUCTURE(ENTREPRENEURIAL) • STRUCTURE: • SIMPLE, INFORMAL, FLEXIBLE • COORDINATION THROUGH DIRECT SUPERVISION AND MUTUAL ADJUSTMENT • CONTEXT: • SIMPLE AND DYNAMIC ENVIRONMENT - BOX 1 • E.G: GROW COMPANY- GET SALES- RESPOND • SMALL ORGANIZATIONS, OFTEN YOUNG Kit and AR

  8. MINTZBERG: THE SIMPLE STRUCTURE (ENTREPRENEURIAL) • ISSUES: • RESPONSIVE, BUT • VULNERABLE • INFORMATION OVERLOAD AT TOP

  9. The B.A.R. and Grille

  10. THE ISSUE OF OVERLOAD LEADS TO NEW STRUCTURE • OWNER DOES EVERYTHING The “One Brain” problem • OK AS LONG AS ENVIRONMENT DOESN’T CHANGE TOO FAST AND HE/SHE CAN TELL EVERYONE WHAT TO DO - • ASSISTANTS HAVE NO AUTHORITY TO DECIDE • SUCCESS - GROWTH- TOO MANY DECISIONS - TOO MUCH INFORMATION - HE/SHE DROWNS, THE ORG. BEGINS TO FAIL • UNLESS HE/SHE BEGINS TO • SEPARATE FUNCTIONS

  11. THE ISSUE OF OVERLOAD LEADS TO NEW STRUCTURE

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