9. Strategy and structure

Question 1

What three areas need to be considered when developing an appropriate structure?

Answer 1

1. Organisational configuration
2. Centralisation/Decentralisation
3. Management systems

Question 2

Describe the various components of each component of an organisation, according to Mintzberg.

Answer 2

1. The strategic apex is responsible to the organisation’s owners and wishes to retain control over decision-making (centralisation).
2. The technostructure consists of analysts whose reason for existence is the design of procedures and standards and wants an environment that is standardised and highly regulated.
3. The members of the operating core work directly on the product or service. They prefer to work autonomously, achieving what other co-ordination is necessary by mutual adjustment.
4. The managers of the middle line seek to increase their autonomy from the strategic apex, and to
   increase their control over the operating core.
5. Support staff only gain influence when their expertise is vital.

Question 3

What are the types of structures suggested by Mintzberg?

Answer 3

• Entrepreneurial
• Functional (or bureaucratic)
• Divisionalised
• Matrix