Chapter 4
Structure and Restructuring
Structure and Restructuring
 Structural Dilemmas
 Structural Configurations
 Generic Issues in Restructuring
 Why Restructure?
 Making Restructuring Work
 Three Case Examples
Structural Dilemmas
 Differentiation versus Integration
 Gaps versus Overlaps
 Underuse versus Overload
 Lack of Clarity versus Lack of Creativity
 Excessive Autonomy versus Excessive
Interdependence
 Too Loose versus Too Tight
 Goalless versus Goal bound
 Irresponsible versus Unresponsive
Structural Configuration
 Mintzberg’s Fives
 Strategic apex
 Middle
management
 Operating core
 Techno structure
 Support staff
Mintzberg’s Structural Configurations
 Simple Structure
 Machine Bureaucracy
 Professional
Bureaucracy
 Divisionalized Form
 Adhocracy
Mintzberg’s Structural Configurations
 Simple Structure
 Machine Bureaucracy
 Professional
Bureaucracy
 Divisionalized Form
 Adhocracy
Mintzberg’s Structural Configurations
 Simple Structure
 Machine Bureaucracy
 Professional
Bureaucracy
 Divisionalized Form
 Adhocracy
Mintzberg’s Structural Configurations
 Simple Structure
 Machine Bureaucracy
 Professional
Bureaucracy
 Divisionalized Form
 Adhocracy
Mintzberg’s Structural Configurations
 Simple Structure
 Machine Bureaucracy
 Professional
Bureaucracy
 Divisionalized Form
 Adhocracy
Helgesen’s Web of Inclusion
 Emphasis on lateral relationships rather than
hierarchy
 Leadership at the center rather than at the
top
 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
 Middle managers try to protect autonomy and
room to run their own unit
 Techno structure pushes for standardization,
believes in measurement and monitoring
 Support staff prefers less hierarchy, more
collaboration
Why Restructure?
 The environment shifts
 Technology changes
 Organizations grow
 Leadership changes
 Troubled firms
 Impulsive firms
 Stagnant bureaucracies
 Headless giants
Making Restructuring Work: Three
Case Examples
 Citibank’s Back Room
 Kodak’s Black and White Division
 Beth Israel Hospital
Conclusion
 Organization’s structure represents its effort to align
internal processes with its external environment while
balancing structural dilemmas
 Mintzberg: structural configurations align with
different tasks and environments
 Changes in environment pressure organization to
realign structure
 In the short term, restructuring produces
resistance, confusion, performance gaps
 Long run success depends on how well structure
aligns with environment

Week4 bolman deal_chap 4

  • 1.
  • 2.
    Structure and Restructuring Structural Dilemmas  Structural Configurations  Generic Issues in Restructuring  Why Restructure?  Making Restructuring Work  Three Case Examples
  • 3.
    Structural Dilemmas  Differentiationversus Integration  Gaps versus Overlaps  Underuse versus Overload  Lack of Clarity versus Lack of Creativity  Excessive Autonomy versus Excessive Interdependence  Too Loose versus Too Tight  Goalless versus Goal bound  Irresponsible versus Unresponsive
  • 4.
    Structural Configuration  Mintzberg’sFives  Strategic apex  Middle management  Operating core  Techno structure  Support staff
  • 5.
    Mintzberg’s Structural Configurations Simple Structure  Machine Bureaucracy  Professional Bureaucracy  Divisionalized Form  Adhocracy
  • 6.
    Mintzberg’s Structural Configurations Simple Structure  Machine Bureaucracy  Professional Bureaucracy  Divisionalized Form  Adhocracy
  • 7.
    Mintzberg’s Structural Configurations Simple Structure  Machine Bureaucracy  Professional Bureaucracy  Divisionalized Form  Adhocracy
  • 8.
    Mintzberg’s Structural Configurations Simple Structure  Machine Bureaucracy  Professional Bureaucracy  Divisionalized Form  Adhocracy
  • 9.
    Mintzberg’s Structural Configurations Simple Structure  Machine Bureaucracy  Professional Bureaucracy  Divisionalized Form  Adhocracy
  • 10.
    Helgesen’s Web ofInclusion  Emphasis on lateral relationships rather than hierarchy  Leadership at the center rather than at the top  Web builds from the center out through a network of interconnections
  • 11.
    Generic Issues inRestructuring: each component exerts distinct pressures  Strategic apex: pushes for more alignment, centralization  Middle managers try to protect autonomy and room to run their own unit  Techno structure pushes for standardization, believes in measurement and monitoring  Support staff prefers less hierarchy, more collaboration
  • 12.
    Why Restructure?  Theenvironment shifts  Technology changes  Organizations grow  Leadership changes  Troubled firms  Impulsive firms  Stagnant bureaucracies  Headless giants
  • 13.
    Making Restructuring Work:Three Case Examples  Citibank’s Back Room  Kodak’s Black and White Division  Beth Israel Hospital
  • 14.
    Conclusion  Organization’s structurerepresents its effort to align internal processes with its external environment while balancing structural dilemmas  Mintzberg: structural configurations align with different tasks and environments  Changes in environment pressure organization to realign structure  In the short term, restructuring produces resistance, confusion, performance gaps  Long run success depends on how well structure aligns with environment