Address The Following Questions And Also Provide The Name Of

Address The Following Questions And Also Provide The Name Of A Company

Address the following questions and also provide the name of a company example of each structure with supporting rationale. Reply substantively to two other learners. What kinds of companies should employ the simple structure organizational configuration? What kind of companies should use the machine bureaucracy form of structure? What kinds of organizations should feature a professional bureaucracy form of structure? What kinds of firms should use the divisional form of structure? What types of organizations are best suited to the adhocracy form of structure?

Paper For Above instruction

The appropriate organizational structure of a company largely depends on its size, complexity, industry, and strategic objectives. Different structures are suited to different operational needs and market environments. This paper explores various organizational structures—simple structure, machine bureaucracy, professional bureaucracy, divisional form, and adhocracy—by detailing the types of companies that should employ each, supported by real-world examples.

Simple Structure

The simple structure is characterized by a flat hierarchy, minimal formalized rules, and centralized decision-making. This structure is most suitable for small startups and sole proprietorships where flexibility, informality, and direct supervision are paramount. Small businesses in early stages of development often require minimal bureaucracy to facilitate quick decision-making processes. For example, Warby Parker, a retailer of eyewear, initially employed a simple structure during its startup phase to maintain agility and close oversight by founders. The rationale is that in small firms, the cost and complexity of formal structures may hinder rapid growth and innovation (Burns & Stalker, 1961).

Machine Bureaucracy

Large, mature organizations with standardized procedures often adopt a machine bureaucracy. These organizations benefit from formalized rules and procedures, ensuring consistency, efficiency, and predictability. An example is The United States Postal Service (USPS), which maintains a highly formalized hierarchy with standardized procedures for mail delivery, ensuring service uniformity across regions. Machine bureaucracy is suitable for organizations such as government agencies, manufacturing plants, and utilities, where routine work and adherence to regulations are critical (Meyer & Rowan, 1977).

Professional Bureaucracy

Organizations that rely heavily on the expertise of skilled professionals tend to feature a professional bureaucracy. These include universities, hospitals, and law firms, where high levels of specialization and autonomy are required. Johns Hopkins University exemplifies a professional bureaucracy, as it employs highly trained faculty and medical professionals who operate with a significant degree of independence within established standards. Such organizations emphasize expertise, ongoing training, and professional judgment, and are less driven by hierarchical command structures, favoring decentralized decision-making based on professional norms (Mintzberg, 1979).

Divisional Structure

Firms operating in diverse markets or regions often utilize a divisional structure. This structure segments the organization into semi-autonomous units, each responsible for specific products, markets, or geographic areas. General Electric (GE) adopted a divisional structure to manage its vast array of businesses spanning aviation, healthcare, and energy sectors. Divisional structures facilitate management focus on specific markets and adapt strategies appropriate to different customer needs, promoting flexibility and sector-specific expertise (Child, 1972).

Adhocracy

Organizations that operate in highly dynamic, innovative, and complex environments benefit from an adhocracy structure. These firms require flexibility, creativity, and rapid response to change. Technology firms, such as Google, exemplify adhocracies, enabling teams to collaborate on innovative projects without rigid hierarchies. Adhocracies promote decentralization, experimentation, and collaboration, making them ideal for research and development, consultancy, and other knowledge-intensive industries (Mintzberg, 1979).

In conclusion, choosing the right organizational structure depends heavily on the company's size, industry, strategic goals, and environment. Small startups benefit from simple structures that allow agility, while large, routine-driven organizations lean towards machine bureaucracy for stability. Knowledge-based organizations and those requiring high professional autonomy utilize professional bureaucracy, whereas multinational firms divide into semi-autonomous units to manage diverse markets. Finally, innovative and fast-changing sectors thrive in adhocracy environments that foster creativity and flexibility.

References

  • Burns, T., & Stalker, G. M. (1961). The Management of Innovation. Tavistock Publications.
  • Child, J. (1972). Organization structure, environment and performance: The role of strategic choice. Sociology, 6(1), 1-22.
  • Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340–363.
  • Mintzberg, H. (1979). The Structuring of Organizations. Prentice-Hall.

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