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