ACCA SBL Syllabus H. Innovation, Performance Excellence & Change Management - Mintzbergs 5 building Blocks - Notes ^{7 / 9}

Top Management = Strategic Apex
Normal employees of the firm = Operating Core
Management = Middle Line
Secretarial, cleaning, repairs, IT etc = Support Staff
No line management responsibilities. Produce systems manuals etc = Technostructure

Most powerful group	Structure
Strategic Apex	Entrepreneurial. Leaders give sense of direction
Operating Core	Highly skilled workers with lots of influence e.g. Schools, hospitals
Middle Line	Localised and divisionalised company

Remember that poor performance in a company may simply be due to having an inappropriate structure for the environment and the strategies it follows

Simple Structure
Entrepreneurial. Strategic apex gives direct control, little middle line, support staff or technostructure. Owner-managers often. Flexible, quick to react
Machine Bureaucracy
Technostructure dominant. Controls through regulations. Slow to react to change
Needs standardisation in simple, repetitive and stable environments. Typically found in large, mature organisations
Professional Bureaucracy
Operating Core dominant. Highly skilled professionals abound
Machine bureaucracy generates its own standards BUT professional bureaucracy standards come from the outside
It's "the power of expertise"
Divisionalised
Middle line dominant. Division leaders powerful and often able to restrict strategic apex influence
The autonomy in the Professional Bureaucracy are individuals—BUT—in the Divisionalised Form they are units in the middle line
Each division has its own structure.
Divisions are created according to markets served
Adhocracy

Complex and disordered. Extensive teamwork/project type work. Support staff very important as close relationship to external suppliers can be vital. Innovation is a strength here
No standardisation
Most suitable structure for innovative organisations which hire and give power to experts
Project managers are particularly numerous
Missionary
All member share a common set of beliefs. Difficult to accept change. Only suitable for small, stable environments