Understanding Organisations: Understanding the Internal and External Organisational Environments

2256 Words Dec 19th, 2012 10 Pages
Understanding Organisations: Understanding the internal and external organisational environments

This section covers:

Organisational theory
Organisation structure
Centralisation and decentralization
Levels of the organization
Mintzberg's nine design parameters
Formal organisational relationships
Definition of an organisation: Systems of activities and behaviours to enable humans and their machines to accomplish goals and objectives… a joint function of human characteristics and the nature of the task environment.

Organisational Theory

Organisations are 'complex adaptive systems' that use people, tasks and technologies to achieve specified goals and objectives. Organisational theory refers to how organisations are
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diseconomies of scale

Principles of organisational design and diagnosis

Mintzberg suggests that organisational structures fall into five basic categories:

simple structure: a centralised, perhaps autocratic arrangement typical of the entrepreneur-founded company. Little hierarchy or control exercised by the Chief Executive.

machine bureaucracy: best at mass produced tasks and is characterised by many layers of management and formal procedures

professional bureaucracy: likely to include some parts of the NHS - its administration is set by independent professional bodies. It tends to be more democratic and more highly motivated, with its lines of authority less clearly set.

divisionalised form of bureaucracy: applies more to multinational or industrial corporations where a small central core controls key guidelines for a number of otherwise autonomous units. Despite being neither multinational or industrial the NHS today is reckoned to exhibit some characteristics of this structure

adhocracy: often found in new technology

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