Classifying Organisation Structures in relation to Structure, Environment and Strategy

Elements of Classifying Organisation Structures:
STRUCTURAL DIMENSIONSSimple StructureMachine BureaudracyOrganicDivisionalised
PowercentralisationAll at the topCEO and designers of workflowScientistis, technocrats and middle managersDivisional Executives
BureaucratisationLow informalMany formal rules, policies and proceduresOrganicBureaucratic
DifferentiationMinimalModerateVery highHigh
Integration and co-ordination of effortBy CEO via direct supervisionBy technocrats via formal proceduresBy integrating personnel, task forces via mutual adjustmentBy formal committees via plan and budgets
Information systemsCrude, informalCost controls and budgetsInformal scanning, open communicationsManagementinformationsystems and profit centres


Classifies simple, machine bureaucracy, organic and divisionalised organisational structures in relation to Structural & Environmental dimensions


Generic competitive strategies

[supsystic-tables id=’6′]

Simple structureProvides quality, convenience and serviceMarketing differentiation
Avoids competition with large palyers; builds of advantages of small sizeNiche differentiation
Machine bureaucracyCan achieve economies of scaleCost leadership
Matches stable environment
Only suitable if differentiationMarketing differentiation
Does not disrupt efficiency, so, e.g. advertising/service suitable but not customisation/tailoring
Organic structureFlexible, innovative structureInnovative differentiation
Only if niche is big enough to exploit the potential of the technologyNiche differentiation
Divisionalised structureDecentralised, financial control style cosistent with cost leadership if businesses are unrelatedCost leadership
Coordinated, integrated style consistent if businesses are related
Allows greater tailoring to market needsMarketing differentiation


To determine organisational structure fit

Source of Classifying Organisation Structures:

(Miller, D., 1986)