Organizational Structures

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Organizational Structures
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Basic Parts of the Organization
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Entrepreneurial Organization
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Entrepreneurial Organization

• Simple structure
• Little formalization
• Low level of standardization
• Low level of specialization

5
Entrepreneurial Environment

• Dynamic
• The environment changes often and quickly
• Requires flexibility in management
• Simple
• Permits the apex to understand the environment

6
Machine Organization
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Machine Organization

• Elaborate administration
• Highly standardized tasks
• Work is specialized
• Centralized authority

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Machine Environment

• Stable
• The environment changes little
• Permits inflexible structure
• Simple
• Permits comprehension by the Apex

9
Professional Organization
10
Professional Organization

• Highly standardized skills
• External standardization
• Authority decentralized to skilled workers

11
Professional Environment

• Stable
• Change occurs slowly through training
• Complex
• Requires specialized knowledge and training

12
Innovative Organization
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Innovative Organization

• Project structure
• Line-staff distinction disappears
• Expert Operating Core organized in teams
• Decentralized authority

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Innovative Environment

• Dynamic
• The environment changes often and quickly
• Requires flexibility and innovation
• Shifting organizational structure
• Complex
• Requires expert understanding

15
Management Roles

• Entrepreneurial
• Machine
• Professional
• Innovative