Cultural Levels and Business
February 12, 2025
The “internet of things” is the latest buzzword that can be heard in Silicon Valley. It is the newest avenue for innovation and bright minds all over the world are moving towards this rapidly advancing sector. Almost, every business report predicts a massive rise in the value of goods and service that will be enabled […]
International Retailing is going places. With globalization and with E Commerce, the horizon of opportunities has expanded significantly. Efficiency and the profitable operations of International Retailing both in terms of fashion as well as grocery retailing is dependant largely upon the Buying or Merchandising function. As the industry has progressed and evolved, the key role […]
It is common knowledge in the investing world that almost 90% of the start-up companies which come into existence shut down within the first couple of years. However, it is also assumed that if a company is able to gain funding from professional investors, its chances of surviving become astronomically high. This is because it […]
Marketing Management has evolved to become a multi faceted and all embracing science over a period of time. Studies in Marketing do not involve the 4Ps anymore. The markets, geographies, the consumer segments have changed leading to multi tier and complex networks and relationships. Marketing Managers of today are no longer following the same rules […]
Once an organization decides to go for Enterprise Risk Management, the challenge is the implementation. At the ground level there are lots of considerations in successful implementation of the same. These considerations vary with the organizations; however the following more or less remain the same: ERM Champion: First and foremost, considering the challenges an individual […]
The famous management expert, Henry Mintzberg, proposed a five configurations approach to strategic management wherein any organization can be broken down into five core elements or parts. The interactions between these parts determine the strategy of the organization.
The five parts according to Mintzberg are:
In other words, they perform the essential function of acting as a buffer between the senior management and the rank and file employees.
The key aspect about these configurations is that it can be used to predict the organizational structure of any organization and used to model the strategy that the organization follows as a result of the interaction between these parts.
For instance, in many service sector companies, the organization structure is very fluid and interchangeable with the result that the middle managers perform crucial tasks and the apex gets directly involved in running the organization.
On the other hand, in many manufacturing companies, it is common to find the Technostructure prevailing as the organizational processes are bureaucratic and have mechanistic characteristics which makes the organization function like a machine. This is the configuration in many public sector and governmental organizations as well.
Finally, the startups have a structure that is composed of the strategic apex and the supporting staff in their initial years of operation as the organization structure is yet to be formalized.
The key implications of Mintzberg’s configurations are that it gives us a useful model to describe how the organizational structure affects strategy. As many theoretical models depend on external strategy alone, this model is preferred by those who want to understand how internal dynamics produce strategy.
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