Course Content
Management Foundations
Management: Concept, Process, Theories, and Approaches, Management Roles and Skills
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Management Functions
Functions: Planning, Organizing, Staffing, Coordinating, and Controlling
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Managerial Economics Foundations
Managerial Economics: Concept and Importance
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National Income
National Income: Concept, Types, and Measurement
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Unit I : Evaluation
Unit I : Evaluation
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Unit I: Business Management and Managerial Economics

📘 Introduction

Henry Mintzberg, a renowned Canadian scholar in management and organisational theory, developed one of the most influential models of organisational structure.

In his landmark book, “The Structuring of Organizations” (1979), he identified five core types of organisations, each defined by its primary coordination mechanism, dominant part, and typical structure.

In later work, particularly in the 1990s, Mintzberg acknowledged two additional organisational forms : Missionary and Political Organisation

Mintzberg’s model provides a practical way to understand how different organisations function, evolve, and align with their environment—making it a cornerstone of organisational design theory.


🧑‍💼 1. Entrepreneurial Organisation (Simple Structure)

This is the most basic form of organisational structure, often found in startups or small businesses. The structure is flat, usually with one central decision-maker, like the founder or owner, who gives direct instructions.

  • Coordination mechanism: Direct supervision – The top leader personally oversees and controls activities.

  • Dominant part: Strategic apex – The focus is on the top manager or founder.

  • Strengths: Fast decision-making, adaptable, low bureaucracy.

  • Weaknesses: Depends too much on one person; not suitable for large or complex operations.

  • Best used when: The environment is dynamic and simple, and decisions need to be made quickly without much formal process.


🏭 2. Machine Bureaucracy (Mechanistic Structure)

This type is highly formalised and standardised, often found in large, mature organisations like government agencies or factories. Tasks are routine, roles are clearly defined, and rules are strictly followed.

  • Coordination mechanism: Standardisation of work processes – Tasks are performed in the same way, every time.

  • Dominant part: Technostructure – Experts and analysts design systems and procedures.

  • Strengths: Efficiency, consistency, and predictability.

  • Weaknesses: Inflexible, poor at innovation or dealing with change.

  • Best used when: The environment is stable and repetitive, where uniformity is more important than adaptability.


🧑‍⚕️ 3. Professional Organisation

Seen in hospitals, universities, law firms, or other environments where skilled professionals carry out the core work. These professionals operate with a high degree of autonomy because of their expertise and training.

  • Coordination mechanism: Standardisation of skills – Workers are trained to handle tasks independently.

  • Dominant part: Operating core – The professionals who deliver the service (doctors, professors, etc.).

  • Strengths: High expertise, autonomy, and professionalism.

  • Weaknesses: Hard to control; coordination across departments may be weak.

  • Best used when: The work is complex and requires independent judgement, but the environment is relatively stable.


🗂️ 4. Divisionalised Organisation

Common in large, diversified companies, this structure breaks the organisation into semi-autonomous units or divisions, each responsible for its own products, customers, or regions (e.g., GE, Unilever).

  • Coordination mechanism: Standardisation of outputs – Divisions are managed based on results, not how they achieve them.

  • Dominant part: Middle line – Middle managers link headquarters to the divisions.

  • Strengths: Focused accountability and responsiveness to markets.

  • Weaknesses: Risk of internal competition and duplication of effort.

  • Best used when: An organisation is large and operates in diverse markets, needing flexibility at the unit level but control at the corporate level.


🧠 5. Innovative Organisation (Adhocracy)

This is a flexible, dynamic structure designed for innovation and creativity. It’s often used in R&D firms, tech startups, and design consultancies. It’s informal and project-based, with fluid teams forming and disbanding as needed.

  • Coordination mechanism: Mutual adjustment – People coordinate through communication and collaboration, not formal rules.

  • Dominant part: Support staff/project teams – Skilled specialists working in teams drive the work.

  • Strengths: Highly creative, adaptable, and responsive to change.

  • Weaknesses: Can be chaotic and hard to manage; lacks stability.

  • Best used when: The environment is dynamic and complex, requiring constant innovation and experimentation. Innovative organisations primarily focus on mutual adjustment.


🕊️ 6. Missionary Organisation

This structure is driven by a strong sense of shared purpose or values. It’s common in religious organisations, social movements, or nonprofits, where people are united more by ideology than by formal procedures.

  • Coordination mechanism: Standardisation of norms – Shared values guide behaviour.

  • Dominant part: Ideology – A unifying mission binds the organisation together.

  • Strengths: High employee motivation and cohesion.

  • Weaknesses: Resistance to change; outsiders may struggle to fit in.

  • Best used when: Culture and values are central to the organisation’s function and unity. Missionary organisations primarily focus on norms standardisation.


⚖️ 7. Political Organisation (not formalised by Mintzberg in early work, but later discussed)

This isn’t a deliberately designed structure. Instead, it arises in organisations where power struggles, conflicting interests, and internal politics dominate decision-making. It’s often a temporary or crisis state.

  • Coordination mechanism: Conflict and negotiation

  • Dominant part: Power coalitions

  • Strengths: Can lead to dynamic changes and shifts.

  • Weaknesses: Lacks stability, direction, and trust.

  • Best used when: Often not ideal – emerges during transitions, takeovers, or crises.


🧩 Summary Comparison Table:

Type Coordination Mechanism Dominant Part Best Used When…
🧑‍💼 Entrepreneurial Direct Supervision Strategic Apex Small, simple, fast-moving firms
🏭 Machine Bureaucracy Standardisation of Work Technostructure Stable, routine operations
🧑‍⚕️ Professional Standardisation of Skills Operating Core Skilled, autonomous work environments
🗂️ Divisionalised Standardisation of Outputs Middle Line Large, diverse markets
🧠 Innovative (Adhocracy) Mutual Adjustment Support Staff / Teams Innovation, creativity needed
🕊️ Missionary Standardisation of Norms Ideology Unified by shared purpose
⚖️ Political Conflict / Negotiation Power Coalitions During instability or internal battles