Chapter 2 business organisation and structure part 2 FAB/F1 ACCA, Business and technology

Summary

This ACCA F1 Business Organization and Structure video covers boundary-less structures, including hollow, virtual, and modular organizations, emphasizing flexibility and outsourcing non-core activities. It introduces Henry Mintzberg's five key building blocks of organizations: strategic apex, middle line, operating core, techno structure, and support staff. The video also explains different organizational structures dominated by these blocks, such as simple, machine bureaucracy, professional bureaucracy, divisionalized, adhocracy, and missionary, providing insights into how each structure functions and the importance of ideology within organizations.

Takeaways

• 🏢 The video discusses the second part of Chapter 2 on ACCA F1 Business, Organization, and Structure, focusing on boundary-less structures and Mintzberg's theory of organizational design.
• 🔄 Boundary-less structures emphasize flexibility and lack of traditional hierarchical boundaries, including hollow, virtual, and modular organizations.
• 👨‍🏫 Outsourcing is a strategy where non-core activities are contracted out to external organizations, allowing the company to focus on its core activities.
• 🧩 Hollow organizations maintain core activities in-house while outsourcing non-core activities, such as payroll and maintenance.
• 🌐 Virtual organizations exist primarily as a network of contracts, with most functions outsourced, exemplified by companies like Amazon.
• 🔩 Modular organizations break down the manufacturing process into modules or components, often outsourcing these to external suppliers, like Apple does with its products.
• 🤖 Mintzberg's theory identifies five key building blocks of organizations: strategic apex, middle line, operating core, techno structure, and support staff.
• 🔑 Each building block corresponds to a specific group within an organization, from top-level management to administrative staff.
• 🌟 Ideology is a critical component of an organization, reflecting its beliefs, values, and culture, which can be observed through norms and behavior.
• 🔧 Mintzberg also outlines different organizational structures dominated by various building blocks, such as simple structure (strategic apex), machine bureaucracy (techno structure), and professional bureaucracy (operating core).

Q & A

What is a boundary-less structure?

A boundary-less structure is a contemporary model of organizational design that adopts a more flexible approach to structure. It is an unstructured design that is not constrained by having a chain of command or formal departments, with the focus instead being on flexibility.

What are the different types of boundary-less organizations mentioned in the script?

The script mentions three types of boundary-less organizations: hollow organizations, virtual organizations, and modular organizations.

What does outsourcing mean in the context of organizational structure?

Outsourcing refers to contracting out aspects of an organization's work to specialist providers. It involves giving out non-core activities to external organizations so that the organization can focus on its core activities.

How does a hollow organization differ from a virtual organization?

A hollow organization splits its functions into core and non-core activities, outsourcing the non-core activities to other organizations. In contrast, a virtual organization outsources many of its functions, existing as a network of contracts with very few, if any, functions being kept in-house.

What is the core activity of a modular organization?

In a modular organization, the core activity involves breaking the manufacturing process into modules or components, which can then be made by the company or outsourced to an external supplier. The company typically assembles the final product.

Who is Henry Mintzberg and what is his contribution to the understanding of organizational structures?

Henry Mintzberg is a management theorist who argued that organizations are made up of five key building blocks. His work provides a framework for understanding the different parts of an organization and how they contribute to its structure.

What are the five key building blocks of an organization according to Henry Mintzberg?

The five key building blocks of an organization according to Henry Mintzberg are: Strategic Apex (top-level management), Middle Line (middle-level management), Operating Core (workers involved in producing the core product or service), Techno Structure (technical and planning staff), and Support Staff (administrative and indirect services).

What is the difference between a simple structure and a machine bureaucracy according to Mintzberg?

A simple structure, also known as an entrepreneurial structure, is dominated by the Strategic Apex, with fewer top managers and direct supervision. In contrast, a machine bureaucracy is dominated by the Techno Structure, occurring in large, established companies with formalized work, many rules and procedures, and a clear definition of jobs and roles.

How does professional bureaucracy differ from the other organizational structures mentioned in the script?

Professional bureaucracy is characterized by the dominance of the Operating Core, typically found in organizations that rely on highly skilled staff such as medical and legal professionals. Decision-making is decentralized, and staff members have significant independence, which can make control by senior management challenging.

What is the key feature of adhocracy in Mintzberg's organizational structures?

Adhocracy is characterized by the dominance of either the Support Staff or the Operating Core, with a focus on innovation. It is suitable for fast-moving, dynamic industries and involves creating teams of experts from different fields, decentralized decision-making, and a lack of emphasis on standardization.

What does ideology dominance mean in the context of Mintzberg's organizational structures?

Ideology dominance refers to a structure where the mission and beliefs of the organization are dominant. All employee actions are tied to these beliefs, and behavioral norms become standardized, making it a key feature of the missionary structure.

Outlines

00:00

📚 Introduction to ACCA F1 Chapter 2 Part 2

This paragraph introduces the second part of Chapter 2 on ACCA F1 Business, Organization, and Structure. The speaker encourages viewers to watch the first part and check the description box for links to all chapters. The sequence of topics does not follow the textbook but is designed for easier learning. The video will cover various organizational structures, including boundary-less structures, and the concept of outsourcing. The speaker briefly reviews the structures covered in the previous part, such as entrepreneurial, divisional, functional, geographical, and matrix structures.

05:00

🏢 Understanding Boundary-less Structures and Outsourcing

The speaker delves into the concept of boundary-less structures, which are flexible and unstructured organizational designs without traditional hierarchical constraints. Examples of boundary-less organizations include hollow, virtual, and modular types. Outsourcing is explained as the practice of contracting non-core activities to external organizations, allowing the company to focus on its core activities. The paragraph provides examples of outsourcing in schools and colleges, such as canteens being managed by external caterers.

10:02

🔍 Exploring Hollow, Virtual, and Modular Organizations

Hollow organizations are described as those that keep core activities in-house while outsourcing non-core activities. Virtual organizations, on the other hand, outsource most of their functions and operate as a network of contracts with minimal in-house functions. Modular organizations break down the manufacturing process into modules or components, which can be outsourced. The speaker uses examples like Amazon and Apple to illustrate how these organizations operate with a focus on flexibility and coordination rather than traditional hierarchical structures.

15:03

🏛️ Mintzberg's Five Key Building Blocks of Organizations

The paragraph introduces Henry Mintzberg's theory on organizational structure, which consists of five key building blocks: strategic apex, middle line, operating core, techno structure, and support staff. Each block represents a specific group within an organization, from top-level management to frontline workers. The speaker explains the roles and functions of each block, emphasizing how these structures contribute to the organization's ideology and operations.

20:05

🛠️ Machine Bureaucracy and Professional Bureaucracy

This section discusses two types of organizational structures: machine bureaucracy and professional bureaucracy. Machine bureaucracy is characterized by techno structure dominance, common in large, established companies with formalized work processes and a focus on standardization. Professional bureaucracy, in contrast, is dominated by the operating core, typically found in organizations that rely on highly skilled staff, such as medical and legal institutions, where decision-making is decentralized, and staff members have significant independence.

25:05

🌟 Divisionalized, Adhocracy, and Missionary Structures

The speaker explains three additional organizational structures: divisionalized, adhocracy, and missionary. In divisionalized structures, middle line managers have significant control over daily operations, allowing strategic apex to focus on strategic planning. Adhocracy structures prioritize innovation and are suitable for dynamic industries, with decision-making decentralized and power allocated among teams of experts. Missionary structures are dominated by the organization's ideology, where employee actions are aligned with the company's beliefs, and behavioral norms are standardized.

📝 Conclusion and Upcoming Test Kit Announcement

The speaker concludes the lecture by summarizing the key points covered, including boundary-less structures, Mintzberg's building blocks, and various organizational structures. They remind viewers to watch the remaining videos and check the playlist in the description box. The speaker also announces an upcoming test kit for all chapters and assures viewers that the next video will continue with the current chapter, encouraging patience and continued learning.

Keywords

💡Boundary-less Structure

A boundary-less structure refers to an organizational design that lacks traditional hierarchical boundaries and is characterized by flexibility and adaptability. In the video, this concept is introduced as a contemporary model that allows organizations to operate without being constrained by a chain of command or formal departments. An example given is the hollow, virtual, and modular organizations, which all exhibit different degrees of outsourcing non-core activities to focus on strategic operations.

💡Outsourcing

Outsourcing is the practice of contracting out non-core activities to external organizations. It is a strategic move for companies to focus on their core competencies while letting specialists handle other functions. The video uses the example of a school outsourcing its canteen services to an external food provider, highlighting how this allows the school to concentrate on its primary function of educating students.

💡Hollow Organization

A hollow organization is one that retains its core activities in-house while outsourcing non-core activities to other organizations. The video explains this concept by differentiating between core and non-core activities, with the latter being outsourced. This structure allows the organization to maintain strategic control over critical functions while benefiting from external expertise for other operations.

💡Virtual Organization

A virtual organization is a network of contracts with minimal in-house functions, where most activities are outsourced. The video uses examples like Amazon, Flipkart, and Snapdeal, which do not manufacture products themselves but instead coordinate a network of suppliers, logistics, and other services. This model allows for agility and scalability without the overhead of maintaining extensive in-house operations.

💡Modular Organization

A modular organization breaks down the manufacturing process into modules or components, which can be made by the company or outsourced to external suppliers. The video explains this with Apple as an example, where the company focuses on design and technology while outsourcing the production of physical components. This approach enables specialization and efficiency in production.

💡Strategic Apex

The strategic apex refers to the top level of management in an organization, responsible for making major strategic decisions. In the video, it is mentioned in the context of Mintzberg's five key building blocks of an organization. The strategic apex is exemplified by the board of directors in a company, which sets the overall direction and policies.

💡Middle Line

The middle line consists of middle managers who oversee the day-to-day operations and act as intermediaries between the strategic apex and the operating core. The video discusses how in a divisionalized structure, middle line managers have significant control over their division's operations, allowing the strategic apex to focus on broader strategic planning.

💡Operating Core

The operating core encompasses the workers involved in the production or creation of the organization's core products or services. The video explains that in professional bureaucracies, the operating core dominates, with highly skilled staff members having significant independence in their decision-making processes, such as doctors in a hospital.

💡Technostructure

The technostructure includes the technical and planning staff who provide support to the organization's operations. In the video, it is mentioned that technostructure staff, such as job design specialists and strategic accountants, contribute to the standardization and planning aspects of the organization, ensuring that operations run efficiently and according to guidelines.

💡Support Staff

Support staff refers to the administrative and indirect service personnel who do not directly contribute to the organization's core activities but are essential for its functioning. The video gives examples such as canteen workers and secretarial staff, who provide necessary support services that enable the main operations of the organization to run smoothly.

💡Ideology

Ideology in an organization encompasses its beliefs, values, and culture. The video explains that an organization's ideology can be discerned by examining its norms and observable behavior. It is a unifying force that guides employee actions and decisions, as illustrated by the director's statement about the company's need to cut costs to maximize profits, reflecting the company's ideology.

Highlights

Introduction to Part 2 of Chapter 2 on ACCA F1 Business, Organization, and Structure.

Emphasis on watching Part 1 before proceeding for a cohesive understanding.

Explanation of different organizational structures: entrepreneurial, divisional/product, functional/departmental, and geographical.

Discussion on the advantages and disadvantages of various organizational structures.

Introduction to the concept of boundary-less structures and their significance in contemporary organizational design.

Definition and characteristics of boundary-less organizations, highlighting flexibility.

Types of boundary-less organizations: hollow, virtual, and modular.

Explanation of outsourcing as a strategy to focus on core activities.

Detailed description of hollow organizations and their approach to outsourcing non-core activities.

Virtual organizations defined and exemplified with e-commerce giants like Amazon.

Modular organizations explained through the example of Apple's production process.

Introduction to Henry Mintzberg's five key building blocks of organizations.

Description of each building block: strategic apex, middle line, operating core, techno structure, and support staff.

Importance of ideology in organizations as per Mintzberg's theory.

Application of Mintzberg's building blocks to a real-world scenario with QPLC.

Discussion on how different building blocks can dominate in various organizational structures.

Explanation of simple structure and its reliance on strategic apex dominance.

Machine bureaucracy characterized by techno structure dominance in large, established companies.

Professional bureaucracy where operating core dominance is typical in organizations like hospitals.

Divisionalized structure with middle line dominance and strategic apex focus on strategic planning.

Adocracy structure where support staff or operating core may dominate, emphasizing innovation.

Missionary structure dominated by the organization's ideology and beliefs.

Conclusion and预告 of upcoming test kits and continuation of the chapter in the next video.

Transcripts

hello everybody welcome back

so today we're going to do the part 2

of chapter 2 acca f1 business

organization and structure

so before watching this video i hope you

watch the part one if you haven't

watched it yet please go to the

description box below i've linked it

there

also check out the description box for

the playlist of all the chapters and yes

i did not follow

a particular sequence which is followed

in your books in the kaplan

but this is a way in which you'll be

able to learn everything in an easier

manner so make sure you watch the other

videos before watching this

so in the last class we've done the part

one we had seen what an organization

structure is what is the entrepreneurial

structure

and

what is divisional or product structure

followed by what is a functional

structure or a departmental structure

and we have also done the advantages and

disadvantages we've seen the

geographical structures

and then we had also done the matrix

structure

okay now we come to boundary less

structure so what does boundary less

means

so boundary less means that something

which does not have any boundary which

does not have any limit which does not

have any restrictions which means that

it has a lot of flexibility involved in

it

this is a contemporary model of

organizational design which adopts a

more flexible approach to structure

boundary-less organizations are

essentially an unstructured design that

is not constrained by having a chain of

command or formal department with the

focus instead being on flexibility there

are a number of different types of

boundary-less organizations like the

hollow the virtual and the modular

so

we understood what a boundary less

structure is which has no boundary and

the focus is more over on the

flexibility aspect of the organization

so what are all organizations so we know

that what outsourcing is to begin with

let's understand what does outsourcing

mean so outsourcing means that

if i have a company of let's say

i have a company of a school i have an

organization of a school

so

what is my main duty

my main duty is to

like teach the students and like take

care of the needs of the students right

so

there is some

part like there's some part of the

business or the organization or the of

school

where we need the salaries of the

teachers we need the payrolls to be

added and we need the electricity bill

of the school which needs to be you know

found out

so is that my core activity or no what

is my core activity my core activity or

the my strategically important activity

is teaching the students is taking care

of the needs of the students the

electricity bill and everything that is

on getting the payroll and all of that

all that is like non-core activities so

i can outsource which means i can give

out the non-core activities to external

organizations and the external

organizations can do the work for us

for example in our schools and in our

colleges

there is a canteen do you think the

college people

is it the college who work as the cook

or do they outsource some kind of food

company or some kind of canteen or some

kind of restaurant

where are the chefs coming from the

chefs are being outsourced they're

coming from an external organization

which or caterers right so that is known

as outsourcing

wherein you give out the non-core

activities of whatever activities for

the external organizations to do it for

you

so that you can focus on the important

activities

now let us understand what hall

organizations are hollow organizations

so

hall organizations split their functions

into core which we've just done at core

means strategically important

and non-core activities

anything which is classified as non-code

is outsourced to other organizations

outsourcing refers to contracting out

aspects of the organization's work to

specialist providers we will look at

outsourcing in the next chapter so for

example an accountancy training

organization so

what is an accountancy training

organizations

core activity or strategic activity it

is to teach the pupils

so

and there are many more functions which

are important like payroll and

everything so all that is given to the

third party organizations who are

specializing in the payroll processing

so co-functions such as training the

students in teaching that will it will

be kept in the house and we will take

care of it

very easy you understood

so that is what hall organizations are

waterhole organization that they

outsource the non-core activities and

they keep the core activities in the

house

followed by the virtual organizations so

this occurs when an organization

outsources many of its functions to

other organizations and simply exists

as a network of contracts with very few

if any functions being kept in-house

so first let us take an example to

understand what virtual organizations

are for example amazon

flipkart snapdeal

what are these um so what are these

so like amazon does the amazon make the

product by itself no

and does the so what does amazon do

probably the delivery boys are of the

amazon in fact even they might be

outsourced

so the travel pickup and everything like

when you need a product when you order

the product which is coming to mumbai

so it first goes to the post office like

it gets transferred and everything so

everything is outsourced the buyer is

out the seller is outsourced the mode of

transportation is also outsourced

everything is outsourced the only thing

amazon does is like putting these things

together so amazon does not uh

make the products amazon does not come

to deliver the product it has many

organizations working for them and

it just organizes all of them together

so this is what is called a virtual

organization where some if any

important activities left are kept

in the house and everything else is just

managed by the company but everything

else is outsourced

now let's read the example of the

virtual organization which is given in

the book

for example many internet retailers

could be seen as virtual companies their

products are bought in from

manufacturers sales are delivered to

customers by third party careers and

even the website may be maintained and

hosted by external i.t specialists there

is typically only a small central staff

within a virtual business who coordinate

all of the different third party to

ensure their customers needs are

therefore met

i don't think there's any confusion left

in this if you have any doubts even

after this then you may comment it down

below

now we come to modular organizations

so till now we've seen two we've seen

holo organizations and virtual

organizations in holo organizations the

core activities are kept and the

non-core activities are outsourced in

virtual activities almost everything is

outsourced and the only thing we do is

like coordinating all the third-party

contacts

now we have modular organization so

these are examples of boundary-less

manufacturing companies

so

rather than simply making their own

product they break the manufacturing

process into modules or components each

component can

then be made by company or outsourced to

an external

supplier

okay so modular organization for example

apple the technology or is given by the

apple but do you think the apple makes

the metal do you think the apple makes

the plastic do you think the apple makes

the glass of the screen

all that is obviously outsourced right

so that is what is known as modular

wherein like you outsource you break the

production process and outsource it and

when you get everything you put your

final out input which is like the

technology or the software you got it

so what's the difference between modular

and uh that

virtual so in virtual like many small

small outsourcing we have to coordinate

it but in modular the production process

of the product is broken down and given

outsourced

so in extreme cases the manufacturing of

all components can be outsourced meaning

the company simply assembles them to

create the final product so virtual is

something which is not physical physical

in nature like you know

moving on this is one of the most

important topic and question comes on

this it is important but at the same

time it is also very very easy

okay

so don't worry

so who's mintzberg so mintzberg is a

management theorist

so he had given you know some meaning of

the organizations and everything which

is very very easy

you learn it while watching this video

itself there's no need to do any

homework because it's that easy

so henry mintzberg

so the structuring of organizations and

structures and fives designing effective

organizations

so henry mintz book management theorist

argued that organizations are made up of

five key building blocks so what did

henry mintzberg say who is honey

minister henry minsberg is a management

theorist and what did he say he said

that organizations are made by five key

building blocks what are the five key

building building blocks

so we've come here so this is the

structure let's do from the top to

bottom strategic apex what a strategic

we just saw it in the previous topic

strategic means the important you know

the important the important thing so

strategic is a top level management

system is the top

let's say

so strategic is wait just like i'm

changing the color yeah so strategic is

the top

what is middle line i think the name

says it it is the middle level stuff

operating code so these are the people

who do the operating production core or

whatever so operating code is nothing

but let's say though let's see it's this

is to understand that law then we have

techno structure and then we have

support staff so what is techno

structure techno structure is the

technicals

is the tech things or it's the i.t

things

and support stuff these are the support

people which are not related to the

actual business but we need their

support

okay

so yeah let us just revise the five

names strategic apex the top level

middle line the middle level

and operating core the low level techno

structure the idea and the technical

help support staff though support like

hate wars and canteens and

you know whatever i think it's that's

very easy five things say it with me

again

from the top

strategic apex

middle line

operating core

techno structure support stuff very good

i'm proud of you

moving on

each building block corresponds to a

specific group of people within the

organization

strategic apex register that senior

level or the top level senior level of

management middle line which is middle

management operating code which is the

worker who is involved in producing or

creating the core product or service

offered by the organization so we know

that i just told you earlier that people

or the workers were involved in the

production of the product techno

structure provides the technical input

that is not part of the organization's

core activities typically related to

standardization of organization

procedures they are analysts so planning

cultural work of other

so technic techno structure are the

people who provide the ip support

and everything you know who divide the

work or like they plan and control the

work of everybody

moving on we have support staff i told

you that the administrative staff and

the indirect services so whoever gives

the administrative staff or the people

in the

you know support like indirectly jo

whoever works they come under the

support staff moving on now we come to

ideology ideology is the organization's

beliefs and values culture and can be

discerned by examining norms and

observable behavior so ideology are the

beliefs and whatever the organization

believes in

okay so repeat with me again what are

the five building blocks of an

organization according to the management

theorist mintzberg henry minsberg

yeah strategic apex middle line

operating code techno structure last one

last one yes

support stuff very good

now we have mintzberg's building blocks

qplc runs

five factories that assemble children's

toys each of which run by its own

production manager the five production

managers report directly to the board of

directors of queue

all assembly staff in the factories

report directly to the production

manager

so what did we understand here

what who belongs to the strategic apex

board of directors obviously border

directors belong to the strategic apex

which is the top level

so all assembly staff in the factories

report to the production manager so we

know that the assembly staff is

reporting to the production manager so

what is the production manager

production manager is also the strategy

picks wrong

production management belongs to the

middle line okay

production

managers are in the middle line and we

know that the assembly staff the persons

who are involved in the production of

the good operating core they have to

report to the middle line to the

production managers

hence

what do we get to know by this that the

assembly staff belongs to the operating

core

let's read it more q's directors have

recently stated that the company must

cut costs to maximize profits for

investors

so that this is a belief

or this is a advice this is a suggestion

of the

director so what is this this is the

ideology of the company ideology good

q has recently hired a job design

specialist who has started investigating

how assembly workers job should be

organized and what the most effective

shift patterns would be to maximize

q's productivity so job

what is it so you know job design

specialist so who is a job design

specialist job design specialist is

nothing but uh

somebody who's involved in the techno

structure we've just learned that

someone who plans the jobs

he or she belongs to the techno

structure

then we have what the most effective

shift part okay q strategic accountant

has recently created a set of guidelines

on the claiming expenses by staff

which the company hopes will

reduce so strategic accountant is also

of the techno structure because they

are helping in finding this we have read

about it earlier

q's factories also have a number of

administrative staff including canteen

workers and secretarial

employees obviously support staff

let us just see if our answers are

correct or no

the board of directors of queue will

make all of the major strategic decision

of the for the company and would

therefore be classified as the strategic

apex the production manager and the main

interface between the border director

and the silly staff indicating that they

are middle management

assembly staff is involved in the actual

production so there will be the

operating code the strategic accountant

and the job design specialist would be a

part of the techno structure as they

have technical input into design of

queues operations

then the other administrative staff

canteen workers secretarial staff would

be non-core could belong to support

staff the director said that

um would you say

that a desire for the company to be more

profitable and cut cost so that is the

ideology of the company

moving on mintzberg argued that any one

of these building blocks could dominate

within the organization leading to a

variety of possible structures

so vinsberg also said that there are

various structures like the simple

structure the machine bureaucracy

professional bureaucracy divisionalized

a democracy and missionary

so these are what minsberg has said

let us see what each one of them mean

so as remember the format or remember

the order we learnt everything in

so what was the first one the strategic

apex which means that the senior level

of management so

in simple structure what does simple

structure mean in simple structure who

dominates

the

strategic apex dominance it's very

simple

simple what was simple simple was

entrepreneurial structure remember

so

the

strategic apex dominates in the simple

structure

let us read what

simple structure is

this is also known as

entrepreneurial

structure

it tends to occur in newer organizations

okay first you read it yourself

then i will explain it to you read the

first three i'm giving you two minutes

okay

i hope you read it now it will be easier

for you to understand in case you've

read it

simple structure which is also known as

the entrepreneurial structure it tends

to occur in newer organizations with one

or a few top managers who control the

rest

of the workforce by way of direct

supervision while this is a fast

flexible

structure its reliance on the managers

will struggle okay

so simple structure means the

entrepreneurial structure where there is

a proper goal congruence and a proper

control where there are less top

managers and so there's one leader or

very less leaders or the top managers so

in this way it's going to be very simple

or the strategic epics dominates easy

nothing to

like you know be scared about

now we came to we come to machine

bureaucracy what does machine mean

obviously something which is related to

the technical aspect

so in machine bureaucracy techno

structure dominates it says like from

the name itself

so what is machine bureaucracy this

structure tends to occur in large

established companies and organizations

work becomes very formalized with large

number of rules and procedures jobs and

roles will be clearly defined and there

will be a large number of plans and

budgets standardization is seen as

crucially important many large

manufacturing organization and

government agencies tend towards this

structure

so machine bureaucracy is something

which you know mainly occurs in large

companies and here standardization is

really important so

when you have many rules in many

procedures and obviously you need

machine bureaucracy or you need techno

structure to dominate

now we come to professional bureaucracy

so we know profession or people who are

involved in the production of the

product what is that

professional bureaucracy is something

where the operating core dominates

i hope there's no confusion in this this

occurs in organization that rely on

highly skilled members of the staff such

as medical and legal instructors these

organizations are often still

bureaucratic with large number of rules

and procedures

but decision making is decentralized

with each individual staff member having

significant independence in power it can

be very difficult for senior management

to effectively control the sort of an

organization

so professional bureaucracy

or is something where the person doing

the profession they dominate or the

person who is involved in the core

activities

is

the

you know somebody who has a lot of power

so here the operating core dominates for

example in doctors and hospitals doctors

are free to take so much decision those

strategic apex can't do much i mean

if a doctor is performing the surgery

they can't stop the surgery and go to

their heads and ask for the decision

they have to take decision based on

their highly skilled

high skills and you know

so this is they have independence they

have freedom so that is what is known as

the professional bureaucracy which where

operating co-dominates

the next one is divisionalized where

middle line dominates so there are some

organizations where the middle line

dominates so when middle line dominates

it's known as divisionalized

this closely matches the divisional

structure mentioned above

in section 1.3 the heads of each

division the middle line managers

will have a great deal of control over

the day-to-day operations and strategy

of their

uh part of the business with the

directors the strategic apex will focus

on big picture strategic planning

so divisionalize

middle line so the middle line in some

organizations the middle line managers

have a lot of

you know control over the day-to-day

operations so that the uh strategy apex

managers they can focus on more you know

important or the big picture planning

whereas on day to day operations the

middle line will focus so that is when

the middle line dominates and which is

known as divisionalized structure

the last two are left so the first

um of the last two is adocracy in

adhocracy the support staff co-dominates

so adocracy there are two things in a

democracy we saw the operating core

dominance also in professional

bureaucracy but in a democracy support

staff might also dominate our operating

core might also dominate the focus

within an endocracy is on innovation

making it more suitable than the other

more formal structure for fast-moving

dynamic industries such as high-tech or

pharmaceuticals

such organizations tend to create teams

of experts from different fields and

decisions that are decentralized

with power being allocated so

standardization is not usually

encouraged

so in endocrine standardization is not

really

encouraged so where is standardization

not increased

in a democracy in a docurisy

standardization is not encouraged

and then so we know that where operating

core or the support staff dominates

now we have missionary and missionary

ideology dominance the missions and the

beliefs of the organization are dominant

with all employee actions having to tie

to this one behavioral norms become

standardized

i think everything is clear

let's do the test to your understanding

isabel is a supervisor at a factory

which manufactures steel girders her

role is to train new employees and how

to use the machinery as well as monitor

staff to ensure that they are performing

their work in the most efficient manner

ismael does not take any manufacturing

work herself

so what is she doing so

isabella is in the middle line right

or

she is in the strategic apex because

she has to train people but she doesn't

have to

matlab

she is not given the responsibility

to be in the operating code i think that

is clear in the question

so i'm giving you two minutes

guess the answer

was i right was strategic epics the

answer

no

let's read the question again isabelle

is a supervisor

what did it say supervisor at a factory

who magnify enters

steel guiders her role is to train new

employees and how to use the machinery

as well as monitor staff to ensure that

they are performing their work in the

most efficient manner isabel does not

undertake manufacturing work herself did

they mention that she's a supervisor

yeah what is supervising me she just has

to check in what people are doing and

teach them stuff did they mention that

people have to come and report her or

people are responsible or she's

responsible no

so then this is techno structure why is

it techno structure isabel does not take

any manufacturing work so she cannot be

part of operating core as she does not

have direct input into operating course

role she is not a part of support staff

and note that she does not appear to be

ch in charge of the factory so yeah

there's it's not written that she's in

charge of the factory right so she is

not a part of strategic apex isabel does

however train up the staff members

so to ensure standardization of the work

hence she belongs to the

techno structure

okay i just wanted to do this topic the

boundary-less structures and mints books

topic in this lecture because

i want you to understand this before we

move forward and i don't want to burden

you all with like so much to learn so

that's it for this video let's just see

once again what all we've seen

so we saw water boundary less structures

so

there are three types hall organizations

and virtual organization modular

organization then we came to henry

minsberg which starts with strategic

apex middle line operating co techno

structure and support staff moving on we

saw an ideology is also an important

part moving on we saw what is the simple

structure simple structure is strategy

capex dominance machine bureaucracy

techno structure dominates professional

bureaucracy operating core dominance

divisionalized is where middle line and

adocracies when support staff are

operating code almost missionaries when

the ideology

dominates it's very easy so

to watch the further

like to watch the further

chapter videos or

the other videos which i have already

covered please go down

to the description box below and click

on the playlist link and please watch

everything okay

and before

i end this video i would request you all

to

have some patience and we will be doing

the

test kit of all the chapters soon

and in the next video we will be

continuing with this chapter thank you