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If the organization subsequently diversifies into several lines of business, for example through acquisition, the corporate centre may choose to manage each business unit by setting profit targets, a form of output standardization. The five parts of the organization Mintzberg argues that an organization can be subdivided into five different parts, as follows: a. The strategic apex. These people control the organization and are held accountable for its performance. b. The operating core. These deliver the basic mission or task of the organization. c. The middle line. These are the managers and supervisors in direct line authority from the strategic apex to the operating core. d. The techno structure. These are staff analysts that help to bring about coordination through standardizing processes, outputs, skills or values. e. The support staffs. These are staff activities that support the main work of the organization. For instance, in a manufacturing firm, support staff would include building maintenance, restaurant staff, public relations, office cleaning, and so forth. The size and significance of these groups will vary depending on, for example, the type of work the organization is doing, the stability of its environment, and the size of the organization. We therefore need to understand these "contingency variables" and the effect they have on the structure of the business. But before we explore these relationships, we shall refer briefly to the organizational processes that bring the structure to life. Organizational processes This chapter is concerned with the links between strategy, organization structures and organizational processes. Included in organizational processes are decision-making, delegation, formal and informal communication, training, indoctrination, quality assurance, operations planning and control, leadership, formal and informal power relationships, management information systems, budgetary control, target-setting, incentive systems and disciplinary procedures. The aim of these 66
processes is either specialization (e.g. training) or coordination (e.g. quality control, planning, and delegation, target-setting). Certain types of structure make extensive use of particular processes. For example, operations planning and control, training, quality assurance and disciplinary processes are features of the large mass production firm, the "machine organization". In contrast, informal communication networks, incentive systems and decentralized decision making might be typically found in a software development company, the "innovative organization". Therefore, it is important to understand the role that organizational processes are playing in bringing about specialization or coordination within a particular organizational configuration, and not to view them as separate dimensions that can be changed or manipulated independently. Hence programmers that concentrate on changing quality systems or improving communications need to be tackled with a full appreciation of the role these processes play in the wider organization. Other aspects of formal and informal organizational processes are explored in more depth in the next chapter. 2-5-3. Linking strategy, structure and process We shall now look at the links between strategy and structure. As most business units adopt some form of functional structure it is worth looking at the strategy-structure relationship within a functional structure first. We will then explore other strategystructure relationships. 2-5-4. The functional structure Most firms solve the first problem of organization, how we should specialize, by adopting a functional structure, which groups people according to the type of activity they are engaged in. An engineering organization might have the following functions: production, engineering, sales, accounts, administration, personnel, warehouse/transport. As a firm grows, the number of functional specializations tends to increase, and they may emerge in a typical order. For example, the very small one- or two-person firm concentrates initially on some form of production (e.g. making novelty candles). Growth in orders means that they have to think about how to manage the production 67
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KHAZAR UNIVERSITY Ministry of Educa
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CHAPTER 5. Analysis of research fin
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Strategy evaluation can be a comple
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There are ways of dealing with thes
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Chapter 4 includes structure analys
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By careful study of these definitio
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1-1-2. Recognizing of the Subject i
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Page 17 and 18: 1-2-3. Objective and its role The f
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Page 21 and 22: f- Production factors. Socio-econom
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Page 25 and 26: approaches like common management,
Page 27 and 28: We should pick patterns which can p
Page 29 and 30: Part two Recognizing and analyzing
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Page 35 and 36: Potential competitors: We can predi
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Page 39 and 40: In trying to assess the influences
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Page 43 and 44: To enable the top managers to maint
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Page 47 and 48: organizations, usually hardly any a
Page 49 and 50: There are a number of factors which
Page 51 and 52: have strong relationships with thei
Page 53 and 54: industry. This enables us to identi
Page 55 and 56: ones by operating proactively upon
Page 57 and 58: standards are established. Competit
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Page 63 and 64: coordinate the separate activities?
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Page 73 and 74: of environmental dynamism and task
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Page 87 and 88: strategy indicate that the organiza
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Page 105 and 106: Part Three Practical application Ch
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Plan indicators, statistical counti
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Macroeconomic indicators in the agr
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esults of economic activity of Azer
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Absheron Gazakh Zagatala Lankaran K
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Then purchase (consumer) prices of
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Absheron Ganja-Gazakh Sheki-Zagatal
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Net profit remain at producer’s (
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N v is new generated value, I c is
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It is naturally that in that last t
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Economic researches give opportunit
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The determined legal base serve imp
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information relations between scien
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enumerated in accordance with the d
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At the result of generalization of
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CONCLUSION This chapter presents a
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Bibliography 1. ALDRICH, H.E., Orga
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33. RUMELT, R.P. Strategy, Structur
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