INFO MANAGEMENT

03/24/26

Entrepreneurial Structure, Machine Bureaucracy, Professional Bureaucracy, Divisionalized Bureaucracy, Adhocracy

5 Organizational Structures by Mintzberg

Mainframe Era (1959 - Present)

Highly centralized; used for massive data processing in banks.

Enterprise Computing (1992 - Present)

Focused on integrating different departments via ERP software.

Cloud & Mobile (2000 - Present)

Introduced SaaS (Software as a Service), IaaS, and PaaS.

Entrepreneurial Structure

• Definition: A young, small firm that is very flexible.
  

• Decision Making: The founder or entrepreneur makes all the decisions personally.
  

• Best For: Startups and small businesses.

Machine Bureaucracy

• Definition: A large bureaucracy typically found in slowly changing environments.
  

• Decision Making: Highly centralized at the top.
  

• Best For: Midsize manufacturing firms.

Professional Bureaucracy

• Definition: A structure that relies on the specialized knowledge and expertise of professionals.
  

• Decision Making: Dominated by department heads and experts.
  

• Best For: University hospitals or law firms.

Divisionalized Bureaucracy

• Definition: A combination of multiple "machine bureaucracies" managed by one central headquarters.
  

• Decision Making: Each division operates somewhat independently but reports to the main HQ.
  

• Best For: Global companies, like car manufacturers with different plants for engines and tires

Adhocracy

• Definition: A "task force" organization designed to be highly responsive.
  

• Decision Making: Decentralized and fluid to handle rapidly changing environments.
  

• Best For: Specialized consulting firms or aerospace projects

Infrastructure Management

Use Serverless to stop worrying about hardware and Containers (Kubernetes) to stay scalable.

Connectivity

5G is the gold standard for low latency , while Edge Computing handles data locally to keep speeds high.

Security

Blockchain provides decentralized identity , and Zero Trust ensures no one is automatically trusted inside the network.

IT Infrastructure

The foundation of digital business (hardware, software, networks, services).

Enterprise Computing Era

The rise of ERPs and integrated platforms.

Mainframes

Large computers used for banking and government since 1959.

Serverless Computing

Eliminates the need for an organization to manage infrastructure.

Quantum Computing

High-power computing led by IBM and Google.

Cloud-Native

Uses Kubernetes and containers for scalability.

Green Computing

Focused on reducing data center power consumption.

Blockchain

Enables tamper-proof and transparent transactions.

AIOps

Using Artificial Intelligence for IT operations.

Extended Reality (XR)

The combo of AR, VR, and MR.

Zero Trust

A "never trust, always verify" security model.

Edge Computing

Processing data at the "edge" of the network to reduce congestion.

5G

Ultra-fast, low-latency networks for real-time apps.

Technical Organization

A formal social structure processing resources into outputs.

Behavioral Organization

A collection of rights, privileges, and responsibilities.

Routines

Also called Standard Operating Procedures (SOPs).

Organizational Structure

Assumptions about what products to produce and for whom.

Environmental Scanning

Using information systems like a "lens" to see the market.

Machine Bureaucracy

Large, slow-moving, centralized decision-making

Adhocracy

Task force organization for rapidly changing environments.

Professional Bureaucracy

Knowledge-based; dominated by specialists (e.g., hospitals).

Divisionalized Bureaucracy

Multiple "machine bureaucracies" under one HQ.

Entrepreneurial Structure

Young, small firms with a central founder.

Transaction Costs

The cost of participating in markets (buying/outsourcing).

Flattening

IT pushes decision-making to lower levels.

Span of Control

IT allows one manager to supervise more people.

Political Resistance

A major hurdle to organizational change.

Reciprocal Relationship

Organizations influence and depend on their environment.

Postindustrial Authority

Relies on knowledge and competence.

Business Processes

A collection of routines.

Edge Computing

The "Edge" means processing data near the source (at the edge of the network) to reduce traffic and lag.

Green Computing

It’s not about the color of the hardware; it’s about reducing power consumption in data centers.

Zero Trust

This is a security trend where the system never trusts and always verifies every user, even those already inside the network.

Technical

A formal structure that processes resources into outputs.

Behavioral

A collection of rights, privileges, and responsibilities.

Resistance to Change

The two biggest "walls" that block organizational change are Standard Routines and Political Resistance.

Environmental Scanning

Information systems act as a "lens" to help businesses watch their environment for changes.

Transaction Costs

These are the costs of participating in the market (buying from others).

Why firms get smaller

IT reduces these transaction costs, making it cheaper to outsource to a third party than to keep a large internal staff.

Span of Control

Because of digital tools, a single manager can now supervise more people (e.g., 50 instead of 20), which "flattens" the organization.