The configuration theory conceptualizes of organizations as holistic entities, both composed of a set of subsystems, and yet still distinguished from components alone. Subcomponents are related to each other in ways that yield a coherent whole. These wholes are often referred to as ideal types, archetypes, or modes. A configuration implies a multidimensional combination of work contingencies, design and performance elements that commonly occur together. However, rather than trying to explain how an organization is designed from its constituent elements, one-element-at-a-time, a configuration perspective tends to focus on how a work system is designed from the interaction of its constituent elements taken together as a whole. (...)
Henry Mintzberg suggests that the strategy an organization adopts and the extent to which it practices that strategy result in five structural configurations: simple structure, machine bureaucracy, professional bureaucracy, divisionalized form, and adhocracy.
The organization with a simple structure is typically a new, small start-up company. It consists mainly of a top manager and workers. The organization is managed and coordinated by direct supervision from the top rather than by middle managers or support departments. The primary goal of the organization is to survive and become established in its industry. There is little formalization or specialization. This form is suited to a dynamic environment because the simplicity and flexibility enable it to maneuver quickly and compete successfully with more substantial, less adaptable organizations.
The machine bureaucracy is huge, typically mature, and is often oriented to mass production. The middle management area reflects the tall hierarchy for control. This form demonstrates extensive formalization and specialization, with a primary goal of efficiency. This form is suited to a simple, stable environment. Examples of machine bureaucracy are steel companies and large government organizations.
The distinguishing feature of the professional bureaucracy is employing highly skilled professionals, such as in hospitals, universities, and consulting companies. A sizeable administrative support staff is needed to support the professionals and handle the organization’s routine administrative activities. Although the primary goals of the professional bureaucracy are quality and effectiveness, and it has a certain degree of both specialization and formalization, professionals of the organization have autonomy.
Professional organizations typically provide services rather than tangible goods, and they exist in complex environments.
Organizations with a divisionalized form are mature companies that are extremely large and are subdivided into product or market or customer groups, (...) The divisionalized form helps to solve the problem of inflexibility experienced by a too-large machine bureaucracy by dividing it into smaller parts.
The adhocracy develops in a complex, rapidly changing environment. The primary goal is constant innovation and meeting continually evolving needs. The main structure consists of many intersecting teams. Adhocracies are usually young or middle-aged and can grow quite large. Employees are engaged in the administration and support of their teams. Examples of adhocracies include aerospace and electronics industries, and research and development companies.
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