The third basic dimension of an organization is the type of decentralization it employs. The three types of decentralization are the following:
Vertical decentralization is the distribution of power down the chain of command, or shared authority between superordinates and subordinates in any organization.
Horizontal decentralization is the extent to which non administrators (including staff) make decisions, or shared authority between line and staff.
Selective decentralization is the extent to which decision-making power is delegated to different units within the organization. In school districts, these units might include instruction, business, personnel, public relations, and research and development divisions.
Using the three basic dimensions—key part of the organization, prime coordinating mechanism, and type of decentralization—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. Table 1 summarizes the three basic dimensions associated with each of the five structural configurations. Each organizational form is discussed in turn.