Foundations of organization structure - Setyabudi Indartono

Foundations of organization structure - Setyabudi Indartono

FOUNDATIONS OF ORGANIZA TION STRUCTU RE Prof. : Vivian Chen Reporter : Arthur Chung OUTLINE

What is organization structure ? Organization structure six key ele ments . Common organizational design . New design option . Why do structure differ ? Organization designs and employe e behavior . Summary . WHAT IS ORGANIZATIONAL STRUCTURE ? ORGANIZATIONAL STRUCTURE

SIX KEY ELEMENTS Work Specialization . Departmentalization . Chain of Command . Span of Control . Centralization and Decentralization . Formalization . WORK SPECIALIZATION

Definition : The degree to which tasks in the organizatio n are subdivided into separate jobs . ( or divi sion of labor ) The essence of work specialization is that rather than entire job being done by one individual , it is broken down into a numb

er of steps , with each step being comple ted by a separate individual . In essence , individuals specialize in doin g part of an activity rather than the entir e activity . ECONOMIES AND DISECONOM IES OF WORK SPECIALIZATION DEPARTMENTALIZATION Definition : The Basis by which jobs are grouped togeth

er . Kinds of Departmentalization Functions . Product of the organization produces . Geography or territory . Particular type of customer the organization seeks to reach . CHAIN OF COMMAND

Definition : Authority The unbroken line of the authority that extends fro m the top of the organization to the lowest echelon and clarifies who reports to whom . The right inherent in a managerial position to give o

rders and to expect to the orders to be obeyed . The unity-of-command principle helps preserve the concept of an unbroken line of authority . Unity-of-command The idea that a subordinate should have only one s uperior to whom he pr she is directly responsible . SPAN OF CONTROL Definition : The

number of subordinates a manager can efficiently and effectively direct . CENTRALIZATION AND DE CENTRALIZATION Definition : The degree to which decision making is con centrated at a single point in the organizati on . ( The rights inherent in ones position ) , decentralization is oppositive . FORMALIZATION

Definition : The degree to which jobs within the organiz ation are standardized . COMMON ORGANIZATIONA L DESIGNS(1) The Simple Structure : A structure characterized by a low degree of depart

mentalization , wide spans of control , authority cen tralized in a single person , and little formalization . The Strength : 1. 2. 3. 4. 5. Simplicity . Fast .

Flexible . Inexpensive to maintain . Accountability is clearly . The Weakness : 1. Its difficult to maintain in anything other than sma ll organizations . COMMON ORGANIZATIONA L DESIGNS(2) The Bureaucracy : A

structure with highly routine operating tasks achieved through speci alization , very formalization rules and regulations , tasks that are gro uped into functional departments , centralized authority , narrow span s of control , and decision making that follows the chain of command . The Strength : The ability to perform standardized activities in a highly efficient ma nner . 1.

The Weakness : It is illustrated in the following dialogue among four executives in on e company : 1. 1. 2. 3. 4. 2. Ya know , nothing happens in this happens until we produce something . Wrong . What are you talking about ?

Nothing happens here until we sell something . It is something weve all experienced at one time or another when h ave to deal with people who work in these organizations : obsessive concern with following rules . COMMON ORGANIZATIONA L DESIGNS(3) The Matrix Structure : A structure that creates dual lines of authority and combines fu nctional and product departmentalization .

The Strength : 1. 2. 3. It lies in putting like specialists together , which minimizes the number necessary while following the pooling and sharing of specialized resources across products. It lies in its ability to facilitate coordination when the organiza tion has a multiplicity of the complex and interdependent acti

vities . It facilitates the efficient allocation of specialists . The Weakness : 1. 2. The difficulty of coordinating the tasks of diverse functional sp ecialists so that their activities are completed on time and wit hin budget . Ii lies in the confusion it creates , its propensity to foster powe r struggles , and the stress it places on individuals . NEW DESIGN OPTIONS TEAM STRUCTURE

Definition: 1. The use of teams as the central device to coordinate work activities . NEW DESIGN OPTIONS VIRTUAL STRUCTURE Sometimes called the network or modul ar organization . Definition : A

small , core organization that outsources major business functions . Advantage : Flexibility . NEW DESIGN OPTIONS BOUNDARYLESS STRUCTURE Definition : An

organization that seeks to eliminate the chain of command , have limitless spans of control , and replace departments with emp owered teams . WHAT DO STRUCTURE DIF FER ? (1) Mechanistic Model : A structure characterized by extensive depar tmentalization , high formalization , a limited information network , and centralization .

Organic Model : A structure that is a flat , uses cross-hierarchi cal and cross-functional teams , has low form alization , possesses a comprehensive inform ation network , and relies on participative de cision making . MECHANISTIC MODEL V.S. ORGANIC MODEL WHAT DO STRUCTURE DIFFER ? (2)

STRATEGY Innovation Strategy : A strategy that emphasizes the introduction of major new products and services . Cost-Minimization Strategy : A strategy that emphasizes tight cost control s, avoidance of unnecessary innovation or m

arketing expenses , and price cutting . Imitation Strategy : A strategy that seeks to move into new prod ucts or new markets only after their viability has already been proven . WHAT DO STRUCTURE DIFFER ? (2) STRATEGY WHAT DO STRUCTURE DIFFER ? (3) ORGANIZATION SIZE

There is no considerable evidence to sup port the idea that an organizations size affects its structure . WHAT DO STRUCTURE DIFFER ? (4) TECHNOLOGY The term of technology refers to how an organization transfer its inputs into outp uts . WHAT DO STRUCTURE DIFFER ? (5) ENVIRONMENT

An organizations envir onment is composed of institutions or forces ou tside the organization t hat potentially affect th e organizations perfor mance . Three-Dimensional Mod el of the Environment Capacity : support growt

h. Volatility : Dynamic or st able . Complex : Scarce or Abu ndant . ORGANIZATIONAL DESIGN AND EMPLOYEE BEHAVIOR To Maximize employee performance and satisfaction , individual differences , such as experience , personality , and the wor

k task , should be taken into account . In addition , national culture influences t he preference for structure , so it , too , n eed to be considered . SUMMARY THANK YOU FOR TOUR LIS TENING .

Recently Viewed Presentations

  • Properties of Relationship Development

    Properties of Relationship Development

    SOCIAL EXCHANGE & RELATIONSHIPS Exchange tangible and intangible rewards in a relationship Love is linked to exchange of rewards Become more committed when it is perceived that the value of each persons outcomes equal or proportional to the value of...
  • Texture Classification - genetic programming

    Texture Classification - genetic programming

    By Brian Lam and Vic Ciesielski ... Texture Classification Data Set Definitions Learning set: 13 Brodatz textures used to evolve 78 programs (80 of 64 x 64 images in each). Training set: 15 Vistex textures used to train classifier (32...
  • Science - Augusta County Public Schools

    Science - Augusta County Public Schools

    What is The Nature of Science? The following presentation has been created by Linda Peterson, MS Science Specialist for Fairfax County Public Schools for use in the October 2010 Virginia K-12 Science Standards of Learning (SOL) Institutes.
  • Themes - Mr. DIDONATO'S CLASSROOM

    Themes - Mr. DIDONATO'S CLASSROOM

    What Is a Theme? Themes are everywhere; they are literally all around us: In literature, stories, movies etc. The theme of a fable would be its 'moral' The theme of Jesus' parables is his teaching. The theme of a work...
  • Standard Operating Procedures Receiving Deliveries and Controlling Time

    Standard Operating Procedures Receiving Deliveries and Controlling Time

    Controlling Time and Temperature during Preparation . PURPOSE: To prevent food borne illnesses by limiting the amount of time that potentially hazardous foods (Time and Temperature Control for Safe Food (TCS)) are held in the temperature danger zone during preparation.
  • ГРАФИЧНИ ФАЙЛОВИ ФОРМАТИ

    ГРАФИЧНИ ФАЙЛОВИ ФОРМАТИ

    При метода interlacing - за дадено изображение се използвайки презредово вместо последователно зареждане. Чрез опцията за презредово зареждане (interlaced) на ...
  • Department of Meteorology CARBONACEOUS AEROSOL ABSORPTION IN HADGEM3

    Department of Meteorology CARBONACEOUS AEROSOL ABSORPTION IN HADGEM3

    Modelled dry SSA matches the aircraft estimate of ~0.85 well with no changes required to the model. However, to match ambient SSA retrieved by AERONET in Ascension, one would need to multiply BC emissions by 3 and make OC absorbing....
  • Wetlands and Roads - whitebirch.ca

    Wetlands and Roads - whitebirch.ca

    Photo Credits All photos provided by Ducks Unlimited Canada excluding those noted. Source of information: Operational Guide: Forest Road Wetland Crossings - Learning From Field Trials in the Boreal Plains Ecozone of Manitoba and Saskatchewan Canada