ASSESSMENT 1
ORGANIZATION THEORY AND DESIGN
MB-49-INT-01
Compiled by:
1.​ A Muhammad Ghaza Kr P ​ (1401224323)
FACULTY OF ECONOMIC BUSINESS
TELKOM UNIVERSITY
2025/2026
Question 1
1.​ Definition of an Open System
An open system in organizational theory refers to an organization that continues to
interact with the external environment in which it operates. An open system is not a
closed structure that operates without any interaction with the external environment, but
rather an entity that relies on resources and environmental changes to run effectively. The
open system comprises the following essential components: inputs, processing, output,
and feedback. First, the input component comprises resources that include raw materials,
people, information, and capital derived from the environment. The resources are
subsequently processed using various transformation activities, such as production,
management, and application of technology, to produce goods and services. Lastly,
feedback is received from the external environment for future improvements.
2.​ Example: PT Pertamina as an Open System
PT Pertamina can be considered an open system due to its high dependence on and
vulnerability to environmental factors. PT Pertamina receives inputs such as crude oil and
natural gas resources, government regulations, monetary funds, and expertise. These are all
provided by external organizations, including the government, suppliers, and the international
energy sector.
Pertamina is undergoing a transformation process, where the company processes raw materials
and distributes energy products through its energy infrastructure. This results in outputs such
as fuel and energy products offered to the public, industry, and the transportation sector.
Furthermore, PT Pertamina also receives feedback from its surrounding environment,
including expectations about affordable fuel, energy security, and sustainable energy practices.
3.​ Mechanistic vs. Organic Design
The organizational structure of PT Pertamina could best be described as being highly
mechanistic in nature. This may be seen in at least two significant ways. For one thing, the
company is quite formalized and specialized, in the sense that all its duties are clearly outlined
and distributed to various departments. In addition, PT Pertamina’s organizational structure
shows signs of having a centralized authority system, where the making of decisions is left
largely to the upper echelons of management.
4.​ Appropriateness of the Design
​Pertamina’s mechanistic design may be considered a good choice to ensure efficiency,
consistency, and control because of the company’s nature of being a state-owned corporation
that takes charge of energy supply in Indonesia. At the same time, this type of organizational
design is becoming increasingly irrelevant in the current volatile environment. Energy
companies are experiencing great pressure from such challenges as the process of
digitalization, shifting to renewables, and growing accountability.
In light of the above-discussed points, the current organizational design can contribute to the
company’s stability. Nevertheless, the inclusion of some organic characteristics, including
decentralized decision making and better horizontal communication, is expected to help
Pertamina become more adaptive to changes.
Question 2
1.​ Miles and Snow identify four strategies for organizations. The first is called Prospector,
which is concerned with innovation, exploration, and new market discovery. The
organization uses a dynamic approach, where creativity and innovation are encouraged as
the environment changes.
The second strategy is called Defender, which is efficient and stable. This organization
works in a narrow market niche and stresses cost reduction, standardization, and
reliability, rather than innovation.
The third strategy combines traits of prospector and defender strategies, and is called
Analyzer. The organization conducts stable operations in some core areas but also
engages in innovation and exploration, although in a more selective way.
Finally, Reactor strategy is characterized by inconsistent and ad-hoc actions taken to
respond to environmental changes. The organization has no coherent strategy; its
decisions may even contradict each other.
2.​ Gojek belongs to the category of Prospector firms. The organization has shown a strong
commitment to innovation, with a particular example being the move from ride-sharing
to digital payments, food deliveries, and super-apps services. The organization is
proactive in exploring opportunities in terms of developing new markets and new
products/services, showing a willingness to take risks and grow through innovation.
Grab would best fit the category of Analyzer firms. Even as Grab continues to innovate
and explore new services, it does so in a manner that seeks stability through core services
and products. The organization tends to balance innovations with solid core activities
such as ride-hailing and food deliveries.
3.​ The following are the organizational design requirements for Gojek as a prospector: First,
it must be flexible and organic. This means the company must be highly informal,
allowing people to experiment and innovate without hindrance. Second, the company
must be decentralized so it can react quickly to new situations. Third, horizontal
communication and cross-functional teams must be encouraged.
The following are the organizational design requirements for Grab as an analyzer: First,
the company must be efficient and flexible. This means the company must be sufficiently
formal to achieve consistency in its core activities while still allowing for innovation in
other aspects. Second, the company must be centralized and decentralized at the same
time; centralized in relation to its core activities and decentralized in relation to
innovation projects.
4.​ For Gojek, the Resource-Based View would be the best approach. This is because Gojek
falls under Prospector where it needs to focus on the acquisition and utilization of
resources like technology, people, partnerships, and user data to help achieve innovation.
Therefore, assessing how effectively the organization uses its resources will help in
measuring the success of its operations.
The Goal Approach will work best for Grab. This is because Grab is considered an
analyzer organization whereby it needs to strike a balance between being efficient and
innovative. In that case, the company will require goals like market share, profitability,
service quality, and growth of its customers.
Question 3
1.​ One symptom that indicates a university may be experiencing structural deficiencies is
slow decision-making, as decisions need to be passed through hierarchical channels, both
vertically and horizontally, which can create organizational barriers. Another symptom is
poor coordination of activities carried out by various departments, especially if these
departments are separated by the principle of functional specialization. Finally,
organizations may also experience difficulties in responding flexibly to changes in the
market and among customers, particularly related to the implementation of international
or interdisciplinary programs.
2.​ The most appropriate organizational structure for this university can be considered
divisional or departmental structures. Specifically, the organizational structure can
include divisions that correspond to academic units or geographically separate campuses.
In other words, each unit or campus will have all necessary functional responsibilities and
will serve the same organizational level.
This particular structure is chosen because the organization grows rapidly in terms of the
number of units and students, increasing its geographical dispersion. Thus, the divisional
structure provides more flexibility to respond to customer needs. At the same time, the
divisional structure is easier to manage than the functional one. The latter becomes a
critical aspect in the case under discussion.
3.​ Even with divisions, coordination is still very important. One useful approach is creating
cross-functional teams. For example, teams made up of people from different faculties
can work together to design new programs or research initiatives. This helps break down
silos.
Another helpful mechanism is task forces. These are temporary teams formed to handle
specific projects, like launching a new campus or developing an online learning platform.
They make it easier to coordinate across different units.
The university could also assign full-time integrators, such as program coordinators,
whose main job is to connect different faculties or campuses and make sure everything
stays aligned.
4.​ Of course, this structure isn’t perfect. One downside is that it can lead to duplication of
resources. Each division might have its own administrative staff or systems, which can
increase costs.
So, while the divisional structure improves flexibility and responsiveness, the university
will need to manage resources carefully to avoid inefficiency.
Question 4
1.​ The textile and garment manufacturing companies in Indonesia operate in a very complex
and unstable (highly uncertain) environment.
A complex environment implies that there are multiple outside factors influencing the
operations of a firm, such as providers of raw materials, international buyers, government
regulations, and unpredictable shifts in consumer trends. Each factor plays a different role
in the business processes and influences its activities in its own way.
On top of that, an environment may also be unstable or dynamic in case conditions keep
changing rapidly and unpredictably. For instance, the prices on raw materials may vary,
trade laws may shift, and online commerce trends may keep changing consumers'
preferences. The high complexity combined with high dynamism makes an environment
highly uncertain.
2.​ Given the nature of the environment, it is crucial for these businesses to modify internal
organization accordingly to remain successful.
The first step is creating boundary spanning roles or teams focused on maintaining
interactions with the outside world, such as managing supplier networks, analyzing
market trends, or dealing with international clients. Such actions would enable firms to
obtain useful information and cut down the levels of uncertainty.
Secondly, they should make their organizational structures more organic. This implies
making them less rigid and hierarchical and moving toward decentralization of
decision-making and improved cross-functional communications. An organic structure
will help them to cope with a rapidly changing environment better and respond
effectively.
3.​ According to resource dependence theory, businesses depend on outside parties to receive
certain resources; thus, they may face some power imbalance issues. In the case under
analysis, small-scale manufacturers are highly dependent on large clients and suppliers,
who control order volumes, prices, and resource availability. It makes these organizations
vulnerable due to low bargaining power.
One strategy to minimize the level of dependence would be the creation of alternative
sources for essential inputs. It could include the expansion of the supplier base or
diversification of clients, for instance, selling products in local markets and on online
platforms instead of relying only on a few clients abroad.
4.​ Collaboration with other companies through forming a collaborative network can be
extremely helpful for surviving in such conditions. Small manufacturers could participate
in industry clusters, cooperative initiatives, and partnerships along the supply chain to
leverage the shared resources and benefits.
It will be especially relevant to take advantage of organizational ecosystems, which
feature interactions and interdependencies of several organizations instead of competition
between them. They may benefit from collaboration, risk sharing, access to new markets,
and bargaining power.