Matakuliah
Tahun
: J0562 / Management
: 2010
Organizational Structure
and Design
Pertemuan 6 (Sixth Meeting)
Learning Outcome
Student should be able to use organizational
theories to be implemented in organization
structure arrangement in an
effective way -> C3
Learning Outline
• Defining Organizational Structure
• Organizational Design Decisions
• Common Organizational
Purposes of Organizing
 Divides work to be done into specific jobs and
department
 Assign tasks and responsibilities associated
with individual jobs
 Coordinates diverse organizational tasks
 Clusters jobs into units
 Establishes relationships among individuals,
group, and department
 Establishes formal lines of authority
 Allocates and deploys organizational
resources
1. Defining Organizational Structure
a.
b.
c.
d.
e.
f.
Work Specialization
Departmentalization
Chain of Command
Span of Control
Centralization and
Decentralization
Formalization
2. Organizational Design Decisions
a. Mechanistic and Organic Organizations
Mechanistic
1)
2)
3)
4)
5)
6)
High specialization
Rigid
departmentalization
Clear chain of
command
Narrow spans of
control
Centralization
High formalization
Organic
1)
2)
3)
4)
5)
6)
Cross functional
teams
Cross hierarchical
teams
Free flow of
information
Wide spans of control
Decentralization
Low formalization
b. Contingency Factors
1)
2)
3)
4)
Strategy and Structure
Size and Structure
Technology and Structure
Environmental Uncertainty and
Structure
Woodward’s Finding on Technology,
Structure and Effectiveness
Unit
Production
Structural Low vertical
Character differentiation
istic
Most
effective
structure
Mass
Production
Moderate
vertical
differentiation
Low horizontal High
Differentiation horizontal
Differentiation
High
Low
formalization
formalization
Organic
Mechanistic
Process
Production
High vertical
differentiation
Low horizontal
differentiation
Low
formalization
Organic
3. Common Organizational
Design
a. Traditional Organizational Design
Simple Structure
Functional Structure
Divisional Structure
b. Contemporary Organizational Designs
Team Structures
Matrix and Project Structures
The Boundaryless Organization
An example of a Matrix Organization
R&D
Customer
Marketing
Services
Human Information
Resources System
Product 1
R&D
Group
Marketing
Group
CS
Group
HR
Group
IS
Group
Product 2
R&D
Group
Marketing
Group
CS
Group
HR
Group
IS
Group
Product 3
R&D
Group
Marketing
Group
CS
Group
HR
Group
IS
Group
c. Today’s Organizational Design
challenges
Keeping Employees Connected
Building a Learning Organizational
Managing Global Structural Issues
A Final Thought