Mata kuliah
Dosen Pembuat
Tahun
: J0754 - Pengelolaan Organisasi Entrepreneurial
: D3122 - Rudy Aryanto
: 2009
Struktur Organisasi
Chapter 24
Learning Objectives
– Define the terms organization structure and organizational
design
– Describe the relationships among the
four managerial decisions of organization structure
– Discuss the relative advantages and disadvantages of
centralization and decentralization of authority
– Compare mechanistic and organic designs of organizations
– Understand why virtual organizations are becoming more
popular
Organization Structure
Organization structure – the
pattern of jobs and groups of
jobs in an organization.
It is an important cause of
individual and group behavior.
Concept of Organization Structure
• Structure as an influence on behavior
– Those features of the organization that control or distinguish its
parts
– All organizations have a structure of jobs
• Structure as recurring activities
– Without predictable activities, the work
of the organization could not be done
– Emphasizes persistence and regularity
of activities
Designing an Organization
• Organizational design
– Management decisions and actions that result
in a specific organization structure
• Managers decide
– How to divide the overall task into successively
smaller jobs
– The bases by which to group individual jobs
– The appropriate size of the group reporting to each
supervisor
– How authority will be distributed among the jobs
Four Key Design Decisions
Specialization
Division of Labor
Low
High
Basis
Departmentalization
Homogeneous
Heterogeneous
Number
Span of Control
Wide
Narrow
Delegation
Authority
Centralized
Decentralized
Division of Labor
• The process of dividing work into relatively specialized
jobs to achieve the advantages of specialization
• Division of labor can occur by dividing work…
– Into different personal specialties
– Into different activities necessitated by the natural sequence in
which the work is performed
– Along the vertical plane of the organization
Departmental Bases
Departmentalization – the
process in which an organization
is structurally divided by
combining jobs in departments
according to some shared
characteristic or basis.
Departmental Bases
•
•
•
•
•
Functional
Geographic
Product
Customer
Combined bases (Matrix)
Functional Bases
• Jobs are combined according to the functions of the
organization
– The principal advantage is efficiency
– By having departments of specialists management creates
efficient units
• A major disadvantage
– Organizational goals may be sacrificed
in favor of departmental goals
Functional Bases: Banking
Chief Executive Officer
Loans
Investments
Trusts
Marketing
Operations
Geographic Bases
• Groups are established according to geographic area
– Logic is that all activities in a given region should be assigned to
one manager
• Advantageous in large organizations
– Physical separation of activities makes centralized coordination
difficult
– Provides a training ground for managerial personnel
Geographic Bases
Chairman
CEO
Northeast
Regional Mgr.
Midwest
Regional Mgr.
Southeast
Regional Mgr.
Southwest
Regional Mgr.
Pacific
Regional Mgr.
General Mgrs for
New York
Philadephia
Boston
General Mgrs for
Cleveland
Chicago
St. Louis
General Mgrs for
Raleigh
Atlanta
Orlando
General Mgrs for
Dallas
Houston
Albuquerque
General Mgrs for
Seattle
San Franciso
Los Angeles
Departmental Bases: Product
• All jobs associated with producing and selling a product
or product line are under the direction of one manager
– Concentrating authority, responsibility,
and accountability allows top
management to coordinate actions
• Product becomes the preferred basis as a firm increases
the number of products it markets
Departmental Bases: Product
Vice President
& General Manager
Consumer Products Division
Director of
Personnel
Division Vice
President
& General
Sales Mgr
Director of
Marketing
Staff
Services
Director of
Marketing
Research
Division Vice
President &
General Mgr
Feminine Hygiene
Products
Director of
Distribution
& Planning
Division Vice
President &
General Mgr
Household
Products
Director of
Quality
Comptroller
Assurance
Division Vice
President &
General Mgr
Commercial
Products
Vice President
Manufacturing
Departmental Bases: Customer
• Customers and clients can be a basis for grouping jobs
– Educational institutions
– The loan department in a
commercial bank
– Telephone companies
– Department stores
The Matrix Organization
• Attempts to maximize the strengths and
minimize the weaknesses of both the functional
and product bases
– Typically seen as a balanced compromise between
functional and product organization
– Uses a dual authority system, which can cause
conflicts
– Facilitates the utilization of highly specialized
staff and equipment
• The flexibility of this system allows speedy
response to challenges
The Matrix Organization
Functions
Projects, products
Project or product A
Manufacturing Marketing
Engineering
X
X
X
Project or product B
Project or product C
X
Project or product D
X
Finance
X
X
X
X
X
Span of Control
• The number of individuals who report
to a specific manager
– The frequency and intensity of actual relationships is the critical
consideration
• Deciding on a wide or narrow span of control is
influenced by three aspects
of relationships
– Required contact
– Degree of specialization
– Ability to communicate
Wide Span of Control
President
Supervisor
Supervisor
Narrow Span of Control
President
Department
Head
Supervisor
Department
Head
Supervisor
Supervisor
Supervisor
Delegation of Authority
• Distributing authority downward in an organization
– Managers decide how much authority to
delegate to each job and to each jobholder
• Benefits of decentralizing authority
– Encourages development of managers
– Can lead to a competitive climate within the organization
– Managers exercise more autonomy, which satisfies need to
participate in problem solving
Delegation of Authority
• Decisions to decentralize often follow experiences
with centralization
Reasons to Centralize Authority
• Managers
– Must be trained to make the decisions that go
with delegated authority, which is expensive
– Accustomed to making decisions may resist
delegating authority, which reduces effectiveness
• Control systems must be developed
– Top management must have information about
the effects of subordinates’ decisions
• Decentralization means duplication of functions
and bureaucracy
Decision Guidelines
• Questions that help decide if routine decisions should be
centralized
– How routine and straightforward are the decisions for the job or
the unit?
– How competent are the individuals who will be making the
decisions?
– How motivated are individuals to make
the decisions?
– Do the benefits of decentralization outweigh the costs?
The Mechanist Model
• Some of Fayol’s principles dealt with the
management function of organizing
– Specialization: emphasizing the technical,
not behavior dimensions of work
– Unity of direction: grouping jobs by specialty
– Authority and responsibility: assigning individuals
sufficient authority to carry out designated tasks
– The scalar chain principle: the route for all
vertical communications in an organization
Bureaucracy
• Max Weber coined the term bureaucracy
– It applies to a particular way to organize collective activities
• He believed that organizations must have
these characteristics
– Tasks are divided into specialized jobs
– Each task is performed according to a system of rules to ensure
task uniformity and coordination
– Each member or office is accountable for job performance to
one, and only one, manager
Bureaucracy
• Weber’s organizational characteristics (continued):
– Employees relate to each other and to clients in an impersonal,
formal manner, maintaining a social distance
– Employment is based on technical qualifications
– Employees are protected against arbitrary dismissal
The Mechanistic Model
• The mechanistic model achieves high levels of
production and efficiency due to its structural
characteristics
– Highly complex due to emphasis on specialization of labor
– Highly centralized due to emphasis on authority and
accountability
– Highly formalized due to emphasis on function as the basis for
departments
The Organic Model
• Seeks to maximize satisfaction, flexibility, and
development
– Flexible to changing environmental demands because its design
encourages greater utilization of the human potential
– Decision making, control, and goal-setting are decentralized and
shared at all levels
– Communication flows throughout the organization, not just down
the chain of command
The Organic Model
• The organic model is relatively…
– Simple due a de-emphasis of job specialization and emphasis on
increased job range
– Decentralized due to emphasis on delegation of authority and
increased
job depth
– Informal due to emphasis on product
and customer as bases for departments
Organic vs. Mechanistic Structures
Process
Mechanistic Structure
Organic Structure
1. Leadership
No perceived confidence or
trust between superiors and
subordinates.
Perceived confidence and trust
between superiors and
subordinates.
2. Motivation
Taps only physical, security,
and economic motives,
through use of fear and
sanctions.
Taps a full range of motives
through participatory methods.
3.
Communication
Information flows downward,
tends to be distorted and
inaccurate, is viewed with
suspicion by subordinates.
Information flows freely in all
directions and is accurate and
undistorted.
4. Interaction
Closed and restricted.
Subordinates have little effect
on departmental goals,
methods, and activities.
Open and extensive. Both
superiors and subordinates can
affect departmental goals,
methods, and activities.
Organic vs. Mechanistic Structures
Process
Mechanistic Structure
Organic Structure
5. Decision
Relatively centralized. Occurs Relatively decentralized. Occurs
only at the top of the
at all levels through group
organization.
processes.
6. Goal setting
Located at the top of the
organization, discouraging
group participation.
Encourages group participation
in setting high, realistic
objectives.
7. Control
Centralized. Emphasizes
fixing blame for mistakes.
Dispersed throughout the
organization. Emphasizes selfcontrol and problem solving.
8. Performance
goals
Low and passively sought by
managers, who make no
commitment to developing
the organization’s human
resources.
High and actively sought by
superiors, who recognize the
need for full commitment to
developing human resources
through training.
Contingency Design Theories
• Emphasizes the importance of fitting a design to the
demands of a situation
– Technology
– Environmental uncertainty
– Management choice
• The essence of this approach
– Under what circumstances, and in what situations, is either the
mechanistic or organic design relatively more effective?
Technology
• The actions that an individual performs upon
an object, with or without the aid of tools or
mechanical devices, in order to make some
change in that object
Technology & Organization Design
• Organization structures reflect technology in the way that
jobs are…
– Designed (division of labor)
– Grouped (departmentalization)
• The state of knowledge regarding the appropriate
actions to change an object acts as a constraint on
management
– The use of computers and robots has increased the state of
knowledge exponentially
Joan Woodward’s Classic Study of
Technology and Organizational Design
• Goal
– Determine if there were structural differences between moreand less-effective firms
• Result
– No significant structural differences or patterns were found
– Technology, on the other hand, had significant impact
Joan Woodward’s Classic Study of
Technology and Organizational Design
• Technology variables that were measured
– Stages in the development of production processes
– Interrelationships between the equipment used for these
processes
– The extent to which the operations were repetitive or comparable
from one production cycle/sequence to the next
Joan Woodward’s Classic Study of
Technology and Organizational Design
Custom
(Job Order)
Mass Production
Continuous
Process
Increasing use of Technology
•More Flexible
•Less Flexible
•More Flexible
•Organic
•Mechanistic
•Organic
•Verbal
communication
•Formal, written
communication
•Verbal
communication
•Managers have
greater technical
expertise
•Managers highly
specialized
•Managers have
greater scientific
expertise
•Integrated
control and
supervision of
production
•Control of
production
separate from
supervision of
production
•Integrated
control and
supervision of
production
Joan Woodward’s Classic Study of
Technology and Organizational Design
• Conclusion
– Different technologies impose different demands on
organizations
– These demands have to be met using the appropriate structure
and process choices
Environment & Organization Design
• Lawrence and Lorsch
– Studied plastics, food, container industries
– Reviewed the environmental demands that they faced
– Tried to determine which environmental elements affect
centralized authority and degree of specialization
– Questioned whether differences in organizations affected
coordination of
the organization’s parts
Differentiation
• The degree
of difference among
organizational units due to individual
and structural differences
– Employees of some departments are more or less task- or
person-oriented
– Employees of some departments have
longer or shorter time horizons
– Some employees are more concerned with department goals
than organizational goals
Integration and Environment
• Achieving unity of effort among the various subsystems
during the accomplishment of organizational tasks
– Stability of environment determines method of integration used
– The key reason for differentiating into subsystems is to deal
more effectively
with sub-environments
Environment and Structure
• Three main sub-environments
– Market
– Technical-economic
– Scientific
• Sub-environments variables
– Rate of change of conditions over time
– The certainty of information about conditions at any particular
time
– The span of feedback on the results of
employee decisions
Lawrence & Lorsch Model
Integrative Subsystem
Marketing
Market
Sub-environment
Production
Technical-economic
Sub-environment
Research
Science
Sub-environment
Environmental Uncertainty and
Organizational Design: Service Sector
• The growing service sector of the economy requires
optimal performance
• Improved performance is based on
– Environmental uncertainly
– Customer attributes
• Customer attributes
– Diversity of demand for services
– Willingness to participate in delivery
of the service
Environmental Uncertainty and
Organizational Design: Service Sector
• The best organizational design for a service organization
– Mechanistic or organic
– Depends on the degree of uncertainty in the environmental and
customer attributes
– Use the design that provides the most flexibility
Adaptive Design Strategies
• Organizations must receive, process, and act on
information to achieve performance
– Information enables the organization to respond to
market, technological, and resource changes
– The more rapid the changes, the greater the
necessity for, and availability of, information
– In firms with a mechanistic design, information
processing requirements are modest
– Firms with an organic design exist in dynamic and
complex environments
• They cannot rely on traditional information and control
techniques
Sociotechnical System Theory
• Production processes consist of social and technical
dimensions, which have a reciprocal influence on one
another
– Joint-optimization of the technical production system and social
behaviors has great benefits
– Precursor to the TQM movement
– The “control of variance” tenet suggests unavoidable variances
in production processes be controlled as near to the point of the
problem as possible
Creating Virtual Organizations
• Involves establishing a network of cooperative
relationships with a variety of groups
– How these relationships should be organized and managed is
being studied
• The form of virtual organizations varies, but resembles
an organic design
– Some are known as “boundaryless”
– New designs and strategies will emerge