Chapter 4 Basic Challenges of Organizational Design
Chapter 4 Basic Challenges of Organizational Design
Chapter 4 Basic Challenges of Organizational Design
Kelas: 3N Manajemen
NIM: 202010160311503
Mata Kuliah: Teori Organisasi
Division of labor: the process of establishing and controlling the degree of specialization in the
organization.
In a simple organization, differentiation is low because the division of labor is low. In complex
organization, both the division of labor and differentiation are high.
Organizational role: the set of task-related behaviors required of a person by his or her position
in an organization.
Function: a subunit composed of a group of people, working together, who possess similar skills
or use the same kind of knowledge, tools or techniques to perform their jobs.
As organizations grow in size, they differentiate into five different kinds of functions;
- Support functions: facilitate an organization’s control of its relations with its environment and
its stakeholders. It includes purchasing, sales and marketing, public relations and legal affairs.
- Production functions: functions that manage and improve the efficiency of an organization’s
conversion processes so more value is created.
- Maintenance functions: functions that enable an organization to keep its departments in
operations.
- Adaptive functions: functions that allow an organization to adjust to changes in the
environment. For example research and development, market research and long-range planning.
- Managerial functions: functions that facilitate the control of coordination of activities within
and among departments. For example acquisition of, investment in, and control of resources.
Vertical differentiation: the way an organization designs its hierarchy of authority and creates
reporting relationships to link organizational roles and subunits. Vertical differentiation
establishes the distribution of authority between levels to give the organization more control over
its activities and increase its ability to create value.
Horizontal differentiation: the way an organization groups organizational tasks into roles and
roles into subunits (functions and divisions) become more specialized and productive and
increases its ability to create value.
Integration: the process of coordinating various tasks, functions, and divisions so that they work
together and not at cross purposes. Seven integrating mechanisms or techniques are given that
managers can use as their organization’s level of differentiation increases:
Managers facing the challenge of deciding how and how much to differentiate and integrate
must do two things:
(1) carefully guide the process of differentiation so an organization builds the core competences
that give it a competitive advantage: and
(2) carefully integrate the organization by choosing appropriate coordinating mechanisms that
allow subunits to cooperate and work together to strengthen its core competences.
Mutual adjustment: the compromise that emerges when decision making and coordination are
evolutionary processes and people use their judgment rather than standardized rules to address a
problem. Mutual adjustment typically implies decentralization of authority because employees
must have the authority to commit the organization to certain actions when they make decisions.
Socialization: the process by which organizational members learn the norms of an organization
and internalize these unwritten rules of conduct.
Mechanistic and organic organizational structures: two useful concepts for understanding
how managers manipulate all these challenges collectively to influence the way an organizational
structure works are the concepts of mechanistic structure and organic structure.
Mechanistic structures: structures that are designed to induce people to behave in predictable,
accountable ways.
Organic structures: structures that promote flexibility, so people initiate change and can adapt
quickly to changing conditions. People assume the authority to make decisions as organizational
needs dictate.
Lawrence and Lorsch found that when the environment is perceived as unstable and
uncertain, organizations are more effective if they are less formalized, more decentralized and
more reliant on mutual adjustment. When the environment is perceived as relatively stable and
certain, organizations are more effective if they have a more centralized, formalized and
standardized structure. The message of their study was organizations must adapt their
structures to match the environment in which they operate if they are to be effective.
Burns and Stalker found that companies with an organic structure were more effective in
unstable, changing environments that were companies with a mechanistic structure. And visa
versa.
What is the reason for those results? When the environment is rapidly changing and on-the-
spot decision have to be made, lower-level employees need to have the authority to make
important decisions – in other words, they need to be empowered.
Managers confront five design challenges as they coordinate organizational activities. The
choices they make are interrelated and collectively determine how effectively an organization
operates:
1. Choose the right extent of vertical and horizontal differentiation
2. Strike an appropriate balance between differentiation and integration and use appropriate
integrating mechanisms.
3. Strike an appropriate balance between the centralization and decentralization of
decisionmaking authority
4. Strike an appropriate balance between standardization and mutual adjustment by using the
right amounts of formalization and socialization.
Organization models:
- Functional structure
- Divisional structure
- Matrix structure
- Horizontal organization
Open forms:
- Hollow organization (Apple Foxconn)
- Modular organization
- Virtual organization
Tall organization: an organization in which the hierarchy has many levels relative to the size of
the organization. Problems which arising are: Communication problems, motivation problems.
Bureaucratic costs.
Distortion: information becomes distorted as it flows up and down the hierarchy through many
levels of management.
Parkinson’s law problem: the growth in the number of managers and hierarchical levels is
controlled by two principles: (1) an manager wants to multiply subordinates, not rivals and (2)
managers make work for on anther. Saying that managers value their rank, grade or status in the
hierarchy. The fewer managers at their hierarchical level and the greater the number of managers
below them, the larger is their “empire” and the higher their status.
When authority is decentralized, the authority to make significant decisions is delegated to the
people throughout the hierarchy, not concentrated at the top.
Decentralization does not eliminate the need for many hierarchical levels in a large and
complex organization. However, it enables even a relatively tall structure to be more flexible
because it reduces the amount of direct supervision required.
Standardization: the use of standardization reduces the need for personal control by managers
and the need to add levels in the hierarchy because rules and SOPs substitute for direct
supervision and face-to-face contact.
Bureaucracy: a form of organizational structure in which people can be held accountable for
their actions because they are required to act in accordance with rules and standard operating
procedures.
The advantage of bureaucracy: it lays out the ground rules for designing an organizational
hierarchy that efficiently control interaction between organizational levels. Another advantage is
that is separates the position form. One of the problems that emerges within a bureaucracy over
time is that managers fail to control the development of the organizational hierarchy properly.
Another 15 problem is that organizational member come to rely too much on rules and SOPs to
make decisions, and this overreliance makes them unresponsive to the needs of customers and
other stakeholders.
Role conflict: the state of opposition that occurs when two or more people have different views
of what another person should do and, as a result, make conflicting demands on the person.
Role ambiguity: occurs when a person’s tasks or authority are not clearly defined ant he person
becomes afraid to act on or take responsibility for anything.
Contingent workers: workers who are employed for temporary periods by an organization and
who receive no indirect benefits such as health insurance or pensions.
As an organization grows, the increase in the size of the managerial component is less than
proportional to the increase in the size of the organization.
According to the principle of minimum chain of command, an organization should choose the
minimum number of hierarchical levels consistent with the contingencies it faces.
Managers need to recognize how the informal organization affect the way the formal hierarchy
of authority works and make sure the two fit enhance organizational performance.
Functional Structure
Struktur organisasi fungsional adalah struktur organisasi yang terdiri dari orang-orang
dengan kemampuan, keterampilan, dan skill yang sama, untuk melakukan tugas-tugas
yang sama, yang selanjutnya dikelompokkan dalam beberapa unit kerja.
CEO
Divisional Struktur
- Struktur Organisasi Divisional adalah Struktur Organisasi yang dikelompokkan
berdasarkan kesamaan produk, layanan, pasar dan letak geografis.
- Organisasi yang paling sering mengadopsi struktur divisi untuk memecahkan masalah
kontrol yang timbul dengan terlalu banyak produk, wilayah, atau pelanggan.
- Divisi untuk menciptakan struktur yang lebih kecil, lebih mudah dikelola dan
mengambil bentuk subunit
- Multidivisional structure
Struktur multidivisional adalah desain organisasi yang kompleksyang terdiri dari
beberapa divisi atau unit bisnis strategis, masing-masing mengelola bisnissecara mandiri.
NETWORK STRUCTURE
yaitu struktur organisasi yang terdiri dari sebuah inti pusat yang dihubungkan melalui
jaringan hubungan dengan kontraktor luar dan pemasok layanan penting lainnya.
Kerugian :
- Kontrol dan koordinasi masalah mungkin timbul dari kompleksitas jaringan.
- Potensi kehilangan kontrol atas kegiatan outsourcing.
- Potensi kurangnya loyalitas di kalangan kontraktor yang jarang digunakan.
- Jika terlalu agresif dibidang outsourcing bisa berbahaya
Boundaryless Organization
- Organisasi tanpa batas (boundaryless organization) adalah sebuah organisasi di mana
telah ada upaya bersama oleh para manajer untuk mendobrak hambatan internal dan
eksternal.
- polanya tidak didefinisikan oleh dan atau terbatas pada batas-batas horizontal,
vertikal dan eksternal yang dipaksakan oleh struktur yang telah ditetapkan.
- konsep boundaryless organization berkaitan dengan peningkatan keunggulan
kompetitif individu. Perusahaan tidak lagi menerapkan job description yang kaku dan
berorientasi pada pekerjaan dan karyawan tertentu namun perusahaan harus
memberikan prioritas pada KSA (Knowledge-Skill-Attitude).
- Taktik sosial
Sosialisasi organisasi didefinisikan sebagai proses, karyawan memperoleh
pengetahuan yang diperlukan untuk berpartisipasi dan berfungsi secara efektif
sebagai anggota organisasi. Melalui proses sosialisasi, karyawan memperoleh
pengetahuan tentang budaya, nilai-nilai, tujuan organisasi, pekerjaan baru, dan peran
dalam kelompok, sehingga karyawan dapat berpartisipasi lebih baik dalam organisasi.
Fase sosialisasi organisasi
- Struktur organisasi
Struktur organisasi adalah sistem formal hubungan tugas dan wewenang yang
ditetapkan organisasi untuk mengendalikan kegiatannya. Struktur organisasi dapat
mempromosikan nilai-nilai budaya yang mendorong integrasi dan koordinasi. Dari
hubungan tugas dan peran yang stabil, misalnya, muncul norma bersama dan aturan
yang membantu mengurangi masalah komunikasi, mencegah distorsi informasi, dan
mempercepat arus informasi.