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Chapter 4 Basic Challenges of Organizational Design

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Nama: Dhiyaul Aulia Anjarwati

Kelas: 3N Manajemen
NIM: 202010160311503
Mata Kuliah: Teori Organisasi

Resume Buku: Organizational Theory, Design, and Change by Gareth R. Jones


Chapter 4 Basic Challenges of Organizational Design

Differentiation: the process by which an organization allocates people and resources to


organizational tasks and establishes the task and authority relationships that allow the
organization to achieve its goals.

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. 

Division: a subunit that consists of a collection of functions or departments that share


responsibility for producing a particular good or service. 

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.

Lawrence and Lorisch: interdepartmental differences 


- Departmental structures, procedures
- Members’ emotional-, value- and cognitive orientations. 

Organizational design challenges


 
Subunit orientation: a tendency to view one’s role in the organization strictly from the
perspective of the time frame, goals, and interpersonal orientations of one’s subunit. 

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: 

- Hierarchy of authority:  simplest integrating technique. It differentiates people by the amount


of authority they possess. Because the hierarchy dictates who report to whom, it coordinates
various organization roles. 
- Direct contact:  managers meet face to face to coordinate 
- Liaison role:  a specific manager is given responsibility for coordinating with managers from
other subunits on behalf of his or her subunit. 
- Task force:  managers meet in temporary committees to coordinate cross-functional activities 
- Team:  managers meet regularly in permanent committees to coordinate activities 
- Integrating role:  a new role is established to coordinate the activities of two or more functions
or divisions 
- Integrating department:  a new department is created to coordinate the activities of functions
or divisions 

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. 

Formalization: the use of written rules and procedures to standardize operations 

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. 

Contingency approach: a management approach in which the design of an organization’s


structure is tailored to the sources of uncertainty facing an organization. One of the most
important of these is the nature of the environment. In order the manage its environment
effectively, an organization should design its structure for fit with the environment in which the
organization operates.  an organization must design its internal structure to control the external
environment. 

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.  

How to measure the effectiveness of an organization? effectiveness may be conceived is


presented by Quinn en Rohrbaugh’s Competing Values model:   of the interpretations which
experts of management and organization give to the effectiveness concept. The reason for their
study was the observation that although effectiveness is a central concept in organization
research and theory little agreement exists on the meaning of the concept. It turned out that the
various understandings could be arranged along two dimensions. The first one — focus —
indicates if emphasis is put on either the internal or the external functioning of the organization.
The second dimension — structure — refers to the question if flexibility or rather control is
deemed important. These two dimensions orthogonally combined produce four different
dominant effectiveness approaches.

Sum up competing values model: 


- conceptual:   effectiveness multifaceted 
- Practical : almost always for each organization a mix of various effectiveness considerations 
- Practical: effectiveness values as strategic choices management 

Management is apparently primarily externally focused on growth by flexibility. However, at the


same time management realizes that effectiveness on other criteria need to be maintained at a
minimum level at least. 

Organization models:
- Functional structure 
- Divisional structure 
- Matrix structure 
- Horizontal organization 

Open forms: 
- Hollow organization (Apple  Foxconn) 
- Modular organization 
- Virtual organization

Chapter 5 Designing Organizational Structure: Authority and Control

An organization does two things to improve its ability to control: 


1. It increases the number of managers it uses to monitor, evaluate and reward employees 
2. It increases the number of levels in its managerial hierarchy so that hierarchy of authority
becomes taller over time 

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. 

Flat organization: an organization that has few levels in its hierarchy 

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. 

Principle of minimum chain of command: an organization should choose the minimum


number of hierarchical levels consistent with its goals and the environment in which it operates. 
The only reason why an organization should choose a tall structure over a flat structure is when it
needs a high level of direct control and personal supervision over subordinates. For instance an
nuclear plant. 
Span of control: the number of subordinates a manager directly manages. The span of control is
related to two factors: Complexity and the interrelatedness of subordinates’ tasks. 

Horizontal differentiation: leads to the emergence of specialized subunits 


Factors affecting the shape of the hierarchy: (the level of vertical differentiation is affected by) 
1. The level of horizontal differentiation 
2. The level of decentralization 
3. The level of standardization 
4. The strength of the informal ties and relationships that exist between organized members 

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. 

Management by objectives (MBO): a system of evaluating subordinates on their ability to


achieve specific organizational goals and to meet operating budgets. Altering the formal
structure often disrupts the informal norms that make the organization work. The increasing use
of IT has led to a decentralization of authority in organizations and an increasing use of teams. 

Empowerment: the process of giving employees throughout an organization the authority to


make important decisions and to be responsible for their outcomes. 
Self-managed teams: work groups consisting of people who are jointly responsible for ensuring
that the team accomplishes its goals and who are empowered to lead themselves. 

Cross-functional teams: formal work groups of employees from across an organization’s


different function that are empowered to direct and coordinate the value-creation activities
necessary to complete different programs or projects. 

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.

Chapter 6 Designing Organizational Structure: Specialization and coordination

 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

Research & Sales & Materials


Manufacturing Finance
Development Marketing Manajement

 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

 Divisional Structure I: Three Kinds of Product Structure


Tiga jenis struktur produk :
- Product division structure
Struktur divisi produk dicirikan oleh pemisahan fungsi manufaktur menjadi beberapa lini
atau divisi produk yang berbeda; satu set terpusat fungsi dukungan kemudian melayani
kebutuhan semua divisi produk tersebut

- Multidivisional structure
Struktur multidivisional adalah desain organisasi yang kompleksyang terdiri dari
beberapa divisi atau unit bisnis strategis, masing-masing mengelola bisnissecara mandiri.

- Product team structure


Sebuah struktur divisi di mana spesialis dari dukungan fungsi digabungkan menjadi tim
pengembangan produk yang mengkhususkan diri dalam kebutuhan jenis produk tertentu.

 Divisional Structure II: Geographic Structure


- Sebuah struktur divisi di mana divisi terorganisir sesuai dengan persyaratan dari
lokasi yang berbeda di organisasi mana beroperasi
- Perlu menyesuaikan strukturnya untuk menyelaraskan kompetensi intinya dengan
kebutuhan pelanggan di wilayah geografis yang berbeda
- Dipusatkan di satu lokasi kantor pusat dan yang lainnya untuk didesentralisasikan ke
tingkat regional

 Divisional Structure III: Market Structure


- Struktur pasar menyelaraskan keterampilan dan kompetensi fungsional dengan
kebutuhan produk dari kelompok pelanggan yang berbeda
- Tugas masing-masing divisi adalah mengembangkan produk yang sesuai dengan
kebutuhan spesifik pelanggannya
- Struktur pasar memfokuskan kegiatan seluruh organisasi pada kebutuhan pelanggan
CEO

Commercial Consumer Governmen Corporate


Division Division t Division Division
 Matrix Structure
- Struktur matriks: desain organisasi yang menyatukan orang dan sumber daya dengan
dua cara secara bersamaan: menurut fungsi dan proyek atau produk
- Matriks adalah kotak persegi panjang yang menunjukkan tanggung jawab fungsional
aliran aliran vertikal dan horizontal tanggung jawab produk.
- Anggota dari tim melaporkan pada 2 atasan:manajer tim produk dan manajer
fungsional

 Struktur Matrix Multidivisional


- Struktur Matrix multidivisional : struktur yang menyediakan integrasi yang lebih baik
antara manajer perusahaan dengan manajer divisional dan antara manajer divisi.
- Memberi kemudahan bagi para eksekutif dan divisi kantor pusat untuk bekerjasama
dan bersama sama mengkoordinasikan kegiatan organisasi

 NETWORK STRUCTURE
yaitu struktur organisasi yang terdiri dari sebuah inti pusat yang dihubungkan melalui
jaringan hubungan dengan kontraktor luar dan pemasok layanan penting lainnya.

 Potensi keuntungan dan kerugian dari network structure


Keuntungan :
- Perusahaan dapat beroperasi dengan sedikit karyawan tetap dan tidak perlu mengenal
sistem internal yang kompleks
- Mengurangi biaya overhead dan meningkatkan efisiensi operasional
- Izin operasi dapat melintasi jarak yang jauh

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).

Chapter 7 Creating and Managing Organizational Culture

 Apa Itu Budaya Organisasi ?


Budaya organisasi didefinisikan sebagai seperangkat nilai dan norma bersama yang
mengontrol interaksi anggota organisasi satu sama lain dan dengan pemasok, pelanggan,
dan orang lain di luar organisasi. Budaya organisasi dapat digunakan untuk meningkatkan
efektivitas organisasi.

Nilai - nilai organisasi dan pengaruhnya


- Nilai Terminal
Adalah akhir yang diinginkan keadaan atau hasil yang ingin dicapai orang.
- Nilai Instrumental
Adalah mode perilaku yang diinginkan
 Perbedaan Nilai dan Norma
Perbedaan budaya seperti gaya komunikasi yang beragam, pendekatan yang berbeda untuk
menyelesaikan tugas, sikap yang berbeda terhadap konflik, dan gaya pengambilan
keputusan yang berbeda merupakan faktor utama yang menghambat koordinasi dalam
hubungan outsourcing yang membutuhkan kontak antara orang-orang dari negara yang
berbeda.

 Bagaimana Budaya Organisasi Ditransmisikan kepada Anggotanya?

- 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

- Cerita, Upacara, dan Bahasa Organisasi


Nilai-nilai budaya organisasi sering terlihat dalam cerita, upacara, dan bahasa yang
ditemukan dalam organisasi. Cerita organisasi dan bahasa organisasi adalah media
penting untuk mengkomunikasikan budaya. Cerita tentang pesohor organisasi
memberikan petunjuk penting tentang nilai dan norma budaya. Kisah-kisah semacam
itu dapat mengungkapkan jenisnya perilaku yang dihargai organisasi dan jenis praktik
yang tidak disukai organisasi. Mempelajari cerita dan bahasa dapat mengungkapkan
nilai-nilai yang memandu perilaku. Karena bahasa adalah media komunikasi utama
dalam organisasi, karakteristiknya frase yang membingkai dan menggambarkan
peristiwa memberikan petunjuk penting tentang norma dan nilai.

 Dari Mana Budaya Organisasi Berasal?


- Karakteristik orang dalam organisasi
Pendiri organisasi memiliki pengaruh besar pada budaya awal organisasi karena nilai
dan keyakinan pribadinya. Pendiri menetapkan tempat untuk perkembangan budaya
selanjutnya karena mereka tidak hanya membangun organisasi baru nilai tetapi
mempekerjakan anggota pertamanya. Sepertinya, orang-orang yang dipilih oleh
pendiri memiliki nilai dan minat yang serupa dengan pendiri. Seiring waktu, anggota
membeli ke pendiri visi dan melestarikan nilai-nilai pendiri dalam organisasi.
Implikasi penting dari pandangan "orang membuat tempat" budaya organisasi adalah
bahwa budaya sebuah organisasi dapat diperkuat dan diubah dari waktu ke waktu
oleh orang-orang yang mengendalikan dan memimpinnya.
- Etika organisasi
Etika organisasi adalah nilai-nilai moral, keyakinan, dan aturan yang menetapkan cara
yang tepat bagi anggota organisasi untuk berhubungan satu sama lain dan dengan
pemangku kepentingan organisasi, 2 faktor yang mempengaruhi perkembangan etika
Organisasi :
1. Etika pribadi
2. Etika profesional
- Hak milik
Hak milik mendefinisikan hak dan tanggung jawab masing-masing di dalam
kelompok pemangku kepentingan dan menyebabkan berkembangnya norma, nilai,
dan sikap yang berbeda menuju organisasi.
Hak milik umum yang diberikan kepada manajer dan tenaga kerja

- 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.

 Pendekatan tanggung jawab nasional


- Pendekatan Defensif
Menunjukkan setidaknya komitmen terhadap perilaku etis
- Pendekatan Akomodatif
Pengakuan akan kebutuhan untuk mendukung sosial tanggung jawab.
- Pendekatan Proaktif
Secara aktif merangkul kebutuhan untuk berperilaku dengan cara yang bertanggung
jawab secara sosial

 Mengapa Bertanggung Jawab Sosial ?


Beberapa keuntungan dikemukakan sebagai hasil ketika manajer dan organisasi
berperilaku dalam cara yang bertanggung jawab secara sosial
1. Pertama, pekerja dan masyarakat mendapat manfaat secara langsung karena
organisasi (bukan pemerintah) menanggung sebagian biaya untuk membantu
pekerja.
dikatakan bahwa jika semua organisasi dalam masyarakat bertanggung jawab secara sosial,
kualitas hidup secara keseluruhan akan lebih tinggi.

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