Managing Organizational ; Structure & Control (JG Ch. 10 & 11)


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CHAPTER 10 : ORGANIZATIONAL STRUCTURE

Organizational  Architecture

The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used.

Designing Organizational Structure

•  Organizing

   The process by which managers establish working relationships among employees to achieve     goals.

•  Organizational Structure

   Formal system of task and reporting relationships showing how workers use resources.

•  Organizational design

    The process by which managers create a specific type of organizational structure and                     cultures of that a company can operate in the most efficient and effective way

Picture 1 : Four Factor that determine the design of organizational structure

The way an organization’s structure works depends on the choices managers make about:

1.  How to group tasks into individual jobs

2. How to group jobs into functions and divisions

3. How to allocate authority and coordinate functions and divisions

INDIVIDUAL JOB DESIGN

Job Design

  • The process by which managers decide how to divide tasks into specific jobs.
  • The appropriate division of labor results in an effective and efficient work force.

Job Simplification

  • The process of reducing the tasks each worker performs.
  • Too much simplification and boredom results.

Job Enlargement

  • Increasing the number of different tasks in a given job by changing the division of labor

JobEnrichment

  • Empowering workers to experiment to find new or better ways of doing the job
  • Encouraging workers to develop new skills
  • Allowing workers to decide how to do the work
  • Allowing workers to monitor and measure their own performance
  • Increasing the degree of responsibility a worker has over a job

GROUPING JOBS : FUNCTION STRUCTURES

Function

Group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs

Functional Structure

An organizational structure composed of all the departments that an organization requires to produce its goods or services.

Advantages ( + )

 • Encourages learning from others doing similar jobs.

 • Easy for managers to monitor and evaluate workers.

 • Allows managers to create the set of functions they need in order to scan and monitor the competitive environment

Disadvantages ( - )

 • Difficult for departments to communicate with others.

 • Preoccupation with own department and losing sight of organizational goals.

Picture 2 : Example of Functional Structures

GROUPING JOBS : DIVISIONAL

Product Structure

Place each distinct product line or business in its own self-contained division

  •  Allows functional managers to specialize in one product area
  •  Division managers become experts in their area
  •  Removes need for direct supervision of division by corporate managers
  •  Divisional management improves the use of resources

Picture 3 : Example of Product Structure

Geographic Structure

Divisions are broken down by geographic location

  • Global geographic structure

Managers locate different divisions in each of the world regions where the organization operates & Generally, occurs when managers are pursuing a multi-domestic strategy

  • Global Product Structure

Each product division takes responsibility for deciding where to manufacture its products and how to market them in foreign countries worldwide

Picture 4 : Example of Geographic Structure

Market Structure

  • Groups divisions according to the particular kinds of customers they serve
  • Allows managers to be responsive to the needs of their customers and act flexibly in making decisions in response to customer's changing needs

Picture 5 : Example of Market Structure


GROUPING JOBS : MATRIX & PRODUCT TEAM

Matrix Structure

An organizational structure that simultaneously groups people and resources by function and product.

  • Results in a complex network of superior - subordinate reporting relationships.
  • The structure is very flexible and can respond rapidly to the need for change.
  • Each employee has two bosses (functional manager and product manager) and possibly cannot satisfy both.

Picture 6 : Example of Matrix Structure

Product Team Design Structure

Does away with dual reporting relationships and two-boss managers

  • Functional employees are permanently assigned to a cross-functional team that is empowered to bring a new or redesigned product to work
  • Cross-functional team is composed of a group of managers from different departments working together to perform organizational tasks.

Picture 7 : Example of Product Team Design Structure

COORDINATING FUNCTION : AUTHORITY

Authority

The power vested in a manager to make decisions and use resources to achieve organizational goals by virtue of his position in an organization

Hierarchy of Authority

An organization’s chain of command, specifying the relative authority of each manager. Span of Control : the number of subordinates who report directly to a manager

  • Line Manager

Someone in the direct line or chain of command who has formal authority over people and resources

  • Staff Manager

Managers who are functional-area specialists that give advice to line managers.

Picture 8 : Hierarchy

Tall structures have many levels of authority and narrow spans of control.

–As hierarchy levels increase, communication gets difficult creating delays in the time being taken to implement decisions.

–Communications can also become distorted asitis repeated through the firm.

–Can become expensive


Picture 9 : Tall Structure

Flat structures have fewer levels and wide spans of control.

– Structure results in quick communications but can lead to over worked managers.


Picture 10 : Flat Structure


CHAPTER 11 : ORGANIZATIONAL CONTROL

What Is Organizational Control and The Control Process?

  • Controlling is the process where by managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals
  • The Controls Process

Picture 11 : The Controls Process


Organizational Control System

Picture 12 : Three Organizational Control Systems

OUTPUT CONTROL

There are 3 (three) type that usualy used for measuring the output control :

  •  Financial measures of performance

   The most common are profit ratios, liquidity ratios, leverage ratios, and activity ratios.

  • Organizational goals

Picture 13 : Organizational Goal Setting

  • Operating budgets

    A budget that states how managers intend to use organizational resources to archives                   organizational goals efficiently


BEHAVIORAL CONTROL

Behavioral control is a method that consists of three mechanism of behavioral control that managers can use to keep subordinates on track and make organizational structures work as they designed to work : direct supervision, management by objectives, and rules and bureaucratic control via standard operating.

Direct Supervision is managers actively monitor and observe the behavior of their subordinates, teach subordinates the behaviors that are appropriate and in appropriate, and intervene to take corrective action as needed.

Management by Objectives (MBO) is a formal system or evaluating subordinates on their ability to achieve organizational goals or performance standard to meet operating budgets.

Bureaucratic Control is control by means of a comprehensive system of rules and standard operating procedures (SOPs) thats hapens and regulates the behavior of divisions, functions, and individuals.

CLAN CONTROL

Clan  Control  is the control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations

ORGANIZATIONAL CHANGE

Organizational change is the movement of an organization away from its present state toward some preferred future state to increase its efficiency and effectiveness

Picture 14 : Organizational Control & Change

The types of change they can implement to increase organizational effectiveness:

1. Evolutionary and Revolutionary Change

   Evolutionary Change -> Gradual, Incremental,  and  Narrowly focused.

   Revolutionary Change -> Rapid, Dramatic, and Broadly focused.

2. Managing Change

Picture 15 : Four Steps in the Organizational Change Process


Artikel ini dibuat oleh Team Geronimo :

  1. Henry Julianto Tarigan
  2. Riva Selviani Harahap
  3. Priyonggo Setyoadi

Sumber :

Jones, R Gareth. 2020. Contemporary Management. New York : Mc. Graw Hill Ch. 10 & 11.


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Geronimo

26 Comments

  1. Halo geronimo, menarik banget artikel dan videonya juga informatif. Saya mau bertanya bagaimanakah strategi untuk Job Enrichment sehingga tercapainya tujuan yang diharapkan oleh sebuah organisasi?
    Terima kasih
    Putri

  2. Penjelasan yang menarik dari grup geronimo.
    Tapi boleh ijin bertanya?
    1. Bagaimana cara konkrit agar perusahaan berhasil melakukan job simplification tetapi tanpa mengurangi quality result dari pekerjaan yang dilakukan oleh karyawan tsb.
    2. Mohon dapat diberikan contoh mana perusahaan yang cocok dengan struktur flat dan mana yang cocok untuk struktur tall.

    Terima kasih atas kesempatan bertanyanya.

  3. Terimakasih team Geronimo untuk pemaparannya. Yang ingin saya tanyakan adalah bagaimana menetapkan desain Struktur Organisasi yang cocok dan tepat untuk perusahaan? Dan bagaimana pendapat Anda jika ada yang berperan one man show dalam sebuah organisasi?

  4. Terima kasih Team Geronimo atas penyajiannya yang sangat baik. Mohon izin bertanya, dalam suatu organisasi, baik di pemerintahan maupun swasta, unit manakah yang menyusun Struktur Organisasi dan Tata Kerja (job desc) unit-unit yang ada di organisasi tersebut? Apakah unit Human Resources atau unit-unit tersebut yang menyusun sendiri Struktur Organisasi dan Tata Kerja nya, lalu digabungkan? Terima kasih

  5. Terima kasih Team Geronimo untuk sharingnya. Mohon ijin bertanya ya, ketika perusahaan memutuskan melakukan reorganisasi, apa saja yang harus diperhatikan agar tidak menimbulkan kebingungan atau kepanikan di lapangan? Mengingat pada umumnya keputusan diambil secara top down. Terima kasih, sukses dan sehat selalu.

  6. terima kasih untuk pemaparannya dari Geronimo, Mas Henry, Mba Riva dan Mas Priyonggo, mau bertanya apakah struktur organisasi yang berbentuk hierarki atau bertingkat, seorang manager yang sudah berada di jajaran top bisa atau boleh langsung memberikan instruksi kepada level jabatan yang berada beberapa tingkat di bawahnya langsung, dengan kata lain melangkahi beberapa middle manager di antara hierarkinya dalam mengeksekusi suatu plan dalam perusahaan? Terim kasih.

  7. Terima kasih buat mas Henri, mbak RIva, mas Priyonggo untuk rangkuman dan diskusinya. Pertanyaan dari saya: apa yang biasanya mendasari perusahaan memberikan jabatan “double hat” atau bahkan “triple hat” untuk seseorang ? misal : Head Operations sekaligus Head Internal Control? , apakah ada teori baku untuk mengelompokkan jenis pekerjaan? misal apakah tepat fungsi Internal Control berada di unit Operations? atau fungsi Vendor Management di unit FInance? Terima kasih. Bientang

  8. Bagus sekali grup geronimo, saya mau bertanya:
    1. Jika suatu perusahaan melakukan simplifikasi atas layer organisasi, apakah ada standard tertentu (max/ min layer) agar dapat mencapai kondisi optimum perusahaan dan tidak menjadi overload di user, mungkin dicomparasi dengan skala perusahaan?
    2. Apakah dapat dijelaskan dengan contoh untuk financial measure performance profit ratios, liquidity ratios, leverage ratios, and activity ratios?

    Terima kasih

  9. Terima kasih untuk Tim Geronimo.. Mbak Riva, Mas Henry dan Mas Priyo atas materi dan pemaparannya. Menarik sekali..

    Saya mau bertanya kepada Tim Geronimo.. Di era dimana perubahan terjadi begitu cepat seperti saat ini, tentu menjadi tantangan bagi organisasi yang sudah well established untuk bisa terus beradaptasi. Karena harus menghadapi kemapanan dari Organisasi itu sendiri. Mulai dari Hierarki jabatan, Silo Mentality, Proses pengambilan keputusan yang lambat, carrier path yang lambat dll.. Kira-kira, hal-hal apa saja yang harus dilakukan oleh Organisasi-organisasi semacam itu untuk terus bisa bersaing di kondisi saat ini, dan tidak ditinggal oleh talenta-talenta terbaiknya..

  10. Terima kasih atas materi dan pemaparan dari Tim Geronimo, Mbak Riva, Mas Henry dan Mas Priyo. Saya ingin bertanya, hal-hal apa saja yang menjadi pertimbangan utama suatu perusahaan dalam memutuskan untuk mengubah struktur organisasi yang masih berlaku ke struktur yang baru?

  11. Artikelnya bagus dan menarik mas, mba. Izin bertanya kalau yang saya tangkap dari penjelasan mengenai flat structure dan tall structure dimana tall structure dinilai lebih buruk dibandingkan dengan flat structure. Namun apakah mungkin tall structure ini lebih baik digunakan, dan apabila ada pertimbangan apa yang menjadi dasar untuk memilih structure tersebut. Kemudian untuk contoh konkrit dari flat dan tall ini di perusahaan apa dan bagaimana kinerjanya selama ini. Kemudian apakah memungkinkan suatu perusahaan secara cepat mengubah structurenya dari flat ke tall atau sebaliknya? Mengingat perkembangan yang cepat, pandemi, dan juga efisiensi kinerja. Terima Kasih

  12. Mantab penjelasan artikelnya, terima kasih Tim Geronimo.
    Saya ingin bertanya, saat ini kan lagi hits tentang agile organization. Apakah agile organization itu termasuk dalam organisasi yang dijelaskan di Grouping Job: Matrix & Product Team?.mohon pencerahannya

  13. Paparan yang menarik dan sangat lengkap.
    Ijin bertanya, apakah ada pertimbangan kelebihan/kekurangan dari setiap model struktur organisasi bagi perusahaan dalam menentukan struktur organisasi apa yang akan digunakan oleh perusahaan, atau penentuan jenis struktur organisasi yang akan digunakan hanya berdasarkan kesesuaian kebutuhan organisasi saja? Terima kasih.

  14. Bravo Geronimo! Terima kasih atas penjelasannya. Mohon petunjuk mengenai organizational structure secara umum, apakah perlu direview secara periodik misalkan tahunan atau 5 tahunan seperti rencana kerja? Idealnya berapa lama? Adakah perusahaan atau organisasi yang tidak membutuhkan perubahan struktur selama masa operanya, namun tetap efektif dan efisien dalam menjalankan kegiatan operasionalnya

    Terima kasih

  15. Artikel yang menarik, good job Geronimo..Perubahan bisnis yang cepat menuntuk perusahaan untuk adaftip dimana terkadang perusahaan harus melakukan perubahan struktur organisasi. Menurut anda apakah ini perlu dilakukan dan bagaimana hal ini dilaksanakan secara baik agar tidak menimbulkan gejolak di perusahaan dimana pada akhirnya menimbulkan permasalahan baru

  16. Topik yang sangat menarik dan luas.
    Bagaimana cara menentukan type struktur organisasi dan bagaimana menentukan tingkat keberhasilan dari sebuah struktur organisasi tersebut.
    terima kasih

  17. Penyampaian materi yg sangat jelas dan terstruktur.
    Izin bertanya donk,
    Diantara tall structure dan flat structure, manakah yg paling banyak digunakan oleh perusahaan di Indonesia?
    Terimakasih

  18. Terimakkasih Kelompok 7 atas presentasinya, pertanyaan saya adalah, dimasa pandemi ini banyak perusahaan melakukan pemutusan hubungan kerja, yang berdampak pada perampingan struktur organisasi, hal hal apa saja yang perlu diperhatikan ketika perusahaan yang mengalami penurunan omset dan melakukan perampingan organisasi , agar perusahaan tetap berjalan walaupun dengan SDM yang sedikit. Terimakasih – Arya Mabruri

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