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Organization Behavior and Organization Structure

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Perilaku Organisasi dan Struktur Organisasi

Organization Behavior and Organization StructureOrganization BehaviorA field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization effectiveness Stephen P. Robbins & Timothy A. JudgeOrganization StructureThe way in which job tasks are formally divided, grouped, and coordinatedStephen P. Robbins & Timothy A. Judge

6 elements of Organizations Structure

Stephen P. Robbins & Timothy A. Judge

1. Work SpecializationDescribes the degree to which tasks in an organization are divided into separate jobs. The main idea of this organizational design is that an entire job is not done by one individual. It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.2. DepartmentalizationThe basis by which jobs in an organization are grouped together. For instance every organization has its own specific way of classifying and grouping work activities. 2. Departmentalization5 common forms of departmentalization:Functional departmentalizationProduct departmentalizationGeographical departmentalizationProcess departmentalizationCustomer departmentalization

Functional DepartmentalizationPositiveNegative Efficiencies from putting together similar specialties and people with common skills, knowledge and orientations Poor communication across functional areas coordination within functional area Limited view of organizational goals In- depth specializationProduct DepartmentalizationPositive Negative Allows specialization in particular products and services Duplication of function Managers can become experts in their industry Limited view of organizational goals Closer to customersGeographical Plant Manager

Geographical DepartmentalizationPositiveNegative More effective and efficient handling of specific regional issues that arise Duplication of function Serve needs of unique geographic markets better Can feel isolated from other organizatonal areasProcess DepartmentalizationPositiveNegative More efficient flow of work activities can only be used with certain types of productsCustomer DepartmentalizationPositiveNegative Customers need and problems can be met by specialists Duplication of functions Limited view of organizational goals3. Chain of CommandUnbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom2 important concept:Authority: Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do itUnity of Command: The management principle that each person should report to only one manager4. Span of ControlThe number of subordinates a manager can efficiently and effectively direct5. Centralization and DecentralizationCentralization: the degree to which decision making is concentrated at a single point in an organizationDecentralization: decision making is pushed down to the managers closest to the action

6. FormalizationThe degree to which jobs within an organization are standardizedOrganizational DesignTraditional Simple StructureBureaucracyMatrixModern Team StructureVirtual OrganizationBoundaryless Organization

RobbinsSimple StructureLow degree of departmentalization, Wide span of control, High authority, and Low formalization.The company usually small and youngUsed by big company in crisis, for example IBM in 1993

Simple Structure

Simple StructurePositiveNegativeThe structure is simpleLimitless decision makingFlexible, fast and Insufficient if the company expandsLow cost in implementationHigh risk in implementationBureaucracy StructureSpecialization on routine operational taskFormalized regulation, centralized authority, narrow span of control and decision making follow the chain of commandApplied on big and mature organization with active routine and high standarization, for example U.S Department of Education

Bureaucracy Structure

Bureaucracy StructurePositiveNegativeCarry out standarized task efficientlyCan create conflict between sub-unitDoesnt require many employee trainingOverly concern on rule, hence there is no initiative from the employeesIncreasse communication in the organizationFocus on sub-units objectiveMatrix StructureA combined structure of functional departmentalization and product departmentalizationTwo chain of command, so each employee has two superiorUsed by company that require fast response in changing environment, fast information processing, and dealing with financial and human resource constrain, for example : Bussiness Administration schoolMatrix Structure

Matrix StructurePositiveNegativeSimplifying the activity coordination in the companyConfusion in handing the report to either superiorEasy to communicate between employeesCompetition between managersEmployee with specific skill are spread in the organizationTeam StructureUsing teams as main force in coordinating each job activitiesDesentralized decision making until team levelRequire the employee to work in specialization and generalizationFor Example; Food Market Inc.Virtual OrganizationImplenting Outsourcing for main functions and sentralization of the organizationFocusing on organization specializationFor Example: Apex DigitalVirtual Organization

Virtual OrganizationPositiveNegativeFlexible in the implementationLack of control in the organizations sub-unitsBoundaryless OrganizationChain of command is erased, has unlimited span of control, and changing department with empowered teamThere are cross-hierarchy team, participative decision making, and 360 degree work valuationEmployees are driven to generalisazing rather than specialisazingOrganization remove the boundaries with external partyFor Example : Oticon A/SMCS & Organizational StructureAn effective execution of MCS is possible only when there is an efficient HR management, excellent work culture as well as an efficient organization culture -Subhash Chandra Das-Organization structure is a principal component in MCSs structure. Organizational structure is a tool to distribute authority needed in using organizations resource to achieve organizations objective. Mulyadi-Why do Structure Differ?Mechanistic Model : A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralizationOrganic Model: A structure that is flat, uses cross- hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participate decision makingMajor causes or determinants of an organizations structure:StrategyInnovationCost MinimizationImitationOrganization sizeTechnologyEnvironment