Week9-Adapting Organizations to Today's Mrkets

8/2/2019 Week9-Adapting Organizations to Today's Mrkets

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Prepared by Management Department | www.unimedia.ac.id | [email protected]

ADAPTING ORGANIZATIONSTO TODAYSMARKET

Week 9


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Organization Structure

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Structuring an Organization Comprises:

Accountability

Allocating Resources

Establishing Procedures

Division of Labor

Team Tasks

Assigning Responsibility/

Authority


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Fayols Principles of Organization

Unity of Command

Hierarchy of Authority

Division of LaborSubordination of

Individual Interest to theGeneral Interest

Authority

Degree ofCentralization

Clear CommunicationChannels

Order

Equity

Esprit de Corps


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Webers Organizational Principles

Job Descriptions

Written Rules

Procedures, Regulations, Policies

Staffing/Promotions Based onQualifications


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Centralization (No Delegation)

Advantages

Greater Top-ManagementControl

More Efficiency

Simpler Distribution System

Stronger Brand/CorporateImage

Disadvantages

Less Responsiveness to

Customers Less Empowerment

InterorganizationalConflict

Lower Morale Awayfrom Headquarters


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Decentralization (Delegate Authority)

Advantages

Better Adaptation toCustomer Wants

More Empowerment ofWorkers

Faster Decision Making

Higher Morale

Disadvantages

Less Efficiency

Complex Distribution System Less Top-Management

Control

Weakened Corporate Image


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Organizational Structures

Tall OrganizationsMany Layers of

Management

High Cost ofManagement

Narrow Span ofControl

Flat Organizations

Current Trend

Creation of Teams

Broad Span of Control


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Span of Control - Narrow

Advantages

More Control by Top

ManagementMore Chances for

Advancement

Greater Specialization

Closer Supervision

Disadvantages

Less Empowerment

Higher Costs Delayed Decision Making

Less Responsiveness toCustomers


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Span of Control - Broad

Advantages

Reduced Costs

More Responsivenessto Customers

Faster Decision Making

More Empowerment

Disadvantages

Fewer Chances for

Advancement Overworked Managers

Loss of Control

Less Management

Expertise


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Advantages Skill Development

Economies of Scale Good Coordination

Departmentalization by Function

Disadvantages Lack of Communication

Employees Identify withDepartment

Slow Response to ExternalDemands

Narrow Specialists

Groupthink


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Departmentalization

By Product (ex. Publisher)

By Function (ex. Manufacturer)

By Customer Group (ex. Pharmaceutical)

By Geographic Location

By Process (ex. Leather manufacturer)


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Line Organizations

Advantages

Clear Authority &Responsibility

Easy to Understand

One Supervisor PerEmployee

Disadvantages Inflexible

Few Specialists for Advice

Long Line ofCommunication

Difficult to HandleComplex Decisions


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Line/Staff Organizations

Line Personnel

Formal Authority

Make Policy Decisions

Staff Personnel

Advise Line Personnel

Assist Line Personnel


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Matrix Organizations

Advantages Flexibility

Cooperation &Teamwork

Creativity

More Efficient Use ofResources

Disadvantages Complex

Confusion in Loyalty

Requires Good

Interpersonal Skills &Cooperation

Not Permanent


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Networking

Real Time

Transparency

Virtual Corporations


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A Virtual Corporation

Core

Firm

AccountingFirm

ProductionFirm

DistributionFirm

AdvertisingAgency

DesignFirm

LegalFirm


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Adapting to Change

Restructuring for Empowerment

Focusing on the Customer

Creating a Change-Oriented Organizational Culture

The Informal Organization


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Inverted Organization Structure

Empowered front-line workers

SupportPersonnel

TopMgmt.


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thank you

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Week9-Adapting Organizations to Today's Mrkets

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