Creating a Flexible

Organization
Katherine febelia Chandra
(201960015)
Malvin haryanto
(201950366)
 What Is an
Organization?
✘ A group of two or more people working together to
achieve a common set of goals.

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 Developing organization
charts
✗ Organization chart
■ A diagram that represents the positions and
relationships within an organization
✗ Chain of command
■ The line of authority that extends from the
highest to the lowest levels of the organization
✗ Staff (advisory) positions
■ Jobs that are not part of the direct chain of
command in the organization
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A Typical Corporate Organization
Chart

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 Major Considerations for
Organizing a Business
 Job design

 Departmentalization

 Delegation

 Span of management

 Chain of command

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 Job Design
Structuring the tasks and activities
required to accomplish a firm’s objectives
into specific jobs so as to foster
productivity and employee satisfaction.
 Job specialization

✗ The separation of
activities into distinct
tasks and the assignment
of different tasks to
different people
 Why job specialization is necessary ?
✗ The “job” of the organization is too large for one person to
accomplish.
✗ A worker learning only a specific, highly specialized task
should be able to learn to do it efficiently.
✗ Workers do not lose time switching from one operation to
another.
✗ Specialization makes it easier to design machinery
to assist those who do the job.
✗ Specialization makes it easier to train new workers.

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Alternatives to Job Specialization
✗ Job rotation systematically shifts
employees from one job to another
✗ Job enlargement
✗ Job enrichment

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 Departmentalization
✘ The process grouping jobs into
manageable units

✘ Common bases for departmentalization

✗ By function
✗ By product
✗ By location
✗ By customer
✗ Combinations
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 By Function
✘ Grouping jobs that relate to the same
organizational activity

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 By Product
✘ Grouping activities related to a particular
product or service

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 By Location
✘ Grouping activities according to the defined
geographic area in which they are performed

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 By Customer
✘ Grouping activities according to the needs of
various customer populations

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Combinations of bases

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 Delegation, Decentralization, and
Centralization

✘ Delegation—assigning part of a manager’s work and power to

other workers

✘ A. Delegation of Authority
✗ Steps in delegation
■ Responsibility—the duty to do a job or perform a task
■ Authority—the power, within an organization, to
accomplish an assigned task
■ Accountability—the obligation to accomplish an assigned
job or task

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Steps in The Delegation
Process

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 Barriers to delegation
Because the manager does not trust the employee to
complete the tasks
■ Fear the work will not get done
■ Fear the work will not be done well
■ Inability to plan and assign work effectively

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 B. Desentralization of Authority
✘ Decentralized organization
✗ Management consciously attempts to spread
authority widely in the lower levels of the
organization

✘ Centralized organization
✗ Authority is concentrated at the upper levels of the
organization

✘ Factors favoring decentralization

✗ A complex and unpredictable business environment
✗ Decisions that carry low risk or that are unimportant
✗ Highly capable lower-level managers with strong
decision-making skills
✗ Past practices of the firm in decentralizing its
structure and decision-making processes 19
 The Span of Management

The number of workers who report directly to

one manager

Wide span
Large number of subordinates to one manager
Narrow span
Only a few subordinates to one manager

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 The Span of Management
✘ Organizational height—number of layers,
or levels, of management in a firm
✗ Flat organizations
■ Have wider spans of management and fewer levels
■ Require managers to perform more administrative tasks
and to spend more time supervising subordinates

✗ Tall organizations
■ Have narrow spans of management and many levels
■ Have higher administrative costs (more managers)
■ May distort internal communications during passage
of the communications through the multiple levels
of organization
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Forms of Organizational Structure
✘ Line structure ✘ Line-and-staff
✗ The chain of command goes
directly from person to structure
person throughout the ✗ Utilizes the chain of
organization
command from a
✗ Simplicity allows for quick
decision making and direct line structure in
accountability combination with
✗ Most suitable for small the assistance of
organizations with lower
volume of activities than staff managers
medium or large
organizations
✘ .

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Line and Staff Managers

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Forms of Organizational Structure (cont.)
✘ Line-and-staff structure (cont.)
✗ Line managers make decisions and give orders to
subordinates.
■ Line authority—line managers can make decisions and issue
directives related to organizational goals

✗ Staff managers provide support, advice, and expertise.

■ Advisory authority—the expectation that line managers will
consult with staff managers before making decisions
■ Functional authority—staff managers’ authority to make
decisions and issue directives within their area of expertise

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Forms of Organizational Structure (cont.)
Line-and-staff structure (cont.)
Reasons for conflict between line and staff managers
Staff managers often have more formal education.
Staff managers are sometimes younger and more ambitious.
Line managers may perceive staff managers as a threat.
Staff managers may become angry if their recommendations
are not adopted.

Minimizing conflict between line and staff managers

Integrate line and staff managers into one team.
Ensure that responsibilities are clearly defined.
Hold both line and staff managers accountable for results.

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Forms of Organizational Structure (cont.)
✘ Matrix structure
✗ A structure that combines vertical and horizontal lines of
authority, usually by superimposing product
departmentalization on functional departmentalization
✗ Authority flows both down and across
✗ Employees on cross-functional teams report to both the
project manager in charge of the team and to their
superiors in their home-base functional department

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A Matrix Structure

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Forms of Organizational
Structure (cont.)
Advantages
• Added flexibility
• Increased productivity
• Higher morale
• Increases in creativity
and innovation
• Personal development of
team members
Disadvantages
• Chain of command conflicts
• May take longer to resolve
problems and reach solutions
• Personality clashes
• Poor communications
• Undefined individual roles
• Unclear responsibilities
• Difficulty in determining how to
reward individual and team
performance 28
Forms of Organizational Structure (cont.)
✘ Network structure (virtual organization)
✗ Administration is the primary function, and most other
functions are contracted out to other firms.
✗ Strength
■ Flexibility allows the organization to adjust quickly
to changes
✗ Weaknesses
■ Difficulty controlling the quality of work by other
organizations
■ Low morale and high turnover of hourly workers
■ Vulnerability of relying on outside contractors
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Corporate Culture
✘ The inner rites, rituals, heroes,
and Types of corporate culture:
1. Networked culture
values of a firm
✗ Indicators of corporate 2. Mercenary culture
culture
■ The physical setting 3. Fragmented culture
(e.g., building and office
layout) 4. Communal culture
■ Corporate statements
about itself
■ How the company greets
its guests
■ How employees spend
their time at work
(alone or in groups)

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Cultural change is needed
when
✗ A company’s environment changes
✗ The industry becomes more competitive
✗ Company performance is mediocre
✗ The company is growing or becomes a large
firm

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Committees and Task Forces
✘ Committees
✗ Types
■ Ad hoc—created for a specific short-term purpose
■ Standing—relatively permanent; charged with performing
some recurring task
■ Task force—established to investigate a major problem or pending
decision
✗ Differences with individual action
■ Advantages
● Members bring more information and knowledge;
more accurate decisions; results communicated
more effectively
■ Disadvantages
● Decision making takes longer; may reach unnecessary compromises;
one person may dominate
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The Informal Organization
✘ Pattern of behavior and interaction that stems
from personal rather than official relationships
✗ Informal groups
■ Formed by the members themselves to accomplish goals that
may or may not be relevant to the organization
■ Can be powerful forces in organizations, exerting positive
as well as negative influences

✗ The grapevine
■ Informal communication network within an organization
that is completely separate from—and sometimes faster than—
the organization’s formal communication channels
■ May be accurate or distorted; managers should be aware and
use appropriately

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Thankyou!

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Question
✘ Alfa : Do you think that flexible organization is
better to rapidly changing business environment
✘ Answer : Yes, that’s better because flexible
organization will make it easier for them to
survive in bad situations the occur in the company

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✘ Darlenia : what is the difference between large and
small organization in industry ?
✘ Answer : large company uses narrow span of
management because their organization structure
is more complex, and small company uses wide
span because its structure is more simple

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✘ Deviena : if there is one employee that doesn’t do
the task well. What is the solution ?
✘ Answer : the manager should motivate the
employee and gives training for a better
permormance

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✘ Meitina : What is the solution for the manager that
maybe unwilling to delegate work ?
✘ Answer : the manager should trust other workers,
foster collabotarion and effective teamwork for
mutual success.

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