Hi all,

As described by Jakarta post internal or external value-adding to the costumer , are the heart of the
process. The process replaced the tall hierarchical structure and implied horisontal structure that cross
accros departements and company’s divisions. The management role in process organization havd been
chifted toward guidance and support for organizational units.

As per Jakarta post, the author didn’t emphazise on defining structure, however he did mention that re-
organizing according to process doesn’t mean replacing the stucture or eliminate it. Though, and to my
understanding, new organizations have to produce a mix of function based, product and integration. It is
synergy, where structure maintain function and process assure integration.

Nonetheless there is a difference between structure and process. As stated by Child(), where he
highlighted the difference of components between the two form of organization are in hierarchy (tall
versus flat), authority (centralized versus decentralized), reporting line, specializations, rules and
standards, schedule and system from one hand, and the define the components of process ( integration,
control, and rewards).

In conclusion, “management remain important to process orientation” Jakarta post, and the answer to
the problem is a “structure with process owners as key element” Jakarta post, or “function and product-
oriented structure firm face” Jakarta post. Finally and to sum it up, the interesting issue of new
organization form is matrix organizational structure.

Child, J(2005) Organisation: ContemporaryPrinciples and Practice, Blackwell Publishing, Malden MA

Jakarta Post URL: http://www.thejakartapost.com/news/2009/02/18/processbased-organizations-

structure-and-integration.html

Regards

Daniel.