Prepared by:

Meily Margaretha
INTRODUCTION

The growth of organization
managers must decide how to control
and coordinate the activities of the
organization
The principal design challenge : how
to manage differentiation to achieve
organizational goals.
DIFFERENTIATION
Differentiation is the process by which an
organization allocates people and
resources to organizational tasks and
establishes the task and authority
relationship that allow the organization to
achieve goals.
OR the process of establishing and
controlling the division of labor, degree of
specialization in the organization.

EXAMPLE:
DESIGN CHALLENGE
Hal: 89 Differentiation at the
B.A.R and Grille
From simple organization
(differentiation low) complex
organization (differentiation high)
The basic challenge is managing the
increasing complexity of the
organizations activities.
SYARAT DASAR
Diferensiasi:
Organizational Role
A set of task related behaviors
required of a person by his/her
position in an organization
Ketika division of labor tinggi, maka
muncul spesialisasi muncul
function, division, support function,
production function, dll)
Building Block of
Differentiation
Ketekunan
Intensitas
ORGANIZATION
DIVISION
FUNCTION
ROLE
Function and Divisions
SUPPORT FUNCTION
PRODUCTION FUNCTION
MAINTENANCE FUNCTION
ADAPTIVE FUNCTION
MANAGERIAL FUNCTION
Dua Tipe Diferensiasi
1. Vertical differentiation (the
distribution of authority)
2. Horizontal differentiation
(grouping of organizational tasks
into roles and roles in subunit-
function & divisions)
Dua Tipe Diferensiasi
Owners
Kitchen
Function
DR
Function
RS
Function
Chef
Role
Diswasher
Role
Waiter
Role
Busboy
Role
Bartender
Role
Other Role
Restaurant
Managers
Another Three
Organizational Design Challenges
DIFFERENTIATION
CENTRALIZATION
STANDARDIZATION
INTEGRATION
DECENTRALIZATION
MUTUAL
ADJUSTMENT
1. BALANCING DIFFERENTIATION &
INTEGRATION
Horizontal differentiation specialization &
productive
Minus:
Limit communication between subunits and prevents
them from learning from one another.
Ex: bagian produksi dan R&D?
Solution: to integrate functions to
promote cooperation, coordination, and
communication among separate subunits
Contoh: use of IT for sharing databases,
memos, reports, real time basis
Solusinya:
Integration and Integrating Mechanisms
Hierarchy of
Authority
Direct Contact
Liaison Role
Task Force
Team
Integrating Role
Form of Integrating
Mechanism
Liaison Role
Task Force
Team
Integrating Role
Washing
Machine
Division
Television
and
Stereo
Division
Integrating
Role
SIMPLE
COMPLEX
Direct Contact
Liaison Role
Task Force
Team
Integrating Role
Matrix
Differentiation vs
Integration
A complex organization highly
differentiated & highly integration to
effectively coordinate its activities.
However, managers need to be sure do
not differentiate or integrate too much
because it is expensive numbers of
managers employed
2. BALANCING CENTRALIZATION &
DECENTRALIZATION
Centralization : pengambilan
keputusan terpusat pada top
management
Decentralization: pengambilan
keputusan di delegasikan kepada
para manajers di segala level
ADVANTAGE &
DISADVANTAGE
Centralization
+ Lets top management coordinate organizational
activities and keep the organization focused on its
goals
- Top managements become overloaded, little time to
spend on long term strategic decision making and
planning crucial future organizational activities
ADVANTAGE & DISADVANTAGE
Decentralization
+ promote flexibility and responsiveness by allowing
lower level managers to make on the spot
decisions, they can demonstrates personal skills
and competences
- Too much decentralization may lead an organization
lose control of its decision making process

The Result of Balancing
Good balance between long-term
strategy making and short-term
flexibility and innovations as lower
managers respond quickly to
problems and changes in the
environment
3. BALANCING STANDARDIZATION &
MUTUAL ADJUSTMENT
Written rules and SOPs and
unwritten values and norms are
important forms of behavior control
in organization
The challenge: design a structure
that achieves the right balance
between standardization and mutual
adjustment.
Standardization: conformity to
specific modes or examples
defined by sets of rules and
norms
Mutual adjustment: the process
through which people use their
judgment rather than
standardized rules to address
problems, guide decision making
and promote coordination

Standardization vs Mutual
adjustment
The challenge: to find a way using
rules and norms to standardize
behavior while at the same time
allowing for mutual adjustment to
provide employees with the
opportunity to discover new and
better ways of achieving organization
goals.
Mechanistic and Organic
Organizational Structures
MECHANISTIC & ORGANIC
ORGANIZATIONAL STRUCTURES
Mechanistic structures
People behave in predictable ways,
centralized, hierarchy
Organic structures
Promote flexibility, initiate change,
adapt quick to changing conditions
Mechanistic muncul
ketika:
Organic muncul
ketika:
SPESIALISASI
INDIVIDU
MEKANISME
INTEGRASI
SEDERHANA
SENTRALISASI
STANDARISASI
SPESIALISASI
GABUNGAN
MEKANISME
INTEGRASI KOMPLEKS
DESENTRALISASI
MUTUAL
ADJUSTEMENT
Mechanistic
Structure:
Organic Structure:
Simple Structure
Low Differentiation
Low Integration
Centralization
Decision Making
Standardization
Complex Structure
High Differentiation
High Integration
Decentralized
Decision Making
Mutual Adjustment
LOW HIGH ENVIRONMENTAL INCERTAINTY
Is organic structures better than
a mechanistic structure?
Organic & Mechanic structures have very
different implications for the way people
behave
Organic encourages innovative
behaviors, team work, self management
to improve quality and customer service
Armed forces using organic??
Many authority
The Contingency Approach to
Organizational Design
Keputusan mengenai apakah organic
atau mechanistic structure yang
menjadi desain dilihat dari situasi
tertentu yang dihadapi organisasi
seperti:
Lingkungan
Teknologi
Nature dari tugas itu sendiri
Jenis orang yang dipekerjakan
CONCLUSION
ANY
QUESTIONS??