Organizational Structure & Culture

CHAPTER 13

● Paulus Natalis Santika Arya Pambyasta - 2022012747

● R. Agus Doddy Dwi Sagita - 2022012748
● Tetta Suryawati - 2022012753
 Knowledge Objectives
• Define key elements of organizational structure, including
both structural and structuring dimensions.
• Explain how corporate and business strategies relate to
structure.
• Explain how environment, technology, and size relate to
structure.
• Define organizational culture and discuss the competing
values cultural framework.
• Explain the importance of a fit between individual values
and organizational culture.
 THE STRATEGIC IMPORTANCE OF
ORGANIZATIONAL STRUCTURE & CULTURE
Organizationa Organizationa
l Structure l Culture

Formal system
of work roles Shared values
and and norms
relationships

Govern how
associates and Influence
managers behavior
interact
 FUNDAMENTAL ELEMENTS OF
ORGANIZATIONAL STRUCTURE
Structural Structuring
Characteristics Characteristics

● Tangible, physical ● Policies and approaches

properties ● Directly prescribe
● Determine basic shape behavior of managers
and appearance of and associates
hierarchy ○ centralization
○ height ○ standardization
○ span of control ○ formalization
○ departmentalization ○ specialization
STRUCTURAL CHARACTERISTICS
Departmentalization = The grouping of
human and other resources into units,
typically based on functional areas or
markets

Height
=
the number of
levels in the
organization, from
CEO to the lower-
level associates

Span of Control Span of Control → The number of

individuals a manager directly oversees
SIMPLIFIED FUNCTIONAL ORGANIZATION
Benefits
● Including deep specialized knowledge in each functional area
● Economies of scale within functional areas
Weakness
● Managers and associates in each functional department can become isolated from those who work in other
departments
● Harms coordinated action and causes slow responses to major industry changes that require two or more functional
areas to work together
SIMPLIFIED DIVISIONAL ORGANIZATION
→ If an organization has multiple products or services or operates in multiple geographical areas
Benefits
● Each division tend to coordinate with one another relatively easily
● Rapid response to changes in the industry that call for a coordination response across function
● Tailoring to the different product/service or geographical markets. This occurs because people in each division are dedicated to
their own markets
Drawbacks
● Individuals in one division can become isolated from those in other divisions
● Individuals in a given functional area but working on different markets cannot share resources as they can in the functional
structure
STRUCTURING CHARACTERISTICS

Centralization Standardization Formalization Specialization

The degree to which The degree to which The degree to which The degree to which
authority for rules and standard rules and operating associates and
meaningful operating procedures procedures are managers have jobs
decisions is retained govern behavior in documented on with narrow scopes
at the top of an an organization paper or in company and limited variety
organization intranets
THE MODERN ORGANIZATION
→ More flexible empowering type of structure

→ Fewer management levels, broader spans of control, and lesser

amounts of centralization, standardization, formalization, and
specialization
 FACTORS AFFECTING
ORGANIZATIONAL STRUCTURE
 Organizational Size

DETERMINE THE DESIGN

OF ORGANIZATIONAL
STRUCTURE

Strategy Internal Technology

External Environment
The Role of Strategy

Corporate Strategy

Approach used in interacting with its environment

• growth
• diversification

Business Strategy

How it competes for success against others in the market

• low cost/low price
• product/service differentiation
Diversification Strategy and Structure
Diversification Structure

Single Product Functional

Dominant Product (few products) Functional

Dominan Product (several products) Divisional

Related Product Divisional

Unrelated Product Divisional

Unrelated Product Holding Company

The Role of Environment
Environmental forces account for many differences between organizations, and they have a marked effect on the way
organizations conduct business. Because organizations must obtain their inputs from the external environment, their
relationships with suppliers and customers are critical. They also must satisfy governmental regulations, adapt to changes in the
national and world economies, and react to competitors’ actions.

Environment and Basic Structure

• Organic
High • Lower-level managers
and employees must think
Uncertainty for themselves

• Less Organic
Low • Mid- and senior-level
managers create rules and
Uncertainty procedures to follow
 ENVIRONMENT AND
INTEGRATION Relations
Lateral

Increasing Richness of Information Processing

Information
Technology

Self-Contained
Tasks

Slack Resources

Increasing Implementation Complexity

 Alternative
Lateral Processes

Least Direct Contact

Complex

Liaison Roles

Task Forces

Teams

Integrating Roles

Most
Complex Managerial Linking Roles

Matrix Designs
 Small-batch
Role of Technology
technology

Mass-
Mass
Customization Manufacturing production
technology

Continuous
-process
production
technology
ORGANIZATIONS AND TECHNOLOGY
Engineering Non-Routine

Specialized Research and

High Engineering Development Firm
Consulting Firm
Task Variability

Routine Craft

Low Mass-Production
Public School
Firm

Low High
Task Analyzability
ROLE OF ORGANIZATIONAL SIZE
AS ORGANIZATIONS GROW BIGGER…

● Becomes taller
● Formalization increases
● Centralization decreases
● Number of associates and managers increases
ORGANIZATIONAL CULTURE
Building a healthy corporation needs to be supported by
various aspects. One of them is through organizational culture

1. Collection of values and

practices of performance activities
that collaborate between one
division and another in order to
meet company expectations

2. Basic assumption created and

developed by company. generally
this is formed when the company
encounters a problem and begins
to learn to solve it
PRIMARY CHARACTERISTICS OF THE ORGANIZATIONAL CULTURE
Culture Style Description
Innovation and courage the Karakter pertama ini didapat dari suatu organisasi dengan budaya organisasi yang menempatkan nilai tinggi pada inovasi
risk yang mendorong anggotanya untuk mengambil risiko dan berani mengeluarkan ide atau gagasan baru dalam kinerja mereka.
karakter budaya organisasi ini menempatkan ide dan keberanian sebagai tolok ukur utamanya.

Concern to detail Karakteristik budaya organisasi ini berarti adanya penentuan sejauh mana anggota diharapkan dapat mencapai akurasi
tertentu dalam pekerjaan mereka. Budaya organisasi yang menempatkan nilai tinggi pada perhatian terhadap detail dan
mengharapkan anggotanya untuk bekerja secara presisi.

Result orientation Karakter budaya organisasi jenis ini berfokus pada hasil, tetapi bukan bagaimana hasil itu dicapai, melainkan pada
tercapainya nilai budaya organisasi saat meraih hasil tertentu. secara umum karakteristik ini mementingkan proses
bagaimana anggota-anggota organisasi mampu mengimplementasikan nilai budaya organisasi dalam memperoleh hasil
tertentu. Karakter ini juga dapat dikaitkan dengan integritas.

People orientation Karakter budaya organisasi ini merupakan budaya yang menempatkan nilai tinggi pada karakteristik perorangan. hal ini amat
penting bagi suatu organisasi untuk dapat mengelola keputusan bersama dan saling memberi pengaruh bagi tiap
anggotanya. Selain itu, hal terpenting dari karakter ini adalah perlakuan organisasi terhadap anggotanya juga harus penuh
hormat dan bermartabat.

Team Orientation Budaya ornanisasi dengan karakter ini akan berpengaruh pada penyelenggaraan kegiatan kerja organisasi yang bertumpu
pada sinergi kelompok. Para anggota organisasi diharapkan memiliki hubungan positif dengan rekan kerja maupun atasan
mereka demi tercapainya tujuan organisasi atau capaian hasil tertentu dengan sebaik mungkin.

Aggressive Karakter budaya organisasi jenis ini menentukan apakah anggota organisasi dapat bersikap tegas atau santai saat
berhadapan dengan organisasi pesaing. Organisasi dengan budaya organisasi agresif menempatkan nilai tinggi pada daya
saing untuk mengungguli pesaing dengan segala cara.

Stability Budaya organisasi dengan karakter ini menempatkan nilai tinggi pada stabilitas dan berorientasi pda aturan. Sifat utama dari
karakteristik ini adalah adanya birokrasi. Budaya organisasi jenis ini akan memberikan tingkat capaian yang konsisten serta
dapat diprediksi. Organisasi dengan karakter budaya organisasi jenis ini juga umumnya akan beroperasi paling baik dalam
kondisi pasar yang bersifat tetap.
Menurut Uddin et all (2013) menyatakan bahwa budaya organisasi berpengaruh positif
signifikan terhadap kinerja organisasi. Melalui pengamatan yang kuat dan mendalam
dijelaskan keyakinan karyawan, norma, perilaku, dan semua aspek yang relevan
dengan budaya organisasi berdampak bagi kinerja perusahaan. Penelitian Kotter dan
Hesket (1992) dengan menggunakan 207 perusahaan sebagai sampel menujukkan
juga bahwa budaya organisasi (corporate culture) memiliki kekuatan dan dapat
meningkatkan kinerja organisasi dalam jangka panjang.

Sebuah organisasi yang sukses harus memiliki budaya yang kuat yang dapat menarik,
menahan, dan memberikan penghargaan terhadap orang-orang untuk melakukan
peran mencapai tujuan organisasi, sedangkan budaya yang kuat biasanya ditandai
dengan dedikasi dan kerjasama dalam pelayanan nilai-nilai umum (Sun 2008). Budaya
organisasi lebih kuat apabila terdapat kecocokan budaya (culture fit) dengan variabel-
variabel penting lainnya, meliputi: strategi, lingkungan, dan teknologi (Robbins, 2003).
JENIS - JENIS BUDAYA

Fleksibilitas Stabilitas

Eksternal Budaya Budaya

Penyesuaian Pencapaian

internal Budaya Budaya

Keterlibatan Konsisten

Empat Jenis Budaya Perusahaan

Sumber : D.R. Denison dan A.K. Mishra(1995), R. Hooijberg dan F. Petrock (1993), R.E. Quinn (1988),
dalam Daft (2010)
TIPE – TIPE BUDAYA

Fleksibilitas dan kebijaksanaan

KLAN ADHOKRASI

Kepercayaan : Kerjasama Kepercayaan : Menciptakan

Alat : Kohesi, Partisipasi, Komunikasi, wewenang Alat : penyesuaian, kreativitas, ketangkasan
Fokus Hasil : Semangat, pengembangan Hasil : inovasi, pertumbuhan Fokus
internal eksternal dan
HIERARKIS PASAR perbedaan
dan
integrasi Kepercayaan : Persaingan
Kepercayaan : Kontrol
Alat : proses kecakapan, konsistensi, kontrol Alat : fokus pelanggan, produktifitas, persaingan
proses,ukuran yang tinggi
Hasil : efisiensi, ketepatan waktu, fungsi yang Hasil : Pembagian pasar
halus

Stabilitas dan kontrol

Kerangka Nilai Bersaing

Sumber : K.S. Cameron, R.E. Quinn, J. Degraff, dan A.V. Thakor (2006), dalam Kreitner dan Kinicki (2014)
Culture Change

Previously Influent factors Present

1. Inside the box 1. Regulation 1. GCG

2. Conventional change 2. Innovation
technology 2. Performance not 3. Collaboration
3. Inefficiency achieve 4. Efficiency
4. Individualism 3. Dead wood 5. Add value
5. No innovation 4. Project lost 6. Fast response
6. Super power 5. Uncompetitive
7. improper
recruitment
 TAHAPAN DALAM PROSES PERUBAHAN DAN IMPLEMENTASI BUDAYA

AHLAK NICE
- Amanah - Nilai tambah
- Harmonis - Inovatif
- Loyal - Cepat
- Adaptif - Efisien
- Kolaborasi

PEMAHAMAN

IMPLEMENTASI
PERSON – ORGANIZATION FIT
What is Person-Organisation Fit (P-O fit)?

 an alignment of person’s personality, values, knowledge and experience with the

organization and the job position

What do employers want?

Knowledge

Work Life
Experience Experience
Why Person-Organisation Fit (P-O fit) is important?
Personal Value
 basic personal values affect individual reactions to job situation
THANK YOU!