Design and Organizational Structure

Is that the organizational structure? The organizational structure is a formal arrangement of the division of tasks that exist within an organization. Besides having the structure, the organization also has a design organization.

The design of this organization is a process that includes six elements:
- Specialization of work: the division of labor that is divided into several sections.
- The division of the department: According to the function, product, geographic location, process, and the type of costumer
- There is a chain of command: So many employees examine below should be restricted to be effective and efficient
- Centralization and Decentralization
Centralization: the decision-making is centralized at the level of company
Decentralization: decision making from the bottom level is directly related to action
- Formalisation: no standardization in every organization so that the behavior of employees to follow rules and procedures that have been determined

Usually there are decisions that the organization is affected by structural decisions, And that influence structural decisions:
- The overall organizational strategy
- Size of organization: influenced by the large and small organizations
- Technology used: Company structure to adapt to the technology used, and the technology is usually always evolving
- Levels of environmental uncertainty: there is a stable environment there is also a dynamic environment, and the organization should be able to adjust to the surrounding environment

Framework of the Strategy:- Innovation: the competitive advantage to pursue a meaningful and distinctive innovation
- Minimize the Expenditure: Focus with tight spending controls that require mechanical structure of the organization
- Imitation: minimize risk and maximize profits by mimicking the market authorities that require organic and mechanical elements of the organization

Kind - kind of Organization Design:
A. Traditional Organizational Design
- The structure that is simple: low departemensialisasi
- The structure that is functional: the division of the department by function
- The divisional structure: consists of several divisions with limited autonomy under the coordination and control of the top companies

B. Contemporary Organizational Design
- Structured Team: consists of several working groups by giving authority to employees to manage themselves
- Matrix and Project Structure: The specialist is assigned to work on a project led by project managers:  Matrix and Project Participants have two managers and employees continue to work on the project, and will move after project completion
- The organization with no organizational boundaries are clear: design a flexible organization and is not structured that tend to have no barrier between the organization and its customers and suppliers
- Removing barriers (horizontal)
- Eliminating the external boundaries, closer to the stakeholders

A good organization is an organization that can learn, and learning organization is an organization that develops their capacity to learn, adapt and manage change through the exercise by the employee knowledge
Characteristics of a learning organization:
- Open team based organization, by giving more power to employees
- The flow of open information exchange and dissemination of current information
- Leadership is to spread the vision for the future
- Culture is a strong, trust, openness, and sense of understanding of community


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