1. Organization Structure
By Daniel Damaris Novarianto S.

2. CONCEPT

3. 6 Elements of Organization Structure
CONCEPT
An organization structure defines how job tasks are formally divided, grouped, and coordinated
6 Elements of Organization Structure
Work Specialization
Span of Control
Departmentalization
Centralization & Decentralization
Chain of Command
Formalization

4. Work Specialization Work Specialization or Division of Labor
Describe the degree to which activities in the organization are subdivided into separate jobs
The essence of work specialization is to divide a job into a number of steps, each completed by a separate individual. In essence, individuals specialize in doing part of an activity rather than the entirety

5. Departmentalization
The basis by which jobs in an organization are grouped together
The several basis of departmentalization:
The type of function performed
The type of product or service
The type of geography or territory
The type of customer

6. Departmentalization – Function Base (cont.)

7. Departmentalization – Function Base (cont.)

8. Departmentalization – Product Base (cont.)

9. Chain of Command
The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom
Authority refers to the rights inherent in a managerial position to give orders and expect them to be obeyed
Unity of Command The idea that a subordinate should have only one superior to whom he or she is directly responsible

10. Span of Control
The number of subordinates a manager can efficiently and effectively direct

11. Centralization
Centralization refers to the degree to which decision making is concentrated at a single point in the organization
Top managers make all the decisions, and lower-level managers merely carry out their directives
The Decentralization is antithesis of Centralization

12. Formalization
Formalization refers to the degree to which jobs within the organization are standardized
When formalization is low, job behaviors are relatively un-programmed, and employees have a great deal of freedom to exercise discretion in their work
Standardization not only eliminates the possibility of employees engaging in alternative behaviors, but it even removes the need for employees to consider alternatives

13. Organization STRUCTURE

14. Simple Structure

15. Bureaucracy
An organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command

16. Matrix Structure

17. Virtual Structure (in Jet Plane Company)

18. Boundaryless Organization
An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams
E.g: in Google, Microsoft, Zappos, General Electric, etc.

19. Organization MOdel

20. Organization Model

21. JOB DESIGN

22. Formalization-Standardization
Job Design
Formalization-Standardization
Job Design

23. Job Design (cont.) Job Design Job Redesign
The process by which managers decide individual job tasks and authority
Job Redesign
The process by which managers reconsider what employees are expected to do

24. The Aspects of Job Design
Reduced hours —Employees can take advantage of part-time and job sharing arrangements. Job sharing occurs when two individuals share the responsibilities of one position
Reduced workload —High performing senior-level individuals work reduced schedules for a defined period to pursue an advanced degree, care for a newborn or a sick parent, and the like

25. The Aspects of Job Design (cont.)
Flextime —Full time professionals are allowed to design their work schedules to fit their particular needs. Typically, this includes variations in starting and ending times or in the number of hours worked per day
Telecommuting —Full time professionals can elect to work from home for part of the week (no more than 50 percent) to accommodate family or personal needs

26. The Aspects of Job Design (cont.)
Extended leaves of absence —Employees who want time off for family (e.g., to raise children or to care for an elderly parent) and other personal reasons can apply for a leave up to five years in duration. During this period, they don’t receive pay or benefits, but they are able to stay connected through mentoring, short ad hoc projects, and training opportunities

27. Job Design (cont.)

28. JOB DEPTH – JOB RANGE

29. Job Depth – Job Range Job Range Job Depth
Number of tasks a person is expected to perform while doing a job.
Job Depth
Degree of influence or discretion that an individual possesses to choose how a job will be performed

30. Job Depth – Job Range

31. Thank You !