The document discusses various types of organizational structures and their strategic advantages and disadvantages. It describes functional, divisional, geographic, customer-based, and matrix structures. Strategy is a key consideration in organizational design, as the goal is to configure structures, processes, and people to effectively achieve the business strategy. The multidivisional structure emerged to address coordination problems in functional structures as companies grew more complex. Overall, the optimal structure depends on factors like the business strategy, industry environment, and organizational capabilities.

1. FUNDAMENTAL OF
ORGANIZATION
DESIGN
SOURCES :
DESIGNING YOUR ORGANIZATION
AMY KATES & JAY R. GALBARTH
OLEH :
ALHADI
BROTO MUDJIANTO
CLARA WASTATI L GAOL

2. WHAT IS ORGANIZATION?
A social unit of people that is structured and managed to
meet a need or to pursue collective goals. All organizations
have a management structure that determines relationship
between the different activities and the members, and
subdivides and assigns roles, responsiblities, and
authority to carry out different tasks.
Organizations is used broadly to refer to an entire firm, as
well as to just one part of it
WHAT IS ORGANIZATION DESIGN?
Organization design is the deliberate process of configuring
structures, process, reward systems, and people practices
to create an effective organizations capable of achieving the
business strategy.

3. WHAT IS STRATEGY?
 Strategy is a method or plan chosen to
bring about desired future, such as
achievement of a goal or solution to a
problem.
 The art and science of planning and
marshalling resources for their most
efficient and effective use. ( Business
Dictionary)

4. A Frame Work For Decision Making
Organization design is a decision making process
with numerous steps and many choices to make.
 Provides a common language for debating options and
articulating why one choice is better than another in
objectives, impersonal terms.
 Forces design decision to be based on longer-term
business strategy rather than the more immediate
demands of people and politics
 Provides a clear rationale for the choices considered and
explanations of those choices as the basis for
communication and succesful change management.
 Allows decision makers to be able to evaluate
outcomes, understand root causes, and make the right
adjustments during implementation

6. Star model
 Strategy
 Strategy is a company formula’s for success
 Organizational Capabilities
 The unique combination of skills, processes, technologies, and human abilities
that differentiate a company
 Structure
 The grouping activities to carry out the task at organization
 Process
 Decision making, role, power and authority
 Rewards
 Behavior that influenced the achievement of goal – motivation tolls
 People
 Skills and abilities of human resources needed by organization

7. STRATEGY
 Strategy is a method or plan chosen to bring about
desired future, such as achievement of a goal or
solution to a problem.
 Strategy is a company formula’s for success
 Strategy it sets the organization’s direction and a
encompasses the company’s vision and mission, as
well as its short-and long-term goals.
 The purpose of a strategy is to gain competitive
advantage.
 The ability to offer a customer better value through either
lower prices or greater benefits and services than competitors
can ( Porter, 1998).
 Key words : Internal organizational capabilities.

8. Competitive advantage of Michael Porter
 Cost leadership strategy
 Goal : To offer products or services at the lowest cost in the industry
 Differentiation strategy
 Goal : To provide a variety of products, services, of features to
consumers that competitors are not yet offering or are unable to
offer
 Innovation strategy
 Goal : To offer new products or notably better
 Operational Effectiveness strategy
 Goal : To perform internal business activities better than
competitors, making the company easier or more pleasurable to do
business with than other market choices.

9. Porter Competitive Model
Potential
New
Entrants
Bargaining
Power
of Suppliers
Intra-Industry
Rivalry
Strategic Business Unit
Source: Michael E. Porter
“Forces Governing Competition in
Industry
Harvard Business Review, Mar.-Apr. 1979
Bargaining
Power
of Buyers
Substitute
Products
and Services
Figure 3-1

10. Two Strategic Objectives
 Create effective links with customers and
suppliers
 Create barriers to new entrants and
substitute products

11. Primary and Supporting Strategies
 Differentiation Strategy (Primary)
 Low Cost Strategy (Primary)
 Innovation (Supporting)
 Growth (Supporting)
 Alliance (Supporting)

12. Organizational Capabilities
 Organizational Capabilities : The unique
combination of skills, processes, technologies, and
human abilities that differentiate a company.
 Creating superior organizational capabilities in order
to gain competitive advantage is the goal of
organization design.
 Organization design is the series of choices and
decisions; in any decision-making-process, clear
criteria serve the purpose of allowing alternatives to be
avaluated agains agreed-on standards.

13. THE IMPLEMENTATION OF STRATEGIC (EXAMPLES)
Procter & Gamble has not only a strong research arid development
capacity but also the capability of bringing ideas to market
The Campbell Soup Company does not necessarily make better soup
than its competitors do. Instead, it creates innovative packaging and
works effectively with retailers on displays that highlight the convenience
of its product.
Part of our success is owed to our ability to maintain such a high standard
of quality and service over the years. Yet it is the strategic placement and
easy availability of our vehicles that ultimately earn us the reputation as a
most reliable transportation partner ( Blue Bird Taxi )

14. ORGANIZATION’S STRUCTURE
 Functional Structure
 Grouping of activities according to the functions of an enterprise, such as
production, selling and financing
 Product Structure
 Grouping of activities according to products or product lines
 Geographic Structure
 Grouping of activities according to area or territory
 Customer Structure
 Grouping of activities according to that refflects a primary interest in
customers
 Matrix Structure
 The combining of functional and project or product patterns of
departmentation in the same organization structure

15. Functional Structure
A functional structure is organized around major activity groups such as
finance, human resources, research and development, manufacturing, and
marketing. All employees in each function are managed together in order to
promote sharing of knowledge and greater specialization

16. Product Structure
Separating into product divisions brings three main advantages:
Product development cycles can be compressed because all the employees focused on the product
are housed together.
Focusing more narrowly on one line of products can promote product improvements and
innovations.
New opportunities can be more easily puisued because of the autonomy afforded by the divisional
structure. There is not the constraint of coordinating with other divisions.

17. Geographic Structure

18. Geographic Organizational Structure

19. Advantages & Disadvantages
( Management a Global Perspective : Heins Weihrich & Harold Koontz)
Advantages
Disadvantages
 Places responsibility at a lower
 Requires more persons with




level
Places emphasis on local
markets and problems
Improves coordination in region
Takes advantages faces
communication with local
interests
Furnishes measurable training
ground general managers
general manager abilities
 Trends to make maintenance
of economical central services
difficult and may require
services such as personnel or
purchasing at the regional
level
 Makes control more difficult
for top management

20. Customer Structure

21. Advantages & Disadvantages
( Management a Global Perspective : Heins Weihrich & Harold Koontz)
Advantages
Disadvantages
 Encourages focus of customer
 May be difficult to coordinate
needs
 Gives customers the feeling
that they have an
understanding supplier
(banker)
 Develop expertress in
customer area
operations between
competting customer
demands
 Requires managers and staff
expert in customer’s problem
 Customers group may not
always be clearly defined (e.g.
large corporate firm vs other
corporate businesses)

22. Matrix Structure

23. Matrix Organization Structure

24. Matrix Organization Structure

25. If your company is facing serious problems
WHAT ARE YOU DOING?
WHICH ONE .... should be changed?
STRATEGY OR ORGANIZATION?

26. Conclusion
1.
2.
3.
4.
5.
6.
7.
Decisions in formulating organizational design should be based on longterm business strategy of the organization
Model star ( star model) is a tool that is recommended Amy Kates and Jay R.
Galbraith to face critical challenges in the design of the organization
Fundamental reasons to execute an appropriate strategy of organizations
required, to achieve organizational goals required a good strategy and
proper .
Strategy is an organizational tool to achieve success through the
organization's capabilities to gain a the competive advantage.
Organizational design goal was to create an organization's ability to gain a
competitive advantage, while the ability of the organization is a unique
combination of skills and integrated, process and human resource capability
of the organization.
To organize or manage , share tasks and responsibilities within
organization, a structured organization established, based on the shape
function , product , geography , customer and combined them , can also
form a matrix or project
Choice of organizational form is based inter alia on the size of the
organization, the extent of product, marketing, target market and market
segmentation.

27. Awareness of competitive forces can
help a company stake out a position
in its industry that is less vulnerable
to attack.
Michael E. Porter
Competitive Strategy

28. CORPORATE STRATEGY
AND STRUCTURE, Historical
Perspektive,
Chapter Two
SOURCES :
ALIGNMENT
Roberts. Kaplan
David P. Norton
OLEH :
ALHADI
BROTO MUDJIANTO
CLARA

29. The Second Industrial Revolution, starting in the middle of the nineteenth
century, saw the growth of much more complex capital-intensive
industries, such as primary and fabricated
metals, chemicals, petroleum, machinery, and transportation equipment.
The Simple Dan Small Organization
The Centralized Functional Organization
An- Example of Multifunctional (M-Funct) Structure

30. As centralized functionally
organized companies expanded and
diversified
 Some acquired competitors through
horizontal combinations.
 Several, such as Ford
Motor, undertook vertical
integration to better coordinate the
flow of materials into and out of
factories.
 Most companies expanded
geographically so that they could
leverage their physical and
organizational economies of scale in
their domestic markets to reach
customers in more distant markets
Companies such as
DuPont, General
Motors, General Electric, and
Matsushita
The Multidivisional Structure
THE ENCOUNTERED NEW PROBLEM
• Coordination and handoffs between
departments were often
inefficient, costly, and time-consuming.
• The lack of shared information among
marketing specialists and salespeople
(who dealt with customers), engineers (who
designed new products and services), and
operating people (who built the products
and provided the services) often led to
expensively designed products and services
that were costly to manufacture and deliver
and didn't meet customers' expectations
and needs.
• Functional organizations typically were
also slow to respond to changes in
customer preferences and new
opportunities or threats in the marketplace.
• Alfred Chandler summarized the problems
faced by these centralized, functional
organizations:

32. Stuktur Organisasi - Fungsional
CEO
Engineering
Production
Personel
Keunggulan Strategik
Finance and
Accounting
Marketing
Kelemahan Strategik
1. Efisiensi - Spesialisasi
Persaingan / konflik antar fungsi
2. Keahlian fungsional
Kesulitan dalam koordinasi dan
pengambilan keputusan antar fungsi
3. Delegasi keputusan operasional
Membatasi pengembangan manajer
umum
4. Kendali pusat atas keputusan strategik
Prioritas pada bidang fungsional
5. Strategi melalui kegiatan kunci unit

33.  Struktur Organisasi Fungsional
CEO
Engineering
Production
Personel
Finance and
Accounting
Marketing
 Struktur Organisasi Fungsional - Proses
CEO
Purcha
Receiving and
Inventory
Order Entry
Wholesale
Sales
Retail Sales
Accounting
and Billing
Customer
Service

34. Struktur Organisasi Geografis
CEO
General Manager
– Western
District
General Manager
– Southern
District
General Manager
- Central District
Finance/ Accounting
Marketing
R&D
HRD
General Manager
- Northern
District
General Manager
– Eastern
Finance/
District
Accounting
Marketing
R&D
HRD
Engineering
Production
Marketing

35. Keunggulan Strategik
Kelemahan Strategik
1. Memungkinkan penyesuaian strategi
terhadap kebutuhan setiap pasar
geografis
Menimbulkan kesulitan bagi kantor
pusat mengenai keseragaman geografis
atau keragaman geografis
2. Delegasi tanggung jawab laba/ rugi
ke jenjang strategik terendah
Lebih menyulitkan dalam menjaga
konsistensi citra/reputasi perusahaan
dari daerah ke daerah
3. Meningkatkan koordinasi fungsional
di pasar sasaran
Menambah lapisan manajemen yang
mengelola unit geografis
4. Memanfaatkan skala ekonomis
operasi lokal
Dapat menyebabkan duplikasi
pekerjaan staf di kantor dan distrik
5. Memberikan landasan pelatihan yang
baik bagi manajer umum ke tingkat
yang lebih tinggi

36. Struktur Organisasi Divisi
Vice President
- Administrative Services
- Operating Support
CEO
General Manager
– Division A
Marketi
ng
Product
ion
Accoun
ting
General Manager –
Division B
Marketi
ng
Product
ion
General Manager –
Division C
Accoun
ting
Product
ion
Marketi
ng
Accoun
ting

37. Keunggulan Strategik
Kelemahan Strategik
1. Mendorong koordinasi dan
wewenang yang diperlukan ke tingkat
yang sesuai demi ketanggapan yang
cepat
Memupuk persaingan tidak sehat
2. Menempatkan pengembangan dan
implementasi startegi dekat dengan
lingkungan yang khas dari divisi yang
bersangkutan
Menimbulkan masalah mengenai
seberapa besar wewenang yang harus
diberikan kepada manajer divisi
3. Membebaskan CEO untuk
melakukan pengambilan keputusaan
yang lebih luas
Menimbulkan kemungkinan tidak
konsistennya kebijakan di antara divisi
4. Secara tajam memusatkan tanggung
jawab atas kinerja
Menimbulkan masalah pendistribusian
biaya overhead korporat yang dapat
diterima oleh para manajer yang
bertanggung jawab atas laba
5. Mempertahankan spesialisasi
fungsional dalam masing-masing divisi
6. Memberikan landasan pelatihan
yang baik bagi para manajer strategik

38. Struktur Organisasi Unit Usaha
Strategik
CEO
Group Vice
President SBU
1
Division
A
Division
B
Vice President
- Administrative Services
- Operating Support
Group Vice
President SBU 2
Division
C
Division
D
Division
E
Group Vice
President SBU 3
Division
F
Division
G
Division
H

39. Keunggulan Strategik
Kelemahan Strategik
1. Meningkatkan koordinasi antara
Membentuk lapisan manajemen baru
divisi yang mempunyai masalah
di antara divisi dan manajemen
strategik serupa dan menghadapi
korporat
lingkungan produk-pasar yang sama
2. Mengetatkan manajemen dan
pengendalian strategik dari perusahaan
yang bisnisnya beragam
Dapat menimbulkan persaingan tak
sehat memperebutkan sumber daya
korporat
3. Memudahkan perencanaan bisnis
Dapat menimbulkan kesulitan dalam
yang mendalam di tingkat korporat dan mendefinisikan peran wakil presiden
bisnis
grup
4. Menyalurkan tanggung jawab ke
berbagai unit usaha yang berbeda
Dapat menimbulkan kesulitan dalam
menetapkan berapa besar otonomi
yang harus diesarhkan kepada wakil
presiden grup dan manajer divisi

40. Struktur Organisasi Matriks
CEO
Vice
President
Engineering
Vice
President
Production
Vice
President
Purchasing
Vice President
Administration
Project
Manager A
Engineering
Staff
Production
Staff
Purchasing
Agent
Administrati
on
Coordinator
Project
Manager B
Engineering
Staff
Production
Staff
Purchasing
Agent
Administratio
n Coordinator
Engineering
Staff
Production
Staff
Purchasing
Agent
Administratio
n Coordinator
Project
Manager C

41. Keunggulan Strategik
Kelemahan Strategik
1. Mengakomodasi beragam kegiatan Dapat menimbulkan kebingungan dan
bisnis yang berorientasi pada proyek kebijakan yang kontradiktif
2. Menyediakan dasar pelatihan
manajemen untuk manajer strategik
Menuntut koordinasi horisontal dan
vertikal yang luar biasa
3. Memaksimalkan pemanfaatan
manajer-manajer fungsional secara
efisien
Dapat menimbulkan lalu lintas
informasi dan pelaporan yang
berlebihan
4. Memupuk kreativitas dan banyak
sumber keragaman
Dapat memicu konflik dan kehilangan
tanggung jawab
5. Memberikan kepada manajemen
menengah kontak lebih luas dengan
masalah-masalah strategik

42. Evaluasi Strategi dan Struktur (Chandler)
 Unit Fungsional : Satu Lokasi, Satu Pabrik
 Ekspansi Volume : kebutuhan administrasi
 Ekspansi Geografis : banyak unit lapangan, lokasi
berbeda, standar administrasi, spesialisasi,
koordinasi
 Integrasi Vertikal : banyak fungsi, arus informasi
dan bahan, peramalan dan jadwal, koordinasi
 Diversifikasi produk : industri lain, pengelolaan
divisi produk, investasi modal, tanggung jawab,
keputusan manajer umum, otonomi divisi,
pengendalian internal

43. Larry Wrigley : 4 Strategi Pertumbuhan
1.
2.
3.
4.
Bisnis produk tunggal  Struktur Fungsional
Satu bisnis yang dominan, dengan satu bisnis
menyumbang 70-95% penjualan  Struktur Fungsional
di Bisnis dominan dan Struktur divisi di bisnis lainnya
Bisnis terdiversifikasi terkait, berdasakan satu saluran
distribusi / teknologi yang sama, dengan lebih dari 30%
penjualan berasal dari luar bisnis utama Struktur
Divisi
Bisnis terdiversifikasi tak terkait, dengan lebih dari 30%
penjualan berasal dari luar bisnis utama  Struktur Diisi
Semakin beragam perusahaan perlu divisionalisasi

44. Richars Rumelt
Perusahaan produk tunggal / perusahaan bisnis
dominan menggunakan struktur fungsional
2. Perusahaan dalam beberapa lini bisnis yang masih
berkaitan hendaknya menggunakan struktur multi
divisi
3. Perusahaan yang bergerak dalam beberapa lini bisnis
yang tidak berkaitan hendaknya diorganisasi
berdasarkan unit usaha strategik
4. Kesesuaian strategi-struktur yang dicapai secara dini
dapat merupakan keunggulan bersaing.
1.

45. Tabel 13.1, Generic Strategy, Structure, And Control

46. Tabel 13.3, Coorporate Strategy And Structure and Control

47. BALANCED SCORECARD: SEBUAH SISTEM UNTUK
MENYELARASKAN STRATEGI PERUSAHAAN DAN
STRUKTUR
Chandler's, Michael Porter, Goold, Campbell, and
Alexander
That strategy precedes structure and systems
How Strategy Maps and the Balanced Scorecards align organization
structure with corporate-level strategy
BALANCED SCORECARD

48. Robert S. Kaplan
Harvard Business School

49. What Is a Balanced Scorecard?
A Measurement
System?
A Management
System?
A Management
Philosophy?

50. Translating Vision and Strategy:
Four Perspectives
FINANCIAL
Objectives
“To succeed
financially, ho
w should we
appear to our
shareholders?”
Measures
Targets
Initiatives
CUSTOMER
“To achieve
our
vision, how
should we
appear to our
customers?”
Objectives
INTERNAL BUSINESS PROCESS
Measures
Targets
Initiatives
“To satisfy our Objectives
shareholders
and
customers, wh
at business
processes
must we excel
at?”
Vision and
Strategy
LEARNING AND GROWTH
“To achieve
our vision,
how will we
sustain our
ability to
change and
improve?”
Objectives
Measures
Targets
Initiatives
Measures
Targets
Initiatives

51. The Balanced Scorecard Focuses on Factors
that Create Long-Term Value
 Traditional financial reports look backward
 Reflect only the past: spending incurred and revenues earned
 Do not measure creation or destruction of future economic value
 The Balanced Scorecard identifies the factors that create long-term economic value in
an organization, for example:
 Customer Focus: satisfy, retain and acquire customers in targeted segments
 Business Processes: deliver the value proposition to targeted customers



innovative products and services
high-quality, flexible, and responsive operating processes
excellent post-sales support
 Organizational Learning & Growth:



develop skilled, motivated employees;
provide access to strategic information
align individuals and teams to business unit objectives
.
Customers
Processes
People

52. The four Balanced Scorecard perspectives provide a natural way
to categorize the various types of enterprise value propositions that
can contribute to corporate synergies:
Sinergi Keuangan:
• Efektif memperoleh dan mengintegrasikan perusahaan lain.
• Menjaga baik pemantauan dan pemerintahan proses di berbagai
perusahaan.
• Memanfaatkan merek umum (Disney, Virgin) di beberapa unit bisnis.
• Achieving skala atau keterampilan khusus dalam negosiasi dengan
entitas eksternal seperti pemerintah, Serikat pekerja, penyedia modal
dan pemasok.
Sinergi Pelanggan:
• Secara konsisten memberikan proposisi nilai yang umum di seluruh
jaringan geografis tersebar eceran atau Grosir outlet.
• Memanfaatkan pelanggan umum dengan menggabungkan produk atau
jasa dari beberapa unit untuk memberikan keuntungan yang berbeda:
rendah biaya, kenyamanan atau solusi yang disesuaikan.

53. Sinergi Proses Bisnis :
•
•
Exploiting kompetensi inti yang memanfaatkan keunggulan dalam teknologi produk
atau proses yang melintasi beberapa unit bisnis. mempertimbangkan kompetensi
dalam fabrikasi mikroelektronika, Optoelektronik, pengembangan perangkat lunak,
pengembangan produk baru, dan just-in-time sistem produksi dan distribusi yang
mengarah pada keunggulan kompetitif dalam beberapa segmen industri. Kompetensi
inti juga dapat mencakup pengetahuan bagaimana untuk beroperasi secara efektif
khususnya wilayah di dunia.
Achieving skala ekonomi melalui bersama manufaktur, penelitian, distribusi, atau
pemasaran sumber daya.
Sinergi belajar dan pertumbuhan
•
•
•
Meningkatkan sumber daya manusia melalui perekrutan sumber daya manusia yang
baik, pelatihan dan praktek pengembangan kepemimpinan di beberapa unit bisnis.
Memanfaatkan teknologi umum, seperti industri terkemuka platform atau saluran
bagi pelanggan untuk mengakses serangkaian luas layanan perusahaan, yang dibagi
pada beberapa divisi produk dan layanan.
Berbagi kemampuan pelatihan terbaik melalui manajemen pengetahuan bahwa
proses transfer keunggulan kualitas di beberapa unit bisnis.

54. THANK YOU