Organizational Culture, Structure, & Design - Management Pertemuan 7

Here we will talk a lot ! LOL , This is the point that we want to discuss today :

1. Align Strategy, Culture & Structure.
2. Culture .
3. The Prosses Of Culture Change.
4. Organitazional Structure
5. The Major Element of an organization
6. Basic Types of organization structures
7. Contingency Design : Factors in creating the best structure.

Oke lets talk about the Align Strategy, Culture & Structure .
First thing that you need to be focused is Person-organization fit , What is that ? that is reflects the extent to which your personality and values match the climate and culture is an organization. This is important because the more the employee fit with their job , the more positive effect for the company .

For example : if you love to do something , let said that you love to selling product. If the company put you into the accounting departement, what will happend ? of course you will not happy , you will not love to do that job, and you production will be decrease . And imagine if the company put you into the marketing departement , that will make you happy and fun to do your job ! and boom your productivity for your company will be increase.


Second thing that is Organization's Culture & Structure Are Used to implement strategy.
After do the first thing, there are something that you need to do with your employee to achieve your goal effectively and efficiently by use the strategy . And that strategy must to be implemented to your company . Here there are 2 point that important :

1.) Organizational Culture : The shared assumptions that affect how work gets done.
Organizational culture sometimes  the set of shared, taken for granted implicit assumption that a group holds and that determines how it perceives, think about, and reacts to its various environment.
The things that drives organizational culture are : Founder's values, Industry &business environment  , National Culture, Organization vision & strategies , and behavior of leader .

2) Organizational Structure : Who Reports to Whom & Who Does What . Organizational Stucture is a formal system of task and reporting relationship that coordinates and motivates and organization's members so that they can work together to achieve's



That's all my friend , now we jump to the Kind of organization culture

First is Four type of the organizational that are : 1) Clan, 2) Create, 3)Hierarchy, 4)Market).
1.) Clan This culture focus on collaborate between one people to the other people this culture type is base on the cohesion, participation, communication, and empowerment. At the end you will receive morale, People development, and commitment from your employees.
For example is like balinesse restaurant , All the part of that company are treated like family , and the customer are treated .
2.) Adhocracy This culture focus on the create somethings new , this culture base on the Adaptibillity, Creativity, and agility. At the end the benefit you will receive if you use this culture are : Innovation, Growth, and Cutting-Edge Output. So this culture is like the google company , they don't have any significant rule and hierarchy . So the employees feel free to operate their job the employees just need to make sure their ideas and their motivation .
3.) Market This culture focus on the compete , this culture is base on the Customers Focus, Productivity, Enhancing competitiveness . At the end the benefit you will receive if you use this culture are Market share, profitability, and goal achievement . Hard to find the example of this, but i read the book the company that use market culture usually have a hard rule of discipline 

4.) Hierarchy  This culture focus on the Control , this culture is base on the Capable processes, Consistency, Process Control, and measurement . At the end the benefit you will receive if you use this culture are Efficiency, timeliness, smooth, and functioning . For the example are the political party , Our senior high school and our university , The unique from this culture are the authority and structure.


That is the picture to make you more easier to understand our topic today !


Second The Three Levels of Organizational Culture There are 3 you should know here : 1) Observable Obstacle , 2) Espoused values , 3) Basic Assumptions .
This is little bit easy than the others material .

1) Observable obstacle - Physical Manifestation of culture : The culture that you can see it by your eyes . For the example : You kick you friends leg , or you do the donation to the panti jompo . That is observable obstacle
2) Espoused Values - Explicitly Stated Values & Norms : The culture that is not visible , You should analyze more to find out the Espoused values from that culture itself . For example People in bali make a penjor in galungan day . Espoused value is people balinesse try to respect their live world through the penjor itself .
3) Basic Assumptions - Core Values of the organization : The culture that is unreadable , only the people that do the culture know their basic assumption

We can analogies this things with the ice mountain :

Top part of the ice montain is :Observable Obstacle
Middle part of the ice montain is :Espoused Values
The bottom part of the ice montain is :Basic Assumption

Now we learn How Employees Learn culture . They learn culture from :

1.) Symbol , Example : You see the symbol that show you to not smoke, so because of that symbol you not doing smoking .
2.) Stories , Example : You hear the stories of malinkundang ,after hear that story you respect your mother more than before.
3.) Heroes , Example : In your company there is the people who make your company raise up , so automaticly the other employees will try to do the same thing like the heroes do . that why culture can be learn from the heroes.
4.) Rites & Rituals : Galungan, kuningan, religion and the other things .

That is the end of the Kind of the organization culture , now we will jump to the next level that is The process of culture change .

Here there are 12 mechanisms that make the culture change, let's us discuss one by one !

1. Formal Statement : Easly formal statement is something like word that can change your culture , for the example statement that said 'Buyer is a king" Because of that satatement seller threat their buyer as a king . That is culture changing by statement .

2. Slogans & Saying : Yup , you can see it slogans & saying can also change the culture . For the example slogan "Smoke can make you die" because of that word , the smoker should thinking twice for doing smoke and the other example , you are the people that love to tripping one day your parents said to you "Stop doing triping or i will cut your salary" and you don't do tripping again , that is slogans & saying can make culture change happens.

3. Rites & Rituals : Same like before, let just go to the example . There are company from java that now open new branch at Bali. So in bali there are nyepi , nyepi is Rites and Rituals , so when the nyepi is come company will close their company . That is culture change because of Rites & Rituals.

4. Stories , Legend, and Myths : Actually this is just same like stories in the learn culture , For the example you are the leader of the company . You sell the food with high price to gain high profit , one day you come to the Bali. At bali you hear a lot of stories, legend and myths that have good value and make you realize that life is not only about money . Than you back to your company and rule your company , Because you realize that life is not only about money, you start to decrease the price of the food and also do the social responsibility to your people around your company .

5. Leader : This is easy dude , leader can change culture easly because they are the people who have the authority to manage their people . For the example , im the student and the lecture is the leader itself . If the leader is diligent, the leader will develop their member (me) with a real rule and that make me more diligent than before .

6. Role Modeling, Training , & Coaching : This is real man , for the example you go to the seminar , you go to the motivation meeting , So after you go to the seminar or the motivation meeting you will change your bad culture into the good one .

7. Physical Design :

8. Rewards, Titles, Promotion , & Bonuses : The more high rewards, titles, promotion & Bonuses make you more high attitude and responsibility than before. That is the change of culture .

9. Organizational Goals & Performance Criteria :

10. Measurable & Controllable Activities .

11. Organizational Structure .

12. Organizational System & Procedures .


Done with that , now we talk to the next level ! The Organizational Structure .
Before you go to the Organizational Structure you should know what is organization ? Organization is a system of consciously coordinate activities or forces of two or more people .
There are 3 Type of the Organization :

1. For Profit Organization : Try to gain profit (make a money) Through sell the product or sell the services .
2. Nonprofit Organization : Usually do the services but not gain the profit ,they get the profit but the profit is used to develop the company itself .
3. Mutual Benefit Organization : These are voluntary collectives who purpose to advance members interest .

Yuhu , after that we gonna learn The Organization Chart .

Here there are 2 points , First is vertical and second is horizontal .
Vertical is about who reports to whom . So the vertical is show us about the authority and the direct of the commend itself . For the example between Directors and first line managers .

Horizontal is about who specializes in what work . For the example between the human resource and finance Or The relation between Production and marketing .

that's all organizational structure .

NEXTT (I'M TIRED SHIT) to much material dudee ! Now we talk about The major elements of an organization .
First we talk about Common Elements of Organizations : Four proposed by edgar schein . that are:

1.Common Purpose : The means for unifying members. here we should make all of the employees know the reason of our company being .
2.Coordinated Purpose : Working together for common purpose. we should make all our employees work in the group area and more big environment in our company .
3.Division of Labor : Work specialization for greater efficiency . We should divided our employees by their own skill and specialization to increase the efficiency and effectively.
4.Hierarchy of Authority : The chain of command . We should put the people in the right place , make it into the vertical structure . this herarchy of authority created to make sure the right people do the right things 


Second there are Common Elements of Organizations : Three More That Most Authorities Agree On .

5. Span Of Control :
There are 2 here Narrow span control (Managers have limited number of people reporting) and Wide span control (Manager have a several people to reporting)
6. Authority , Responsibility, & Delegation :  Authority (rights inherent in a managerial position to make decision , give orders, and utilize resources ).

Authority means accountability : That means managers must report and justify work results to the managers above them .
Responsibilty is the obligation you have to perform the task assigned to you .
Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy .


7. Centralization versus Decentralization of authority
First we talk about Centralized Authority : Important decision are made by higher-level managers
Second we talk about Decentralization Authority : Important decision are made by middle-level & supervisory-level managers

Finish with all of those things , now we go the Organitazional Structure.
First is Organizational Design : concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies . There are 3 types design : Traditional design, horizontal design, & design that open boundaries between organizations .

Oke lets start now !

in Traditional Design there are 3 :

1. The simple structure : For the small firm
Here the authority centralized in a single person , a flat hierarchy, few rules, and low work specialization , here is the example :

2. The Functional Structure : Grouping by similliar work specialities
Here people with similiar occupational specialities are put together in formal groups.

3. The divisional structure : Grouping by similiarity or purpose 
Here people with diverse occupational specialities are put together in formal groups by similliar products or services, customers or clients, or geographic regions . here there are 3 types of group :

Product Division : Grouping by similiar products or services .
Customer Division : Grouping by common customers or clients .
Geographic Division : Grouping by regional location .


4. The matrix structure : A  grid of functional & divisional for two chains of command
simply we can say this structure is the fusion between Functional and divisional structure. Here is the example of the structure :


Yups thats all about the traditional design , Now we discuss about the Horizontal Design. 
Horizontal design also call as Team-base design, teams or workgroups, either temporary or permanent, are used to improved collaboration and work on shared tasks by breaking down internal boundaries. 



And the last we talk to the modern design or contemporary design or designs that open boundaries between organizations. there are 3 design here ! check it out !

The hollow structure : Operating with a central core & Outsorcing function to outside vendors .
the organization has a central core of key functions and outsources other fucntions to vendors who can do them cheaper or faster. example :



The modular structure : Outsourcing pieces of a product to outside firms .In a modular structure a firms assembles products chunks, or modules, provided by outside contractors .

The virtual structure : An internet-connected partner for a temporary project .

Virtual organization is an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections

Virtual structure is a company outside a company that is created "Specifically to respond to an exceptional market opportunity that is often temporary"

Yep! thas all ! Now we talk new things "Three factors to be considered in designing an organization structure"

that are :

1. Environment : mechanistic vs organic .

Mechanistic : authority is centralized, tasks and rule are clearly specifed and employees are closely supervised .
Organic : authority is decentralized, there are few rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.

2. Environment : differentiation vs integration .

Differentiation : the tendency of the parts of an organization to disperse and fragment . The more subunits in the company , the more differentiation that company have.

Integration : the tendency of the parts of an organization to draw together to achieve a common purpose.


3. Link between strategy, culture, and structure .

WE SHOULD LINK BETWEEN STRATEGY CULTURE AND STRUCTURE BECAUSE IF YOU NOT LINKED IT YOUR COMPANY WILL BE DESTROYED QUICKLY AS POSSIBLE :)









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