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ORGANISATION
STRUCTURE
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ORGANISATION STRUCTURE
Definition:
“The established pattern of relationships among the
components or parts of the organisation”.
(K + R (85) pg. 234)
“The framework in which the organisation defines how
tasks are divided, resources are deployed and
departments are coordinated.”
(Daft : 94 : 291)
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Or
Is defined as:
1. The set of formal tasks assigned to individuals
and departments;
2. Formal reporting relationships, including line of
authority, decision responsibility, number of
hierarchical levels and pain of manager control.
3.
The design of systems to ensure effective
coordination of employees across departments.
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Organisational Chart (Formal Structure)
Line of Command
1
Position
CEO
A
B
1
2
Job discription
C
2
3
o
o
o
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Level of hierarchy (vertical differentiation)
Authority
Differentiation (horizontal)
RMK252 Organisation Structure
Departmentalization.
3
4
FORMAL STRUCTURE
1.
2.
3.
4.
5.
Differentiation (Pembezaan)
Integration (Integrasi)
Authority System (Sistem Authority)
Administrative system (S. Pentadbiran
Organisation Chart & Job Description. (Carta organisasi dan
keterangan kerja.
CONCEPT OF STRUCTURE
1.
2.
3.
4.
5.
6.
7.
Specialization (Pengkhususan)
Scalar principle (prinsip skalar)
Authority (Authority)
Responsibility (Tanggung Jawap)
Associatability (Dipertanggung Jawabkan)
Sperm of control (Bidang Kawalan)
Centralize/decentralize (Pemusatan/bukan pemusatan)
(Pemusatan/bukan pemusatan)
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Span of Control (Span of Management)
Narrow Span
CEO
Tall/Lean
o cosy chain of command
o slow decision making
o rigid
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Wide Span
CEO
Flat/Fat
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Types of Organisation Structure
1. Functional Organisation
CEO
Production
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Marketing
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2. Production/Market Organisation
Production Organisation
function
A
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B
C
D
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E
products
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Market Organisation
function
1
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2
3
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- market
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MATRIX ORGANISATION
CEO
Other services
Function
Management
Manufacture
Sale
Finance
Personel
A
B
C
Future
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Coordination
- a process of integrating the objective and
activities of separate work unit (departments or
functional areas) in order to realize the
organisation’s goals effectively.
communication is the key to effective
coordination.
coordination
depends
on
acquisition,
transmission and processing of information.
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APPROACHES TO ACHIEVING
EFFECTIVE COORDINATION
- Communication is the key;
- Coordination is directly dependent on acquisition,
transmission and processing of information;
- Coordination as essentially an ‘information processing task.
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APPROACHES TO ACHIEVING EFFECTIVE
COORDINATION
2. Increase Coordination
potential
1. Basic Management
Technique
a. Managerial
Hierarchy
b. Rules and
procedures
c. Plans and goals
3 - Approaches
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a. Vertical info.
System
b. Lateral relationship
3. Reduce need for
coordination
a. Slack resources
b. Independent
Management
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(Stoner, 323)
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Selecting the Approapriate Coordination Mechanism
- The key consideration is to match organisation
capacity for coordination with its need for
coordination.
-
How much information is required?
-
How much information in it capable of
processing?
- Electronic info-processing system is vital in
modern management.
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ORGANISATION STRUCTURE
- It refers to the way in which organisation’s
activities
are
coordinated.
divided,
organised
and
Organisation as five-step process:
1.
List the work for accomplishing goals.
2.
Division of work
3.
Departmentalization.
4.
Coordination
5.
Monitor effectiveness and adjustment.
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ORGANISATIONAL DESIGN
Is a process of choosing an organisational structure that is
appropriate to a given strategy and a given environment.
APPROACHES IN ORGANISATION DESIGN
1.
The Classical Approach:
“One best way” - a set of principles for creating an
organization structure that would be effective and efficient
in all situation.
- Max Weber – bureaucracy based on hierarchy structure
at legalised formal authority.
Lacking
- Too theoritical
- Bureaucracy never work
- Environmental forces
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2. Neoclassical Approach:
Try to include human relation and other social factors
in the approach.
Lacking
- ‘One best way’ to design organisation
- Strategy and Environmental consideration.
- Oversimplify human motivation.
3.
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The Environmental Approach (Sturcture and strategy)
-
Stable Environment
-
Changing Environment – predictable changed.
-
Turbulent Environment – unpredictable changed.
-
Matching the structure to the environment.
-
Mechanistic vs. Organic-Adaptive.
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Types of Structure
Organizational
Characteristic
Stable Mechanistic
Adaptive-Organic
Openness to
environmental influences
Relatively closed. Attempts to
select and minimize
environmental influences and
reduce uncertainly
Relatively open. Designed to
adapt to environmental
influence and cope with
uncertainty.
Formalization of activities
More formality based on
structure
Less formality based on
structure
Differentiation and
specialization of activities
Specific, mutually exclusive
functions and departments
General, sometimes overlaping
activities.
Coordination.
Primarily through the
hierarchy and well-defined
administrative procedures
Multiple means and
interpersonal interaction
Authority structure
Concentrated, hierarchic
Dispersed, multiple
Source of authority
Position
Knowledge and/or expertise
Responsibility
Attached to specific positions
and/or roles
Shared by many participants
Tasks, roles and functions
Clearly defined and specified in
organization charts, position
descriptions, and so on
Loosely defined and
determined by circumstances,
mutual expectations, and so on
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Types of Structure
Organizational
Characteristic
Stable Mechanistic
Adaptive-Organic
Interaction-influence
patterns
Superior subordinate,
hierarchical
Superior subordinate,
horizontal and diagonal.
Procedures and rules
Many and specific, usually
written and formal
Few and general, often
unwritten and informal
Stratification (in terms of
power, status,
compensation, and so on)
More difference between levels
Less difference between levels.
Decision making
Centralized, concentrated
towards the top
Decentralized, shared
throughout the organization
Permanency of structural
form
Tends to be relatively fixed.
Continually adapting to new
situations.
Organizational Characteristics of Stable-Mechanistic and
Adaptive-organic Structures.
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Organisation Design Options
Design
Strengths
When and Where to Use
Functional
Economics through
specialization
Single-product or service organizations
Divisional
High accountability for results
Large organizations: multiple product or
multiple-market organizations
Simple
Speed, flexibility, economy
Small organizations: formative years of
development: simple and dynamic
environments.
Matrix
Economies through
specialization and
accountability for product
results
Multiple products or programs that rely on
functional expertise.
Network
Speed, flexibility, economy
Industrial firms: formative years of
development: many reliable suppliers
available: low-cost foreign labor available.
Task force
Flexibility
Important tasks that have specific time and
performance standards, that are unique and
unfamiliar, that require expertise that crosses
functional lines.
Committee
Flexibility
Tasks that require expertise that crosses
functional lines.
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Organization Structure and Strategic Choice
Organization design
and structure
Environmental
determinants
Technological
determinants
Managerial
perceptions
and
strategic
choice
Psychosocial
determinants
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Guidelines for Job Redesign
Source: J. Richard Hackman and J. Lloyd Shuttle, eds., ImporvingLife at Work
(Glenview, II: Scott, Foresman and Co., 1977), With permission of author.
Suggested Action
Combining tasks
Skill Variety
Forming natural work units
Task Identity
Establishing client relationships
Task Significance
Vertical loading
Autonomy
Opening feedback channels
Feedback
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Job Characteristic Model
Core
Job
Dimension
Skill variety
Task Identity
Task Significance
Autonomy
Feedback
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Critical
Psychological
States
Experience
meaningful
of
work
Experience
responsibility of
outcomes of the
work.
Knowledge of the
actual results of the
work activities.
Employee growth
needs strength
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Personal
and Work
Outcomes
High internal
work motivation
High quality
work
performance
High satisfaction
with work
Low absenteeism
and turnover.
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Temporary Organisation Features of Project
Organisation
1.
Relationship of Project Team with client organisation
Design
Client
Contractor
Planner
Constuction
Project
QS
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Surveyor
Individual
organisation
Architect
Engineer
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Perform
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2. Interdependences
Task of projects
3. Differentiation
4. Integration
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Various Approaches
1. Traditional Method
Client
Arch.
contractor
Design team
Hand on Method
PD
Design
t
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Sub-contractor
Const.
Occup.
tender
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2.
Design and Built
Client
Contractor
Design team
PD
D/B
O
t – t1
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3.
Turnkey Approach
PD
D/B
O
t – t2
4.
BOOT
PD
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D/B
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O
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Project Management
Non-executive
Client
PM/Executives
(Coordinator)
Design team
Contractor
P.M. Executive
Client
PM
Design team
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Construction Team
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Construction Management
Client
PM
Design team
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Management Construction
SKL
Construction/Trade
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Structure
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INTEGRATING CONSTRUCTION TEAM
INTO PROCESS
Tendering Approaches
Open and Competitive – trade method
2 stage
Serial
Negotiated
Management Construction
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THANK YOU
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