w8 organizational design design and strategy
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Organizational Design – Organizational Structure
Team teachingLaboratory of Sytem Development and Industrial Management
(PSMI)
Departemen of Industrial EngineeringInstitut Teknologi Sepuluh Nopember (ITS)
2011
Alignment FrameworkBusinessStrategy
OrganizationStructure
Human ResourcesManagement
“HR systems and the organization structure should be managed in a way that is congruent with organizational strategy (hence the name ‘matching model)”(Fombrun et al, 1984).
2
The Strategic Choice Approach to Organization Design
Strategy menentukan struktur organisasi3
Porter’s Five Generic Competitive StrategiesM
ark
et
Targ
et
Type of Advantage Sought
Overall Low-CostProviderStrategy
BroadDifferentiationStrategy
FocusedLow-CostStrategy
FocusedDifferentiationStrategy
Best-CostProviderStrategy
Lower Cost Differentiation
BroadRange of Buyers
Narrow Buyer Segmentor Niche
GENERIC STRATEGY I
GENERIC STRATEGY II
Cost leadership strategy
Organizations seek to become low-cost producers of goods and services.
Their goal is to develop efficient production methods that enable them to sell at a lower price than competitors
Differentiation strategy Organizations using this strategy
seek to produce goods and services that are somehow superior to the goods and services provided by competitors.
Their goal is to create unique value for which customers are willing to pay a higher price
GENERIC STRATEGY II
Tracy & Wiersema’s Generic Strategies
Product Leadership Operational Excellence Customer Intimacy
Copyright 2004 Prentice Hall 7
GENERIC STRATEGY III
© 2003 Prentice Hall Inc. All rights
reserved.
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GENERIC STRATEGY IV
© 2003 Prentice Hall Inc. All rights
reserved.
Organization Structure: Its Determinants and Outcomes
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Copyright 2004 Prentice Hall 10
Why Do Structures Differ?
Reviewing
MECHANISTIC versus
ORGANIC
© 2003 Prentice Hall Inc. All rights
reserved.
Why Do Structures Differ?
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© 2003 Prentice Hall Inc. All rights reserved.
Why Do Structures Differ?
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© 2003 Prentice Hall Inc. All rights
reserved.
Mechanistic Versus Organic Models
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Copyright 2004 Prentice Hall 14
Why Do Structures Differ?
Reviewing
MECHANISTIC versus
ORGANIC
Naomi Stanford, Guide to
Organization Design, Profile Books Ltd, 2007
15
© 2003 Prentice Hall Inc. All rights
reserved.
The Strategy-Structure Relationship
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Why Do Structures Differ?
Naomi Stanford, Guide to Organization Design, Profile Books Ltd, 2007
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Alfred Chandler’s “structure follows strategy” concept assumes the necessity for
organizational structural design changes to meet the demands of strategic goals.
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