Organization Design

Mechanistic and Organic Structures

In doing organization, there are two types of structures in organization, there are mechanistic and organic structures. Mechanistic structure is a structure where the organizations is hierarchical. It means that the organizations itself has a manager, supervisors, and executives. Usually, if there is a project from the manager, and want to be approved by their boss, they have to have a meeting with their supervisors, then with the executives, then with the boss, and wait until the boss approved or not. This could probably take weeks to wait the boss’s approval. Organic Structures is a structure where the managers, supervisors, and the executives are in the same place. Because of that, the communications will not be like hierarchical. So, if the managers want an approval from their boss, they can directly ask the boss, or maybe discuss with the supervisors, and the executives for the approval. And this can be done in one building and can be finished in one day.

Contingency Factors Affecting Structural Choice

First of all, what is a contingency factor? Well, contingency factors are a factor that cannot be actually predicted in the future. This factor is like natural disaster, where it is suddenly happening without us knowing it. The structural organization also has its own contingency factors that influence the decision. There are four contingency factors. Here are some of them:

· Strategy and Structure

Strategy and structure are related to each other because the structure of an organization needs a goal achievement, and to get the goal achievement, the organization need a strategy. If the organizations strategy change, the organizations structure will also be different.

· Size and Structure

There is a proof that the size (the amount of the employee) of the organization impact in the running of the organizations. It is said that large organization with thousands of employees will make the organizations run smoothly than the small organization with lesser employees. But adding more employees into large companies, the company will not run smoothly because the more employee in the large company, the less influence it gets. But not the small one, because adding more employee, it gets better.

· Technology and Structure

Technology is obviously important in organization, because you can convert an input and an output, but it depends on the technology itself either the technology can run smoothly in an organization or not, because if the technology can run smoothly, the organization can run smoothly too. Technology itself has three categories in terms of complexity and sophistication, there are unit production (the production can split to several batches), mass production (in a big size production), and process production (it is continuous).

· Environmental Uncertainty and Structure

Some companies use small number of environments and uncertainty and some use big number of environments and uncertainty. Which one is better? Obviously that large amount of environment and uncertainty will increase the ongoing of the organization. This could be the reason why lots of managers make their organizations lean, fast, and flexible.

Traditional Organizational Design Options

If you want to make your own organization, you need a traditional organizational design. The reason is because design of the structure influences the structural decisions and every manager have to make their own design. There are 3 types of designs which is simple structure, functional structure, and divisional structure.

· Simple Structure

Beginner in making a company? Then start it off with a simple structure. This design uses little departmentalization and formalization and it uses lots of control and it is being control by a single person. If the company expands, it is not a simple structure anymore because its already specialized and formalized. Other expansions are there are rules and regulations, there are levels of management (Manager, supervisor, executives), etc. When it’s already expanded, the managers can choose either functional or divisional structure to expand their organizations.

· Functional Structure

Functional structure is a design where the organizations can collaborate with similar occupations. This structure mostly involves functional departmentalization to all parts of the company.

· Divisional Structure

Divisional structure is a design where the structure of the organization has divisions in it. The division itself has lots of autonomy, and the autonomy itself has lots of manager division, and each manager has its own role to the organization.

Organizing for Flexibility in The Twenty-first Century

In this twenty-first century, with lots of hectic and complex environment, organizations need to become an innovative organization, rather than become an old-school, non-innovative organization. How to turn the organizations into creative and innovative organizations? Here are some tips that could help you:

· Team Structures

Team structure is a way where the organization has a teamwork in it. This way is important in terms of employee empowerment because the employees don’t need to work hard him/herself and consider as “invincible”, but each employee are responsible in managing teamwork with other employee in doing work performance.

· Matrix and Project Structures

Matrix structure is a structure where the employees of the organization has different roles in managing the organization, and it is led by one manager. The matrix structure has two managers. They are functional manager (a manager that responsible in handling promotions, its salary, and reviews) and product or project manager (a manager that responsible in handling the authority of functional members). The only disadvantage is that each manager have to report to only one boss, so it will be hectic for each managers. Project structure is a structure where each employee do his/her job in one organization. So, the employee use their skills in doing parts of the projects. Different from matrix structure, project structure don’t need hierarchy of managers, so managers can easily report their boss.

· The Boundaryless Organization

A boundaryless organization is an organization where the organization itself has no boundaries. What the boundary in an organization means that there is a hierarchy in an organization, so boundaryless organization has no hierarchy, which means that each level of management can communicate to each other without any obstacle. There are two types of boundaryless organization, virtual organizations and task force

- Virtual Organizations

A virtual organization is an organization that mostly uses virtual conference to each levels of management.

- Task Force

Task force is a way in which each employee has to do a single defined task or activity. This is like a meeting, where if suddenly there is a problem that need to be immediately solved, each employee directly solve the problem together. If the problem is solved, the employee can get back to its original task.

· Telecommuting

Telecommuting is a way in which each employee do their work/task at home, without going anywhere (commute) to their organizations. This maybe describe what happen in this year, where the coronavirus pandemic makes employee has to do their work from home. Actually, this way have disadvantages, where some employees didn’t do their job, rather they just playing games in the laptop/computer, and this could cause to ignore each employees.

· Compressed Workweeks, Flexitime, and Job Sharing

This means that each employee has to rearrange their work into a more flexible work/task. Each approach has a different meaning. Compressed workweeks is a way in which employees have to work longer hours, but there is a fewer days in a week. Flexitime is a way in which each employee can freely choose which time and day they will work. Lastly, job sharing is a way in which two or more employees can split the time from the full-time job to a fewer job based on the time they want.

· The Contingent Workforce

Contingent workforce is a way where the employee can work part-time job rather than a full-time job. Even though working a part-time job, the incomes will be higher than the income in the full-time job. The only disadvantages is that they have to decide who will get this job. This decision is considered as unimportant.

Closing

If I’m going to pick one of the structures of the organization to my own future company, I will choose the organic structure. The reason is because I want my future company to be run smoothly and fast and the product that is being planned will be directly produced as soon as possible. For the structure design, I will choose the beginner first, and for the expansion, I would choose divisional structure. The reason is because to make the product released as soon as possible, I should divide my future employees into different sections so each employee works their own part. To make my future organization more innovative, I should choose team structures and the boundaryless organization. The reason I choose team structures is because to make my product faster, of course I need teamwork. Even though they divide into their part, but still need to work together. The reason I choose the boundaryless organization is because I want the manager level in one building so I can communicate with the managers to make the work finish fast.