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Organizational DesignProper design

Organizational Design
Proper design should lead to organizational efficiency and effectiveness.
Involves decisions about the grouping of individuals/tasks into work units, departments, or divisions of the organization.
Organizations must differentiate and coordinate.
What is Organizational Structure?
The structure of an organization can be defined simply as the sum total of the ways in which its labor is divided into distinct tasks and then its coordination is achieved among these tasks.
What is an Organizational Chart?
Boxes show how work and responsibilities are clustered into units such as divisions, departments, sections, and teams.
Lines show the management structure: Who reports to whom, how the boxes relate to each other in the hierarchy.



Why Organizational Structure Matters?
Structure affects:
What employees pay attention to
Ease of coordinating activities
Speed of producing goods/services
Cost of running the business
Nature and extent of supervision required
Whom employees interact and build relationships with
Functional Structure
A functional structure is a design that groups people on the basis of their common skills, expertise, or resources they use
Functional structure is the bedrock of horizontal differentiation
An organization groups tasks into functions to increase the effectiveness with which it achieves its goals
Figure 6-1: Functional Structure
Figure 6-1: Functional Structure (cont.)
Functional Structure: Advantages
Provides people with the opportunity to learn from one another and become more specialized and productive
People who are grouped together by common skills can supervise one another and control each other’s behavior
People develop norms and values that allow them to become more effective at what they do
Control Problems in a Functional Structure
Communication Problems: as more organizational functions develop, each with their own hierarchy, they become increasingly distant from one another
Measurement Problems: information needed to measure the profitability of any functional group is difficult to obtain
Location Problems: centralized control hinders ability to satisfy the special needs in different geographic regions

Control Problems in a Functional Structure (cont.)
Customer Problems: servicing the needs of new kinds of customers and tailoring products to suit them is relatively difficult
Strategic Problems: top managers spend too much time finding ways to improve coordination

Solving the Control Problem
Managers can solve control problems by redesigning the functional structure to increase integration between functions
Figure 6.2: Improving Integration in a Functional Structure by Combining Sales and Marketing
From Functional Structure to Divisional Structure
Functional structure is appropriate if the organization:
Limits itself to producing a small number of similar products
Produces those products in one or a few locations
Sells them to only one general type of client or customer
From Functional Structure to Divisional Structure (cont.)
As organizations grow, they begin to produce more products that may be different from one another
Organizations also increase production at a number of locations to serve many different types of customers
More complex structure is based on:
Increasing vertical differentiation
Increasing horizontal differentiation
Increasing integration

Figure 6-3: Differentiation and Integration
Figure 6-3: Differentiation and Integration (cont.)
Moving to a Divisional Structure
Organizations most commonly adopt the divisional structure to solve control problems that arise with too many products, regions, or customers
Divisional structure is dependent on control problem to be solved
Create smaller, more manageable subunits
Product structure
Geographic structure
Market structure
Product Structure
Product structure: a divisional structure in which products (goods or services) are grouped into separate divisions according to their similarities or differences
Organizations need to decide how to coordinate its product activities with support functions
Leads to three kinds of product structure

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Organizational DesignProper design should lead to organizational efficiency and effectiveness.Involves decisions about the grouping of individuals/tasks into work units, departments, or divisions of the organization.Organizations must differentiate and coordinate.What is Organizational Structure?The structure of an organization can be defined simply as the sum total of the ways in which its labor is divided into distinct tasks and then its coordination is achieved among these tasks.What is an Organizational Chart?Boxes show how work and responsibilities are clustered into units such as divisions, departments, sections, and teams.Lines show the management structure: Who reports to whom, how the boxes relate to each other in the hierarchy.Why Organizational Structure Matters?Structure affects:What employees pay attention toEase of coordinating activitiesSpeed of producing goods/servicesCost of running the businessNature and extent of supervision requiredWhom employees interact and build relationships withFunctional StructureA functional structure is a design that groups people on the basis of their common skills, expertise, or resources they useFunctional structure is the bedrock of horizontal differentiationAn organization groups tasks into functions to increase the effectiveness with which it achieves its goalsFigure 6-1: Functional StructureFigure 6-1: Functional Structure (cont.)Functional Structure: AdvantagesProvides people with the opportunity to learn from one another and become more specialized and productivePeople who are grouped together by common skills can supervise one another and control each other’s behaviorPeople develop norms and values that allow them to become more effective at what they doControl Problems in a Functional StructureCommunication Problems: as more organizational functions develop, each with their own hierarchy, they become increasingly distant from one anotherMeasurement Problems: information needed to measure the profitability of any functional group is difficult to obtainLocation Problems: centralized control hinders ability to satisfy the special needs in different geographic regionsControl Problems in a Functional Structure (cont.)Customer Problems: servicing the needs of new kinds of customers and tailoring products to suit them is relatively difficult Strategic Problems: top managers spend too much time finding ways to improve coordinationSolving the Control ProblemManagers can solve control problems by redesigning the functional structure to increase integration between functionsFigure 6.2: Improving Integration in a Functional Structure by Combining Sales and MarketingFrom Functional Structure to Divisional StructureFunctional structure is appropriate if the organization: Limits itself to producing a small number of similar productsProduces those products in one or a few locations
Sells them to only one general type of client or customer
From Functional Structure to Divisional Structure (cont.)
As organizations grow, they begin to produce more products that may be different from one another
Organizations also increase production at a number of locations to serve many different types of customers
More complex structure is based on:
Increasing vertical differentiation
Increasing horizontal differentiation
Increasing integration

Figure 6-3: Differentiation and Integration
Figure 6-3: Differentiation and Integration (cont.)
Moving to a Divisional Structure
Organizations most commonly adopt the divisional structure to solve control problems that arise with too many products, regions, or customers
Divisional structure is dependent on control problem to be solved
Create smaller, more manageable subunits
Product structure
Geographic structure
Market structure
Product Structure
Product structure: a divisional structure in which products (goods or services) are grouped into separate divisions according to their similarities or differences
Organizations need to decide how to coordinate its product activities with support functions
Leads to three kinds of product structure

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Desain organisasi
desain yang tepat harus mengarah pada efisiensi dan efektivitas organisasi.
Melibatkan keputusan tentang pengelompokan individu / tugas ke dalam unit kerja, departemen, atau divisi organisasi.
Organisasi harus membedakan dan berkoordinasi.
Apa Struktur Organisasi?
Struktur organisasi dapat didefinisikan hanya sebagai jumlah total cara di mana tenaga kerja dibagi menjadi tugas yang berbeda dan kemudian koordinasi dicapai antara tugas-tugas ini.
Apa itu Struktur Organisasi?
box menunjukkan bagaimana pekerjaan dan tanggung jawab yang dikelompokkan ke dalam unit seperti divisi, departemen ., bagian, dan tim
Garis menunjukkan struktur manajemen. Siapa yang melapor kepada siapa, bagaimana kotak berhubungan satu sama lain dalam hirarki



? Mengapa struktur Matters Organisasi
struktur mempengaruhi:
Apa karyawan memperhatikan
Kemudahan mengkoordinasikan kegiatan
Kecepatan barang produksi / jasa
Biaya menjalankan bisnis
Sifat dan tingkat pengawasan yang diperlukan
Siapa karyawan berinteraksi dan membangun hubungan dengan
struktur fungsional
struktur fungsional adalah desain yang kelompok orang atas dasar keterampilan umum, keahlian, atau sumber daya mereka yang mereka gunakan
struktur fungsional adalah landasan dari diferensiasi horisontal
Sebuah kelompok organisasi tugas ke dalam fungsi untuk meningkatkan efektifitas dengan yang mencapai tujuannya
Gambar 6-1: Struktur Fungsional
Gambar 6-1: (. cont) Struktur Fungsional
Struktur Fungsional: Keuntungan
Menyediakan orang dengan kesempatan untuk belajar dari satu sama lain dan menjadi lebih khusus dan produktif
Orang yang dikelompokkan bersama-sama oleh keterampilan umum dapat mengawasi satu sama lain dan mengontrol perilaku masing-masing
orang mengembangkan norma-norma dan nilai-nilai yang memungkinkan mereka untuk menjadi lebih efektif pada apa yang mereka lakukan
Masalah Kontrol dalam Struktur Fungsional
Masalah Komunikasi: sebagai lebih fungsi organisasi mengembangkan, masing-masing dengan hirarki mereka sendiri, mereka menjadi semakin jauh dari satu sama lain
Pengukuran Masalah: informasi yang diperlukan untuk mengukur profitabilitas dari setiap kelompok fungsional sulit untuk mendapatkan
Lokasi Masalah: kontrol terpusat menghambat kemampuan untuk memenuhi kebutuhan khusus di wilayah geografis yang berbeda

masalah kontrol dalam Struktur Fungsional (cont.)
masalah pelanggan: melayani kebutuhan jenis baru dari pelanggan dan menyesuaikan produk sesuai dengan mereka relatif sulit
masalah Strategis: top manajer menghabiskan terlalu banyak waktu mencari cara untuk meningkatkan koordinasi

Memecahkan kontrol masalah
manajer dapat memecahkan masalah kontrol dengan mendesain ulang struktur fungsional untuk meningkatkan integrasi antara fungsi
Gambar 6.2: meningkatkan integrasi dalam struktur fungsional oleh Menggabungkan Penjualan dan Pemasaran
dari struktur fungsional untuk struktur Divisional
struktur fungsional adalah tepat jika organisasi:
Batas dirinya untuk memproduksi sejumlah kecil sejenis produk
menghasilkan produk mereka di satu atau beberapa lokasi
Menjual mereka untuk hanya satu jenis umum dari klien atau pelanggan
dari Struktur Fungsional Struktur Divisional (cont.)
Sebagai organisasi tumbuh, mereka mulai memproduksi lebih banyak produk yang mungkin berbeda satu sama lain
Organizations juga meningkatkan produksi di sejumlah lokasi untuk melayani berbagai jenis pelanggan
struktur yang lebih kompleks berdasarkan:
meningkatkan diferensiasi vertikal
meningkatkan diferensiasi horisontal
peningkatan integrasi

Gambar 6-3: diferensiasi dan integrasi
Gambar 6-3: (. cont) diferensiasi dan integrasi
Bergerak untuk struktur Divisional
Organisasi paling sering mengadopsi struktur divisi untuk memecahkan masalah kontrol yang timbul dengan produk terlalu banyak, daerah, atau pelanggan
struktur divisi tergantung pada masalah kontrol harus dipecahkan
Buat lebih kecil, lebih mudah dikelola subunit
struktur produk
struktur Geografis
struktur pasar
struktur produk
struktur produk: struktur divisi di mana produk (barang atau jasa) dikelompokkan menjadi divisi yang terpisah menurut kesamaan atau perbedaan
Organisasi harus memutuskan bagaimana untuk mengkoordinasikan kegiatan produk dengan fungsi pendukung
Menghasilkan tiga jenis struktur produk

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