1. Organizational Design – Organizational Structure Team teaching Laboratory of Sytem Development and Industrial Management (PSMI) Departemen of Industrial Engineering Institut Teknologi Sepuluh Nopember (ITS) 2011

2. Alignment Framework Business Strategy Organization Structure Human Resources Management “HR systems and theorganization structure should be managed in a way that is congruent withorganizational strategy (hence the name ‘matching model)” (Fombrun et al, 1984). 2

3. The Strategic Choice Approach to Organization Design 3 Strategy menentukan struktur organisasi

4. GENERIC STRATEGY I Porter’s Five Generic Competitive Strategies Type of Advantage Sought Differentiation Lower Cost Overall Low-Cost Provider Strategy Broad Differentiation Strategy Broad Range of Buyers Best-Cost Provider Strategy Market Target Focused Low-Cost Strategy Focused Differentiation Strategy Narrow Buyer Segment or Niche

5. 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

6. 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

7. Tracy & Wiersema’s Generic Strategies Product Leadership Operational Excellence Customer Intimacy Copyright 2004 Prentice Hall 7 GENERIC STRATEGY III

8. GENERIC STRATEGY IV © 2003 Prentice Hall Inc. All rights reserved. 8

9. Organization Structure: Its Determinants and Outcomes © 2003 Prentice Hall Inc. All rights reserved. 9

10. Copyright 2004 Prentice Hall 10 Why Do Structures Differ? Reviewing MECHANISTIC versus ORGANIC

11. © 2003 Prentice Hall Inc. All rights reserved. Why Do Structures Differ? 11

12. © 2003 Prentice Hall Inc. All rights reserved. Why Do Structures Differ? 12

13. Mechanistic Versus Organic Models © 2003 Prentice Hall Inc. All rights reserved. 13

14. Copyright 2004 Prentice Hall 14 Why Do Structures Differ? Reviewing MECHANISTIC versus ORGANIC

15. Naomi Stanford, Guide to Organization Design, Profile Books Ltd, 2007 15

16. Why Do Structures Differ? The Strategy-Structure Relationship © 2003 Prentice Hall Inc. All rights reserved. 16

17. Naomi Stanford, Guide to Organization Design, Profile Books Ltd, 2007 17

18. Alfred Chandler’s “structure follows strategy” concept assumes the necessity for organizational structural design changes to meet the demands of strategic goals. 18