Thursday 20 December 2018

Dimensions of Organizational Design

Organizational Design

Dimensions of organizational design consist of two types, namely:

The structural Dimension, i.e. the dimensions that describe the internal characteristics of the Organization and create a foundation for measuring and compare the organization. The structural dimension consisting of:


Formalization refers to such a degree that it jobs within the Organization was standardize. If a job is very formalize, then executing the job has a minimum level of discretion as to what to do. When to do it, and how it should be work on. There are 3 kinds of Formalization, namely: Formalization base on the work, the formalization base on the flow of work, and formalization base on the regulations.


Specialization than the fact is done by one individual, the better the whole work was broke down into a number of steps, with each step was complete by an individual who different.

A specialization of say work are extensive in each employee work only the specific tasks of the narrow territory. A specialization is said to be low when employees exercise the tasks that have extensive restrictions. There are two types of specialization, namely:

  1. Horizontal Specialization

    This horizontal Specialization refers to the scope of a job, or at the level to which an employee doing a complete job. The smaller the part of an employee to a job as a whole, then the horizontal level of specialization on the job.

  2. Vertical Specialties

    Of vertical Specialization refers to the level of control that is own by an employee to a job. More and more decisions made by an employee, on how and when to perform a task, and the more limit the behavior of employees to perform the task set by the regulations, procedures, supervision or technology, the lower the level of specialization of its vertical bar.

  3. Standardization

    Standardization refers to procedures that are design to make the Organization into a regular activity, and this will automatically facilitate the existence of coordination (Jackson & Morgan, 1978:92).

Hierarchy of authority.

The authority is a form of power that exists on a position or Office. When the right to arrange subordinates include in someone's authority. Then the authority giving the right to restrict choice and acts commit by subordinates. The hierarchy associate with the "span of control", i.e. the number of employees who report to a supervisor. When the span of control is narrow. The hierarchy of authority tend to be high, when the span of control of this width. The hierarchy of authority will be shorter.


The complexity refers to the number of activities as well as subsystem on the organization. The complexity can be measure through three (3) differentiation that is vertical, horizontal and spatial.

  1. Vertical Differentiation. A growing number of levels exist between the top management with operational part, the increasingly complex organizations.

  2. Horizontal Differentiation is the number of the type of work one Department in your organization. The more the number of jobs that exist in an organization that require specialize knowledge and expertise. The higher complexity of the horizontal at the organization.

  3. Spatial Differentiation is the number of areas of the Organization's existence physically.  With increasing spatial differentiation is the higher its complexity.


Term centralization refers to the level to which the decision-making to be concentrate at a single point in the organization. It is said that when the top management to make key decisions in organizations with limit input from employees who are under it. Then the Organization has high levels of centralization.

Instead, a growing number of employees who are under the top management provides input for decision making. Then it is said that the organization is more decentralize. In the company that owns the high centralization of the characters would have had a different structure with a decentralize company.


The professionalism is a level of formal education and training that should be own and is follow by the employees. Professionalism is consider high when employees have to follow training in a long period of time to hold a job or position at the company.

Personnel ratio.

Personnel ratio refers to the number of employees in a particular department or function.  Contextual Dimension, i.e. the dimensions that describe the entirety of an organization. This dimension shows the arrangement of the organization that influence and establish a structural dimension of the Organization, consisting of:

  • Size is the size of an organization that is visible from a number of people in the organization.

  • Technology Organization. Organizational technology is the basis for subsystem production, including engineering and how that is use to transform the input into the output of the organization.

  • The environment. The environment includes the entire element is outside the scope of the organization. Key elements include industry, Government, customers, suppliers and the financial community.

The shape of the Design Organization

Form of the design of this organization is determine by the level of Formalization is complete. The level of centralization in the Organization. Employee qualifications, span of control that exists as well as communication and coordination that exists within the Organization. The shape of the design organization consists of:


On organic-shaped organization, then in this organization there are low levels of Formalization. There is a low degree of centralization. As well as require training and experience to perform the job. In addition, there is a span of control that narrow as well as the presence of horizontal communication within the organization.

Mostly Organic

organizations are shape mostly organic, Formalization and centralization of the literal 's are on the moderate level. In addition need a lot of work experience within the organization. There was a span of control that is between moderate to wide and more horizontal communication is verbal in the organization.


Organizations in the form of mechanistic, there are characteristics which are:

The existence of a high Formalization level, high levels of centralization, training or work experience too little or no importantly. There is a wide span of control as well as the presence of vertical communication and writing.

Mostly Mechanistic

On this type of organization, there are characteristics which are:

The existence of Formalization and centralization on the level of moderate. The existence of training-training that is formal or mandatory. Span of control that is moderate as well as write and verbal communications occurring within the organization.

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