ORGANIZATIONAL ORGANIZATIONAL STRUCTURESSTRUCTURES

By: WIJI NURASTUTI, MTBy: WIJI NURASTUTI, MT

ORGANIZATIONAL WORK FLOWORGANIZATIONAL WORK FLOW• Organizational are continually restructured to meet the Organizational are continually restructured to meet the

demands imposed by the environment. Restructuring can demands imposed by the environment. Restructuring can change the role of individuals in the formal and the informal change the role of individuals in the formal and the informal organization.organization.

• In the discussion of organizational structures, the following In the discussion of organizational structures, the following definitions will be used:definitions will be used:– Authority is the power granted to individuals (possibly by their Authority is the power granted to individuals (possibly by their

position) so that they can make final decisions.position) so that they can make final decisions.– Responsibility is the obligation incurred by individuals in their Responsibility is the obligation incurred by individuals in their

roles in the formal organization to effectively perform assignmentsroles in the formal organization to effectively perform assignments– Accountability is being answerable for the satisfactory completion Accountability is being answerable for the satisfactory completion

of a specific assignment. (Accountability = authority + of a specific assignment. (Accountability = authority + responsibility)responsibility)

• Trust is the key to success here. The normal progression in the Trust is the key to success here. The normal progression in the growth of trust is a follows:growth of trust is a follows:– Even though a problem exists, both the project and functional Even though a problem exists, both the project and functional

managers deny that any problem existsmanagers deny that any problem exists– when the problem finally surfaces, each manager blames the when the problem finally surfaces, each manager blames the

otherother– As trust develops, both managers meet face-to-face to work out As trust develops, both managers meet face-to-face to work out

the problem the problem – The project and functional manager begin to formally and The project and functional manager begin to formally and

informally anticipate probleminformally anticipate problem

STRATEGIC BUSINESS UNIT STRATEGIC BUSINESS UNIT (SBU) PROJECT MANAGEMENT(SBU) PROJECT MANAGEMENT• An SBU is a grouping of functional units that have An SBU is a grouping of functional units that have

the responsibility for profit (or loss) of part of the the responsibility for profit (or loss) of part of the organization’s core business. Figure 3-17 shows organization’s core business. Figure 3-17 shows how one of the automotive suppliers restructured how one of the automotive suppliers restructured into three SBUs; one each for Ford, Chrysler and into three SBUs; one each for Ford, Chrysler and General Motors.General Motors.

• A more recent organizational structure and a more A more recent organizational structure and a more complex one is shown in Figure 3-18. in this complex one is shown in Figure 3-18. in this structure, each SBU may end up using the same structure, each SBU may end up using the same platform (i.e., powertrain, chassis and other platform (i.e., powertrain, chassis and other underneath components). The platform managers underneath components). The platform managers are responsible for the design and enhancements of are responsible for the design and enhancements of each platform, whereas the SBU program managers each platform, whereas the SBU program managers must adapt this platform to a new model carmust adapt this platform to a new model car

SPBU GM

Programs

SPBU Ford

Programs

SPBU Chrysler

Programs

FIGURE 3-17. Strategic Business Unit Project Management

ProgramManagers

SBUSBU SBU

Platform

Platform

Platform

SPBUProgramManagers

PlatformProjectManagement

FIGURE 3-18. SBU Project management using platform management