Business of Information (BOI)

1. Puspita Kencana Sari S.Kom, M.T.I pkencana2011@gmail.com 081510365085 Business of Information (BOI) Week #5

2. Aturan Kelas • Ketidak hadiran maksimal 3x (BUKAN JATAH!!) • Toleransi keterlambatan 15 menit. • HP di non-aktifkan/ mode-silent KOMPONEN PENILAIAN • UTS : 30% • UAS : 30% • Tugas : 40% • Bonus: 10% (Quiz, Partisipasi di Kelas)

3. Organizing The Business

4. Organizational Structure • The specification of the jobs within an organization and the ways they relate to another.

5. The Building Blocks of Organizational Structure

6. Specialization • The process of identifying the specific jobs that need to be done and designating the people who will perform them. • Bigger an organization, more job specialization • Specialized jobs can be learned and filled more easily and performed more efficiently than nonspecialized

7. Departmentalization • Determining how people performing certain tasks can best be group together • Advantages: • Each department can be treated as a profit center – responsible for its own costs and profits • Manager can make decisions about advertising and promotional events, space allocation, budgeting, and so forth

8. Departmentalization Types

9. Establishment the Decision-making Hierarchy • Deciding who will be empowered to make which decisions and who will have authority over others • Distributing authority: • Centralization – most decision-making authority is held by upper-level managers. Most commonly in small business or relatively stable and predictable environments. • Decentralization – much decision-making authority is delegated to levels of management at various points below the top. Typically in firms that have complex and dynamic environmental conditions.

10. Tall and Flat Organization • Tall organization structure: few layers of management • Flat organization structure: multiple layers of management • Too few layers can create chaos and inefficiency, wheras too many layers can create rigidity and bureaucracy • To decide how many layers, organization should consider Span of Control of the manager/supervisor

12. Basic Forms of Organizational Structure • Functional Structure • Structured around basic business functions (relies on functional departmentalization): marekting, operations, finance department. • Divisional Structure • Structured around several product-based divisions that resemble separate business in that they produce and market their own products • Matrix Structure • A combination of two separate structures. • In some companies, this structure is a temporary measure installed to complete a specific project and affecting only one part of the firm • International Structure • Response to the need to manufacture, purchase, and sell in global market

13. Matrix organization

14. Organizational Design for the 21st Century • Team organization • Relies almost exclusively on project-type teams, with little or no underlying functional hierarchy. • Virtual organization • Has little or no formal structure. • Allows people to work together in teams even they are thousands of miles apart • Learning organization • Facilitate the lifelong learning and personal development of all its employees while continually transforming itself to respond to changing demands and needs

15. Virtual Organization

16. Common Features • Lack of physical structure • Bleeker: virtual firms is defined not by concrete wall or physical space, but by collaborative networks • Have lower physical presence, fewer tangible assets, small operations, decentralised office • Reliance on communications technologies • Goldman et al: virtual organization is a new organizational model that uses technology to dynamically link people, assets and ideas • Using networks of communication to ‘represent’ it, as a physical structures for a conventional organization

17. Common Features • Mobile work • Departments and teams no longer have to work in close contact with each other • Project teams can be assembled from persons in different countries or on different continents, who work together but never come into physical contact • Hybrid forms • Can be short term: limited-life consortia brought together to undertake costly and risky research and development projects • Can be long term: virtual supply chains

18. Common Features • Bounderyless and inclusive • Suppliers and distributors with links in the supply chain so tight it can be difficult to see where one firm ends and another begins • Flexible and responsive • Can be quickly pulled together from a variety of disprate elements, used to achieve a certain business goal and then dismantled again • Can be quickly restructured and assets redeployed to meet changing strategic needs

19. Purpose and Structure • Virtual organization as a strategic option • If manager have analysed the needs of the business and its customers and determined that virtual option would fulfill those needs better than a conventional form would • The analysis need to be applied not just to the firm as a whole, but to individual business units, processes, departments, and functions • Options : Complete or Partial Virtuality • Example: publishing house – which commission and distribute books using virtual networks, but still require printing and warehousing facilities to handle the final product

20. Dimensions of Decision Organizational assets Management structures Virtual Tangible Virtual Tangible

21. Dimensions of Decision ❶ Organizational assets are virtual in nature and are managed in a virtual way. Example : dispersed sales teams that are managed remotely by telephone and Internet ❷ Tangibel assets that are capable of being managed in a virtual fashion. Example : virtual supply chains, such as are common in the car and computer industries

22. Dimensions of Decision ❸ Virtual assets are managed in a tangible way. Example : old-style publishing house and other companies in the business of creating and selling intellectual property ❹ Tangible assets are manipulated and managed in a tangible way Example : conventional organization Note: most complex organization will fit into more than one of the cells depending on the business function being examined

23. Technology in the virtual organization • 1850s – Reuters new agency provide an intangible product (new information) through dispersed network (the telegraph system) • 1940 – Royal Air Force (RAF) fought a successful battle against the numerically superior Luftwaffe using a virtual control network enable by two technologies (radio and radar) which coordinated tangibel resources (men and fighter planes) • Nowdays – Internet and broadband communication technology made it easier and more practical for many business

24. Technology in the virtual organization • Hard Technology: • Computers, software, cabling and other devices that maintain their communications networks • Providing a powerful tool which can be used to manage more effectively • Soft Technology: • Human beings; whose brains and sense and hands continue to manage, direct and staff business organizations • Managers in virtual organization will need to find a balance between the needs and/or utility of people and those of machine technology

25. Important Ingredients

26. Important Ingredients • Knowledge • Is the lifeblood of the virtual organization: skills of the employees, manager’s knowledge of the market, researchers’ ability to innovative product, and so on • Technology • Knowledge is all but useless unless the networks exist along which it can be transmitted • People • Technology and knowledge will not become active without the addition of the third element, people.

27. Case Study • International Encyclopedia of Business and Management • (Warner and Whitzel. Managing in Virtual Organization, Page 13-14) • A major publishing project in the field of business reference in early 1990s to 1996 • The finished product consisted of six volumes with 5523 pages. Around 470 authors contributed over 500 articles. • The management and execution of the project had a number of virtual features.

28. Case Study