University of Twente Student Theses

Login

Administrative efficiency in theory and practice at PT. Sarandi

Spenkelink, H. (2012) Administrative efficiency in theory and practice at PT. Sarandi.

[img] PDF
708kB
Abstract:This report is the result of my research at PT. Sarandi Karya Nugraha, a medical equipment manufacturer in Indonesia. Sarandi indicated that they have an interest in increasing administrative efficiency. For example the company was keen to implement an e-HRM system to improve their efficiency. It is important to understand the determinants of administrative efficiency in order to be able to systematically improve or to evaluate the effect of improvement attempts. A research of the literature learned that dimensions of organizational structure have a direct impact on administrative efficiency. Although many studies relating single dimensions of organizational structure to administrative efficiency are reported (e.g. standardization (Verlag, 2000), formalization (Payne & Pheysey, 1971) and specialization (Argyris, 1957)), studies that cover the relation of multiple dimensions of organizational structure to administrative efficiency are lacking. Therefore the following research questions are formulated: “To what extent and in what way does organizational structure contribute to administrative efficiency?” and to answer Sarandi’s initial question “How can Sarandi increase its administrative efficiency by changing the organizational structure?” To give an answer to the first research question, the dimensions of organizational structure as defined by Pugh et al. (1963) are used. The six dimensions used are: standardization, formalization, specialization, centralization, configuration and flexibility. Of these six dimensions, standardization and formalization were used together as one dimension because of the great similarities between them. The dimension configuration was dropped from the model because in the literature there was no connection with administrative efficiency to be found. Flexibility was omitted from the model because there was no connection to administrative efficiency to be found in the literature for this dimension as well. This leaves three dimensions in the final model. “To what extent and in what way does organizational structure contribute to administrative efficiency?” Research of empirical and theoretical studies show that the dimensions specialization and standardization/formalization contribute in a positive way to administrative efficiency. This means that the higher the specialization or the higher the standardization/formalization, the higher the administrative efficiency. The dimension centralization is the opposite, centralization contributes in a negative way to administrative efficiency. This means that a lower centralization (or higher decentralization) contributes in a positive manner to administrative efficiency.
Item Type:Essay (Bachelor)
Clients:
PT. Sarandi Karya Nugraha, Indonesia
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Industrial Engineering and Management BSc (56994)
Link to this item:http://purl.utwente.nl/essays/62929
Export this item as:BibTeX
EndNote
HTML Citation
Reference Manager

 

Repository Staff Only: item control page