FORMULATING ORGANIZATIONAL STRUCTURE FOR BUSINESS SUSTAINABILITY (CASE STUDY: SYARA WORKS COMPANY)

• Main Author: Noor Rahmani, Ulin
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46604
• Institution: Institut Teknologi Bandung

Syara Works is a creative design and consulting company engaged in fashion. The Syara Works company has been operating since 2016 and is growing rapidly from domestic (Indonesian) to foreign clients. In the digital age, the development of the fashion business is increasing, in line with the ease of buying and selling transactions. People who do not have a background in fashion are starting to look for opportunities to do business in this industry. Syara Works acts as a consultant for those who need services to manage their fashion business, from branding, fashion design, marketing plans, and social media management. The company's growth is in line with the increasing number of clients. However, the capacity of human resources in the company is not suitable for dealing with growth. Many jobs are considered ineffective and inefficient. All employees get direct work directives from the CEO and report to the CEO. Employees do whatever they are told, they do not just work as their responsibility, everything is done together to achieve the target. In reality this system is what impedes work and makes work ineffective. Employees become less initiative because they are waiting for direction and cannot make priorities for their own work. The implementation of the part-time employee system was previously efficient, it also was less effective with the increasing number of requests needed by clients. Coordination between teams began to uncontrollable, there were delays in the design and management of social media that was not good. Many clients feel dissatisfied with the services of Syara Works and terminate the contract. To find the root of the problem, researchers used fishbone diagram and conducted a business situation analysis using the Greiner’s growth model analysis, and 7s McKinsey model analysis to find strategies and solutions for business. Primary data collection for this final project was carried out using qualitative research methods in the form of interviews with CEOs, 10 employees, and 3 clients; while secondary data will be collected from articles, websites, industry reports, journals, and books. Based on the analysis of the root causes, ineffectiveness and inefficiency of the business is caused by the absence of an organizational structure that raises several factors: (1) The organizational basis of this company is unclear, such as the employee empowerment system, standard operational procedure, performance appraisal, (2) The company does not have job descriptions for its employees and the work flow is unclear. Based on the analysis of the Greiner growth model and 7s McKinsey model analysis, the business strategy that needs to be done is to create a human capital system to manage resources optimally. The author proposes several business solutions: (1) Formulation of organizational structure by placing leaders in each division, (2) formulating job descriptions, and (3) Formulating management systems and processes. The implementation of the human capital system proposed in this study refers to the human resource management system, which is a new division at Syara Works. The system proposed in this study is the employee work system, organizational chart, written job description, elements of performance reviews with written objectives, and compensation related to performance appraisal. At the end of this study a plan for implementing the strategy for the coming year is recommended.