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Economic development in Indonesia is closely guided by the Five Year Plan. Starting from the first Five Year Plan, covering the period 1969-1974, the emphasis was shifted from rehabilitative operations to substantial economic development. The targets are to produce more of the traditional products and services in addition to building new organizations and manufacturing plants capable of producing new goods and services, which previously have been imported. In this phase of economic development, institutional and organizational problems often hampered the realization of specified targets. The introduction of empirical macro organization research at the present cime will be im_portant, because it may create an instrument for observing and analys_ing organizational data to detect past errors and suggest ways of problem resolution. Such research can also help in designing good organization. The resulting higher organizational efficiency and productivity should provide more certainty in achieving those targets set in the Five Year Plan. The focus of the study will be on the formal aspects of organi_zational structure, which is defined as the internal differentiation |
