Modul Organization Theory and Design

MODUL PERKULIAHAN
Organization
Theory and
Design
Introduction to Organizations
Fakultas
Program Studi
Ekonomi
Magister
Management
TatapMuka
01
Kode MK
DisusunOleh
35008
Dr. M. Ali Iqbal, M.Sc
Abstract
Kompetensi
Definisi teori organisasi, perbedaan
teori organisasi dan perilaku
organisasi, definisi manajemen dan
riset Luthan tentang kegiatan manajer,
perspektif organisasi dan configurasi
organisasi menurut Mintzberg
Mahasiswa dapat memahami definisi
teori organisasi, perbedaan teori
organisasi dan perilaku organisasi,
definisi manajemen dan riset Luthan
tentang kegiatan manajer, perspektif
organisasi dan configurasi organisasi
menurut Mintzberg.
Pembahasan
Teori Organisasi dan Perilaku Organisasi
Teori Organisasi : bersifat Makro mencakup kemampuan organisasi secara keseluruhan
untuk beradaptasi, untuk menyesuaikan diri kepada lingkungan agar tujuan-tujuan dapat
dicapai secara efektif
Perilaku Organisasi : bersifat Mikro yang menyoroti tingkah laku individu-individu pelaku
dan kelompok-kelompok kecil yang berada dan bergerak di dalam tiap organisasi.
What is an Organization?
Organization: A tool used by people to coordinate their actions to obtain something they
desire or value. Most organizations today are striving (making effort) for greater horizontal
coordination of work activities, often using teams of employees from different functional
areas to work together on projects. Boundaries between departments as well as those
between organizations are becoming more flexible to respond to changes in the external
environment more rapidly.
All organizations have a management structure that determines relationships between the
different activities and the members, and subdivides and assigns roles, responsibilities,
and authority to carry out different tasks. Organizations are open systems--they affect and
are affected by their environment
Manajemen
Proses merencanakan, mengorganisasikan, memimpin, dan mengendalikan berbagai upaya
dari anggota organisasi dan proses penggunaan semua sumber daya organisasi demi
tercapinya tujuan organisasi yang telah ditetapkan ( James A F Stoner ).
Riset Luthans
Luthans dan rekannya meneliti 450 manajer, mereka menemukan ada 4 kegiatan
manajerial:
2015

Manajemen Tradisional: pengambilan keputusan, perencanaan & pengendalian.

Komunikasi: bertukar informasi rutin dan memproses dokumen
2
Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id

Manajemen SDM: memotivasi, mendisiplinkan, mengelola konflik, mengalokasikan
staf dan melatih.

Pembangunan Jaringan: bersosialisasi, berpolitik dan berinteraksi dengan orangorang luar.
Kemudian hasil tersebut dibagi berdasarkan kategori sbb:

Manajer rata-rata

Manajer sukses: didefinisikan berdasarkan kecepatan mendapatkan promosi

Manajer efektif: didefinisikan berdasarkan kuantitas dan kualitas kinerja mereka dan
kepuasan serta komitmen anak buah mereka.
Types of Organizations
a. Large, multinational cooperations
A multinational corporation (MNC) or multinational enterprise is an organization that
owns or controls production of goods or services in one or more countries other than
their home country. It can also be referred as an international corporation, a
"transnational corporation", or a stateless corporation. A multinational corporation is
usually a large corporation which produces or sells goods or services in various countries
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
such as importing and exporting goods and services, making significant investments in a
foreign country, buying and selling licenses in foreign markets, engaging in contract
manufacturing—permitting a local manufacturer in a foreign country to produce their
products, opening manufacturing facilities or assembly operations in foreign countries
b. Small, family owned shops
Small businesses are common in many countries, depending on the economic system in
operation. Typical examples include: convenience stores, other small shops (such as
a bakery or delicatessen),hairdressers, tradesmen, lawyers, accountants,restaurants, guest
hous, photographers, small-scale manufacturing, and online businesses, such as web design
and programming, etc.
Small
businesses are
normally
privately
ownedcorporations, partnerships,
or sole
proprietorships. What businesses are defined as "small" in terms of government support and
tax policy varies depending on the country and industry. Small businesses range from 15
employees under the Australian Fair Work Act 2009, 50 employees according to the
definition used by the European Union, and fewer than 500 employees to qualify for many
U.S. Small Business Administration programs. Small businesses can also be classified
according to other methods such as sales, assets, or net profits
c. Manufacture product
The process of converting raw materials, components, or parts into finished goods that
meet a customer's expectations or specifications. Manufacturing commonly employs a
man-machine setup with division of labor in a large scale production. Three common
types of manufacturing production are make-to-stock (MTS), make-to-order (MTO) and
make-to-assemble (MTA), e.g automobile, computers, etc
d. Services product
Business involving aspects of both a tangible (physical) good and intangible service, and
where typically the quality of service is more important than the physical product. For
example, banking, medical
service, training.
Almost
every
product comprises of
some degree of service-good mix. Also called service-good mix.
e. Profit organization
A business or other organization whose primary goal is making money (a profit), as
opposed to a non profit organization which focuses a goal such as helping
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
the community and is concerned with money only as much as necessary to keep the
organization operating.
Most companies considered
to
be businesses are
for
profit organizations; this includes anything from retail stores to restaurants to insurance
companies to real estate companies.
f.
Non-profit organization.
A nonprofit
organization (NPO,
also
known
as
a non-business
entity)
is
an organizationthat uses its surplus revenues to further achieve its purpose or
mission, rather than distributing its surplus income to the organization'sdirectors (or
equivalents) as profit or dividends.
The nonprofit landscape is highly varied, although many people have come to associate
NPOs with charitable organizations. Although charities do comprise an often high profile
or visible aspect of the sector, there are many other types of nonprofits. Overall, they
tend to be either member-serving or community-serving. Member-serving organizations
include mutual societies, cooperatives, trade unions, credit unions, industry associations,
sports clubs, retired serviceman's clubs and peak bodies – organizations that benefit a
particular group of people – the members of the organization. Typically, communityserving organizations are focused on providing services to the community in general,
either globally or locally: organizations delivering human services programs or projects,
aid and development programs, medical research, education and health services, and so
on. It could be argued many nonprofits sit across both camps, at least in terms of the
impact they make.[3] For example, the grassroots support group that provides a lifeline to
those with a particular condition or disease could be deemed to be serving both its
members (by directly supporting them) and the broader community (through the provision
of a helping service for fellow citizens).
Perspectives on Organizations
a. Open system
Open systems must interact with the environment to survive, it must continous adapt to the
environment The term "open systems" reflected the newfound belief that all organizations
are unique—in part because of the unique environment in which they operate—and that they
should be structured to accommodate unique problems and opportunities. For example,
research during the 1960s indicated that traditional bureaucratic organizations generally
failed to succeed in environments where technologies or markets were rapidly changing.
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
They also failed to realize the importance of regional cultural influences in motivating
workers.
Environmental influences that affect open systems can be described as either specific or
general. The specific environment refers to the network of suppliers, distributors,
government agencies, and competitors with which a business enterprise inter-acts. The
general environment encompasses four influences that emanate from the geographic area in
which the organization operates. These are:

Cultural values, which shape views about ethics and determine the relative
importance of various issues.

Economic conditions, which include economic upswings, recessions, regional
unemployment, and many other regional factors that affect a company's ability to
grow and prosper. Economic influences may also partially dictate an organization's
role in the economy.

Legal/political environment, which effectively helps to allocate power within a society
and to enforce laws. The legal and political systems in which an open system
operates can play a key role in determining the long-term stability and security of the
organization's future. These systems are responsible for creating a fertile
environment for the business community, but they are also responsible for
ensuring—via regulations pertaining to operation and taxation—that the needs of the
larger community are addressed.

Quality of education, which is an important factor in high technology and other
industries that require an educated work force. Businesses will be better able to fill
such positions if they operate in geographic regions that feature a strong education
system.
The open-systems theory also assumes that all large organizations are comprised of
multiple subsystems, each of which receives inputs from other subsystems and turns them
into outputs for use by other subsystems. The subsystems are not necessarily represented
by departments in an organization, but might instead resemble patterns of activity.
An important distinction between open-systems theory and more traditional organization
theories is that the former assumes a subsystem hierarchy, meaning that not all of the
subsystems are equally essential. Furthermore, a failure in one subsystem will not
necessarily thwart the entire system. By contrast, traditional mechanistic theories implied
that a malfunction in any part of a system would have an equally debilitating impact.
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
b.
Closed systems
Closed system are closed off from the outside environment, and all interaction and
knowledge is transmitted within the closed system only. Closed systems can hamper growth
since the flow of information stays within the system and has no chance to interact with or
build on knowledge from the outer environment.
Machine bureaucracy, corporate management built on a closed system is known as a
"machine bureaucracy." More prevalent among organizations, machine bureaucracies tend
to hold efficiency and control as the highest goals, They can reach these goals in various
ways, including setting up a hierarchy of offices, creating rules that guide performance,
separating personal and professional rights, and selecting new hires based on technical
expertise alone.
A production line is an example of a closed system within an organization. The daily work
that takes place on production or assembly lines can be insulated from outside factors such
as day-to-day meetings between upper-level executives, or information from other similar,
competing production lines. Instead, workers on an assembly line are generally only
responsible for completing their tasks on the line, depending on what type of line it is.
Five Basic Parts of an
Organization
Top
Management
Technical
Support
Middle
Management
Administrative
Support
Technical Core
Source: Based on Henry Mintzberg, The Structuring of Organizations (Englewood Cliffs, N. J.: Prentice-Hall, 1979) 215-297;
and Henry Mintzberg, “Organization Design: Fashion or Fit?” Harvard Business Review 59 (Jan. – Feb. 1981): 103-116.
Copyright 2004 Prentice
Hall
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M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
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Organizational configuration. Propose by Henry Mintzberg, suggest that every
organization has five parts :

Technical core: People who do the basic work of the organization, they produce the
product and service outputs of the organizationProduction department in manufacturing
firm, the teachers and classes in a university, and the medical activities in a hospitals.

Technical support. Helps the organization adapt to the environment, such engeneers and
researchers scan the environment for problems, opportunities, and technological
developments. Technical support is responsible for creating innovations in the technical
core, helping organization change and adapt. Technical support at Xerox is provided by
department such as R&D and marketing research.

Administrative Support: Is responsible for the smooth operation in human element. This
include human resource activities such as recruiting and hiring, establishing
compensation, and employee training. In Xerox it might include the human resource
departmen.

Middle management: Is responsible for implementation and coordination at the
department level. In traditional organization, middle managers are responsible for
mediating between top management and the technical core such as implementing rules
and passing information up and down the hierarchy.

Top management: Provides direction, strategy, goals, and policies for entire
organization.
Based on his organisational model above, Mintzberg described five categories of
organisation structure, each of which would rely on one specific element of the model. The
main successful organizational structures that he identifies are as follows:

The entrepreneurial organization.

The machine organization (bureaucracy).

The professional organization.

The divisional (diversified) organization.

The innovative organization ("adhocracy").
We'll look at each of these in more detail.
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
The Entrepreneurial Organization
This type of organization has a simple, flat structure. It consists of one large unit with one or
a few top managers. The organization is relatively unstructured and informal compared with
other types of organization, and the lack of standardized systems allows the organization to
be flexible.
A young company that's tightly controlled by the owner is the most common example of this
type of organization. However, a particularly strong leader may be able to sustain an
entrepreneurial organization as it grows, and when large companies face hostile conditions,
they can revert to this structure to keep strict control from the top.
The entrepreneurial organization is fast, flexible, and lean, and it's a model that many
companies want to copy. However, as organizations grow, this structure can be inadequate
as decision-makers can become so overwhelmed that they start making bad decisions. This
is when they need to start sharing power and decision-making. Also, when a company's
success depends on one or two individuals, there's significant risk if they sell up, move on to
new entrepreneurial ventures, or retire.
The Machine Organization (Bureaucracy)
The machine organization is defined by its standardization. Work is very formalized, there
are many routines and procedures, decision-making is centralized, and tasks are grouped by
functional departments. Jobs will be clearly defined; there will be a formal planning process
with budgets and audits; and procedures will regularly be analyzed for efficiency.
The machine organization has a tight vertical structure. Functional lines go all the way to the
top, allowing top managers to maintain centralized control. These organizations can be very
efficient, and they rely heavily on economies of scale for their success. However, the
formalization leads to specialization and, pretty soon, functional units can have conflicting
goals that can be inconsistent with overall corporate objectives.
Large manufacturers are often machine organizations, as are government agencies and
service firms that perform routine tasks. If following procedures and meeting precise
specifications are important, then the machine structure works well.
2015
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
The Professional Organization
According to Mintzberg, the professional organization is also very bureaucratic. The key
difference between these and machine organizations is that professional organizations rely
on highly trained professionals who demand control of their own work. So, while there's a
high degree of specialization, decision making is decentralized. This structure is typical when
the organization contains a large number of knowledge workers, and it's why it's common in
places like schools and universities, and in accounting and law firms.
The professional organization is complex, and there are lots of rules and procedures. This
allows it to enjoy the efficiency benefits of a machine structure, even though the output is
generated by highly trained professionals who have autonomy and considerable power.
Supporting staff within these organizations typically follow a machine structure.
The clear disadvantage with the professional structure is the lack of control that senior
executives can exercise, because authority and power are spread down through the
hierarchy. This can make these organizations hard to change.
The Divisional (Diversified) Organization
If an organization has many different product lines and business units, you'll typically see a
divisional structure in place. A central headquarters supports a number of autonomous
divisions that make their own decisions, and have their own unique structures. You'll often
find this type of structure in large and mature organizations that have a variety of brands,
produce a wide range of products, or operate in different geographical regions. Any of these
can form the basis for an autonomous division.
The key benefit of a divisional structure is that it allows line mangers to maintain more
control and accountability than in a machine structure. Also, with day-to-day decision-making
decentralized, the central team can focus on "big picture" strategic plans. This allows them
to ensure that the necessary support structures are in place for success.
A significant weakness is the duplication of resources and activities that go with a divisional
structure. Also, divisions can tend to be in conflict, because they each need to compete for
limited resources from headquarters. And these organizations can be inflexible, so they work
best in industries that are stable and not too complex.
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
If your strategy includes product or market diversification, this structure can work well,
particularly when the company is too large for effective central decision-making.
The Innovative Organization ("Adhocracy")
The structures discussed so far are best suited to traditional organizations. In new industries,
companies need to innovate and function on an "ad hoc" basis to survive. With these
organizations, bureaucracy, complexity, and centralization are far too limiting.
Filmmaking, consulting, and pharmaceuticals are project-based industries that often use this
structure. Here, companies typically bring in experts from a variety of areas to form a
creative, functional team. Decisions are decentralized, and power is delegated to wherever
it's needed. This can make these organizations very difficult to control!
The clear advantage of adhocracies is that they maintain a central pool of talent from which
people can be drawn at any time to solve problems and work in a highly flexible way.
Workers typically move from team to team as projects are completed, and as new projects
develop. Because of this, adhocracies can respond quickly to change, by bringing together
skilled experts able to meet new challenges.
But innovative organizations have challenges. There can be lots of conflict when authority
and power are ambiguous. And dealing with rapid change is stressful for workers, making it
difficult to find and keep talent. However, given the complex and dynamic state of most
operating environments, adhocracy is a common structural choice, and it's popular with
young organizations that need the flexibility it allows.
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id
DaftarPustaka
Daft RL. 2010. Understanding the Theory and Design of Organization. Thompson.
Southwesyern
Jones, Gareth. 2004. Organization Theory, Design, and Change. Upper Saddle River (New
Jersey). Pearson Education Inc.
Robbins, S.P, (2008): Organizational behavior, Upper saddle (NJ): Prentice-Hall Inc. (RSP)
2015
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Organization Theory And Design
M. Ali Iqbal, M.Sc
PusatBahan Ajar dan eLearning
http://www.mercubuana.ac.id