Chapter One

Organizations and
Organization Theory

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-1

Case: IBM

Built in 1911
Mid 1960s, IBM introduced mainframe computers
5 new factories and thousands of new jobs.
too bureaucratic (workforce: 407,000)
IBMs mistake:
- not taking advantage of a new technology
IBM invented in 1970s (microprocessor for PC)
- no-layoffs policy was no longer working
2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-2

Case: IBM (contd)

Failure to respond to customers, suppliers, and
competitors in the fast-paced external environment.
Inability to coordinate departments and design control
systems that promoted efficiency
Slow decision making
Outmoded corporate culture
Resulting:
More than 140,000 workers lost their jobs
IBM stock fell from $176 to $40
Gave up its no-layoffs policy

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-3

Case: IBM (contd)

IBM today
- CEO: Louis V. Gerstner, Jr. created a culture that
accommodate opportunities, minimize bureaucracy,
he isnt afraid of change. If the organization doesnt
work right one way, well change it.
- Products: PCs, mainframes, midsize computers
- Profit doubled, share prices recovered

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-4

Organization Theory in Action

Topics
Current Challenges

Global competition
Organizational turbulence
E-commerce
Managing knowledge and information
Diversity
Ethics and social responsibility
Speed of Responsiveness
The Digital Workplace
2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-5

Tantangan Teori Organisasi saat ini

Kompetisi global
Pembaruan organisasi: reengineering, flatter
organizations, team work, empowerment learning
organization
Strategic advantage. Main issue: how fast products and
services can be delivered to customers
Employee relationships. Careers may be defined less by
companies than by professions more people
become permanent freelancers or contract workers.
Not lifetime employment, but lifelong employability

Tantangan Teori Organisasi saat ini

(lanjutan)

Diversity: umur, jenis kelamin, ras, asal

negara, kemampuan fisik.
Tantangannya: memelihara budaya
organisasi yang kuat, keseimbangan kerja
dan keluarga, menangani konflik akibat
keragaman budaya.
Ethics and Social Responsibility.
Perusahaan menerapkan code of ethics.

Trend saat ini

Greater horizontal coordination

Often using teams of employees from different functional
areas
Boundaries between departments as well as those
between organizations are becoming more flexible and
diffuse
Cannot exist without interacting with customers,
suppliers, competitors, and other elements of external
environment.
Even cooperating with their competitors, sharing
information and technology

Perubahan Organisasi
The changing of Organization
Traditional Organization

Stable
Infleksible
Job Fucused
Work in defined by job position
Individual Oriented
Command Oriented
Manager Always make Decisions
Rule Oriented
Relatively Homogeneuos work
force
Workday Defined as 9 to 5
Hierarchical relationship
Work at organizational fasility
during specific hours

New Organization

Dynamic
Fleksible
Skill Focus
Work is defined in terms of tasks to
be done.
Team oriented
Temporary job
Involvement oriented employee
partisivative in decision making.
Customer oriented
Diverse work force
Work day have no time boundaries
Lateral & networked relationship
Work any whwe any time.

Two Organisation Design

Approaches

Natural System Design

Mechanical System
Design Vertical

Horizontal
Structure

Structure

Routine
Tasks

Formal
Systems

Rigid
Culture

Organizational Change
in the Service of
Performance

Empowered
Roles

Shared
Information

Competitive
Strategy

Stable Environment
Efficient Performance

Adaptive
Culture

Collaborative
Strategy

Turbulent Environment
Learning Organization

The slide adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Harvard Business School)
Original source : Organization Theory and Design, Richard L. Daft

06/14/15

10

Organisasi?
Definisi:
Organizations are (1) social entities that (2)
are goal directed, (3) are designed as
deliberately structured and coordinated
activity systems, and (4) are linked to the
external environment.
Elemen kunci: orang dan hubungannya
satu dengan yang lain.

What is an Organization?
Definition
Importance of Organizations

Bring together resources to achieve desired

goals and outcomes
Produce goods and services efficiently
Facilitate innovation
Use modern manufacturing and computerbased technology
2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-12

Importance of Organizations (contd)

Adapt to and influence a changing
environment
Create value for owners, customers and
employees
Accommodate ongoing challenges of diversity,
ethics, and the motivation and coordination of
employees
2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-13

Pentingnya organisasi
1.
2.
3.
4.
5.
6.
7.

Menggabungkan sumber untuk mencapai tujuan dan hasil

yang diharapkan
Menghasilkan barang dan jasa secara efisien
Memfasilitasi inovasi
Menggunakan teknologi produksi dan berbasis komputer
modern
Beradaptasi dan mempengaruhi lingkungan yang berubah
Menciptakan nilai bagi pemilik, pelanggan, dan karyawan
Mengakomodasi tantangan karyawan dalam hal diversity,
ethics, career patterns, motivation, dan coordination

Organisasi sebagai sebuah

sistem
Untuk memahami organisasi secara
keseluruhan, organisasi perlu dipandang
sebagai sebuah sistem.
A system is a set of interacting elements
that acquires inputs from the environment,
transforms them, and discharges outputs
to the external environment.

Perspectives on Organisations
The Open Systems Approach
The Organisational Configuration Approach

16

06/14/15

The Open Systems Approach

Closed Systems
A closed system would not be depend on its
environment; it would be autonomous, enclosed,
and sealed off from the outside world.

Open Systems
An open system interacts with the environment.
It adapts to the environment, consumes and
exports resources to the environment.
17

06/14/15

Organisasi sebagai sebuah

sistem (lanjutan)
Environment
Raw materials
People
Information
resources
Financial
resources

Subsystems

Input

Transformation process

Output

Boundary
spanning

Production, maintenance,
adaptation, management

Boundary
spanning

Products
and
services

Boundary spanning handles input and output transactions, they are responsible
for exchanges with the environment.

An Open System
and Its Subsystems
Environment
Transformation

Raw Materials
People
Information
resources
Financial
resources

Input

Subsystems

Boundary
Spanning

Output

Products
and
Services

Process
Production,
Maintenance,
Adaptation,
Management
2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

Boundary
Spanning

1-19

Subsystems of an organization

Boundary subsystems-work directly with

environment
Production subsystems-do primary tranformation
Maintenance subsystems-smooth operation and
upkeep of the organization
Adapting subsystems-organizational change and
innovations
Management subsystems-directing/coordinating
other subsystems
2000
South-Western College Publishing
Cincinnati, Ohio

1-20

ENVIRONMENT ORGANIZATION
(LINGKUNGAN ORGANISASI)

ADALAH Faktor-faktor baik dari dalam maupun dari luar yang mempengaruhi secara
langsung atau tidak langsung terhadap kinerja organisasi.

Dimensi dari Desain Organisasi

Dimensi struktural: menggambarkan

karakteristik internal suatu organisasi

Dimensi kontekstual: menggambarkan

setting organisasional yang
mempengaruhi dan membentuk dimensi
struktural

Environment

Culture

Goals and
Strategy

Size

Structure
1.
2.
3.
4.
5.
6.
7.
8.

Technology

Formalization
Specialization
Standardization
Hierarchy of Authority
Complexity
Centralization
Professionalism
Personnel Ratios
2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-23

Dimensions of
Organization Design

Structural Dimensions
1. Formalization
2. Specialization
3. Standardization
4. Hierarchy of authority
5. Complexity
6. Centralization
7. Professionalism
8. Personnel ratios

Contextual dimensions
1. Size
2. Technology
3. Environment
4. Goals and Strategy
5. Culture
* Ketigabelas dimensi saling
tergantung satu sama lain

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-24

Formalisasi menunjukkan tingkat

penggunaan dokumen tertulis dalam
organisasi (amount of written documentary)
Spesialisasi menunjukkan derajat
pembagian kerja/tugas dalam organisasi
Standarisasi menunjukkan derajat
kesamaan cara/prosedur dalam
pelaksanaan kegiatan organisasi

2000
South-Western College Publishing
Cincinnati, Ohio

1-25

Sentralisasi menunjukkan corak pembagian

kekuasaan menurut tingkatan (hirarki) dalam
organisasi, ditunjukkan dengan jenis keputusan
yang boleh ditetapkan pada setiap tingkatan
Hirarki kekuasaan (otoritas) menggambarkan
pola pembagian kekuasaan serta rentang
kendali (number of employees reporting to a
supervisor)

2000
South-Western College Publishing
Cincinnati, Ohio

1-26

Kompleksitas menunjukkan banyaknya

kegiatan subsistem dalam organisasi
Kompleksitas vertikal: jumlah tingkatan
yang ada pada organisasi
Kompleksitas Horizontal: pembagian
kegiatan secara horizontal yaitu menjadi
bagian yang secara vertikal berada pada
tingkatan yang sama

2000
South-Western College Publishing
Cincinnati, Ohio

1-27

Profesionalisme : tingkat pendidikan

formal maupun tidak formal yang dimiliki
oleh anggota organisasi
Personal ratio: bentuk pembagian anggota
organisasi baik secara vertikal maupun
horizontal (deployment of people to various
functions and departments)

2000
South-Western College Publishing
Cincinnati, Ohio

1-28

Spesialisasi : pengelompokkan aktivitas tertentu yang

dilakukan satu individu
Spesialisasi fungsional = pembagian kerja
Spesialisasi sosial individunya yang
dispesialisasi
Departementalisasi : cara organisasi secara khas
mengkoordiinasikan aktivitas yang telah dideferensiasi
secara horizontal. Misal : Berdasarkan fungsi;
geografis;produk; proses

b. Diffrensiasi vertical - merujuk pada

kedalaman struktur
Misal : organisasi berbentuk tall atau flat,
tergantung dari rentang kendali (span of control)
c. Diferensiasi Spasial tingkat sejauh mana
lokasi dari kantor,pabrik, dan personalia sebuah
organisasi tersebar secara geografis.

Organisasi tall atau flat selain ditentukan oleh

besaran organisasi juga oleh jenis pekerjaan
dan karakteristik individu pemegang tugas.

Makin tinggi kompleksitas, maka perhatian

Kesimpulan:
terhadap masalah-masalah komunikasi,
koordinasi dan kontrol makin besar.

Formalisasi , yaitu sejauhmana organisasi menyandarkan

dirinya pada peraturan dan prosedur untuk mengatur
perilaku dari para pegawainya.

Keuntungan adanya standarisasi :

Standarisasi perilaku akan mengurangi
keanekaragaman
Memudahkan koordinasi
Adanya penghematan

Hubungan Formalisasi dan Kompleksitas

Difrensiasi horizontal tinggi -> pembagian kerja

bagi pegawai tidak terampil -> Formalisasi tinggi

Diffrensiasi horizontal tinggi -> pegawai

professional -> Formalisasi rendah

Sentralisasi
Sentralisasi, tingkat di mana pengambilan keputusan
dikonsentrasikan pada suatu titik tunggal di dalam organisasi
Sentralisasi

Desentralisasi
Hambatan sentralisasi :
Hanya memperhatikan struktur formal.
Memperhatikan kebebasan dalam pengambilan keputusan.
Konsentrasi pada seseorang, unit atau tingkat.
Kontrol dari top manajemen, tetapi keputusan tetap terletak
pada anggota tingkat rendah.

Keuntungan desentralisasi :
setiap manajer mempunyai keterbatasan terhadap jumlah
informasi
Dapat menanggapi perubahan dengan cepat.
Memberi masukan lebih rinci bagi pengambil keputusan.
Memotivasi pegawai untuk memberi kesempatan dlm
pengambilan keputusan.
Memberi peluang pelatihan bagi manajer tingkat rendah.
Keuntungan sentralisasi :
Keputusan komprehensif yang akan diambil.
Penghematan dan lebih efektif

Hubungan sentralisasi,
Kompleksitas
dan
Formalisasi
Kompleksitas
-> Desentralisasi

Formalisasi
tidak trampil)

-> sentralisasi ( pekerja

Formalisasi
-> desentralisasi
(pekerja profesional)

Organization Chart Illustrating the Hierarchy of Authority

for a Community Job Training Program

Board of
Directors
Advisory
Committee

Executive
Committee

Level 1

Executive
Director
Assistant Executive Director
for Community Service

Level 2
Level 3

Assistant Executive Director

for Human Services

Director

Director

Director

Director

Director

Director

Director

Economic Dev.

Reg. Planning

Housing

Criminal Justice

Finance

AAA

CETA

Public
Info
Coord.

Level 4
Level 5

Secretary

Housing
Coord.

Alcohol
Account.
Coord.

Records
Clerk

Secretary

Asst. Director
Finance

Program Contract
Spec.
Fiscal
AAA
Manager

Adm. Asst

Payroll Clerk

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

Lead
Counsel

Program
Planner
AAA

Secretary

CETA
Intake
&
Orient

CETA
Couns.
Devs.
Title II
ABC

CETA
Couns.
Devs.
Youth
IV

MIS Specialist

Lead
Counsel
CETA
Couns.
Devs.
Title II D CETA
&VI&VII Planner

Staff Clerk

Adm. Asst.

1-37

Characteristics of three
Organizations
Formalization

100

Specialization
50
Centralization
Configuration
(%nonworkflow
personnel)

TECHNOLOGY
SIZE (#employees)

W.L. Gore &

Associates

Wal-Mart

State Arts
Agency

Manufacturing

Retailing

Government
Service

4,200

200,000

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

35
1-38

Organisation Theory and Design, The

History

Fredrick Winslow Taylor

Scientific management
managers develop precise, standard procedures for
doing each job, select workers with appropriate abilities,
train workers in standard procedures, carefully plan
work, and provide wage incentive to increase output.
the role of management is to maintain stability and
efficiency
Thinking (top managers)
Working (workers doing what they are told)
39

06/14/15

Organisation Theory and Design, The

History (contd)

Henri Fayol
Administrative principles
looked at the design and functioning of the organisation
as a whole
administrative principles in particular contributed to the
development of bureaucratic organisations
designing and managing organisations on an impersonal,
rational basis through such elements as clearly defined
authority and responsibility, formal record keeping, and
uniform application of standard rules.
40

06/14/15

Organisation Theory and Design, The

History (contd)

Hawthrone studies
Work on industrial psychology and human
relations
Chicago western electric company
positive treatment of employees improved
their motivation and productivity
The human relations and behaviuoral
approaches
41

06/14/15

What is Organization Theory?

A way of thinking about organizations
A way to see and analyze organizations
more accurately and deeply, based on
patterns and regularities in organizational
design and behavior (Daft, 1998, p.21)

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-42

What Organization Theory Can Do

For organization managers: OT provides significant

insight and understanding to help them become
better managers. OT identifies variables and
provides models so managers know how to diagnose
and explain what is happening around them and thus
can organize for greater effectiveness.
OT can make a manager more competent and
more influential
For those who will not be managers: to appreciate
and understand more about the world around them
2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-43

Levels of Analysis
External environment
(interorganizational
set/community
Organization level of
analysis
Group level of
analysis
Individual level of
analysis

Organization
B

Organization
C

Organization
A

Organization
D

Department A

Department B

Department C

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-44

Levels of Analysis (contd)

Organization theory focuses on the organizational

level of analysis but with concern for groups and
the environment (a macro approach)

Organizational behavior focuses on the

individuals within organizations as the relevant
units of analysis (a micro approach)
2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-45

Framework
Part 1 Introduction to Organizations
Organizations and Organization Theory

Part 2 The Open System

Strategic Management and Organizational Effectiveness
The External Environment

Part 3 Organization Structure and Design

Technology
Organization size, life cycle, and decline
Fundamentals of Organization Structure
Contemporary Designs for Global Competition

Part 4 Organization Design Process

Innovation and Change
Information Technology and Organizational Control
Organizational Culture and Ethical Values

Part 5 Managing Dynamic Processes

Decision-Making Processes
Power and Politics
Interdepartmental Relations and Conflict

Part 6 Strategy and Structure for the Future

2000
Interorganizational Relationships
South-Western College Publishing
Toward the Learning Organization
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-46

PERILAKU ORGANISASI :
pandangan mikro (individu dan kelompok kecil)
focus pada perilaku di dalam organisasi
pengukuran efektivitas : kepuasan kerja, LTO, absensi,
produktivitas dan prestasi karyawan
TEORI ORGANISASI :
pandangan makro (unit analisis organisasi itu sendiri)
focus pada perilaku dari organisasi itu sendiri
PERBEDAAN
TEORI ORGANISASI DAN PERILAKU
Efektivitas diukur dari kemampuan organisasi secara
ORGANISASI
keseluruhan dalam mencapai tujuan

Workbook
Activity

Organizational Dimensions
High Formalization

1-4

5-6

7 - 10

Low Formalization

High Specialization

1-4

5-6

7 - 10

Low Specialization

Tall Hierarchy

1-4

5-6

7 - 10

Flat Hierarchy

Product Technology

1-4

5-6

7 - 10

Service Technology

Stable Environment

1-4

5-6

7 - 10

Unstable Environment

Strong Culture

1-4

5-6

7 - 10

Weak Culture

High Professionalism

1-4

5-6

7 - 10

Low Professionalism

Well-Defined Goals

1-4

5-6

7 - 10

Poorly-Defined Goals

Small Size

1-4

5-6

7 - 10

Large Size

Modern

1-4

5-6

7 - 10

Postmodern

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-48

IBM

Workbook
Activity

Use

for 1975-1990, Use

for 1993-present

High Formalization

1-4

5-6

7 - 10

Low Formalization

High Specialization

1-4

5-6

7 - 10

Low Specialization

Tall Hierarchy

1-4

5-6

7 - 10

Flat Hierarchy

Product Technology

1-4

5-6

7 - 10

Service Technology

Stable Environment

1-4

5-6

7 - 10

Unstable Environment

Strong Culture

1-4

5-6

7 - 10

Weak Culture

High Professionalism

1-4

5-6

7 - 10

Low Professionalism

Well-Defined Goals

1-4

5-6

7 - 10

Poorly-Defined Goals

Small Size

1-4

5-6

7 - 10

Large Size

Modern

1-4

5-6

7 - 10

Postmodern

2000
South-Western College Publishing
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e

1-49

Workbook
Activity

Xerox
Use

for 1959-1990, Use

for 1990-present

High Formalization

1-4

5-6

7 - 10

Low Formalization

High Specialization

1-4

5-6

7 - 10

Low Specialization

Tall Hierarchy

1-4

5-6

7 - 10

Flat Hierarchy

Product Technology

1-4

5-6

7 - 10

Service Technology

Stable Environment

1-4

5-6

7 - 10

Unstable Environment

Strong Culture

1-4

5-6

7 - 10

Weak Culture

High Professionalism

1-4

5-6

7 - 10

Low Professionalism

Well-Defined Goals

1-4

5-6

7 - 10

Goals Not Defined

Small Size

1-4

5-6

7 - 10

Large Size

Modern

1-4

5-6

7 - 10

Postmodern

Thomson Learning
2004

1-50