Behavior in Organization

Behavior in
Organization
KELOMPOK 3
MUHAMMAD ILHAM ULINNUHA IMAM
CAESARIO DELPIERO KUSMAYADI
MUHAMAD ILHAM HAIROLY
Goal Congruence
• Management wants the organization to achieve organizational goals

• Goal Congruence means that the goals of an organization’s individual members should
be consistent with the goals of the organization itself.
• Individuals have personal goals

• Personal goals are not always aligned (congruent) with organizational goals
• MCS guarantees alignment of targets
 Perfect harmony does not exist
 MCS can at least hold people from actions that are contrary to the interests of the organization
Informal Factors That Influence
Goal Congruence
• External Factors (EF)
External Factors are norms of desirable
behavior that exist in the society of which the
organization is a part.
These norms = a set of of attitudes = the
work ethic.
Goal Congruence
• The Work Ethic : employees’ loyalty to
the organization, their diligence, their
spirit, and their pride in doing a good job.
• Some of Attitudes are local, industry-
specific, national.
Goal Congruence
• Internal Factors (IF)
Culture
 The organization’s own culture is the most important
Informal factors.
 Common beliefs, shared values, norms of behavior, etc.,
that are implicitly accepted and explicitly manifested
throughout organizations.
Goal Congruence
Management Style
 The Informal factors that probably has the strongest
impact on management control is management style.
 CEO attitude  Superiors attitudes 
Subordinates’attitudes.
 Management By Walking Around
Goal Congruence
• Perception and Communication
Managers must know what the goals of
organization are and what actions they are
supposed to take to achieve them.
The Formal Control System
1) Rules
• Are all types of formal instructions and controls: rules that still apply; work description;
SOUP; manual; ethical guide
• Can be from the most trivial rules to the most important
• Rarely changed
• Some are guides; people can deviate from it if needed
• Some are positive, some are negative
• There are rules that must never be broken at all.
• Types of Rules :
 Physical Controls
Ex. Security guards, locked storerooms,
computer passwords, television/camera
surveillance, etc.
 Manuals
Manuals = written rules.
Should be considered to be guidelines rather
than comand
Should be reexamined periodically to ensure
that they are still consistent with the wishes of
current senior management.
 System Safeguards
Safeguards are built into the information
processing system to ensure that the
information is accurate and to prevent fraud.
Incl. Cross-checking totals with details,
requiring signatures, separating duties, etc.
 Task Control Systems

Task control : the process of ensuring that
specific tasks are carried out efficiently and
effectively.
2) Formal Control Process
 A strategic plan implements the organization’s goals and
strategies
 The strategic plan is converted to an annual budget that focuses
on the planned revenues and expenses for individual
responsibility centers.
 Responsibility centers are also guided by rules and other formal
information.
 Actual results are compared with budget to

determine whether performance was satisfactory.
 If it was, the responsibility center receive feedback
(praise or reward).
 If it was not, do corrective action in the
responsibility center and possible plan revision.
Types of Organizations
1) A Functional Structure
Each manager is responsible for a specified function.
2) A Business Unit (BU) Structure
BU managers are responsible for most of the activities of their
particular unit.
3) A Matrix Structure
Functional units have dual responsibilities.
Functional Structure
of Organizations
An important advantage of a functional
structure is efficiency.
Disadvantages of a functional structure :
a) No unambigous way of determining the
effectiveness of the separate functional
managers.
of Organizations
b) If the organization consists of managers in one
function who report to higher-level managers in
the same function, then a dispute between
managers of different functions can be resolved
only at the top.
c) Functional structures are inadequate for a firm
with diversified products and markets.
of Organizations
d) Functional organizations tend to create soil for
each functions.
This problem can be mitigated by supplementing
the vertical functional structure with lateral cross-
functional prosesses such as cross-functional job
rotation and team-based rewards.
Business Units (BU)
BU is designed to solve problems inherent in the

functional structure. A
BU = a Division
BU is responsible for all the functions involved in
producing and marketing a specified product line.
Business Units (BU)
The performance of BU is measured by the profitability
of BU.
Advantages of BU:
It provides training ground in general management.
Because BU is closer to the market for its products than
Head office, BU can react to new threats & opportunities
more quickly.
Matrix Structure Of Organization
• A matrix organizational structure is a company structure in which the
reporting relationships are set up as a grid, or matrix, rather than in the
traditional hierarchy. In other words, employees have dual reporting
relationships - generally to both a functional manager and a product manager
Functions of the Controller
• Design and operate an information and control system
• Arrange financial reporting
• Develop and analyze performance reports, interpret for managers, and analyze program and
budget proposals from various segments of the organization and consolidate them into a
comprehensive annual budget
• Supervise internal audits and accounting control procedures to ensure the validity of
information
• Establish safeguards to prevent theft and fraud and carry out operational audits
• Develop personnel in the controller group and participate in the education of management
personnel in matters relating to the control function.

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Behavior in

• Management wants the organization to achieve organizational goals

• Individuals have personal goals

 Task Control Systems

 Actual results are compared with budget to

BU is designed to solve problems inherent in the

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