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Management

OrganizationRini Novrianti Sutardjo Tui

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Definition of Organization

System

People

Coordination

Objective

Organization

A social entity which isconsciously coordinated with

an identifiable boundary, andworks continuously in orderto achieve one or severalobjectives. (Stephen P.Robbins).

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Organization as A System

Inputs Process Outputs

System

Several elements that interactwith each other within an

integrated unity and proceedsimultaneously towardscertain goal.

Environment

Environment

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Classic Theory

Strict rules Impersonal Objectivity High discipline

Bureaucracy Theory

Time and motion study Reward for good performance

Scientific ManagementTheory

Planning Organizing Staffing Directing Coordinating Reporting Budgeting

Administrative Theory

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Neo-classic Theory

Focused onhumanity, andlacking in other

factorsHuman-

relationapproach

Socialrelationship

affected workperformance

Workplacevs work

performance

EltonMayo

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Modern Theory

Woodward (1950)

Contingency Approach

Companys Success

Characteristicsof technology

Adaptationtoward

environment

Open System

Affects and beaffected by

surroundingenvironment

Openness andDependency onEnvironment

Form oforganization

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Environments

Industry

Rawmaterial

Labour

Finance

Market

Technology

Economiccondition

Government

Culture

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Uncertainties of Environment

LowUncertainty

Few elements

No/slow change

HighUncertainty

A lot of elements

No/slow change

High

Uncertainty

Few elements

Constantly change

High

Uncertainty

A lot of elements

Constantly change

Unstable

Stable

ComplexSimple

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Effectiveness of Organization

Effectiveness

RationalGoal

HumanRelation

OpenSystem

InternalProcess

Effectiveness

Success rate of anorganization in achievingvarious success criteria, i.e.target fulfillment, ability to

satisfy the stakeholders,ability to keep organizationssustainability.

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Rational Goal Model

RationalGoal

Classic theories

Measuring

effectiveness:target

accomplishment

Goalformulating,

planning,evaluating, and

productivityAdvantage:

success

assessment isbased on

organizationswish

Disadvantage:lack of objectivity

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Human Relation Model

Study by Hawthorne

Measuring effectiveness: behaviour and certain

attitude of individuals

Leadership, employees morale, HR development

Advantage: humanity, employees are not only asone of production factors

Disadvantage: too concern over human aspectstherefore lack of macro-organization

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Open System Model

Open System

Wexley andYukl

Mintberg

Measuringeffectiveness:

favourable

ratio betweeninput andoutput

Relationshipbetween

organization

and itsenvironment

Advantage:more

comprehensive

than othermodels

Disadvantage:hard to be

implementedin reality since

relationship

betweenorganizationand

environmentis complex

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Internal Process Model

Hellriegel andSlocum

Galbraith

Measuringeffectiveness:perception ofparticipants

Informationprocessing and

decision making

Advantage:evaluating the

process rather thanthe final result

Disadvantage:difficulties in identify,measure, and report

organizations internalprocesses

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Competing Values Framework

Ends:Productivity,

efficiency Means: Planning,

goal setting

Ends: Stability,control

Means:Informationmanagement,

communication

Ends: Growth,resource

acquisition Means:

Flexibility,readiness

Ends: Humanresourcedevelopment

Means: Morale

Human

RelationModel

Open

SystemModel

RationalGoal Model

Internal

ProcessModel

Flexibility

Control

ExternalInternal

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Life Cycle of Organization

Entrepreneurial

Collectivity

Formalizationand Control

Elaboration ofStructure

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Principles of Organization

Organization

Vision,mission,objectives Divisio

ning

Job

description

Coordination

Delegating

Spanof

control

Hierarchy

Unityof

command

Flexibility

Sustainability

Balance

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