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Chapter Two

Strategy, Organization Design,


and Effectiveness

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

2-1

Top Management Role in Organization


Direction, Design, and Effectiveness
External Environment
Organization
Design

Opportunities
Threats
Uncertainty
Resource Availability

Strategic Management
CEO, Top
Management
Team

Define
mission,
official
goals

Internal Environment
Strengths
Weaknesses
Distinctive competence
Leadership Style
Past Performance
Source: Adapted from Arie Y. Lewin and Carroll U. Stephens,
Individual Properties of the CEO as Determinants of Organization
Design, unpublished manuscript, Duke University, 1990; and Arie Y. Lewin
and Carroll U. Stephens, CEO Attributes as Determinants of Organization Design:
An integrated Model, Organization Studies 15, no. 2 (1994): 183-212

Select
operational
goals,
collaborative
strategies

Structural Form
learning vs.
efficiency
Information and
control systems
Production
technology
Human resource
policies,
incentives
Organizational
culture
Interorganizational
linkages

Effectiveness
Outcomes
Resources
Efficiency
Goal attainment
Stakeholders
Competing values

2-2

Goal: a desired state of affair an


organization attempts to reach
Official goals: an outcome that an
organization states it is trying to achieve
Official goals are typically vaque,
describing a value system

2-3

Goals define where the organization wants


to go
Strategy: plan for interacting with the
competitive environment to achieve
organizational goals (how it will get there)

2-4

Goal Type and Purpose


Type of Goals

Purpose of Goals

Official Goals, mission:

Legitimacy
(pertimbangan seseorang
utk memasuki organisasi)

Operative goals:

Employee direction and motivation


Decision guidelines
Standard of performance
2-5

Operative goal an end sought through the


actual operating procedures of the
organization
Operative goal more concrete, short term,
what the organization is actually trying to do
6

Vision
An attractive, ideal future that is
credible yet not readily available

Common Themes of Vision

Vision has broad appeal


Vision deals with change
Vision encourages faith and hope
Vision reflects high ideals
Vision defines the destination and the journey

Ex. 13.3 The Nature of


the Vision

Mo
vin
g to
wa
rd a

des
ire
d

fut
u re

Vision

Current reality

Staying the course

Ex. 13.2 Examples of Brief Vision


Statements (selected)
Motorola
Become the premier company in the world

Ritz-Carlton (Amelia Island) Engineering Dept.


Where no hotel has gone before free of all defects

Johnson Controls Inc.


Continually exceed our customers increasing expectations

New York City Transit


No graffiti

Egon Zehnder
Be the worldwide leader in executive search
10

Mission
The organizations core broad
purpose and reason for
existence

11

Hallmarks Mission Statement


THIS IS HALLMARK

We believe:
That our products and services must enrich peoples lives and enhance their
relationships.
That creativity and quality in our concepts; products and services are essential to
our success.
That distinguished financial performance is a must, not as an end in itself, but as a
means to accomplish our broader mission.
That our private ownership must be preserved.
The values that guide us are:

Excellence in all we do
Ethical and moral conduct at all times and in all our relationships
Innovation in all areas of our busienss as a means of attaining and sustaining
leadership
Corporate social responsibility to Kansas City and to each commu nity in which we
operate
2-12

Types of Operative Goals


Performance (profitability, growth, amount of
services delivered)
Resources (obtain financing, research grant)
Market (increase market share)
Employee Development
Innovation (develop new products)
Productivity (cost per unit produced, unit
produced per employee)

2-13

Characteristics of Effective
Goal Setting
Goal Characteristics
Specific and measurable
Cover key result areas
Challenging but realistic
Defined time period
Linked to rewards
2-14

Management in
Organizations
Human resources
Financial resources
Physical resources

Planning &
decision
making

Organizing

Inputs from the environment

Information resources

Goals attained

Controlling

Efficiently
Effectively

Leading

2-15

Strategic Management
Strategy refers to the techniques used by an

organization to reach its goals


A way of approaching business opportunities
and challenges.
A comprehensive and ongoing management
process aimed at formulating and implementing
effective strategies which align the organization
with its environment to achieve major
organizational goals.
2-16

Study Guide

The Nature of Strategic Management


Porters Five Forces Model of Competition
SWOT Analysis
Formulating and Implementing Business-Level Strategies
Porter's Generic Strategies
The Miles and Snow Typology

Formulating and Implementing Corporate-Level Strategies

Diversification
Managing Diversification
The BCG Matrix
The GE Business Screen
2-17

1.

Types of Strategic Alternatives

Corporate-level Strategy

The set of strategic alternatives that an organization


chooses from as it manages its operations simultaneously
across several industries and several markets.

2. Business-level Strategy
How the organization conducts business in a particular
industry.
3.

Functional-level Strategy
Strategy developed for specific functional areas
such as marketing, finance, and so forth.

2-18

Levels of Strategy-Making
Corporate
Strategy

Business
Strategies

Functional
Strategies
2-19

Five Forces Model of Competition


Substitute Products
(of firms in
other industries)

Suppliers of
Key Inputs

Rivalry
Among
Competing
Sellers

Potential
New
Entrants

Buyers

2-20

Porters Five Competitive Forces


1.

Threat of new entrants

2.

Extent to which new competitors can enter market

Competitive rivalry

Competitive rivalry between established firms in industry

3. Threat of substitute products


Extent to which alternative products/services from other industries
may appeal to your customers
4. Power of buyers
Extent to which buyers influence market rivals
5. Power of suppliers
Extent to which suppliers influence market rivals

2-21

SWOT
Analysis

Mission
An organizations fundamental purpose

SWOT Analysis
To formulate strategies that support the mission

Strengths
Weaknesses
Opportunities
Threats

Internal Analysis
Strengths
(distinctive
competencies)
Weaknesses

External Analysis
Opportunities

Threats

Good Strategies
Those that support the mission and:
exploit opportunities and strengths
neutralize threats
avoid weaknesses

2-22

Formulating Business-Level Strategies

Porters Generic Strategies


1. Differentiation strategy

An organization seeks to distinguish itself from competitors


through the quality of its products or services. Developing
an image perceived as unique

2. Overall cost leadership strategy


An organization attempts to gain competitive advantage by
reducing its costs below the costs of competing firms.

3. Focus strategy
An organization concentrates on a specific regional market,
product line, or group of buyers.

2-23

Porters Competitive Strategies


Strategy
Low-cost
Leadership

Differentiation

Focus

Organizational Characteristics

Strong central authority; right cost control


Standard operating procedures
Easy-to-use manufacturing technologies
Highly efficient, procurement and distribution systems
Close supervision; limited employee empowerment
Frequent, detailed control reports
Acts in an organic, loosely-knit way, with strong coordination among
departments
Creative flair, thinks out-of-the-box
Strong capability in basic research
Strong marketing abilities
Rewards employee innovation
Corporate reputation for quality or technological leadership
Combination of above policies directed at specific strategic target
Values and rewards flexibility and customer intimacy
Measures cost of providing service and maintaining customer loyalty
Pushes empowerment to employes with customer contact

2-24

Strategi bersaing dari Michael Porter.


Cost leadership strategy : Efisiensi operasi, economies of scale, inovasi
tehnologi, biaya buruh rendah. Struktur : kompleksitas tinggi,
sentralisasi, formalisasi tinggi. Low-cost provider.
Low prices while appealing to many people
Overall Cost Leadership
Wal-Mart
Alamo Rent-A-Car
Timex

2-25

1)

Porters Generic Strategies


Examples
Diffrentiation
strategy : kualitas, inovatif, brand image. Struktur :

desentralisasi , formalisasi rendah, kompleksitas rendah.


Broad differentiation strategy
Differentiation from competitors while appealing to a lot of potential buyers

Differentiation
Nordstroms
Maytag
Rolex

2-26

Strategy
Porters model Focus strategy , bertujuan
memperoleh keunggulan dalam biaya atau
difrensiasi pada segmen yang sempit.
Focus
Gucci
Polaroid
Alfa Romeo

2-27

Strategy
Porters model
Focused or market niche strategy based on lower
cost
Low cost product to a select group of customers
Focused or market niche strategy based on
differentiation
Niche product or service customized to a narrow
market segment
2-28

Porters Competitive Strategies


Competitive Competitive
Scope
Emphasis
Broad
Broad
Narrow
Narrow

Strategy

Example

Low-Cost
Leadership

GoFly Ltd.

Uniqueness

Differentiation

Starbucks
Coffee Co.

Low Cost

Focused Low-Cost
Leadership

Enterprise
Rent-a- Car

Uniqueness

Focused
Differentiation

Edward Jones
Investments

Low Cost

2-29

Miles and Snow Typology


Reactor

Little consideration of
environment; drift with
little concern for
strategy
Prospector
Stress innovation and
growth; seek new
opportunities

Dynamic, growing
environment
characterized
by high uncertainty
and risk

Analyzer
Stress maintenance of
status quo with moderate
innovation and growth

Moderately stable
environment with
some uncertainty
and risk

Defender
Stress stability,
conservatism, and
maintenance of status
quo
Very stable
environment with
little uncertainty
and risk
2-30

Miles and Snow Typology


Examples
Defender:

McDonalds
Prospector:

Reebok International, Mrs. Fields


Analyzer:

Procter & Gamble (Crest), Starbucks


Reactor:

W.T. Grant
2-31

Miles and Snows


Strategy Typology

Prospector

Learning orientation; flexible, fluid, decentralized structure


Strong capability in research
Values creativity, risk-taking, and innovation

Dynamic environment
Prospector, menemukan dan mengeksploitasi

produk baru dan peluang pasar. Strukturnya :


desentralisasi, formalisasi rendah, rutinisasi
dan mekanisasi yang rendah.
2-32

Defender
Efficiency orientation; centralized authority and tight cost
control
Emphasis on production efficiency, low overhead

Close supervision; little employee empowerment


Stable and predictable environment
Low cost value prop
Defender, mencari stabilitas, dengan hanya memproduksi
sejumlah produk terbatas.
Dimensi struktur : diffrensiasi horizontal tinggi, sentralisasi.
2-33

Miles and Snows


Strategy Typology (contd)

Analyzer
Balances efficiency and learning; tight cost control with
flexibility and adaptability
Efficient production for stable product lines; emphasis on
creativity, research, risk-taking for innovation

Combination of defender and prospector


Scan competitors and develop better ways to do things
Analyzers, meminimalkan resiko dan memaksimalkan untuk memperoleh
laba -> fleksibilitas dan stabilitas.
Struktur bagian tertentu : standarisasi, rutinisasi dll,
sedangkan yg lain adaptif, fleksibilitas.
2-34

Strategy

Reactor
No clear organizational approach; design characteristics may shift
abruptly depending on current needs

No strategy
Ineffective

Reactors, untuk strategi yang tidak jelas.


2-35

Formulating Corporate-Level Strategy


Diversification

Related Diversification: When an organization operates


several businesses that are linked to one another.
Unrelated Diversification: When an organization
operates several businesses that are not associated.

2-36

Managing Diversification

Portfolio management techniques


BCG Matrix
GE

2-37

BCG Matrix*
High
Market Growth Rate

Stars

Question
Marks

Cash
Cows

Dogs

Low
High

Relative Market Share

Low

* Adapted by permission of The Boston Consulting Group, Inc.


38

Industry Attractiveness

The GE Business Screen


High
Medium
Low

Winner

Winner

Winner

Average
business

Profit
producer
Good

Question
mark
Loser

Loser

Loser

Medium

Poor

Competitive position

Source: From Strategy Formulation: Analytical


Concepts, by Charles W. Hofer and Dan
Schendel. Copyright 1978 West Publishing. Used
by permission of South-Western College
Publishing, a division of International Thomson
Publishing, Inc., Cincinnati, Ohio, 45227.

Competitive position

Industry attractiveness

1. Market share
2.Technological KH
3.Product quality
4.Service network
5.Price competitiveness
6.Operating costs

1. Market growth
2.Market size
3.Capital requirements
4.Competitive intensity
2-39

Strategies for Excellence

Strategic Orientation

Close to customer
Fast response
Clear business focus

2-40

Strategies for Excellence

Top Management

Leadership vision
Bias toward action
Foundation of core values

2-41

EFFEKTIVITAS ORGANISASI
Efektivitas Organisasi :
Tingkat keberhasilan organisasi dalam usaha
mencapai tujuan / sasarannya
Efisiensi Organisasi :
Banyaknya input / sumber yang diperlukan
oleh organisasi untuk menghasilkan satu
satuan output

2-42

Organizational Effectiveness
Essential tasks of top management are:
Adapt to external environment
Efficient process
Satisfied employees
Sell products

2-43

ORGANIZATIONAL
EFFECTIVENESS
MEETING ORGANIZATIONAL OBJECTIVES AND
PRVAILING SOCIETAL EXPECTATIONS IN THE
NEAR FUTURE, ADAPTING AND DEVELOPING IN
THE INTERMEDIATE FUTURE, AND SURVIVING
IN THE DISTANT FUTURE.
2-44

Strategies for Excellence

Organization Design

Simple form, Lean Staff


Decentralization
Balanced measurement and control

2-45

Strategies for Excellence

Corporate Culture

Climate of trust
Productivity through people
Long-term view

2-46

Contingency Factors
Affecting Organization Design
Envir
o

nmen

Technology

Size/
Life C
ycle

gy
e
t
tr a

Cul
tur
e

Organizational Structure and Design

The right mix of design characteristics fit the contingency factors


2-47

Contingency Approaches to the


Measurement of Organizational Effectiveness
External Environment
Organization
Resource
Inputs

System
resource
approach

Internal
activities
and
processes

Internal
process
approach

Product and
Service
Outputs

Goal
approach
2-48

Organizational Effectiveness

External Resource Approach: Control


Internal Systems Approach: Innovation
Technical Approach: Efficiency

2-49

EFFECTIVENESS and SYSTEMS

EFFECTIVENESS MEASURE
System Resource
Internal Process
Goal

SYSTEM COMPONENT
INPUTS
PROCESS
OUTPUTS

2-50

APPROACHES TO MEASURING
ORGANIZATIONAL EFFECTIVENESS

Goal Approach: Effectiveness is the ability to excel at


one or more output goals, to achieve its operating
goals.
Internal Process Approach: Effectiveness is the
ability to excel at internal efficiency, coordination,
motivation, and employee satisfaction.
System Resource Approach: Effectiveness is the
ability to acquire scarce and valued resources from the
environment.
2-51

Pendekatan Tujuan :
Identifikasi tujuan aktual & mengukur keberhasilan organisasi dalam
mencapai sasaran tersebut. Appropiate for profit organization
Permasalahan:
Banyak macam output organisasi, tiap bagian mempunyai jenis output
sendiri (multiple & conflicting) ex profit (return to stockholers) vs
market share
Goals not always easy to identify & to measure, especially for not for
profit organization ex public safety as a police department goal
pandangan pimpinan berbeda (subjektif) tentang penting nya dan
prioritas setiap jenis output tujuan

2-52

Flow Charts of Approaches to


Organizational Effectiveness
Goal Approach

INPUTS

TRANSFORMATION

OUTPUTS

GOAL APPROACH

2-53

Approaches to Measuring Organizational Effectiveness


Goal approach

Description

Evaluates the
organizations ability
to convert skills and
resources into
goods and services
efficiently

Goals to set to
measure effectiveness

Increase sales
Reduce number of defects
Increase market share
Improve customer service
Reduce delivery time to
customer

2-54

Reported Goals
of U.S. Corporations
Goal

% Corporations

Profitability
Growth
Market Share
Social Responsibility
Employee welfare
Product quality and service
Research and development
Diversification
Efficiency
Financial stability
Resource conservation
Management development
Source: Adapted from Y. K. Shetty, New Look at Corporate Goals,
California Management Review 22, no. 2 (1979), pp. 71-19.

89
82
66
65
62
60
54
51
50
49
39
35
2-55

Pendekatan Proses (Internal


Process Approach)
Memandang efektivitas sebagai tingkat efisiensi proses
internal yang berjalan lancar
Tidak memperhatikan lingkungan, fokus perhatian pada
internal organisasi khususnya human relation, hubungan
efektivitas dengan suasana kerja

2-56

PENDEKATAN PROSES
Kriteria:

Perhatian atasan terhadap bawahan


Semangat kerjasama, loyalitas kelompok kerja
Desentralisasi pengambilan keputusan
Adanya komunikasi dan saling percaya antara atasan bawahan
Komunikasi vertikal & horizontal yang lancar dalam organisasi
Adanya keinginan seluruh anggota organisasi untuk mencapai tujuan
Adanya imbalan untuk meransang munculnya kelompok kerja yang
efektif
Adanya kerjasama antara bagian secara baik dan penyelesaian konflik
dengan acuan kepentingan organisasi
2-57

Flow Charts of Approaches to


Organizational Effectiveness
Internal Process Approach

INPUTS

TRANSFORMATION

OUTPUTS

INTERNAL PROCESS APPROACH

2-58

Approaches to Measuring Organizational Effectiveness


Internal systems approach

Description
Evaluates the
organizations ability
to function efficiently
and to care for
human resources

Goals to set to
measure effectiveness
Greater outputs for a given
input [I/O]
Strong work culture
Team spirit
Undistorted communication
Confidence between workers
and management

2-59

Pendekatan Sumber Daya (System


Resources Approach)
Mengukur efektivitas melalui keberhasilan
organisasi dalam mendapatkan berbagai sumber
yang dibutuhkannya terutama yang langka (mahal)
dari lingkungan
Keterbukaan organisasi terhadap lingkungannya

2-60

PENDEKATAN SUMBER DAYA

Kriteria:
Kemampuan beradaptasi terhadap lingkungan
Kemampuan menghasilkan output dengan menggunakan
sumber-sumber yang berhasil diperoleh
Kemampuan memelihara kegiatan operasional

2-61

Flow Charts of Approaches to


Organizational Effectiveness
System Resource Approach

INPUTS

TRANSFORMATION

OUTPUTS

SYSTEM RESOURCE APPROACH

2-62

Approaches to Measuring Organizational Effectiveness


System resource approach

Description

Goals to set to
measure effectiveness
Obtain high-quality inputs of
raw materials and employees

Evaluates the
organizations ability
to secure, manage,
and control scarce
and valued skills
and resources

Gain support of stakeholders


such as government or
environmentalists
Survive

2-63

Pendekatan Gabungan
Setiap pendekatan mempunyai kelemahan, sehingga
muncul pemikiran untuk menggunakan pendekatan
gabungan
Kelemahan suatu pendekatan bisa ditutuap oleh
kelebihan pendekatan lainnya

Pendekatan Integratif
Pendekatan sebelumnya, masing-masing hanya melihat
satu aspek saja muncul pendekatan integratif
2-64

Dasar pemikiran
Organisasi melakukan macam-macam kegiatan & memiliki
berbagai jenis output sehingga perlu pengukuran efektivitas
dengan banyak kriteria (integratif)

Pendekatan:
Pendekatan Constituency

Pendekatan bidang Sasaran (Goal Domain) Kerangka


Ketergantungan (Continguency)
2-65

Flow Charts of Approaches to


Organizational Effectiveness
Constituency Approach

INPUTS

TRANSFORMATION

STRATEGIC CONSTITUENCIES APPROACH

OUTPUTS

2-66

Pendekatan Konstituensi
Strategis
Organisasi akan efektif apabila dpt
memenuhi tuntutan dari konstituen yg
terdapat dlm lingk. Orgz tsb.
Organisasi diartikan sbg arena politik
tempat kelompok2 yg berkepentingan,
bersaing mengendalikan sumber daya.

2-67

Tabel kriteria EO yg Khas dr Konstituensi Strategis


Konstituesi

Kriteria EO yang khas

Pemilik

Laba atas investasi pertumbuhan penghasilan

Pegawai

Kompensasi tunj,tambahan, kepuasan pd kondisi kerja

Pelanggan

Kepuasan thd harga, kualitas pelayanan

pemasok

Kepuasan thd pembayaran, potensi dar penjualan masa


datang

Kreditur

Kemampuan untuk membayar hutang

Serikat Buruh

Upah dan tunj. Yg bersaing,, kondisi kerja yg


memuaskan, kesediaan u/ melak. Tawar menawar yg fair

Pejabat Masyarakt

Keikutsertaan pr anggota orgz. Dlm masalah lokal, td ada


kerusakan pd lingkungan.

Lembaga
pemerintah

Tunduk pd hukum, menghindari denda dan teguran.


2-68

OE Criteria for Selected


Constituencies
Constituency

Typical Criteria

Owners
Return on Investment; growth in earnings
Employees
Compensation; fringe benefits; job satisf.
Customers
Satisf. w/price, quality, service
Suppliers
Satisf. w/payments, future sales
Creditors
Satisf. w/debt payments
Unions
Satisf. w/competitive wages & benefits;
satif. working conditions, fairness in
bargaining
Local Communities Involvement in local affairs; environmental
damage
Government Agencies
Compliance w/laws, avoidance of penalties

2-69

Pendekatan konstituensi
strategis
Ukuran efektif apabila dapat memenuhi tuntunan dari
konstituensi yang terdapat dalam lingkungan organisasi,
yaitu konstituensi yang menjadi pendukung
keberlanjutan organisasi tersebut.
Asumsi : bahwa organisasi dianggap sebagai arena
politik
Yang termasuk dalam Konstituensi strategis : -> dominat
coalition
Pemilik, pegawai. Pelanggan , pemasok, serikat pekerja,
pejabar masyarakat dll.

2-70

SATISFYING STAKEHOLDERS
Minimal satisfaction of all groups
Different groups may have competing goals
Stakeholder groups have stakeholders, too
How to allocate rewards (inducements)
How to manage stakeholder interests

2-71

C
Approach

OMPARISON OF THE

F OE A
OUR

PPROACHES

Definition

An organization is effective
to the extent that:
it accomplishes its stated goals

Goal attainment

measurable
System Resource

it acquires needed resources


and outputs

Constituencies

all strategic constituencies


powerful
are at least minimally
organization,
satisfied

When Used

goals are clear, time


bound and
a clear connection exists
between inputs
constituencies have
influence on the
and the organization must
respond to demands

Internal Processes

combines internal efficiency


costs, outputs &
satisfaction
and affective health
are easily measurable

2-72

Pendekatan Nilai-Nilai Bersaing


Menawarkan kerangka kerja inegratif dari
seluruh variabel utama yg slg berhubungan.
Tidak ada tujuan tunggal yg disepakati o/ semua
orang
Ada 3 kumpulan dasar mengenai nilai2 bersaing ;
1. Fleksibilitas vs kontrol
2.Ada hub dgn apa penekanan hrs ditempatkan pd
kesejahteraan dan pengemb. Manusia
3. Berhubungan dgn cara vs tujuannya.

2-73

Fleksibilitas (F)

Cara (M)

Manusia(P)

Organisasi (O)

Tujuan (E)

Pengawasan

2-74

Fleksibilitas

HUMAN RELATION MODEL

OPEN SYSTEM MODEL

PFE
OFM
PFM
OFE

Manusia

ORG

PCM

INTERNAL PROCESS MODEL

OCE

OCM

PCE

RATIONAL GOAL MODEL


Pengawasan

2-75

Dimensions of Effectiveness
Structure
Flexibility

I
Focus

II

Internal

External

III

IV
Control

2-76

Four Models of
Effectiveness Values
STRUCTURE
Flexibility

Human Relations Model Open Systems Model


Goal values: human resource
development
Subgoals: cohesion, morale, training

F
O Internal
C
Internal Process Model
U
Goal values: stability, equilibrium
S
Subgoals: information management,
communication
Adapted from Robert E. Quinn and John Rohrbaugh,
A Spatial Model of Effectiveness Criteria: Toward a
Competing Values Approach to Organizational Analysis,
Management Science 29 (1983): 363-377; and Robert E. Quinn
and Kim Cameron, Organizational Life Cycles and Shifting
Criteria of Effectiveness: Some Preliminary Evidence,
Management Science 29 (1983): 33-51.

Goal values: growth,


resource acquisition
Subgoals: flexibility, readiness,
external evaluation

External

Rational Goal Model


Goal values: productivity, efficiency,
profit
Subgoals: planning, goal setting

Control
2-77

Competing Values Dimensions I


Focus: whether dominant values concern issues that
are
internal to the organization or external to it.

Internal focus reflects management concern for wellbeing


and efficiency of employees. External focus reflects an
emphasis on the well-being of the organization itself
and its
fit with its environment.
2-78

Competing Values Dimensions II


Structure: whether stability versus flexibility is
the
dominant structural consideration.

Stability reflects a management value for


efficiency
and top-down control, while flexibility
represents
a management value for learning and change.
2-79

Competing Values
Four different opposing value sets within the
organization. Exist simultaneously, and the
right balance for the organization is subject
to managerial discretion.
Emphasis may change over time, especially as the
organization evolves through its life cycle.
Examples: hospitals, airlines
2-80

Four Models of Effectiveness


Quadrant I : Human Relations Model internal
Focus and flexible structure. Management
concern is on the development of human
resources. Employees are given opportunities
for autonomy and development. Management
works toward sub-goals of cohesion, morale, and
training opportunities. Organizations using this
are more concerned with employees than the
environment.
2-81

Four Models of Effectiveness


II

Quadrant II: Open Systems Model Combination


of external focus and flexible structure.
Managements goals are primarily growth and
resource acquisition. Sub-goals are flexibility,
readiness, and positive evaluation by the external
environment. Dominant value is establishing
a good relationship with the external environment
to grow and acquire resources. Similar to the
Systems Resource Model.
2-82

Four Models of Effectiveness III


Quadrant III: Internal Process Model Reflects
the values of internal focus and structural
control. Seeks a stable organizational setting that
maintains itself in an orderly way. Well
established in environment and just wish to keep
their current position. Sub-goals include
mechanisms for efficient communication,
information management, and decision-making.

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Four Models of Effectiveness IV


Quadrant IV: Rational Goal Model Reflects
Management values of structural control and
external focus. Primary goals are productivity,
efficiency, and profit. Organization wants to
achieve output goals in a controlled way.
Sub-goals include internal planning and
goal-setting, which are rational management
tools. Similar to the Goal Approach .

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Effectiveness Values
for Two Organizations
STRUCTURE
FLEXIBILITY

Human Relations
Model

F
O
C
U
S

INTERNAL

Open Systems
Model

ORGANIZATION
A

Internal Process
Model

ORGANIZATION
B

EXTERNAL

Rational Goal
Model

CONTROL

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Workbook
Activity

Identifying Company
Goals and Strategies
Goals from
Exhibit 2.8

Strategies
from Porter

Company #1
Company #2
Company #3
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Workshop
Activity

Competing Values and


Organizational Effectiveness

Goal or
subgoal

Performance
Gauge

(Example)
Equilibrium

Turnover
rates

How to
measure
Compare
percentages
of workers
who left

Source of
data

What do you
consider
effective?

HRM files

25%
reduction in
first year

1
Open
System

2
3

Human
Relations

4
5

Internal
Process

6
7

Rational
Goal

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Efektivitas didefinisikan sebagai sejauhmana


sebuah organisasi mewujudkan tujuantujuannya
EO didefinisikan sebagai tingkat pencapaian
organisasi atas tujuan jangka pendek dan
tujuan jangka panjang.
Pilihan definisi mencerminkan konstituensi
strategis, minat mengevaluasi dan tingkat
kehidupan organisasi

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30 Kriteria tentang Efektivitas Organisasi (menurut John P. Campbell).

Efektivitas keseluruhan
Produktivitas
Efisiensi
Laba
Kualitas
Kecelakaan
Pertumbuhan
Kemangkiran
Labour turn over
Kepuasan karyawan
Motivasi
Moral/semangat kerja
Kontrol
Konflik/solidaritas
Fleksibilitas/penyesuaian
Perencanaan dan penetapan tujuan

Konsensus tentang tujuan


Internalisasi tujuan organisasi
Ketrampilan interpersonal manajerial
Ketrampilan manajerial
Manajemen informasi dan komunikasi
Kesiapan
Pemantapan lingkungan
Evaluasi pihak luar
Stabilitas
nilai sumber daya
Partisipasi dan pengaruh yang digunakan
Penekanan pada pelatihan dan
pengembangan
Penekanan pada kinerja

2-89

4 Pendekatan yang digunakan dalam


pengukuran efektivitas organisasi
1. Pendekatan pencapaian tujuan (goal attainment),
menganggap bahwa EO harus dinilai sehubungan dengan
pencapaian tujuan akhir daripada caranya
2. Pendekatan sistem, memfokuskan pada cara-cara yaitu
kemampuan untuk memperoleh masukan,memproses
masukan tersebut, keluaran atau output dan
mempertahankan stabilitas dan keseimbangan di dalam
sistem

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3. Pendekatan konstituensi strategis, EO diukur


dari kemampuan untuk memuaskan individu,
kelompok, serta lembaga yang menjadi tempat
kelangsungan kegiatan organisasi tersebut.
4. Pendekatan nilai-nilai bersaing. Kriteria EO
dikelompokkan menjadi 4 model dan masingmasing didasarkan suatu nilai yang paling
disukai sesuai dengan daur hidup organisasi
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Pendekatan pencapaian tujuan (goal


attainment)
Asumsi : -> SMART
1.
Organisasi harus mempunyai tujuan akhir
2.
Tujuan harus diidentifikasi dan dan harus jelas
3.
Tujuan harus sedikit dan jelas
4.
Harus ada konsensus mengenai tujuan-tujuan tersebut
Contoh pelaksanaan : Management by Objectives (MBO)

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Pendekatan sistem
Asumsi :
1.organisasi terdiri dari sub-sub bagian yang
saling berhubungan
2. Keberhasilan organisasi ditentukan dari
semua sub sistem yang ada dalam
organisasi

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Pendekatan nilai-nilai bersaing


Fleksibilitas
HUMAN RELATIONS
MODEL

OPEN SYSTEMS MODEL

Tujuan

Organisasi

RATIONAL-GOAL
MODEL

INTERNAL-PROCESS
MODEL

Pengawasan
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Approaches to Measuring Org.


Effectiveness, continued
Constituency Approach: Effectiveness is
the ability to satisfy multiple strategic
constituencies both within and outside the
organization.
Domain Approach: Effectiveness is the
ability to excel in one or more among
several domains as selected by senior
managers.

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