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Oleh :

F.X. Arief Poyuono/2010010362009

Program Pascasarjana Ilmu Komunikasi

Universitas Jayabaya

Jakarta2011

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Theory is: a plan or scheme existing in the

mind only, but based on principles verifiableby experiment or observation (Funk &Wagnalls page 1302

).

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Organizations are social entities that aregoal-oriented; are designed as deliberatelystructured and coordinated activity systems,and are linked to the external environment

(Daft, 2004).

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Organization theory: is the set ofpropositions (body of knowledge) stemmingfrom a definable field of study which can betermed organizations science(Kast&Rosenzweig1970).

The study of organizations: is an appliedscience because the resulting knowledge isrelevent to problem solving or decision

making in ongoing enterprises or institutions(Kast&Rosenzweig1970).

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Two things: Knowledge

Knowledge generated by practical experience andscientific research

Solving problems & managing resources(Kast&Rosenzweig1970).

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It is the application of scientific knowledge inengineering and other forms of technologythat has brought such spectacular changes inthe material context of our lives over the past

century (Kast&Rosenzweig1970).

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Management technology stems fromorganization theory and even more applied inthe sense that it focuses on the practice ofmanagement in ongoing organizations(Kast&Rosenzweig1970).

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Simplifying Assumptions: Firms viewed as an individual entrepreneur

Profit maximization

Rationality in achieving firm goals

Firms function is to transform inputs into outputs Staple environment in which firm operates

Concerned only with changes in prices andquantities of inputs and outputs

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Throughout history most managersoperated strictly on a trial-and-error basis

The management profession as we know ittoday is relatively new wide swings in management approaches over

the last 100 years

parts of each approach have survived and beenincorporated into modern perspectives onmanagement

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1890 1900 1910 1920 1930 1940 1950 1960 1970

Systematic

management

Administrative

management

Quantitative

management

Systems

theory

Current and

future revolutions

Scientific

management

Human

relations

Organizational

behavior

Bureaucracy

Classical Approaches Contemporary Approaches

Contingency

theory

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Industrial revolution minor improvements in management tactics

produced impressive increases in productionquantity and quality

- reductions in the average costof a unit of production as the total volume producedincreases

opportunities for mass production created by theindustrial revolution spawned intense andsystematic thought about management problems

and issues efficiency production processes cost savings

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Systematized manufacturing operations

Coordination of procedures and processes built into internaloperations

Emphasis on economical operations, inventory management,and cost control

Beginning of formal management in the United States

Promotion of efficient, uninterrupted production

Ignored relationship between an organization and itenvironment

Ignored differences in managers and workers views

Key concepts

Limitations

Contributions

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Advocated the application of scientific methods toanalyze work and to determine how to completeproduction tasks efficiently

Four principles develop a scientific approach for each element of ones

work scientifically select, train, teach and develop each worker cooperate with workers to ensure that jobs match plans

and principles ensure appropriate division of labor

Personalities Frederick W. Taylor Frank and Lillian Gilbreth Henry Gantt

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Used scientific methods to determine the one best way

Emphasized study of tasks, selection and training of workers,and cooperation between workers and management

Improved factory productivity and efficiency

Introduced scientific analysis to the workplace

Piecerate system equated worker rewards and performance

Simplistic motivational assumptionsWorkers viewed as parts of a machine

Potential for exploitation of labor

Excluded senior management tasks

Key concepts

Limitations

Contributions

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Emphasized the perspective of senior managers Five management functions

planning organizing

commanding coordinating controlling

Fourteen principles of management

Personalities Henri Fayol Chester Barnard Mary Parker Follet

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Fayols five functions and 14 principles of managementExecutives formulate the organizations purpose, secure

employees, and maintain communicationsManagers must respond to changing developments

Viewed management as a profession that can be trained anddeveloped

Emphasized the broad policy aspects of top-level managersOffered universal managerial prescriptions

Universal prescriptions need qualifications forenvironmental, technological, andpersonnel factors

Key concepts

Limitations

Contributions

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Aimed to understand how psychological andsocial processes interact with the worksituation to influence performance

Hawthorne Studies - workers perform and react

differently when researchers observe them

Argued that managers should stress primarilyemployee welfare, motivation, and

communication Personalities

Abraham Maslow

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Productivity and employee behavior are influenced by the

informal work group

Cohesion, status, and group norms determine output

Social needs have precedence over economic needs

Psychological and social processes influence performance

Maslows hierarchy of need

Ignored workers rational side and the formal organizationscontributions to productivity

Research overturned the simplistic belief that happy workersare more productive

Key concepts

Limitations

Contributions

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Bureaucratic structures can eliminate thevariability that results when managers in thesame organization have different skills,experiences, and goals

Allows large organizations to perform themany routine activities necessary for theirsurvival

People should be treated in unbiased manner Personalities

Max Weber

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Structured network of relationships among specialized positions

Rules and regulations standardize behavior

Jobs staffed by trained specialists who follow rules

Hierarchy defines the relationship among jobs

Promotes efficient performance of routine operations

Eliminates subjective judgment by employees and management

Emphasizes position rather than the person

Limited organizational flexibility and slowed decision makingIgnores the importance of people and interpersonal

relationships

Rules may become ends in themselves

Key concepts

Limitations

Contributions

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Teams of quantitative experts tacklecomplex issues facing large organizations

Helps management make a decision bydeveloping formal mathematical models ofthe problem

Personalities

military planners in World War II

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Application of quantitative analysis to management decisions

Developed specific mathematical methods of problem analysisHelped managers select the best alternative among a set

Models neglect nonquantifiable factors

Managers not trained in these techniques may not trust orunderstand the techniques outcomes

Not suited for nonroutine or unpredictable managementdecisions

Key concepts

Limitations

Contributions

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Promotes employee effectiveness through understanding of

individual, group, and organizational processes

Stresses relationships among employees, managers, and workperformed

Assumes employees want to work and can control themselves

Increased participation, greater autonomy, individual challengeand initiative, and enriched jobs may increase participation

Recognized the importance of developing human resources

Some approaches ignored situational factors, such as theenvironment and technology

Key concepts

Limitations

Contributions

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Organization is viewed as a managed systemManagement must interact with the environmentOrganizational goals must address effectiveness and efficiencyOrganizations contain a series of subsystems

There are many avenues to the same outcomeSynergies enable the whole to be more than the sum of theparts

Recognized the importance of the relationship between theorganization and the environment

Does not provide specific guidance on the functions ofmanagers

Key concepts

Limitations

Contributions

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Situational contingencies influence the strategies, structures,

and processes that result in high performance

There is more than one way to reach a goal

Managers may adapt their organizations to the situation

Identified major contingencies

Argued against universal principles of management

Not all important contingencies have been identified

Theory may not be applicable to all managerial issues

Key concepts

Limitations

Contributions

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Organizing for customer responsiveness (cont.) (TQM) - comprehensive

approach to improving quality and customersatisfaction

characterized by a strong orientation toward internal andexternal customers

involves people across departments in improving allaspects of the business

requires integrative mechanisms that facilitate groupproblem solving, information sharing, and cooperationacross business functions

- given to U.S. companies that achievequality excellence

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Create constancy of purpose

Dont tolerate delays or mistakes

Cease dependencies on mass inspection

Dont award business on price tag alone Constantly and forever improve the system of pro

Institute training and retraining

Institute leadership Drive out fear

Breakdown barriers among departments

Eliminate slogans, exhortations, and arbitrary targ

Eliminate numerical uotas

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Organizing for customer responsiveness(cont.) - a series of quality standards developed

by a committee working under the InternationalOrganization for Standardization intended to improve total quality in all businesses

companies that comply with standards entitled tocertification

- revolutionizes key organizationalsystems and processes based on a vision for how the organization should run

completely overhauls the operation in revolutionaryways

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DistributorsSuppliers

Brokers

ProducersDesigners

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Organizations are open systems affected by, and in turn affect, their external

environments

External environment all relevant forces outside a firms boundaries

- factors to which managers must pay attention

two elements comprise the external environment

- immediate environment

surrounding a firm - fundamental factors that generally

affect all organizations

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Laws and

politics

Economy

Technology

DemographicsSocial

values

MacroenvironmentCompetitive

EnvironmentOrganization

Suppliers

New

Entrants

SubstitutesRivals

Buyers

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The macroenvironmentmost general elements in the external

environment that can potentially influence

strategic decisionsall organizations are affected by the general

components of the macroenvironment

Laws and regulationsimpose strategic constraints and provide

opportunities

regulators - specific government

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The economy created by complex interconnections among

economies of different countries important elements include interest rates, inflation

rates, unemployment rates, and the stock market economic conditions change and are difficult to

predict

Technology creates new products, advanced production

techniques, and improved methods of managing andcommunicating strategies that ignore or lag behind competitors in

considering technology lead to obsolescence andextinction

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Demographics measures of various characteristics of the people

comprising groups or other social units age, gender, family size, income, education, occupation

workforce demographics must be considered informulating human resources strategies population growth influences the size and composition

of the labor force

immigration also is a significant factor increasing diversity of the labor force has both

advantages and disadvantages

must assure equal employment opportunity

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Social issues and the natural environment management must be aware of how people

think and behave

the role of women in the workplace

providing benefits for domestic partners ofemployees

protection of the natural environment

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Competitive environment comprises the specific organizations with which

the organization interacts

Michael Porter - defined the competitiveenvironment

successful managers:

react to the competitive environment; and

act in ways that actually shape or change thecompetitive environment

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Rival firms

New

entrants

Suppliers Customers

Substitutes

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Competitors competitors within an industry must deal with

one another

organizations must: identify their competitors

analyze how competitors compete

react to and anticipate competitors actions

competition is most intense: where there are many competitors

when industry growth is slow

when the product or service cannot bedifferentiated

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Threat of new entrants - influence the degree of threat

conditions that prevent new companies from

entering an industry include government policy, capital requirements,

and brand identification, cost disadvantages, anddistribution channels

Threat of substitutes technological advances and economic

efficiencies may result in substitutes for existingproducts

substitutes can limit another industrys revenuepotential

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Suppliers provide the resources needed for production

powerful suppliers can reduce an organizations

profits international labor unions are noteworthy

suppliers

dependence on powerful suppliers is a

competitive disadvantage power of supplier determined by:

availability of other suppliers from whom to buy

the number of customers for the suppliers products

- fixed costs buyers face if they

change suppliers

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Customers purchase the products or services the organization

offers

- purchase products in their final form

- buy raw materials or wholesaleproducts before selling them to final consumers

- giving customers what they want,the way they want it, the first time

disadvantageous to depend too heavily on powerfulcustomers

powerful customers make large purchases and/or haveother suppliers