MANAGEMENT

CONTROL SYSTEM
2ND SESSION

BEHAVIOR IN
ORGANIZATION

Behavior in Organization

Key elements in organizational behavior

People

Environment

Environment

Organization

Structure

Technology
Environment

Behavior in Organization

Management Control is the process by

which managers influence other
members of the organization to
implement the organizations strategies.
Management Control System influence
human behavior.
Good management control systems
influence behavior in a goal congruent
manner.

The Nature of People

Individual difference
Perception
A whole person
Motivated behavior
Desire for involvement
Value of the person ( ethical treatment)

Motivational Drives
( David C McClelland)

Achievement motivation

Affiliation

A drive to relate to people effectively

Competence

A drive to overcome, accomplish objectives, and

get ahead.

A drive to do high quality work and develop ones

skill

Power

A drive to influence people and situation

A Model of Motivation
Environme
nt
Needs &
drive

Opportunit
y
Tension

Effort

Goals &
incentives

Need satisfaction

Performan
ce

Ability

Rewards

Maslows Hierarchy of
Needs

Self
Actualization
Needs
Esteem needs
Belongingness
needs
Safety and
security needs
Physiological
needs

Goal Congruence

Organizations goals versus Individual

goals
Formal system and informal process
influence
human
behavior
in
organization , they affect the degree to
which goal congruence can be achieved.
Formal mechanisms must be consistent
with informal forces, both a key role in
achieving goal congruence.

Goals

Corporate goals are determined by the CEO of the

corporation and usually ratified by Board of Directors or
the goals originally set by founder.

Founde
r

GOALS
Board
of
Directo
r

Satisfacto
ry profit
ROI
Revenue
Compan
y size

Profitabilit
y

Risk

Shareholder
Value

Informal Factors
External
factors
Work ethic
Internal
factors
Culture
Mgt style
Informal
organization
Perception &
communicati
on

Human
behavior

Goals

Action

Congruence

Mgt
contro
l

Culture

The common beliefs, shared values, norms of

behavior , and assumptions that are implicitly
accepted and explicitly manifested throughout the
organization.
Culture is the most important internal factor in the
organization.
Organizational culture is also influenced strongly
by personality and policies of the CEO, and by
those lower level managers with respect to the
areas they control,.
The rules and norms accepted by union also have
a major influence on the organizations culture.

Corporate Culture

Stephen P Robin ( Organizational

Behavior )

Budaya perusahaan adalah sekumpulan

sistem nilai yang diakui dan dibuat oleh
semua anggotanya yang membedakan
perusahaan yang satu dengan yang lainnya.

Deal and Kennedy ( Corporate culture )

Budaya perusahaan adalah nilai inti sebagai

esensi falsafah perusahaan untuk mencapai
sukses yang didukung semua warga
organisasi dan memberikan pemahaman
bersama tentang arah bersama dan menjadi
pedoman perilaku mereka sehari-hari.

Corporate Culture

Unsur-unsur budaya perusahaan :

Asumsi dasar atau pedoman perilaku,
Keyakinan yang dianut bersama,
Pemimpin pencipta budaya
organisasi/perusahaan
Pedoman perilaku dalam mengatasi masalah,
Sistem nilai atau nilai-nilai yang dianut,
Lingkungan internal dan eksternal,
Pewarisan dan penyesuaian.

Corporate Culture

Karakter budaya organisasi/perusahaan

Inisiatif individual
Tindakan terhadap tindakan berisiko
Pengarahan,
Integrasi,
Dukungan manajemen,
Kontrol,
Identitas,
Sistem imbalan,
Toleransi terhadap konflik,
Pola komunikasi.

__________
Sumber : Stephen P Robin dalam Organizational Behavior

Corporate Culture

Fungsi utama Budaya Organisasi/Perusahaan

Sebagai batas pembeda terhadap lingkungan, organisasi maupun kelompok

lain,
Sebagai perekat bagi karyawan dalam suatu organisasi,
Mempromosikan stabilisasi sistem sosial,
Sebagai mekanisme kontrol dan dalam memadu dan membentuk sikap serta
perilaku karyawan,
Sebagai integrator,
Membentuk perilaku bagi karyawan,
Sebagai sarana untuk menyelesaikan masalah-masalah pokok organisasi,
Sebagai acuan dalam menyusun perencanaan perusahaan,
Sebagai alat komunikasi
Sebagai penghambat berinovasi.

________
Sumber : Moh Pabundu Tika, Drs, MM, PhD dalam Budaya
Peningkatan Kinerja Perusahaan.

Organisasi dan

Formal Control System

Manageme
nt Control
Formal
Control
System

Rules

Physical
Control
Manuals
System
safeguard
Task
Control
System

Formal Control Process

Goals &
ge
strategies

Other
information
Rules
reward

Strategic
Planning

r
e
v
i
s
e

Budgeting

r
e
v
i
s
e

Responsibilit
y Center
performance

Report
Actual vs
plan

Y
e
s

Performance
satisfactory

Measurement

N
o

a
ct
u
al

Feedback/communication

TYPES OF ORGANIZATIONS
Functional structure

Business unit structure

Business unit managers are responsible for most of the

activities of their particular unit and the business unit
functions as semi-independent part of the company

Matrix structure

Functional units have dual responsibilities.

Companies can choose from three basic organization
structure. The specific choice of organizational structure
influences the design of management control system.

Each manager is responsible for a specified function

such as production or marketing

TYPES OF ORGANIZATIONS
(Continued)

Functional organizations

Advantages
Manager brings specialized knowledge to bear

on

decisions related to specific function.

Skilled specialist should able to supervise workers in
the same function.

Disadvantages
Ambiguous way of determining the effectiveness of

the separate functional managers.

Dispute between managers of different functions can
be resolved only at the top.
Inadequate for a firm with diversified products and
markets.

TYPES OF ORGANIZATIONS
(Continued)

Business Unit
Managers responsible for planning and coordinating
the work of the separate functions.
Managers exercise broad authority over their units.
Headquarters is responsible for obtaining funds for
the company as the whole.
Headquarters
approve budget and judges the
performance of business unit managers, sets their
compensation.
Headquarters establishes companywide policies.
Headquarters staff may assist the business unit such
as HR, legal affair, public relation, controller and
treasury.

TYPE OF ORGANIZATIONS
(Continued)

Business Unit

Advantages
Provides a training ground in general

management.
Business unit is closer to the market
unit can react quickly.

and the

Disadvantage
The business unit manager is presumably a

generalist but subordinate are functional

specialist.
Disputes between business units in business unit
organization.

FUNCTIONS
OF THE CONTROLLER

Controller is responsible for designing

and operating the management control
system .
The following function usually performs
by Controller :
Designing and operating information and
control system,
Preparing financial statements and financial
report,
Preparing and analyzing performance report,
interpreting these report and analyzing
program
and
budget
proposal
and

FUNCTIONS OF THE
CONTROLLER (Contd)

Supervising internal audit

and accounting control
procedure,
Developing personnel in the controller organization and
participating in the education of management personnel
relating to the controller function.
The Controllership is staff function, controller does not
make management decisions.
Controller also play an important role in the preparation
of strategic plans and budget.
In companies organized into business units, the
relationship between the business unit controller and the
corporate controller is always subject to debate.
Controller must stay independent of entitys managers.

THANK YOU
SEE YOU LATER