Teori dan Aplikasi Organisasi:

Administration, Management,
Governance, Organization and
Institution

Dr. Heri Fathurahman

 1. Management
• Principles of Management, 1953
• George R. Terry, Principles of Management, R.D. Irwin, 1953,
1960; 1968; 1971; 7th edition 1977; 8th Edition with
Stephen G. Franklin, 1994.
• George R. Terry (1909–1979) was the first to call his
book Principles of Management... Terry’s elements included
planning, organizing, directing, coordinating, controlling, and
leading human efforts. Later, Terry combined the functions
of directing and leading human efforts into an ‘‘actuating’’
function and stopped treating coordinating as a separate
function. Terry defined a principle as ‘‘a fundamental
statement providing a guide to action,’’ and his principles,
like Fayol’s, were lighthouses to knowledge and not laws in a
scientific sense.
• Management is a distinct process consisting of planning,
organizing, actuating and controlling, performed to determine and
accomplish the objectives by the use of people and resources.
– p. 4 (6th ed. 1971)
• Management is not people, it is an activity like walking, reading,
swimming or running. People who perform management can be
designated as managers members of management, or executive
leaders.
• In addition, management is a distinct activity. It can be studied,
knowledge about it obtained, and skill in its application acquired.p.
6 (6th ed. 1971)
• Linking the basic parts are communication, balance or system parts
maintained in harmonious relationship with each other and
decision making. The system theory include both man-machine
and interpersonal relationships. Goals, man, machine, method,
and process are woven together into a dynamic unity which
reacts...
• In brief, one can view organizing essentially as either an economic,
behavioral, adaptive, mathematical, or decisional entity. In the
aggregate most of these theories are concerned with structure,
behavior, and strategy under conditions of change and complexity
brought about by technology, environment, and human behavior.
– p. 314 (6th ed. 1971)
• Management is a distinct process consisting of planning,
organising, actuating and controlling; utilising in each both science
and art, and followed in order to accomplish pre-determined
objectives.
– As cited in: S.P. Singh (2003), Planning And Management For Rural
Development, p. 8
• Management is the activity which plans, organizes, and controls
the operations of the basic elements of men, materials, machines,
methods, money, and markets, providing direction and
coordination, and giving leadership to human efforts, so as to
achieve the thought objectives of the enterprise.
 Inti dari Manajemen:
• Azas/Fungsi Manajemen: P, O, A, C
• Ada 3 level manajemen:
Top level management (TLM)

Middle level management (MLM)

Lower level management (LLM)

• Keahlian Managerial:
• Conceptual Skills HR/Managerial Skills Technical Skills

TLM
MLM
LLM
• Manajemen: Fungsional
Director

Financial HRD Marketing Operation

• 6 M’s of management: men, money, material,

method, machines, market
2. Administration
• Oliver E. Williamson (1995). Organization Theory: From
Chester Barnard to the Present and Beyond, Oxford
University Press:
• A science of administration is predominantly concerned
with internal organization. The focus is on hierarchical
structure, internal incentives and controls,
communication and information processing, ascribed
goals, workplace democracy, and the like. Analysis of
internal organization is concerned with bureaucratic. A
unified science of organization requires that internal
(administrative) and market modes be treated in a
unified way as alternative GOVERNANCE STRUCTURES
for organizing the same transactions.
• Toward a Theory of Administration: Henri Fayol (1919)
– Developed the first comprehensive theory of administration
– Describes the major functions of management
– Includes several principles that act as administrative guides
– Five functions of management
• Planning: the results desired and the way to reach them
• Organizing: designing the organization to reach the plan’s goals
• Command: guiding and directing organizational units toward the
plan’s goal
– Five functions of management (cont.)
• Coordination: helping different organizational units reach the
plan’s goal
• Control: monitoring progress toward the plan’s goal. Correcting
variations from the plan
– Research evidence: management functions related to an
organization’s performance
• Principle of Administration/Management:
• Division of Work;
• Authority and Responsibility;
• Discipline;
• Unity of Command;
• Unity of Direction;
• Subordination of Individual Interest to the General Interest;
• Remuneration of Personnel;
• Centralization;
• Scalar Chain (Line of Authority);
• Order;
• Equity;
• Stability of Tenure of Personnel;
• Initiative;
•
– Principles of administration
• “All must observe the same general principles”
• Set of tools a manager needs to perform the functions of
management
• Applied with a sense of proportion: adapting to the specific
situation
• Division of labor: organization of the work of individuals and
the entire organization
• Authority and responsibility: decision authority carries with
it the responsibility for the decisions
• Principle of centralization
– Centralization: decision authority at top or organization
– Decentralization: decision authority dispersed
 • Delegation of authority: moves decision authority to
lower levels in the organization
• Unity of command
– “an employee should receive orders from one superior only.”
– Felt strongly that managers should not violate this principle
– Modern matrix organizations routinely violate this principle
– Relationships among the principles
• Delegation of authority gets the desired degree of
decentralization
• Delegation also affects the division of labor
• Unity of command helps guide an organization’s design
• The Functions of the Executive:
Chester I. Barnard (1938)
– Rich in basic contributions about organizations and
management
– Selected observations from many in his book
– Lays a foundation for thinking about organizations
and management
– Interpret executive as any level of management and
supervision
– Definition of an organization
• “[A] system of consciously coordinated activities or forces
of two or more persons”
• Implies that any system of two or more persons with
consciously coordinated activities is an organization
• Note the importance of cooperation and conscious,
deliberate purpose
– Purpose plus limitations leads to a system of
cooperative action
• Purpose: the goal of the person who formed the
organization
• Limitations: knowledge, financial resources, physical
resources
– Person with purpose needs the cooperation of one or
more people to achieve that purpose
– Use inducements to get people to join the organization
and offer their contributions
• Inducements: salary, fringe benefits, and other rewards
• Contributions: work that needs to get done
– Inducements-contributions balance: if inducements
are slightly greater than the contributions, the person
joins the organization
 – Types of motivation:
• Motivation to participate:
– Individual joins and stays with organization
– Performs at the minimally acceptable level
– Minimally acceptable level varies among organizations
– Person learns the minimum performance standards
soon after joining the organization
• Maintaining the motivation to participate
is an important executive function
• Motivation to perform
– Level of performance above the minimally acceptable
level
– Attend to this form of motivation after solving the
problem of membership
– Managers use different incentives to affect the
motivation to perform
– Relationships among Barnard's observations
• Definition of an organization emphasizes consciously
coordinated activities
• Purpose plus limitations cause people to cooperate with
others to achieve the purpose
• Attract people to the system by affecting the inducements-
contributions balance
• Herbert A. Simon (1947). Administrative Behavior: A Study of
Decision Making Processes in Administrative Organizations.
• "Administrative Behavior" (Simon, 76) in 1947. The aim of
the book was to show how organizations can be understood
in terms of their decision processes (Simon, 76, pp. ix & xxv).
His central point is that decision-making is the heart of
administration. The language and conceptual framework for
describing administration must be based on the logic and
psychology of human choice, i.e. economic theory and
psychology.
• The description of Simons work is organized in the following
sections:
• - The Economic Man outlines the ideal and rational model for
decision-making.
• - The Administrative Man describes how decision-making is
performed "in reality".
• Simon criticize the common principles of administration. These
principles claim that administrative efficiency is increased by:
• 1) a specialization of the organization according to purpose,
process, clientele (customers), or place;
• 2) arranging the organization in a determinate hierarchy of
authority;
• 3) limiting the span of control at any given point in the hierarchy to
a small number (Simon, 76, pp. 20f).
• Simon distinguish between two principal sets of mechanisms or
aspects of influence, external and internal:
• - External mechanisms are "the stimuli with which the organization
seeks to influence the individual" (Simon, 76, p. 123), "those that
initiate behavior in a particular direction" (Simon, 76, p. 94).
• - Internal mechanisms are those "which determines his response
the stimuli“ (Simon, 76, p. 123), "those that cause behavior to
persist in a particular direction once it has been turned in that
direction" (Simon, 76, p. 94).
• The organizational influences are of two principal kinds,
expectations and stimuli/attention-directors:
• - Organizations and institutions permit stable
expectations to be formed by each member of the group
as to the behavior of the other members under specified
conditions.
• - Organizations and institutions provide the general
stimuli and attention-directors that channelize the
behaviors of the members of the group, and that provide
those members with the intermediate objectives that
stimulate action. (Simon, 76, pp. 100f)
• These mechanisms comprises different influential
processes or modes of influence: authority,
communication, training, The criterion of efficiency,
Organizational identification and loyalty.
• One main function of above organizational influences is to
coordinate the activities of the members in the
organization. The proper mean for maintaining rationality
at a high level is planning (Simon, 76, p. 99). This involves
the development of a plan for all members of the
organization involved, the communication of relevant
portions of this plan to each member, and ensuring that
each member is willing to be guided by the plan (Simon, 76,
pp. 103-108)
• Simon views organizations as systems in equilibrium. The
equilibrium balances incoming contributions (money, time,
and effort) with inducements in terms of the organizational
goal itself, the conversation and growth of the organization,
and contributions like salaries. The equilibrium is
maintained by the "control group", i.e. management
(Simon, 76, p. 122).
• Selznick, Phillip. 1957. Leadership in administration: A
sociological interpretation. New York: Harper & Row.
• This work represents a sociological interpretation of leadership.
Selznick believed that for leadership at the top of the
organization, an understanding of collective values and
loyalties. was more important than the logic of efficiency. The
organization is a formal system of rules and objectives while the
institution is a natural product of needs and pressures a
responsive organism in short the social organization. Selznick
differentiates between leadership and administration; the
former dealing with creative while the latter with routine
decisions. The key tasks of leadership are: 1) the definition of
institutional mission and role; (2) the institutional embodiment
of purpose; (3) the defense of institutional integrity; and (4) the
ordering of internal conflict. The executive becomes a
statesman as he makes the transition from administrative
management to institutional leadership.
3. Governance
• Lukviarman, Niki (2016). Corporate Governance:
Menuju Penguatan Konseptual dan Implementasi
di Indonesia.
• Management:

“doing things right” or “manage the things” 

mengerjakan sesuatu dengan/secara benar

• Governance:
“doing the right things right”
 mengerjakan sesuatu yang benar secara benar

 Secara implisit berhubungan dengan moral issues

 Governance Vs Management
• Governance has an • Management has an
external focus internal focus
• Governance assumes an • Management assumes a
open system closed system
• Governance is strategy • Management is task
oriented oriented
 Relates to where the  Relates to getting the
organization is going organization there

Governance: to do the right (good) things and to do things right (well)

 Governance vs Management Domain

RUPS
Governance

Dewan Komisaris Direksi

Management

Management

24
Corporate Governance
versus
Corporate Management
 Why Governance?
• The existence of sophisticated management
techniques development  still corporate
collapses
• Problems  trust! (soft structure??)
• Low trust  creates “hidden agendas,
politics, interpersonal conflict,
interdepartemental rivalries, win-lose
thinking, defensive and protective
communication” Covey (2006)
26
 CG Outcomes
• ..the final outcomes; a) improved
performance, and b) reduced conflict of
interests (OECD 1998)
• …..the central question; how the
interaction between governance elements
result in strategy formulation,value
creation & value distribution?
 4. Institution
• North, D.C. (1990) Institutions, Institutional Change and
Economic Performance (Cambridge, Cambridge University Press).
• The important distinction between institutions and
organizations is one that has not been taken sufficiently
seriously by policy-makers; and the concepts are often still used
both inter-changeably and confusingly.
• The simple answer is that, understood as an ‘institution’, the
‘rules of the game’. That’s what an institution is and what it
does. It shapes, without determining, human behaviour in
different spheres of life, whether the ‘game’ is football or stable
and predictable patterns of economic, political or social
interactions. Institutions can be formal (such as laws,
constitutions, regulations, contracts) or informal (customs,
traditions and accepted practices) and together are best
understood as the “rules of the game”.
• But what of organizations? Whereas institutions are best
understood as the ‘rules of the game’, organizations are
best understood as ‘the players’; that is the teams in this
football analogy. Players, individually and in their teams,
operate within the rules or - as stakeholders with
different interests and preferences - may seek to change
the rules of the game. And hence there need to be rules
for changing the rules. The institution – or the game – of
football is upheld and implemented by its international
organization, FIFA, and by the national football
organizations. It has power to enforce the rules –
through referees, who are themselves in an organization,
as are the players. and when rules are transgressed –
and not punished or prevented – outrage ensues, both in
football and in society
 5. Organization
• Robbins, Stephen P. (1990). Organization theory : structure, design,
and applications
• TEORI ORGANISASI
• DISIPLIN ILMU YG MEMPELAJARI STRUKTUR DAN DESAIN
ORGANISASI, MENUNJUKKAN ASPEK2 DESKRIPTIF MAUPUN
PRESKRIPTIF DARI ORGANISASI. BAGAIMANA ORGANISASI
SEBENARNYA DISTRUKTUR DAN MENAWARKAN TENTANG
BAGAIMANA ORGANISASI DAPAT DIKONSTRUKSI GUNA
MENINGKATKAN KEEFEKTIFAN ORGANISASI. TEORI ORGANISASI
MENGAMBIL PANDANGAN MAKRO, UNIT ANALISISNYA ORGANISASI
ITU SENDIRI ATAU SUB-SUB UTAMANYA. TO MENFOKUSKAN DIRI
KEPADA PERILAKU DARI ORGANISASI DAN MENGGUNAKAN DEFINISI
YG LEBIH LUAS TENTANG KEEFEKTIFAN ORGANISASI. TO TIDAK HANYA
MEMPERHATIKAN PRESTASI DAN SIKAP PARA PEGAWAI TETAPI JUGA
KEMAMPUAN ORGANISASI SECARA KESELURUHAN UNTUK
MENYESUAIKAN DIRI DAN MENCAPAI TUJUAN-TUJUANNYA.
• SEDANGKAN PERILAKU ORGANISASI MENGAMBIL
PADA PANDANGAN MIKRO – MEMBERI TEKANAN
PADA INDIVIDU2 DAN KELOMPOK2 KECIL.
PERILAKU ORGANSASI MEMFOKUSKAN DIRI
KEPADA PERILAKU DI DALAM ORGANISASI DAN
KEPADA SEPERANGKAT PRESTASI DAN VARIABEL
MENGENAI SIKAP DARI PARA PEGAWAI –
PRODUKTIVITAS PEGAWAI, ABSENSI, PERPUTARAN
PEGAWAI, KEPUASAN KERJA, PERILAKU INDIVIDU :
NILAI, PENGETAHUAN, MOTIVASI, KEPRIBADIAN,
PERILAKU KELOMPOK : PERAN, STATUS,
KEPEMIMPINAN, KEKUASAAN, KOMUNIKASI DAN
KONFLIK.
DETERMINAN STRUKTUR ORGANISASI : APLIKASI :
* STRATEGY * MENGELOLA LINGKUNGAN
·BESARAN ORGANISASI ·MENGELOLA PERUBAHAN ORGANISASI
·TEKNOLOGI ·MENGELOLA KONFLIK ORGANISASI
·LINGKUNGAN ·MENGELOLA BUDAYA ORGANISASI
·PENGENDALIAN KEKUASAAN ·MENGELOLA EVOLUSI ORGANISASI

STRUKTUR ORGANISASI
KEEFEKTIFAN ORGANISASI

DISAIN ORGANISASI :
* PILIHAN DESAIN
·BIROKRASI
·ADHOCRACY
• KRITERIA KEEFEKTIFAN ORGANISASI :
• KEEFEKTIFAN KESELURUHAN
• PRODUKTIVITAS
• EFISIENSI
• LABA
• KUALITAS
• KECELAKAAN
• PERTUMBUHAN
• KEMANGKIRAN
• PENGGANTIAN PEGAWAI
• KEPUASAN KERJA
• MOTIVASI
• MORAL/SEMANGAT KERJA
• KONTROL
• KONFLIK/SOLIDARITAS
• FLEKSIBELITAS/PENYESUAIAN
• PERENCANAAN DAN PENETAPAN TUJUAN
• KONSENSUS TENTANG TUJUAN
• INTERNALISASI TUJUAN ORGANISASI
• KONSENSUS TENTANG CARA PENCAPAIAN TUJUAN
• KETERAMPILAN INTERPERSONAL MANAJERIAL
• KETERAMPILAN MANAJERIAL
• MANAJEMEN INFORMASI DAN KOMUNIKASI
• KESIAPAN
• PEMANFAATAN LINGKUNGAN
• EVALUASI PIHAK LUAR
• STABILITAS
• NILAI SUMBER DAYA MANUSIA
• PARTISIPASI DAN PENGARUH YG DIGUNAKAN BERSAMA
• PENEKANAN PADA PELATIHAN DAN PENGEMBANGAN
• PENEKANAN PADA PERFORMA