Organisasi Lama dan Baru

Materi 1

THE “NEW” ORGANIZATION: TAKING ACTION

IN AN ERA OF ORGANIZATIONAL
TRANSFORMATION
Specific Objectives

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Topics

 Birokrasi dan Kekuatan

 Fitur Organisasi Baru
 Komparasi dan Kerangka Tindakan
 Fitur Organisasi Abad 21
 “Old” Model of the Organization

Bureaucracy—classic model of formal organization

identified by Weber; features include:
 Specialized individual positions and jobs
 A formal hierarchy with a clear line of authority (“chain of
command”)
 Formal rules and standard operating procedures
 Set boundaries for each department and subunit, and clear
boundaries between the organization itself and its environment
 Standardized training and training requirements, career paths,
and reward systems, based on the development of expertise
 “Old” Model of the Organization (cont’d)

Strengths of the classic model:

 Predictability and reliability
 Impartiality
 Expertise
 Clear lines of control
 “New” Model of the Organization

Key features of the “new” model:

 Networked
 Flat
 Flexible
 Diverse
 Global
 Key Features of the “New” Model

Importance of networks results from:

 Availability of new telecommunications and information
technologies to connect people and organization units
 Competitive need for rapid response to customer needs,
changing environments, demands for innovation
 Need for increasingly complex and diverse resources to develop
and deliver value to customers
 New approach of dealing with volatility by linking source of
volatility with part of organization most affected by it
 Key Features of the “New” Model (cont’d)

Flattening of the hierarchy necessary because:

 Organizations must respond more rapidly and flexibly to
changes in markets and technology
 Changes in information technology remove the need for layers
of middle managers whose main tasks were organizing and
transmitting information
 Organizations face intense pressure to cut costs
 Key Features of the “New” Model (cont’d)

Need for flexibility driven by:

 Intensifying competition
 Increasingly diverse labor force
 Increasingly complex and unpredictable external environment
 Key Features of the “New” Model (cont’d)

Diversity is necessary because of:

 Growing diversity of the workforce in demographic terms
 A greater need for innovation and creative approaches to
solving problems
 Growing volatility in the business environment
 “Requisite variety”—the diversity that matches the diversity of
key elements of the environment
 Key Features of the “New” Model (cont’d)

Key factors driving globalization:

 Greatly reduced costs of international transportation and
communications
 Growing equalization across markets of “advanced factor
endowments”
 Globalization of markets
 Key Features of the “New” Model (cont’d)

Key factors driving globalization (cont’d):

 Continuing differences in cost structures across countries
 Cross-border learning that expands capabilities of firms
 Pressures from international nongovernmental organizations
(NGOs)
Summary of Features of Old and New Models of Organization

Old Model New Model

Individual position/job as basic unit of Team as a basic unit

organization

Relations with environment handled by Densely networked with environment

specialist boundary-spanners

Vertical flows of information Horizontal and vertical flows of

information
Decisions come down, information flows up Decisions made where information
resides

Tall (many layers of management) Flat (few layers of management)

Emphasis on structures Emphasis on processes

Emphasis on rules and standard Emphasis on results and outcomes

procedures

Fixed hours Flexible workday, part-time workers

Figure 1.1a
 Summary of Features of Old and New
Models of Organization (cont’d)
Old Model New Model

Career paths upward, linear Career paths lateral, flexible

Standardized evaluation and Customized evaluation and reward systems

reward systems

Single strong culture with strong Diversity viewpoints and behaviors

expectations of homogeneous behavior

Ethnocentric mindset International/global mindset

Specialist international managers Boundary-crossers at all levels

Local value chains Value chains crossing borders

Environment defined in terms of Environment seen as global

country of location

Figure 1.1b
Framework for Taking Action
in the New Organization

Figure 1.2
Transparency 1.4
 Search for the Organization of Tomorrow

Sources/Authorities Number of Quotes

Managers:
Lawrence Bossidy, CEO, Allied Signal 5
H. James Maxmin, CEO, Laura Ashley 1
Philip Jarrosiak, Manager/HRM, GE 2
Herman Simon, plant manager, Gaines 1
William Buehler, Senior VP, Xerox 1
Richard Palermo, VP, Xerox 1
Don Fletcher, VP, Hallmark 1
Paul Allaire, CEO, Xerox 1
Consultants:
David Nadler, Delta Consulting 2
Doug Smith, McKinsey 5
Frank Ostroff 3
Mike Hammer, CSC Index 2
James Champy, CSC Index 2
Figure 1.3a
 The Organization of Tomorrow (cont’d)

Sources/Authorities Number of Quotes

Academics/Researchers:
Peter Drucker 1
Marvin Weisbord 1
Shoshanna Zuboff 1
Quinn Mills 1
Robert Reich 1
Workers:
Robert Brookhouse, Kodak “Zebra” 1

Figure 1.3b
A New View of Organization

Figure 1.4a
A New View of Organization (cont’d)

A new view of
organization by
McKinsey consultants
Frank Ostroff and Doug
Smith is meant to help
clients hung up by the
old template. Says
Ostroff: “They needed a
clear architecture” to
show how a functional
pyramid (previous slide)
could become a process-
oriented, horizontal
organization.

Figure 1.4b
 McKinsey’s Plan
 Organize primarily around
process, not task
 Flatten hierarchy by minimizing
subdivision of processes
 Give senior leaders charge of
processes and process
performance
 Link performance objectives
and evaluation of all activities to
customer satisfaction
 Make teams, not individuals,
the focus of organization
performance and design
 Combine managerial and non-
managerial activities
 Each employee should develop
several competencies
 Inform and train on a just-in-
time, need-to-perform basis
 Maximize supplier and
customer contact with everyone
in the organization
 Reward individual skill
development and team
performance instead of
individual performance alone
Contrasting Views of the Corporation

Table 1
 Features of 21st Century Corporations

Management by Web
More about bits, less about atoms
Mass customization
Dependent on intellectual capital
Global
Increased speed of actions, deliberations,
information