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ORGANIZATIONAL EFFECTIVENESS

OLEH: Kusdi Raharjo

*KASUS 1) :Suatu organisasi pelayanan publik di bidang perijinan dan beroperasi di wilayah kota memiliki jumlah pegawai 105 orang, dan jumlah pelanggan yang berbeda pada setiap hari kerja. Pada hari senin rabu, jumlah pelanggan mencapai sekitar 300 orang per hari, setelah itu, kamis dan jumt merupakan hari santai bagi pegawai karena jumlah pelanggan hanya sekitar 20 50 orang per hari. Visi misi organisasi terpampang dengan jelas pada loby kantor, yakni pelayanan dilakukan secara cepat, murah dan baik. Hasil penelitian perguruan tinggi di kota tersebut, diperoleh informasi bahwa masyarakat mengeluhkan pelayanan yang buruk, antara lain pada jam-jam sibuk, seperti proses perijinan lamban, ada biaya ekstra, dan petugas yang tidak simpati. Pada tahun anggaran berikutnya, instansi tersebut telah mengusulkan kenaikan anggaran operasional pelayanan 20 % dari anggaran tahun ini, dengan tujuan untuk memperluas loket pelayanan,menambah pegawai, dan memberikan insentif pada pegawai untuk mencegah pungli.Anda diminta untuk menganalisis instansi tersebut dari aspek fisiens dan efektifitas organisasi.

*Case 1:A public organization for delivering business licence has 105 employees. The daily numbers of consumers it serves are fluctuative, Monday Wednesday there are about 300 consumers in average but the visitors tend to decrease on Thursday and Friday, it reachs only 50 to 60 peoples. The vision and mission statements are clearly stated: We provide good, cheap, and quick services. Yet the research team from a reputable university in this city finds out that vision and mission dont work well. Consumers are not satisfied due to bad service: delayed service, extra charge, bad manner behavior of employees (unsymphaty). For the following year, the office propose bigger budget than previous one. The increase of allocation will be addressed to build new counters, hiring new employees, and providing incentive for employees in order to prevent them from demanding illegal fees. Please you analyse the performance of this organization in term of efficiency and effectiveness.

*KASUS 2) :Pada tahun pertama beroperasi, sebuah Bank swasta memperoleh kinerja sangat baik. Pada tahun ke dua jumlah nasabah naik sekitar 20 % dari tahun sebelumnya. Manajer pemasaran mengusulkan penambahan jumlah pegawai sekitar 2 % dari jumlah yang ada, namun Pimpinan tidak menyetujui alasannya rasio jumlah pegawai dan rasio jumlah nasabah masih relevan. Artinya work load masih bisa diatasi. Pada sisi lain, Pimpinan merencanakan untuk membuka hotline service dan merencanakan beberapa produk pelayanan yang tidak memerlukan proses transaksi dilakukan secara face to face di depan counter. Ketika rencana tersebut direalisasikan, maka pada 2 tahun berturut-turut setelah itu, jumlah nasabah terus meningkat, sedangkan jumlah karyawan tidak mengalami perubahan (kenaikan), namun jumlah sarana dan prasarana nampak semakin baik. Tahun depan akan dibuka cabang baru untuk lebih mendekatkan dengan nasabah. Anda diminta untuk menganalisis Bank tersebut dari aspek fisiens dan efektifitas organisasi.

*Case 2 In the first year of operation, a private bank obtains very good performance. In the year two, the number of customers increased by about 20% from a year earlier. Marketing manager proposes increasing the number of employees approximately 2% of the amount available, but the leadership did not approve the reason the ratio of the number of employees and the ratio of the number of customers are still relevant. This means that work load can still be overcome. On the other hand, leaders are planning to open a hotline service and plan some products that do not require to process transactions are done face to face in front counter. When the plan is realized, then the two consecutive years after that, customer numbers continue to rise, while the number of employees does not change (increase), but the number of facilities and infrastructure appear the better. Next year will open a new branch to get closer with customers. You are required to analyze the bank of the aspects of "efficiency" and "effectiveness" of the organization.

*ORGANIZATIONAL GOALOFFICIAL GOALS, IS OFTEN CALLED MISSION (THE ORGANIZATIONS REASON FOR EXISTENCE). MISSION IS THE OVERALL GOAL FOR AN ORGANIZATION. OFFICIAL GOALS TEND TO BE ABSTRACT AND DIFFICULT TO MEASURE (STATED GOAL)OPERATIVE GOALS, DESIGNATE THE ENDS SOUGHT THROUGH THE ACTUAL OPERATING PROCEDURES OF THE ORGANIZATION AND EXPLAIN WHAT THE ORGANIZATION IS ACTUALLY TRYING TO DO (ACTUAL GOAL) STATE VS ACTUAL GOALS

*EFFICIENCY VS EFFECTIVENESSTWO FUNDAMENTAL OF GOALS ARE EFFICIENCY AND EFFECTIVENESS. EFFICIENCY IS A PRIMARY FOCUS ON INPUTS, USE OF RESOURCES, AND COSTEFFECTIVENESS IS A FOCUS MORE ON OUTPUTS, PRODUCTS OR SERVICES AND REVENUESWHICH IS THE DOMINANT PRIORITY ? HOW DO YOU OBTAIN A BALANCE BETWEEN EFFICIENCY AND EFFECTIVENESS ?

*ORGANIZATIONAL EFFECTIVENESSORGANIZATIONAL EFFECTIVENESS IS THE DEGREE TO WHICH AN ORGANIZATION REALIZES ITS GOALS. EFFECTIVENES IS A BROAD CONCEPT. IT IMPLICITLY TAKES INTO CONCIDERATION A RANGE OF VARIABLES AT BOTH THE ORGANIZATIONAL AND DEPARTMENTAL LEVELS. EFFECTIVENESS EVALUATES THE EXTENT TO WHICH MULTIPLE GOALS WHETHER OFFICIAL OR OPERATIVE GOAL ARE ATTAINED.EFFICIENCY IS MORE LIMITED CONCEPT THAT PERTAINS TO THE INTERNAL WORKINGS OF THE ORGANIZATION. ORGANIZATIONAL EFFICIENCY IS THE AMOUNT OF RESOURCES USED TO PRODUCE A UNIT OF OUTPUT. IT CAN BE MEASURED AS THE RATIO OF INPUTS TO OUTPUTS.

*ORGANIZATIONAL EFFECTIVENESSAN ORGANIZATIONAL EFFECTIVENESS IF IT CAN : 1. SECURE SCARCE AND VALUED SKILLS AND RESOURCES FROM OUTSIDE THE ORGANIZATION (EXTERNAL) 2. CREATIVELY COORDINATE RESOURCES WITH EMPLOYEES SKILLS TO INNOVATE PRODUCTS AND ADAPT TO CHANGING CUSTOMER NEEDS (INTERNAL) 3. EFFICIENTLY CONVERT SKILLS AND RESOURCES INTO FINISHED GOODS AND SERVICES (TECHNICAL)SOURCE : BURTON et al, 2006 : 11

*THE GOAL SPACEEFFICIENCY HIGHEFFECTIVENESSHIGHLOWLOWBDCASOURCE : BURTON et al, 2006 : 11

*APPROACH TO MEASURING ORGANIZATIONAL EFFECTIVENESS

APROACHDESCRIPTIONGOAL TO SET TO MEASURE EFFECTIVENESSEXTERNAL RESOURCES APPROACHEVALUATES THE ORGANIZATIONS ABILITY TO SECURE, MANAGE, AND CONTROL SCARCE AND VALUED SKILLS AND RESOURCES LOWER COST OF INPUTS HIGH QUALITY INPUTS OF RAW MATERIALS AND EMPLOYEES INCREASE MARKET SHARE GAIN SUPPORT OF STAKEHOLDERS SUCH AS GOVERNMENT

*APPROACH TO MEASURING ORGANIZATIONAL EFFECTIVENESS

APROACHDESCRIPTIONGOAL TO SET TO MEASURE EFFECTIVENESS2). INTERNAL SYSTEM APPROACHEVALUATES THE ORGANIZATIONS ABILITY TO BE INNOVATIVE AND FUNCTION QUICKLY AND RESPONSIBILITY CUT DECISION MAKING TIME INCREASE RATE OF PRODUCTS INNOVATION INCREASE COORDINATION AND MOTIVATION OF EMPLOYEES REDUCE CONFLICT REDUCE TIME TO MARKET

*APPROACH TO MEASURING ORGANIZATIONAL EFFECTIVENESS

APROACHDESCRIPTIONGOAL TO SET TO MEASURE EFFECTIVENESS3). TECHNICAL APPROACHEVALUATES THE ORGANIZATIONS ABILITY TO CONVERT SKILL AND RESOURCES INTO GOODS AND SERVICES EFFICIENTLY INCREASE PRODUCT QUALITY REDUCE NUMBER OF DEFECTS REDUCE PRODUCTION COST IMPROVE CUSTOMER SERVICES REDUCE DELIVERY TIME TO CUSTOMER

*TOP MANAGEMENT DIRECTIONEXTERNAL ENVIRONMENTOPPORTUNITIESTHREATSUNCERTAINTYRESOURCE AVAILABILITYCEO, MNGR TEAMINTERNAL ENVIRONMENTSTRENGTHSWEAKNESSESLEADER STYLEPAST -PERFORMANCE DEFINE MISSION, OFFICIAL GOALSELECT OPERATIVE GOAL STRATEGIES ORGANIZATION DESIGN STRUCTURETECHNOLOGYCONTROLHRDPOLICIESINCENTIVESCULTURNETWORKINGINFORMATION

EFFECTIVENESS OUTCOME RESOURCESEFFICIENCYGOAL-ATTAIMENTSTAKEHOLDERSCOMPETING VALUES

SOURCE: DAFT, 1992: 39

*1) TRADITIONAL EFFECTIVENESS APPROACHESRESOURCE INPUTSORGANIZATIONINTERNAL ACTIVITIES AND PROCESSPRODUCT AND SERVICE OUTPUTSYSTEM RESOURCE APPROACHINTERNAL PROCESS APPROACHGOAL APPROACHSOURCE : DAFT, 1992:47EXTERNAL ENVIRONMENT

*SYSTEM RESOURCE APPROACHTHE SYSTEM RESOURCE APPROACH LOOKS AT THE INPUT SIDE OF THE TRANSFORMATION PROCESS. ORGANIZATION MUST BE SUCCESSFUL IN OBTAINING RESOURCE INPUTS AND IN MAINTAINING THE ORGANIZATIONAL SYSTEM IN ORDER TO BE EFFECTIVE.FROM A SYSTEM VIEW, ORGANIZATIONAL EFFECTIVENESS IS DEFINED AS THE ABILITY OF THE ORGANIZATION TO EXPLOIT ITS ENVIRONMENT IN THE ACQUISITION OF SCARCE AND VALUED RESOURCES.INDICATORS : BARGAINING POSITION THE ABILITY OF THE ORGANIZATION TO EXPLOIT ITS ENVIRONMENT IN THE ACQUISITION OF SCARCE AND VALUED RESOURCES. ABILITY OF THE SYSTEMS DECISION MAKER TO PERCEIVE AND CORRECTLY ENTERPRET THE REAL PROPERTIES OF THE EXTERNAL ENVIRONMENT. MAINTENANCE OF INTERNAL DAY-TO-DAY ORGANIZATIONAL ACTIVITIES ABILITY OF THE ORGANIZATION TO RESPOND TO CHANGES IN THE ENVIRONMENT.

*INTERNAL PROCESS APPROACHEFFECTIVENESS IS MEASURED AS INTERNAL ORGANIZATIONAL HEALTH AND EFFICIENCYAN EFFECTIVE ORGANIZATION HAS A SMOOTH, WELL OILED INTERNAL PROCESS. EMPLOYEES ARE HAPPY AND SATISFIED. DEPARTMENTAL ACTIVITIES MET WITH ONE ANOTHER TO ENSURE HIGH PRODUCTIVITY.INDICATOR : STRONG CORPORATE CULTURE AND POSITIVE WORK CLIMATE TEAM SPIRIT, GROUP LOYALTY, AND TEAM WORK CONFIDENCE, TRUST, AND COMMUNICATION BETWEEN WORKERS AND MANAGEMENT DECISION MAKING NEAR SOURCES OF INFORMATION UNDISTORTED HORIZONTAL AND VERTICAL COMMUNICATION GOOD FOR REWARD SYSTEM FOR PERFORMANCE

*GOAL APPROACHORGANIZATION DO TRY TO ATTAIN CERTAIN LEVELS OF OUTPUT, PROFIT, OR CLIENT SATISFACTIONTHE IMPORTANT GOALS TO CONSIDER ARE OPERATIVE GOALS. EFFORTS TO MEASURE EFFECTIVENESS HAVE BEEN MORE PRODUCTIVE USING OPERATIVE GOALS THAN USING OFFICIAL GOALSIDENTIFYING OPERATIVE GOALS AND MEASURING PERFORMANCE OF AN ORGANIZATION ARE NOT ALWAYS EASY. ISSUE TO RESOLVE WITH THE GOAL APPROACH IS HOW TO IDENTIFY OPERATIVE GOALS FOR AN ORGANIZATION AND HOW TO MEASURE GOAL ATTAINMENT.

*2) CONTEMPORARY EFFECTIVENESS APPROACHESSTAKEHOLDERS APPROACH A STAKEHOLDERS IS ANY GROUP WITHIN OR OUTSIDE AN ORGANIZATION THAT HAS A STAKE IN THE ORGANIZATIONS PERFORMANCE. CREDITORS, SUPPLIERS, EMPLOYEES, AND OWNERS ARE ALL STAKEHOLDERS. IN THE STAKEHOLDERS APPROACH, THE SATISFACTION OF SUCH GROUPS CAN BE ASSESSED AS AN INDICATOR OF THE ORGANIZATIONS PERFORMANCE EACH STAKEHOLDERS WILL HAVE DIFFERENT CRITERION OF EFFECTIVENESS BECAUSE IT HAS A DIFFERENT INTEREST IN THE ORGANIZATION EACH STAKEHOLDERS GROUP HAS TO BE SURVEYED TO LEARN WHETHER THE ORGANIZATION PERFORMS WELL FROM ITS VIEWPOINT.

*INDICATOR OF STAKEHOLDERS APPROACH

STAKEHOLDEREFFECTIVENESS CRITERIAOWNERSEMPLOYEES

CUSTOMERSCREDITORSCOMMUNITY

SUPPLIERSGOVERNMENTFINANCIAL RETURNWORKER SATISFACTION, PAY, SUPERVISIONQUALITY OF GOOD & SERVICESCREDITWORTHINESSCONTRIBUTION TO COMMUNITY AFFAIRSSATISFACTORY TRANSACTIONSOBEDIENCE TO LAW, REGULATIONS

*COMPETING VALUES APPROACH IN THE COMPETING VALUES APPROACH, USING A COMPREHENSIVE LIST OF PERFORMANCE INDICATOR CAN BE NEEDED. THE ANALYSIS PRODUCED UNDERLYING DIMENSIONS OF EFFECTIVENESS CRITERIA THAT REPRESENTED COMPETING MANAGEMENT VALUES IN ORGANIZATIONS. THE FIRST VALUE DIMENSION PERTAIN TO ORGANIZATIONAL FOCUS WHICH IS WHETHER DOMINANT VALUES CONCERN ISSUES THAT ARE INTERNAL OR EXTERNAL TO THE FIRM. INTERNAL FOCUS REFLECTS A MANAGEMENT CONCERN FOR THE WELL BEING AND EFFICIENCY OF EMPLOYEES EXTERNAL FOCUS REPRESENTS AN EMPHASIS ON WELL BEING OF THE ORGANIZATION ITSELF WITH RESPECT TO ENVIRONMENT2. THE SECOND VALUE DIMENSIONS PERTAINS TO ORGANIZATION STRUCTURE, AND WHETHER STABILITY VERSUS FLEXIBILITY IS THE DOMINANT STRUCTURAL CONSIDERATION. CONTINUED.

*THE FOUR MODELS OF EFFECTIVENESS VALUESSTRUCTUREFlexibility FOCUS internalcontrolexternalSOURCE: DAFT, 1992: 56

HUMAN RELATION MODELGoal values : Human resource developmentSubgoals: cohesion, morale, and trainingOPEN SYSTEM MODELGoal values: growth, resource acquisitionSubgoals : flexibility, readiness, external evaluation INTERNAL PROCESS MODELGoal values : stability, equilibriumSubgoals : information management, communicationRATIONAL GOAL MODELGoal values : productivity, efficiency, profitSubgoals : planning, goal setting

*THE FOUR MODELS OF EFFECTIVENESS VALUESSTRUCTUREFlexibility FOCUS internalcontrolexternalSOURCE: DAFT, 1992: 56ORGANIZATION AORGANIZATION B

HUMAN RELATION MODELOPEN SYSTEM MODEL

INTERNAL PROCESS MODEL

RATIONAL GOAL MODEL

*FACTORS INFLUENCING THE SELECTION OF EFFECTIVENESS CRITERIATOP MANAGEMENT INFLUENCE GOALS REPRESENT VALUE JUDGMENTS BY MANAGERS, SO TOP MANAGER COALITION HAVE SUBSTANTIAL INFLUENCE OVER ORGANIZATION DIRECTION, LIKE A VISION AND MISSION OF ORGANIZATION. GOAL MEASURABILITY ANOTHER FACTOR IS EXTENT TO WHICH GOALS AND THEIR ATTAINMENT CAN BE READILY MEASURED. ENVIRONMENTAL CONDITIONS ENVIRONMENTS VARY WITH RESPECT TO RESOURCE SCARCITY. WHEN RESOURCES ARE PERCEIVED AS SCARE, ORGANIZATIONAL GOALS WILL DEFINE RESOURCE AQCUISITION AND INTERNAL EFFICIENCY CRITERIA, ON THE OTHER HAND, IN A DYNAMIC ENVIRONMENT.

*BALANCED SCORECARDLEARNING AND GROWTH PERSPECTIVESIKLIM KERJAKOMPETENSITEKNOLOGIINTERNAL PERSPECTIVEACHIEVE OPERATIONAL EXCELLENCEINCREASE CUSTOMER VALUE

*CUSTOMER PERSPECTIVEKEPUASAN PELANGGANTINGKAT KOMPLAINPENGEMBALIANFINANCIAL PERSPECTIVEROIROEPMEPS

*BSC UNTUK ORGANISASI PUBLIKLEARNING AND GROWTHMANAGEMEN INFORMASIMENGHILANGKAN CELAH KETRAMPILANIKLIM KERJA YANG BAIKINTERNAL PROCESSMENINGKATKAN PRODUKTIFITASMENINGKATKAN KAPASITAS INFRASTRUKTURMEMBANGUN PENYELESAIAN MASALAH BERBASIS MASYARAKAT

*FINANCIAL PERSPECTIVEMENJAGA HUB DENGAN MITRA PENDANAAN DAN PENYEDIA LAYANANMEMAKSIMALKAN RASIO BENEFIT/COSTMENGEMBANGKAN TAX BASECUSTOMER PERSPECTIVEMENEKAN KRIMINALITASMENINGKATKAN RASA AMANMENINGKATKAN PELAYANANMENYEDIAKAN LAYANAN TRANSPORTASI YANG AMAN DAN NYAMAN

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