What Is An Organizations

OLEH :

NAMA : I GEDE ANDIKA

NIM : 1506105126

FAKULTAS EKONOMI DAN BISNIS

UNIVERSITAS UDAYANA

2015
 BAB I

INTRODUCTION

1.1 The Background

Human is social people, in their activities cant do everything without theirfriend. But
human also individualy people. However, human have a good brain, their cant life alone,
always need some people to help their job and solving the problem to achieve their goals.
Because that, an organizations are very importance in human life.

The simple definition of an organizations isa system of consciously coordinated

activities or efforts of two or more persons. Other definition of An organization is a collection
of people working together in a coordinated and structured fashion to achieve one or more
goals.Organizations resource is Human (labor ), Financial ( capital) , Physical( the material),
Information ( technology ).

Organizations rule in society is Organizations exist to allow accomplishment of work

that could not be achieved by people alone.As long as the goals of an organization are
appropriate, society will allow them to exist and they can contribute to society.

1.2 The Problem

1. what is an organizations ?
2. What an organizations rule in society ?

1.3 The Goal

The goal of this paper is to help the student know what is an organizations( the
definition, why its importance,and an organizations rule in society

1.4 The Benefit

The writer know what is the organizations and an organizatons rule in society.

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 BAB II

PANELIST

2.1 What Is An Organizations ?

An Organization is a system of consciously coordinated activities or efforts of two or

more persons.- Chester Barnard, Management Consultant. This definition of Barnard
implies formal planning, division of labor and leadership.

Organizations can also be thought as social entities that are goal directed,
deliberately structured activity systems with a permeable boundary according to Bedeian
and Zamnuto.

There are a couple of things to be noted. If a couple of enthusiastic people plan and
decide to help kids then they form an organization but, if a few people find a kid in trouble
and helps the kid out (without conscious co-ordination and planning) then they don't form an
organization.

In Bedian and Zamnuto's definition, 'deliberately structured activity systems' basically

means that the organizations are (on-purpose) structured so that it is possible to
systematically divide complex tasks among multiple people or units to achieve a common
purpose and 'permeable boundary' is a conceptual boundary (apart from the physical fencing)
thet defines who/what is a part of an organization. This is also related to brand management.

2.1.1 An Organizations Role In Society

Organizations role in society is Organizations exist to allow accomplishment of work

that could not be achieved by people alone.As long as the goals of an organization are
appropriate, society will allow them to exist and they can contribute to society.

2.2 Characteristics or Nature of Organization

2.2.1 Division of Work

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 Division of work is the basis of an organization. In other words, there can be no
organisation without division of work. Under division of work, the entire work of
business is divided into many departements is further subdivided into sub works.

2.2.2 Coordination
Under organisation different persons are assigned different works but the aim of all
these persons happens to be the same the attainment of the objectives of the
enterprise. Organisation ensures that the work of all the persons depends on each
others work even though it happens to be different. Hence, it helps establishing
coordination.

2.2.3 Plurality of Persons

Organisation is a group of many persons who assemble to fulfill a common purpose.
An individual cannot create an organisation. People are the main perfomers in any
organisation. All the elements of any organisation are the same except people. Even
with the same age, qualification, experience and facilities. Makes them work by heart
and head is the one that differentiate organisation from one to others.

2.2.4 Common Objectives

There are various part of an organisation with different functions to perform but all
move in the direction of achieving a general objective.

2.2.5 Organisation is a Machine of Management

Organisation is considered to be a machine of management. It is that machine in
which no part can afford to be ill-fitting or non fungctional. In other words, if the
division of work is not done properly or posts are not created correctly the whole
system of management collapses.

2.2.6 Organisation is an Open System

An open system means open to environment. Organisation exsits an fungctions in
environment. Environment compels the organisation to acquire right type of people,
technology an structure so that the goals to serve the environment can be attained. The
organization is thus greatly influence the environment. Usually the demands or wants
of the people determines the strategies and goals of an organization. What are the

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 needs in the market and how an organisation can bring new and needy products to the
market create an interaction between the organisation and the environment. Without
interaction, organisation cannot fulfill required products or services to the users
groups. This way, an organisation is an open system, without which it cannot survive.

2.2.7 Organisation is Goal Oriented

Without goal or set of goals, organization is useless. There is nothing for the
organisation to do. Therefore, the major characteristic of any organisation is its
goal.Type of people or technology is adopted do that the set goal can be achived. The
goal gives line of action, acquire required type of people and uses type of technology
so that the goal is achieved in an anticipated time point. Without goal, organization
cannot be formed.

2.2.8 Organisation Consists of Technology

Technology is the means of doing works. There are various kinds of doing works. As
an organization consist of more people, its performance procedure should be of a
fixed type so that each individual in the organisation can exercise them well. This is
how technologi initiates. Technology originates a certain policy necessary to keep
organisational beliefs in doing of the various people ad different structural level. This
saves the integrity of the people in achieving goals.

2.2.9 Organisation has Continuity

As the organisation involves people, and the people generate different needs, they can
leave the organisation os some may die too. This does not affect the organisation to
stop ar decrease in size. Every organisation has its own continuity. A good manager
can leave but other man can take over the charge of the organisation.

2.2.10 There are two types of organisation

1) Formal Organisation is a fixed set of rules of intra-organisation procedures and
stucture. As such, it is usually set out in writing, with a language of rules that
ostensibly leave little discreation for interpretation. Such as corporations, catholic
church, court systems, military organisations, and university administration.

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 2) Informal Organisation is a network of personal and social relationships (
alliances, cliques, and friendships )

Characteristic of formal organisation

1) It is Based on Rules and Procedurs
It is important to observe all the predetermined rules and procedurs in the formal
organisation. The objectives laid down under planing are thus achieved .
2) It is Based on Division of Work
The chief of formal organisation is the division of work. That is connects the
effort of different departements with each other.
3) It is Deliberately created
It is deliberately created in order to achieve the objectives of the organisation in an
easy manner.
4) It is impersonal
Personals feelings are ignored and strict discipline is observed. It is not the person
but the work that happens to be important.
5) It is More Stable
Changes cannot be introduced because of the needs of individuals and their
wishes, therefore, it is more stable.

Characteristic of Informal Organisation

1) Based on Formal Organisation
This is basedon formal organisation where people also have informal
relations. It means firt of all the formal organisation is established and then
informal organisation is created out of it.
2) It Has No Written Rules and Procedures
In this organisation, there are no written rules and procedures to govern
interrelationship. But there are group norms which have to be observed. Fo
example, employees working in an organisation and belonging to a particular
community from a separate group in an informal way. Gradually some norms
do emerge like helping the member of their group to find solution to the
problem related to his work or his own self. Similary , they protect the
members of their community from the manajerial exploitation. In this way, all

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 the persons joining this informal group will be bound to observe the norms of
the group.
3) Independent Channels of Communication
In this organisation, relations among different people are not defined because a
person at the lowest rank can have direct contact with the person at the highest
level. The flow of communication cannot be specified.
4) It is Not Deliberately Created
Informal organisation is not deliberatly created. It emerges out of mutual
relationship and tastes.
5) It Has No Place on Organisation Chart
Informal organisation has no place on the properly prepared organisation
chart. Moreover, there is no information about it even in the organisation
manual.
6) It lacks Stability
There is generally a lack of stability in such organisation. For example, an
individual mixes with one group of people today but can cross over to another
group tomorrow. Not only this, an individual can be a member of more than
on group at a time.

3. Traditional and Modern Organization

3.1 The Meaning of Traditional Organization

The traditional theory is also called as classical theory that is contain the concept of
organization in 1800 era. Commonly in this theory, the organization describe as the structure
of relationship, empowerment, goal, role, activities, communication and the other factor that
will happen if work in team. Classical theory developed in three ideologies. There are
bureaucracy theory, administration theory, and management scientific.

3.1.1 Bureaucracy

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 This theory expressed by Max Webber in his book The Protestant Ethic and spirit
of capitalism.
The bureaucracy word actually comes from legal-rational word. The organization
can be legal because the authority comes from a set of procedure regulation and
clear role.
The characteristic of bureaucracy are:
a. Clear division of labor
b. Rational program in achieve the goal
c. hierarchy of authority are well defined
d. Procedure system in handling work situation

3.1.2 Administration theory

This theory developed by Henri Fayol and Lyndall Urwick from Europe and by
Mooney and Reiley from America. Henri Fayol is a French industrialist in 1841-
1925. Fayol describing 14 management principle, those become the foundation of
administration theory.
Those are:
a. Division of work
b. Authority and responsibility
c. Discipline
d. Unity of command
e. Unity of direction
f. Subordination of individual interests to general interest
g. Remuneration of personnel
h. Centralization
i. Scalar chain
j. Order
k. Equity
l. Stability of tenure of personnel
m. Initiative
n. Esprit decorps

3.1.3 Scientific Management theory

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 Scientific management theory develops in 1900 by Frederick Winslow Taylor.
There are two kind assumption of this theory; the first is said that the scientific management
theory is the application of scientific methods in study, analysis, and problem solving. While
the second assumption said the scientific theory is a set of mechanism and technic to increase
the efficiency of organization work.

3.2 The Meaning of Modern Organization

The modern theory developed in 1950 as the dissatisfaction from traditional
theory. The modern theory also calls as Analyze system or open theory. This theory combines
traditional and neoclassical theory. This theory shown that, all of the element of organization
is a unity that unseparated.
The modern theory said that the work in organization very complex, dynamism,
multilevel multidimensional, multivariable, and probabilistic. With analysiss the system of
modern organization try to answer the questions that have relation. That questions are;

1. what is the part of strategis system

2. what make them dependent
3. what is the goal

This theory shown three process activities that always appear in human system in
organization, there are

1. Communication
2. Equilibrium concept
3. Decision taking proses.

3.3 The Different Between Traditional And Modern Organization

The different between traditional and modern theory shown in table bellow.

Modern Organization Traditional Organization

Dynamics Stabil

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 Flexible inflexible
Team oriented Focus on work
Costumer oriented Individual Oriented
Diversification work Government oriented
Unlimited time Regulation oriented
Decision making by all of labor Decision making by manager

4. Manager

4.1 Definition of Manager

Manager is a member in organizations who has responsibility to ailing and

coordinates the jobs of other members. In the other word, manager is a person who does
management activities. Management is a working process by using people and resource
to achieve the goal. A good manager does it effectively and efficiently. Effective means
can achieve organizational goals and efficient means reaching target with minimal usage
of resource which use the best possibility of money, time, material and people.

4.2 Manager Functions

In doing their job, managers have four functions, they are

1. Planning
Planning is determined where will an organization want to stand in the future
and how to be there. Planning means determining the target or goal of organization
performance in the future and deciding the job description and using of resources
which are needed to achieve the goal. The lack of planning or bad planning can
destruct the performance of organization.
2. Organizing
Commonly organizing does after planning and express how a company try to
achieve its plan. Organizing activities such as determining and classifying the job

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 description into a department, determining the authority and resources allocation
among organization.
3. Leading
Giving a leading is the important function of manager. Leading is a usage of
influence to give the motivation to all of employees in order to achieve the
organization goal. Leading means creating new culture and value, communicating
goal to the employees, giving suggestion to increase the performance of the
employees. Leading also include giving motivation to all of department, division and
person who are work with manager directly. In this uncertainty era, international
competition and the various kind of labor which is more increase, the ability to make
a culture, communicate the goal, motivate the employee are really important to be
successful.
4. Controlling
Controlling means supervising the activity of employees, determine whether
the organization can fulfill the target and do correction if it is needed. Manager have
to make sure that organization move to its goal. Empowerment and trust to the
employees had made many companies not too force the controlling, but give training
to the employee to watch and correct them. The advance of information technology
also can help managers in supervising their employees activity.

4.3 Manager Skills

To be a manager, someone have to has these kinds of skills, they are

1. Conceptual Skill
Conceptual skill is a cognitive ability to see an organization as a whole and
relation between one part to other part. Conceptual skill entangles manager thinking,
information cultivation, and planning ability. This skill entangles someone
knowledge about department can suitable in organization as a whole and how
organization suitable to the industry, society, business environment and wider social
environment. It means that strategic thinking ability by taking wide view for long
time. Conceptual ability is needed by managers, especially top managers. They have
to assume significant elements in a situation and wider conceptual pattern.

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 2. Human Skill
Human skill is managers ability to work with or trough another person
effectively as the member of group. This ability showed by the way of manager to
communicate with other, include ability to motivate others, give facilitation,
organize, lead and solve problem. Managers with human skill will give chance to
their staffs to express themselves and push for their participation. Managers with
human skill are taking fancy to others and taken fancy by others.
3. Technical Skill
Technical skill is the understanding and fluent in doing certain duty. Technical
skill includes the ability to understand and implementing method, technique and
tools that use in certain function like engineering, manufacturing or financing.
Technical skill also includes specific knowledge, analysis skill and usage the correct
tools and technique to clear the problem in certain science discipline. Technical skill
is very important for low manager.

4.4 Levels of Managers

There three hierarchies of managers, they are
1. Top Manager
Top managers are in the top of the hierarchy who responsible to all of parts in
organization. They gird position such as President, Chief, Executive Director, CEO
(Chief Executive Officer). Top managers are responsible to determine the goal of
organization, strategy to achieve the goal, handle and interpret extern environment,
and also take decision which has influence to the company. Among those managers
responsibility the most important thing is communicating the vision of organization,
making intern company culture and keeping entrepreneur spirit save which can help
the company to make company balance as fast as possible.

2. Middle Manager
Middle managers are in the middle of the organization and have responsibility
to business unit and main department. The examples of middle managers are The
Head of Department and The Head of Division, also the other. Commonly middle
managers have two or more levels below them. They have responsibility to the
implementation strategy generally and the policy had determined by the top

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 manager. Middle managers commonly deal with short time future and are expected
can build also maintain good relation with other managers in an organization, force
team work, and finish the conflict. Not only handle information flow from bottom to
the top, middle manager also responsible to create horizontal network to help the
organization to give respond to the exchange of demand from environment.
3. First Line Manager (Low Manager)
First Line Managers (Low Managers) are responsible to the production of
goods and service directly. They are the first or second level of management and
gird position as Supervisor, Line Manager, Head of Section and Office Manager.
They take charge of amount of non management staffs. Their main attention is to the
implementation of regulation and procedure to achieve efficient production and also
give service and motivation. Time of this position is relative short, just focusing on
achieving the goal.

4.5 Horizontal Difference of Manager

Beside those three levels of managers, there are the differences among
managers in horizontal view. Functional Managers are taking charge of department
which does single functional duty. Functional Department includes advertising,
selling, finance, resource, manufacture and accounting. Line Managers are taking
charge of Manufacture and Marketing Department which making and selling
products. Staff Managers are taking charge of department such as Finance and Human
Resource Department. General Manager is taking charge of many departments with
different function and also for division who stand alone. Project Managers also have
general management responsibility, because they organize people that come from
some departments to do certain project.

4.6 The Role of Manager

Based on Mintberg observation and research show that various activities that
do by a manager can divide become ten roles. Those ten roles are classified trough
three conceptual category, they are
1. Information Role
a. Controlling Role
Searching and accepting information, seeing the report and whereas
publication, keeping private contract.

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 b. Dissemination Role
Giving information to other members, sending memo, report and also contact
by telephone.
c. Spokesman Role
Giving information to the extern by use speech, report and memo.
2. Interpersonal Role
a. Head Figure Role
Doing ceremonial duty such as greeting visitors and signing document
b. Leader Role
Giving direction and motivation to all of staff, training, guiding and
communicating.
c. Communicator Role
Maintainingcommunication channelsinsideandoutside the organization,
sending letters, contact by telephone,andconduct meetings
3. Deciding Role
a. Entrepreneur Role
Starting theproject, identifyingnew projects, creatingthe ideaof responsibilityto
others
b. Problem Solving Role
Taking corrective actionduring theconflictorcrisis, resolvingconflicts
amongstaffs, to adapt to theenvironmentalcrisis
c. Divider Resources
Deciding who getsthe resources, schedules, budgetsandset priorities
d. Negotiator Role
Representingthe departmentfornegotiation, contract of employment,sales,
purchasingand budget, representing the departments.

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 BAB III

Conclude And Suggest

3.1 Conclude

1.An Organizations isa system of consciously coordinated activities or efforts of two or more
persons.

2. An organization is a collection of people working together in a coordinated and

structured fashion to achieve one or more goals.

3. Organizations resource is Human (labor ), Financial ( capital) , Physical( the material),

Information ( technology)

4. Organizations role in society is Organizations exist to allow accomplishment of work

that could not be achieved by people alone

3.2 Suggest

An organization is very improtance for people, in their life people cant do everything without
their (social human). Because that we must join to an organizations in school,
university,society,etc.

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