ORGANIZATION AND ADMINISTRATION THEORY
Lecture: Dr. Kusdi Raharjo, DEA
By: Nur Muflikhah
105030201121006
Business Administration
BRAWIJAYA UNIVERSITY
FACULTY OF ADMINISTRATION
Question
1. Explain differences of administrative role than the management of various streams (classical, modern, post-modern)!
2. Explain the differences in public organizations and business! Mention concrete examples of each!
Answer :
Differences In Administration and Management Role In The Flow of Classical, Modern, and Postmodern
a. Classical Perspective
At this time the administration's role as executor "mandate" from the owners of the organization. Emphasis is accountability and responsibility towards the implementation of its mandate. The approach is processual approach, which emphasizes the procedures and rules so as to give the "report" the right to the owner of the organization. And high stability make the design of an organization that is in conformity with the demands of the environment works well for a long period.
This puts the role of management in organizational life is more dominant than the role of the administration.
b. Modern Perspective
In this period the administration of more dominant role because the role of the administration to shift the decision-making. Administrator is the brain or central control organization, where its function is emphasized on the strategic aspects, namely how to control and give direction to the organization in accordance with the "reading" to the environment. The analysis tools such as SWOT (strength, weakness, opportunity, and threath), strategic planning, BCG Matrix, value chain, and so forth. Organizational relationship with the environment very closely, as a result of the development of systems theory.
c. Postmodern Perspective
The most basic things in order. Both classical and modern approaches basing his ideas on the concept of regularity. The difference, take the ideas of classical thinkers mechanism regularity of the universe, while modern thinkers of the regularities of organic living beings, but its core, remains the problem of order. This is different from the perspective of post-modern. they see themselves deliberately ignore the concept of order, including the theory of organization. The aim is to show a more complex reality, where truth is a truth which can be coupled with other although both are not the same.
Differences of Business and Public Administration
when viewed at the macro level, public organizations in general have the characteristics of the environment more complex than a business organization. These differences usually affects how public organizations are managed. Golemiewski (1990:127) says that the environment of public organizations are characterized as, "a complex and contradictory body of analysis.
seen here That the business firms only take into account consumers (existing and potential customers) and competitors. meanwhile, public organizations must take into account the Various components are wider .That parties involved or have an interest in public organizations is extremely Varied. include Among others, politicians, taxpayers, Voters, interest groups, and so forth.
The main difference between public and business organizations are: the environmental authorization, meaning to do something, that is, to do something, public organizations must first get permission from the legality. sources of funding and the authority obtained through the authorization environment. for example here, the budget submission to Parliament, to get the endorsement of a plan of government activities, this is the basis for public organizations to build organizational capacity and operational capabilities.
Actually business organizations also have the authorization environment, such as the board of commissioners or the general meeting of shareholders which determine funding and the limits of authority for management of the company. but, of course the environment is not as complex business organization authorized public organization, and usually can be determined with certainty, while the authorization of the environment, public organizations at all times be in control.
In addition, the diverse demands of stakeholder interests and tend to vary each time also must always be accommodated, as recounted above Fynn and Golemiewski this somewhat limited the space and options for managing public organizations. The process of value creation in public organizations is not based on laws of supply and demand market, but through a bureaucratic process, namely the permission of the authorization mechanism of the production environment in a public organization there are two options, namely to produce its own mandated services to the public organization, or work with providers private service. Cooperation in providing this service seems to be a trend in developed countries, particularly to pursue efficiency and effectiveness of providing services to the community.
The characteristics of public organizations and business:
Steward (1985), for example, mentions no less than 13 characteristics that distinguish public organizations with business organizations, namely:
1. multiple, Sometimes, conflicting, service objectives
2. multiple, Sometimes artificially raise expectation
3. many stakeholders, Often the which with high potential power
4. demand and expectation of funding bodies
5. beneficiaries of service by not contributing directly
6. variable resources from funding bodies
7. funding received in advance of service
8. local change in ruling parties
9. Government directives
10. statutory requirements
11. restrictions on raising capital or revenue
12. restriction on revenue or capital spending
13. sensitivity to community pressure
Theoretically it illustrates that a public organization managers must always deal with the challenges and complexity of the task is more complicated than managing a business organization. Of course this does not mean that the management of a business organization does not mean easier than public organizations, the distinction is merely emphasizes complexity nature and management approach that is not the same between public organizations and business organizations. As for the degree of difficulty, of course, very dependent on conditions and situations each organization itself. Just for comparison, we can see Baber following opinion about the differences in public and private organizations, this represents a justifiable reason why public organizations can not easily change the orientation or activity of its activities as a private company.
1.Organization of public duties is more complex and ambiguous
2. More public organizations face problems in implementing decisions
3. Public organizations to hire more employees with diverse motivations
4. Public organizations pay more attention to how secure the opportunity or capacity of existing
5. Public organizations pay more attention to the business market failure compensation
6. Public organizations more activities with greater symbolic significance
7. Public organization holds more stringent standards in the commitment and legality
8. Public organizations more focused answer injustice
9. Public organization operating for the public interest
10. Public organizations must maintain a minimum support the community in a higher level than the private sector
Examples of Business Organization
1. Enterprise / Individual Company or Individual
Individual company is a business entity owned by a single person. Individuals can make an individual business entity without permission and certain ordinances . Everyone is free to make personal business without any restriction to set it up. In general, private firms small capital, limited the type and amount of production, a labor union that a little and use of simple technology of production. Examples of individual companies such as grocery stores, meatballs itinerant handyman, peddlers, and others.
characteristics and properties of an individual company:
- Relatively easy to set up and also dissolved
- Unlimited liability and could involve personal property
- No taxes, there are fees and charges
- All benefits enjoyed by their own
- Difficult to set the wheels of his own company because it regulated
- Small profits that sometimes have to sacrifice a larger income
- Term business entity is not limited or lifetime
- At any time can be transferred
2. Company / Agency Business Alliance / Partnership
Company partnership is a business entity owned by two or more persons who jointly work together to achieve business goals. Included in the business entity is a firm alliance and alliance partnership alias cv. To establish a business entity requires special permission alliance with the government agencies.
a. Firm
The firm is a form of business alliances consisting of two or more people with common names evenly split responsibilities are not limited to any owner.
characteristics and nature of the firm:
- If there are unpaid debts, then each owner must pay off with personal property.
- Each member firm has the right to become leader
- A member is not entitled to incorporate new members without the consent of the other members.
- Membership of inherent firm and valid for life
- A member has the right to dissolve firm
- Establishment does not require a deed
- Easy to obtain business credit
b. Guild Commanditaire / CV / Commanditaire Vennotschaap
CV is a form of business entity established and owned by two or more people to achieve common goals with the level of involvement varies among its members. One party in CV actively manage the business personal property and involving other parties include only capital without having to involve the private property when the financial crisis. Who actively manage the company cv-called ally active, and that only the capital subscribed is called passive allies.
characteristics and properties of cv:
- Difficult to attract capital that has been paid
- Large capital because it was founded many parties
- Easy to get a loan credit
- There are active members who have unlimited liability and there are just waiting for the benefits of passive
- Relatively easy to set up
- Cv company's survival uncertain
3. Company Limited / PT / Corporate / Corporate
Limited liability company is a business organization that has a formal legal entity owned by a minimum of two people with the responsibility that only applies to companies without involving the private property or individuals in it. In the PT owners of capital do not have to lead the company, as they may appoint another person outside the capital owner to become leader. To establish PT / limited corporate amount of capital needed at least a certain amount and various other requirements.
characteristics and properties of pt:
- Liability limited to the capital without involving personal property
- Capital and firm size large
- Pt survival of the company is in the hands of the shareholders
- Can be led by people who do not have the stock
- Easy ownership changes hands
- Easy to find employment for the employees / staff
- Profits distributed to owners of capital / shares in the form of dividends
- The power of board of directors is greater than the strength of shareholder
- Difficult to disperse pt
- Double taxation on income tax / pph and dividend tax
Concrete Examples
C. V. Starr & Co., Inc. (C. V. Starr), incorporated in Delaware, U.S.A. in 1950, is a global investment holding company with insurance agencies and a portfolio of global investments. C. V. Starr can trace its roots to the development of insurance agencies and insurance companies founded by Cornelius Vander Starr in China beginning in 1919.
Through its insurance agencies, C. V. Starr historically has produced approximately $2 billion annually in comprehensive insurance coverage among several specialty lines covering aviation, energy, marine, excess casualty and property, and excess stop loss insurance for employer-sponsored benefit plans.
C. V. Starr's deep familiarity with the business of insurance and global investing sets the company apart in its industry. C. V. Starr's hallmark is its significant presence in global markets, backed by the company's international expertise.
Examples of Public Organization
SOE
State-Owned Enterprises (or SOE) is a business entity that capital wholly or partly owned by the Government. Employee-status business entity entities are public servants. State-owned enterprises now there are 3 kinds of Perjan, Perum and Persero.
Perjan
Perjan is a form of state-owned enterprises which are wholly owned by the government. This Perjan oriented service to the community, so always be losers. Now there is no state-owned company that uses perjan model because the cost to maintain the perjan-perjan. Example Perjan: PJKA (Company Jawatan Kereta Api) is now turned into PT.KAI
Perum
Perum is perjan that have been changed. The goal is no longer service-oriented but is profit oriented. Just like Perjan, Perum managed by state employees with status as a Public Servant. But the company is still losing money even though the status was changed to Perum Perjan, so that the government was forced to sell some shares to the public Perum (go public) and its status was changed to limited company.
Persero
Persero is one of the Business Entity which is managed by the State or Region. Unlike the Perum or Perjan, the first purpose built Persero is looking for profits and the second to give service to the public. Founding capital derived partly or wholly separated from state assets in the form of shares. S headed by directors. While the employee status as private employees. Business entities are written Corp
* The main purpose of profit-seeking (Commercial)
* Capital partially or wholly derived from the wealth of nations that are separated in the form of stocks
* Led by directors
* Employee status as private employees
* Agency for its written PT (company name) (Persero)
* No state facility
Examples of companies that have business entities Persero among others:
* PT Bank Mandiri (Persero) Tbk.
* PT Garuda Indonesia (Persero)
* PT Angkasa Pura II (Persero)
* PT Mining and Petroleum Company (Persero)
* PT Tambang Bukit Asam (Persero)
* PT Aneka Tambang (Persero)
* PELNI PT (Persero)
* State electricity company PT (Persero)
* PT Pos Indonesia (Persero)
* PT Kereta Api Indonesia (Persero)
* PT Telekomunikasi Indonesia (Persero)
Concrete Examples
PLN
PLN has a long history in the electricity industry in Indonesia. As the sole electricity provider in the country that the company seeks to continuously improve service quality for all components of Indonesian society.
Electricity energy industry plays an important role in the economic structure in Indonesia. The development of electrification in Indonesia started in abaad 19, when some Dutch company engaged in the sugar factory and the tea factories set up power plants for its own purposes. Between the years 1942-1945 occurred transitional management of Dutch firms by Japan, after the Dutch surrender to Japanese troops at the beginning of World War II.
The process of transition of power back at the end of World War II in August 1945, then since the transfer, on January 1, 1961, Bureau of Electricity and Gas was converted into BPU-PLN (the Governing Body of the State General Electric Company) that engages in electricity, gas and coke which was dissolved on January 1, 1965. At the same time, 2 (two), namely state-owned National Electricity Company (PLN) as the manager of electric power and state-owned National Gas Company (PGN) as the manager of the gas was inaugurated.
In 1972, in accordance with Government Regulation No.17, the status of the State Electricity Company (PLN) was established as the State Electricity Company and the Holders of the Electricity Business Authority (PKUK) with the task of providing electricity for the common good.
In line with Government policies that provide opportunities to the private sector to move in the business of providing electricity, then since 1994 the status of PLN to switch from the Public Company into Limited Liability Company (Persero) as well as PKUK in providing electricity for the common until now, since the enactment of Law No. . 30/2009 on the Electricity Law, the government provides breadth of opportunities for local governments, other private companies to participate in providing electricity supply for the Indonesian people
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