Level of Performance

Views On Organization

Research & Development

Manufacturing

Marketing & Sales

Traditional (Vertical) View of Organization

Views On Organization
Research &
Development

Manufacturing

Marketing &
Sales

New product ideas

Research

Manufacturing
Plant

Product Specs

Product
Development

needs
Marketing

promotions

Manufacturing
Plant
Sales

designs

orders

C
u
s
t
o
m
e
r
s

materials
products
Suppliers

System View of Organization

Organization as an Adaptive System

Processing system
(Organization)

Orders

Products/
Services

- Government Trade Regulation

-The American Economy
- Social trends vis--vis computers

9
5

Computec Inc.

11

Shareholders

Individuals
Labor Market

people

Human
resource

Other Companies

Marketing
10
3

Research
Community

Capital Market

Product
Development

technology

capital

Consulting
Field
Operations

Custom
Software

Aerospace
Companies

Finance

Packaged Software
Production
6
7
Orders/complaints/service orders

Vendors
8

Software &
Systems Engineering
Competitors

Consulting/Software

Penjelasan Organisasi sebagai sebuah sistem

yang adaptif
1.
2.
3.
4.
5.

Organization is a processing system (misal, Computex., Inc.)

Mengkonversikan berbagai sumberdaya input
Menjadi Output (produk dan jasa)
Yang disajikan bagi pasar atau receiving systems
Organisasi juga menghasilkan nilai keuangan, berupa ekuitas dan dividen
bagi pemegang sahamnya.
6. Organisasi diarahkan melalui kriteria dan umpan balik internal
7. Namun terutama digerakan oleh umpan balik dari pasarnya
8. Persaingan juga mempergunakan sumberdaya yang sama guna
menyediakan produk dan jasa bagi pasar
9. Seluruh skenario/aktivitas bisnis ini berjalan dalam suatu lingkungan
sosial, ekonomi dan politik
10. Di dalam organisasi kita melihat fungsi-fungsi, sub bagian-sub bagian,
yang ada untuk mengkonversikan berbagai inputs menjadi produk atau
jasa
11. Akhirnya organisasimemiliki sebuah mekanisme kontrol yaitu
manajemen.

3 Levels of Performance
The Organization Level
The Process Level
The Job/Performer Level

The Nine Performance Variables

The Three
Levels of
Performance

The Three Performance Needs

Goals

Goals

Design

Management

Organization
Level

Organization
Goals

Organization
Design

Organization
Management

Process Level

Process Goals

Process Design

Process
Management

Job/Performer
Level

Job Goals

Job Design

Job
Management

-> need specific standars that reflect customers expectations for

product and service quality, quantity, timeliness, & cost.
Design
-> need to include the necessary components, configured in a way
that enables the goals to be efficiently met
Management-> requires management practices that ensure that goals are
current & being achieved

3 Level of Performance
$
Function A

Function B

Shareholders

Function C

Products/
services

The Organization Level

Market

Manufacturing
Marketing
Sales &
Distributing

MANUFACTURING
SUBSYSTEM

Organizational Level
Organization Goals
Tujuan merupakan bagian dari strategi bisnis
Tujuan mencerminkan

Keunggulan bersaing organisasi

Produk produk baru dan pasar-pasar baru
Penekanan terhadap berbagai produk atau jasa dan pasar
Sumberdaya yang dipersiapkan untuk mendukung operasi dan Return
yang diharapkan didapat dari investasi.

Has organizations strategy/direction been articulated &

communicated?
Does this strategy make sense in term of external threats &
opportunities and internal strengths & weaknesses?
Given this strategy, have the required outputs of the
organization and the level of performance expected from
each output been determined and communicated?

Organization Level
Organization Design
Relationship map:
Understand how work currently gets done (how the organization
behaves as a system)
Identify disconnects in the organization wiring (missing, unneeded,
confusing, or misdirected inputs or outputs)
Develop functional relationship that eliminate the disconnects
Evaluate alternative ways to group people and establish reporting
hierarchies

When the focus is placed on the internal & external customersupplier relationship (industry value chain), the standard
organization chart becomes less important
Are all relevant functions in place?
Are all functions necessary?
Is the current flow of inputs and outputs between functions
appropriate?
Does the formal organization structure support the strategy
and enhance the efficiency of the system

Computec, Inc., Organization Chart

President

Product
developmen
t

Consulting
& Systems
Design

Field
Operations

Sales

Finance

Human
Resources

Production
Control

Manufact
uring

Marketing

Copying

Assembly &
Shipping

Relationship Map
for Computec, Inc.

Organizational Level
Organization Management
1. Goal Management
creating functional subgoals that support the achievement of the overall
organization goals.
2. Performance Management
Obtaining regular customer feedback, tracking actual performance along the
measurement dimensions established in the foals, feeding back performance
information to relevant subsystems, taking correction action & re-setting goals
so that the organization is continually adapting to external & internal reality
3. Resource Management
Involves balancing the allocation of people, equipment, & budget across the
system. Resource allocation should enable each function to achieve its goals,
thereby making its expected contribution to the overall performance of the
organization
4. Interface Management
Measuring that eh white space between functions is managed. Managers
resolve conflict & establish infrastructures to support the collaboration that
characterizes efficient, effective internal customer-supplier relationships.

Organizational Level
Organization Management
1. Goal Management
Contoh, sub tujuan Departement Pengembangan Produk harus:
Reflect the organization goal of ambitious & speedy new product and
service development
Ensure that its new products & services are driven by the needs of the
market-place, not by the technical wizardry
Require it to design products & services that marketing can sell
Require it to design products & services that field operations &
production can sell, make deliver with the quality & timelines required
by customers and the profit required by Organization

Organizational Level
Organization Management
2. Performance Management
Contoh, manajer perlu melakukan

Obtain regular feedback on product effectiveness from customers

Measure the product development, marketing, & field operations
departments on their contributions to the organization goal of product
development and introduction
Provide feedback to product development, marketing, and field
operations on their product development and product introduction
performance
Ensure that cross-functional problem-solving teams address product
development and product introduction problems
Reestablish product development and product introduction goals if
there is a change in the market

Organizational Level
Organization Management
3. Resource Management
Contoh:
dept.Pengembangan Produk membutuhkan 2 sumber daya
untuk mencapai tujuannya: orang/karyawan dan dana yg
cukup. Manajer pengembangan produk dan atasannya harus
berdiskusi jika terjadi pengurangan anggaran yg diputuskan
oleh pimpinan
4. Interface Management
Contoh:
Introduksi produk akan lancar jika kerjasama antar marketing,
product development & field operations berjalan baik

Organizational Level

Organization Management
Have appropriate functional goals been set?
Is relevant performance measured?
Are resources appropriately allocated?
Are the interfaces between functions being
managed?

3 Level of Performance
$
Function A

Function B

Shareholders

Function C

Process 1

Process 2

Products/
services

The Process Level

Market

3 Level of Performance
$
Function A

Function B

Shareholders

Function C

Process 1

Products/
services
Process 2

The Job/Performer Level

Market

Organization Level
Process Level
Job/Performer Level

Goals

Design

Management

Has the organizations strategy/direction

been articulated & communicated?
Does this strategy make sense, in terms of
the external threats & opportunities and
the internal strengths & weaknesses?
Given this strategy, have the required
outputs of the organization & the level of
performance expected from each output
been determined and communicated?

Are all relevant functions in

place?
Are all functions necessary?
Is the current flow of inputs &
outputs between functions
appropriate?
Does the formal organization
structure support the strategy
and enhance the efficiency of the
system?

Have appropriate function goals been set?

Is relevant performance measured?
Are resources appropriately alllocated?
Are the interfaces between functions being
managed?

Are goals for key processes linked to

customer/organization requirement

Is this the most efficient/effective

process for accomplishing the
Process Goals

Have appropriate process subgoals been set?

Is process performance managed?
Are sufficient resources allocated to each
process?
Are the interfaces between process steps being
managed?

Are job outputs & standards linked to

process requirements (which are in turn
linked to customer & organization
requirement)?

Are process requirements

reflected in the appropriated
jobs?
Are job steps in a logical
sequences?
Have supportive policies &
procedures been developed?
Is the job environment
ergonomically sound?

Do the performers understand the Job Goals

(output they are expected to produce &
standards they are expected to meet?)
Do the performers have sufficient resources,
clear signals & priorities, and a logical Job
Design?
Are the performers rewarded for achieving the
Job Goals?
Do the performers know if they are meeting the
Job Goals?
Do the performers have the necessary
knowlege/skill to achieve the Job Goals?
If the performers were in an environment in
which the five questions listed above were
answered yes, would they have the physical,
mental, & emotional capacity to achieve the Job
Goals?