analyzing the effectiveness of local government and ...€¦ · key words: effectiveness of...

www.theinternationaljournal.org > RJSSM: Volume: 05, Number: 6, October 2015

Analyzing the Effectiveness of Local Government and Official Organization

Design in Western Part of Seram Regency

Arifin Tapi Oyihoe

Fisip Universitas Pattimura, Ambon

Pattimura University, Ambon Indonesia

Abstract

This research aims at analyzing the cause of the ineffectiveness of the design of local officer

organization in the western part of Seram Regency by using the model of Galbraith organizational

design. The data were analyzed by using qualitative descriptive method with the positivism paradigm

and case study approach. The research was conducted in some SKPD (working units of local officer)

in the Western part of Seram Regency, including one secretariat, two technical institutions, four local

government offices and one subdistrict office. The key informants were the leader and officers of

working units that become the research samples. From each working unit, five officers were selected

as informants. Data collection was conducted through observations, deep interviews and data

triangulation. The results reveal that the organizational design in the Western part of Seram Regency is

not effective because the design process is not conducted according to the steps of organizational

design included in Galbraith model.

Key Words: effectiveness of organizational design, Galbraith model

Design of local government organizations are too focused on the organizational structure is

based on the traditional organization design approach, which believes that only the structure of the

organization is the best way (one best way) to design a job or organization. In this traditional approach

organization design, the organization assumed to be in a stable environment with low complexity

(Baker and Branch, 2002: 3). Although traditional organizational design views is one form of

organizational design options, however rare at this time. There is only one best way to design an

organization because there is no complete organizational structure, every structure has an excess and

deficiency (Reichard, 2004: 2-6).

In addition, the organizational structure is only one element of organizational design, and

organizational design is not limited to the organizational structure, and a lot of that structural variations

can be made. But the structure is not quite right, it will be difficult to align with the other design

elements of the strategy. If the structure does not normally support the strategy, then everyone in the

organization will get a bottleneck in the work (Kates, 2007: 9-10).

Furthermore, to analyze the factors that lead to low organizational effectiveness of local

equipment of West Seram regency, used base/grand theory of contingency (contingency theory)

(Lawrence and Lorsch, 1967); Mitzberg, 1993: 105; fabac and Stepanie, 2008: 25 ). Previous empirical

research on the effectiveness of the design variables of the contingency organization providing

solutions to the critical elements of organizational design. Some previous empirical studies on the

contingency variables are: Astuti (2004), who found that the characteristics of the organization, and the

availability of facilities and infrastructure affect the effectiveness of the design and organization of the

Office of Public Relations Information Bantul. Laing and Weir (1996) who found that the structure of

the organization has a positive relationship with organizational performance of companies in the UK;

Sang Ong and Heng The (2008) found that organizational culture and technology are very important

contextual variable in organizational design company, while the strategy is the variable less important.

Meanwhile, according to Kates (2007: 1) organizational design is the process of configuring

structures, processes, reward systems, and people to create an organization capable of achieving the

organizational strategy effectively. In this context, structure, processes, systems, rewards, and people


must be matched and aligned to support the strategy, which together support the effectiveness of the

organization. There are two benefits to design based on the strategy, namely reform organization's

ability to allocate resources (people and funds) in support of the strategy, and ensure that the right

information is reaching the right people at the right time.

Galbraith (2002) suggested that organizational design model called as star models (models of).

Explained that the star models, organizational design refers to the five categories. The first is a strategy

that determines the direction of the organization; The second is the structure that determines the

location of decision making; The third refers to the flow of information and how the information

technology organization members respond; The fourth is the reward and motivation system rewards

that influences people to improve performance and achieve organizational goals. And the fifth

category is the people, including the human resources policy that affects and give a description of the

mindset and skills of employees.

Implications of star models, the first, organizational structure is only one component of the

design organization. This is important because a lot of effort to design an organization that spends a lot

of time just to draw a charts organization and too little is devoted to the process and the award, and the

overemphasis on this structure because structure affects the status and power. However, rapid changes

in the organizational environment, and in a matrix organization, the structure becomes less important,

while the process, awards, and became an important person. Second, a change in strategy led to

differences in the organization. No organizational design that is suitable for all organizations in all

circumstances, so that the design or combination of designs to choose is which meet the criteria of the

strategy.

Third, star shaped intersection of the lines implies that in order for the organization to be

effective, policies must be harmonized and interact harmonizely with each other (in the policy design

elements). Alignment of all elements of the policy in the element will create clear communication,

consistent message to the members of the organization. Thus, Star Models selected for analysis in this

study because it provides a frame of reference to help identify and diagnose the effectiveness of the

performance of the organization as stated by Wonglorsaichon (2008: 32) that the elements of the star

models are interconnected and create a design that could affect the effectiveness of the organization.

This research is important to remember that Work Unit in the Suspected of SBB regency is an

organization that is still relative new, making it easier to increase organization effectiveness through

organizational design modeling according to situational conditions of the organization, as stated by

Sara (2009) that new organization needs new organizational structure and processes, as

appropriate/support with its strategy to achieve high organizational performance. This research is

aimed at analyzing the causes of the ineffectiveness of the organization design of West Seram regency

using Galbraith's model of organizational design.

METHODE

Research Approach

This study was designed to use qualitative approach, which examines the social reality of the

process and meaning of social construction. The paradigm of research relevant to this study is

positivism, meaning that the structure of the logic of the research process used in this study cannot be

separated from the logic structure based on research on deductive logic system (hypothetico-deductive

method).

This type of research is a case study, in which the distinctive nature of this case study is an

approach that aims to maintain the integrity of the object, in the sense that the organization of the West

Seram regency as an integrated whole as object that is learned.

Time and Location of the Research

The timing of the study for seven (7) months namely from June to December 2010 on the

location of the research that has been determined. Determining the location of the research done by

purposive (deliberately).

Due consideration homogeneity based organization structure, the chosen unit of analysis the

following regional organizations:


1. Secretariat (1 secretariat) and technical institutes (2 technical institutes): Regional Secretary,

Regional Planning Board, the Regional Employment Board

2. District offices (4 offices): Department of Agriculture and Livestock, Forestry and Agriculture

departments, the Department of Education and Sports

3. District office (1 sub-district office): Head Office of Kairatu

The focus of Research

Research focus is directed to answer the research problem with photographing the

organizational design of the West Seram regency ongoing at this time is in terms of strategies,

structures, processes, rewards and people. Review of the strategy is focused on how the organization in

achieving its goals. Focused on the placement of structures of power and authority within the

organization. Process approach focused on the achievement of organizational strategy and goals of the

organization, both vertically and horizontally. Award is focused on systems which took place at the

organization's awards SKPD SBB. People are focused on the condition number of members of regional

organizations West Seram regency in whole or in work units in achieving effective organizational

design.

Informant of the Research

In connection with the qualitative research approach is used, the informer is an employee who

has sufficient knowledge and be able to explain the true state of the object of research. Because of the

various constraints, both the knowledge and the limitations on the accuracy of the information, the

informant being taken is the one who understands well about the object of study that found

constellation patterns are complete, in this case, the effectiveness of the organization in relation to

organizational design.

Data Collection Techniques

In this study, the observation is done by relying on observation and memory through two

senses that are very vital in the observation, that the eyes and ears. To overcome the weakness of the

senses that is biological, then the observation is done by: 1) Using more opportunities to see the data,

2) take a similar data more. Meanwhile, to overcome the psychological weakness done by: 1)

Increasing the adjustment or adaptation to the informant research, 2) Familiarize yourself, 3) intending

to know, 4) reduce prejudice, 5) has a projection. This is done partly by doing interview that happens

in outside of office of research information. In addition, to overcome the weaknesses of researchers in

terms of memory, the researchers used some form of assistive as: 1) records (checklist) and alloy

interviews, 2) cameras, handycam and tape recorders.

Instrument of the Research

Instrument used in this study is the interview guide (attached), field notes (field notes and tape

recorder and camera (the photos) that will record the overall results of the study informant interviews.

Compilation of query at the interview guide was based on indicators that is defined previous research

on the operational definition. Guide intended to interview questions focused on in-depth interviews

and focus more conformed to the research objectives.

Data Validity

Triangulation data is done through other sources, the secondary sources which are beyond the

research informants, the Secretary of DPRD of the West Seram, another SKPD heads are not included

in the study informants Dines Chief Fisheries and Maritime Affairs, Head Taniwel and Leadership

Public Hospital of West Seram regency.

Data Analysis

Analysis of the data used is deductive analysis of the reasons that this research is based on the

theory of organizational design Galbraith‟s models star. Because qualitative research priority to

researchers as the main instrument, then, the data analysis has been carried out since the study lasts

until the end of the data collection process. The first analysis performed on the data reduction rate

descriptive analysis model. Because the analysis process was performed with or near the data

collection process, there is little possibility of a lack of data because researchers have ease in seeing

the analysis elements are missing or are not discussed with the informant at the time of the interview

and the use of observation methods.


RESULT AND DISCUSSION

Strategy Strategy is the means used to achieve organizational goals with approaches designed to build

and sustain competitive advantage (Galbraith: 2002). Appropriate strategy is a key condition to reach

goals and objectives of the organization.

Composing of the strategy that will be used, based on the vision and mission that has been

formulated previously. Implementation strategy of West Seram regency is supported by the existence

of regional work units (SKPD), which is an administrative task element area. A success achievement

of West Seram regency strategy that has been decided, cannot be released from the achievement of

success by SKPD. Therefore, the preparation of the strategy at all on SKPD research sample is

referring to the vision, mission, goals and objectives of the organization of.

West Seram regency. Process of formulating the vision and mission in each SKPDs have not

been stark to involve all members of the organization. Thus, resulting in a lack of employee‟s

knowledge and understanding about direction of organization will be realized. In fact, as we know that

the vision is far-sighted perspective that describes what the organization wants to be in the future.

Vision is also an idea that would be the direction for the organization of motion. Although as an idea in

a long term, the vision is not a dream that is impossible to be reached, so that the vision should be

logical, rational and achievable.

Since the formation of the West Seram regency, RPJMD and RPJP document just drafted in

2007 after the inauguration of the Regent and Vice Regent of West Seram is definitive. So therefore,

the preparation of Strategic Plan in each SKPDs also took place in 2007. The preparation of

performance reports conducted in 2010, because of a significant documents in the preparation of

performance reports is RPJMD and strategic planning documents on SKPD. On SKPD strategic plan

that has been outlined in Direction and Public Policy (AKU) and Document Budget Implementation

Task Force area (DPASKPD) refers to the vision and mission of the Government of West Seram

regency, as well as setting goals, objectives and how to achieve goals and objectives. Thus therefore,

AKU and performance reports (LAKIP) served as a reference and realistic guidance in building,

directing and making decisions about development, future development and success in the West Seram

regency.

Based on the results above, it was concluded the strategy element as follows :

Table 1. Indicator Matrix Elements of Organizational Design Strategies

Numb Indicators Research Findings Effectiveness

1. The process of drafting the

vision, mission and goals

of the organization.

Preparation of vision and mission

preparation on education refers to the vision

and mission of SBB regency

Effective

2. Involvement of members

of the organization in

penysunan strategy, vision,

mission and goals of the

organization

Preparation of vision, mission, goals is less

involving member organizations of the

organization so that the existence of the

vision, mission and goals are not fully

understood by all members of the

organization

Not Effective

3. Availability of strategic

planning documents

stated strategic planning document in the

form set out in the Strategic Plan of the

district strategic plan form on education,

RPJMD, ME, performance reports, DPA-

SKPD

Effective

Sources : research findings, 2011

Structure In general, people will assume the same structure with design organization. Actually

organizational design is a process of relationship development and the creation of structures to achieve


organizational goals. So the structure is the result of the design process. The design process is an

activity that is both continuous and designed by the manager. The shape or the result of the design

process, the designers must design organizational design an organization that can make the

organization survive. In addition the organization design selection will determine the size of the

organization. Organization any size will benefit each, but it is expected to achieve organizational goals

and also the existence of the organization.

A wide organizational structure indicates that the presence of these units in the duty on SKPD.

Similarly, the organizational structure demonstrated a high level in the existing structure. Besides that,

the geography of West Seram regency ample enough, cause scattered in several places on SKPD. As

the case of an Office of Education and Sports in Wet Seram regency, where in order to improve the

quality of service, has formed a technical Service Unit (UPTD) be a branch of the Department of

Education are located in the District of West Seram, Kairatu District, Taniwel and Huamual District

rear. With the organizational structure of the width and height of differentiation either vertically or

horizontally there are in West Seram regency.

Standardization work in the form of regulations on education only for each region on

education. Local regulations can be found on the Association of Local Regulation SBB districts of the

Institutional area with regulation number 02 in 2006 to number 25 in 2006 which later became

Regulation number 02 in 2008 to Regulation No. 29 of 2008. Details of the duties and functions of

each head and the parts that are in SKPD does not provide a clear and detailed guidance for employees

on the job.

The decision making process conducted based on existing authority, as well as the duties and

functions based respectively on SKPD. However, for decisions that are aimed at the common good

strategies and West Seram regency, the decision making process is still being done by the Regent, as

leader of West Seram regency.

Based on the results above, it was concluded structural elements as following:

Table 2. Indicator matrix elements of design Organizational Structure Numb. Indicators Research Findings Effectiveness

1. Complexity 1. Very wide organizational structure

characterized by the presence of these units

are still in the duty on SKPD.

2. Organizational structure that is characterized

by relatively high levels in the mash many

existing structures.

Not Effective

2. Formalization 1. Standardization work and raw procedure

labor is not specific, only Auth each unit in

SKPDs.

2. There is a material analysis work, but not

optimally

Not Effective

3. Centralization The decision-making substantive nature relating

to the duties and functions of each SKPD in

West Seram regency done centralization

Not Effective

Source: Research findings, 2011

Process Organizational process is a process to formulate and implement strategies, which consists of an

approach of vertical and horizontal/lateral process. The vertical approach, measured by the indicators:

make a plan of allocation of funds and expertise for the implementation of the strategy, allocate awards

and rewards for achievement of targets, using job rotation to exchange knowledge, the relationship of

one unit to another unit to create a same understanding of the substance of the strategy. Largely on

SKPD in the West Seram regency, has not applied standard in the allocation of competence and

employees in an activity which is characterized by selfishness seniority still strong and emotional

closeness in person. Consequently, indicators of success or achievement of performance targets as


outlined in the Report of the Government Accountability Agency (LAKIP) often does not correspond

to the conditions on the ground.

Exchange of knowledge on SKPD of SBB regency has not done well, which is evident from

the lack of knowledge exchange model in each SKPDs. In fact, it is well known that knowledge has

become something that is crucial, therefore, the acquisition and utilization should be managed well in

the context of organizational performance improvement. On SKPD in the West Seram regency had a

fairly close relationship and mutually integrated with one another. This is evident from the lack of

sectoral egoism and showed also that understanding the vision of West Seram regency was awakened

by each SKPDs in the planning and implementation strategies. There is still overlap in the

implementation in the field, of course, cannot be avoided however, availability of coordination forum

was able to minimize this condition.

Based on the discussion of the results and found that in terms of the vertical approach, the

implementation of the strategy on SKPD in West Seram regency in terms of allocation of funds takes

place in a bottom-up, but the allocation of human resources has not fully adapted to the skills and

competencies. Absence of governing system of rewards and reward for job performance and a low

degree of knowledge exchange and unfair mutation process resulted in the implementation of the

strategy on education levels have obstacles to achieve effectively.

Based on the results and discussion in mind also that the implementation of the strategy based

on a horizontal approach to the process is going well. It is seen from the closeness of the relationship

and communication between the high effectiveness SKPDs accompanied by the availability of

coordinating forum that allows members to understand each organization's roles and responsibilities of

each.

Based on the results above, it was concluded the following structural elements:

Table 3. Indicator Matrix Elements of Organizational Design Process

Numb. Indicators Research Findings Effectiveness

1. Vertical Process

Approach

1. Allocation of funds takes place in a bottom-

up.

2. Allocate human resources have not been

fully adapted to the skills and competencies.

3. Absence of governing system of rewards and

reward for job performance and.

4. The low exchange of knowledge.

5. The unfair mutation process

Effective

Not Effective

Not Effective

Not Effective

Not Effective

2. Horizontal Process

Approach

1. The closeness relation between units of work

2. The high effectiveness of communication

between Local Government Offices

3. Availability coordination forum allows

members to understand each organization's

roles and responsibilities of each

Effective

Effective

Effective

Sources: Research Findings, 2011

Awards and Award System Award system on SKPD in West Seram regency that it has not done well. The notion that the

successful achievement of the performance is a primary task of an employee is retained. This triggers

apathetic attitude of an employee, even though the system of meritocracy is a thing that can motivate

employees to work better.

Based on the results above, it was concluded element following awards:


Table 4. Indicator Matrix Elements of Organizational Design Award


1. Award System There is no reward system specific policies

governing the system of meritocracy that is

reached by employees

Not Effective

2. Promotion Promotion system has been going very well

Effective

3. Promotion Not entirely fair, not based on competence and

expertise

Not Effective

4. Mutation Not entirely fair, but responded positively by

employees

Not Effective


People Both within the organization and in the management process, the presence of the Human

Resources (HR) is a very important aspect and very determinant. HR with good qualifications will

encourage the realization of organizational goals more effectively and efficiently.

Lack of employee understanding of the duties and functions show that the work culture in the

organization of West Seram regency, less oriented roles. It is seen also from the low level of employee

involvement in determining the fate of the organization so that the lower the sense of responsibility for

the implementation of the duties and functions. Though theoretically, the greater a person's level of

involvement in the life of the organization, the greater the sense of responsibility to fulfill its

obligations owned that reflected in various forms such as high productivity, low absenteeism, high

levels of satisfaction and a low desire to change jobs.

Terms of achievement orientation, regional organizations of West Seram regency also less

achievement-oriented, as stated in the previous explanation that the understanding of the vision and

mission as well as implementation in the field is low, which is characterized by the lack of unanimity

of views on the vision and mission, as well as the formulation of a vision , mission and strategy that

does not involve all members of the organization.

Based on the results above, it was concluded People elements are as follows:

Table 5. The Matrix Elements of Design Indiktor organsasisation


1. Organization size Ratio of employees to the population and area

are still high and the ratio of employees with

high complexity of the activity is also high

enough

Not Effective

2. Span of control span of control is high enough Not Effective

Work culture yet formed an organizational culture that can

be a hallmark of personality and become the

values for all members of the organization

Not Effective

3. Understanding of the

basic task

Less understanding of the basic tasks oriented

role, because employees lack of understanding

of the duties and functions

Not Effective


Strategy on SKPD in West Seram regency adjusted with the vision, mission, goals and

objectives and set forth in the form of the Strategic Plan on SKPD, which emphasizes the priority of

the activities set forth in the form of work plans, programs and activities as well as indicators of

success. However, the preparation of the strategy on education in the form of strategic planning, which

should be guided by the Regional Development Plan has not been stark involving all members of the

organization, thus inhibiting the effectiveness of the organization. This is in line with the opinions of

Minzberg and Quinn (1992) that can increase the effectiveness of the organization's strategy, because

strategy is an important element of the organization. Appropriate strategies to encourage an


organization to achieve its objectives, and the strategies it contains basic organizational goals, which is

based on a variety of perspectives involving goals, policies, and action sequences that underlie rational

planning as a cohesive whole. Therefore, the strategy is to guide management in setting goal priorities

and determine how organizational resources are allocated to achieve high performance (Ansoff, 1984).

In addition, the process of implementation of the strategy in terms of the vertical process

approach, in terms of allocation of funds takes place in a bottom-up, but the allocation of human

resources has not fully adapted to the skills and competencies that is owned. Absence of governing

system of rewards and reward for job performance and a low degree of knowledge exchange and

unfair mutation process resulted in the implementation of the strategy on education levels have

obstacles to achieve effectively. Meanwhile, implementation of the strategy based on the approach

horizontal process is going well. It is seen from the closeness of the relationship and communication

between the high effectiveness SKPDs accompanied by availability of forum that allows members of

the organization coordinating mutual understanding the duties and responsibilities of each. In order to

design an organization to function effectively, the structure and processes must be considered and

developed simultaneously and interactively. A common error in the design of the organization is to

think that all there is to the structure, and no attention given the processes that define, focus and allows

integration required, coordination, and collaboration between different units. But the structure will not

work without the integrative processes related to support it.

Judging from the size of a person or organization, then on SKPD in West Seram regency face

control range is quite high, while the ratio of employees to population and area are still high and the

ratio of employees to the complexity of the activity is also quite high. Along with penning the opinion

(1992: 267-309) that the size of the organization regarding the amount of organization that can be seen

from the number of members of the organization. Number of members or the size of the organization

will affect the complexity of the organization both horizontally and vertically. The larger the

organization the lower the centralization.

Oriented organizational culture on power and achievement of targets and less based on the

orientation of roles and responsibilities, an organization that is not in accordance with the demands of

increasing service quality and technology, particularly the low utilization of information technology,

which in essence is able to improve the effectiveness and efficiency of work of regional organizations

West Seram regency. This is in line with the opinion of Chang and Chiang, 2007: 7-9) that culture also

serves as a tool for internal integration and coordination that will help the organization achieve its

goals. Then, the culture became the basis for the exchange of internal organization and understanding

in the organization to achieve consensus.

Based on the explanation above, the findings of this study is that the Government of West

Seram regency in running the organization does not conduct a thorough organizational design.

Organizational design only lasted until the preparation of the vision, mission, and strategic plan.

CONCLUSIONS AND RESEARCH IMPLICATIONS Based on the analysis of the organization design of West Seram regency concluded that the

cause of the lack of effective organization design of West Seram regency due process design drafting

organization that is built does not refer to the stages of preparation of organizational design as in

models of Galbraith.

Based on the conclusion that there is, then the implication of this study are as follows:

1. Theoretical Aspects

These results indicate that the organizational design of West Seram regency can be reviewed

from strategy, structure, processes, systems, people and culture. The results provide support for

previous research that has been done by Junaedi (2002) which concluded that the structure of the

organization (structure) affects the effectiveness of the organization; strategy (strategy) affect the

results achieved; system (system) can lead to poor working mechanism and can affect the final

result; leadership style (style) often result in conflict and have not achieved optimal results;

personnel (staff) greatly affect the effectiveness of the organization. Similarly, the results of

research Supriady (2002), Lely (2002), Wibowo (2007). Results of this study corrects Galbraight

theory which states that the strategy as a key driver in determining the structure, processes, rewards


and people. Results of this study found that for local government, the strategy cannot be used as a

key driver in determining the structure, because structure formed organization should refer to

Regulation number 41 of 2007, where the number and types on education are based on the total

area and population. So therefore, the structure dimensions become a principal reference in

determining the strategy, people, process and reward the achievement of organizational

effectiveness.

2. Methodological aspects

From the methodological aspect of this study, in Chapter III described that this study used a

qualitative approach with descriptive research design of the independent variables, namely without

connecting to other variables. Therefore, further studies are expected to accommodate the

involvement of other variables. Nevertheless, the use of qualitative methods allows to obtain more

accurate data through in-depth interviews and triangulation of data.

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