Prof. Djamaludin Ancok, Ph.D

Gadjah Mada Universityancokmm@yahoo.com

Shared valuesVMV

Structure

System

Strategy

Staff

Skill

Style

Politics

Demographic

Economic

Regulation

Social

Technology

Human Right

GovernmentBureaucracy

Globalization

McKinsey 7s Model

OrganizationalEffectiveness

Djamaludin Ancok

Learning OrganizationOrganization similar to human life, plants and animals, they need to adapt to the change of environment to survive.Organization should learn what are the factors that influence the survival and growth of organization.

Learning Organization ComponentsShared VisionSystem ThinkingMental ModelTeam LearningPersonal Mastery

Building Shared VisionBuilding Shared Visions -- visions cannot be dictated because it begins with the personal visions of individual employees, who may not agree with the leader's vision. What is needed is a genuine vision that elicits commitment in good times and bad, and has the power to bind an organization together. As Peter Senge contends, "[b]uilding shared vision fosters a commitment to the long term" (Senge 1990,12).

Systems ThinkingSystems Thinking -- the ability to see the big picture, and to distinguish patterns instead of conceptualizing change as isolated events. Systems thinking needs the other four disciplines to enable a learning organization to come about. There must be a paradigm shift -- from being unconnected to interconnected to the whole, and from blaming our problems on something external.System thinking needs a realization that how we operate, our actions, can create problems (Senge 1990,10).

Our responses to situations are influenced by our ingrained assumptions and generalizations about how things work in organizations.

These mental models enable us to rapidly size up new situations and take action and can be found at the individual, team, and organizational level.

In the learning organization mental models are freely shared, rigorously scrutinized, and revised as necessary at the personal, team, and organizational levels.

Mental Models

Team LearningTeam Learning -- is important because currently, modern organizations operate on the basis of teamwork, which means that organizations cannot learn if team members do not come together and learn. It is a process of developing the ability to create desired results; to have a goal in mind and work together to attain it (Senge 1990,13).

Personal MasteryPersonal Mastery -- begins "by becoming committed to . . . lifelong learning," and is the spiritual cornerstone of a learning organization. Personal Mastery involves being more realistic, focusing on becoming the best person possible, and to strive for a sense of commitment and excitement in our careers to facilitate realization of potential (Senge 1990,11).

Basic LocalValuesSocial and CultureaFactors & InstitutionsGlobal InteractionsAnd ModernizationsSocial and CulturalChangesIndividual and Group/collective beliefs,Values, perceptions,Attitudes, opinions, andLife stylesStructure and pattern ofSocial culturalInteractions and conditionsWorkplace and PatternOf work and leisure,Career dynamics andEmployee expectationsAnd compositionBusinessOpportunitiesSocial Environment

General Business EnvironmentSocial EnvironmentFour Ways to Look at:

1. How social environment changes business paradigm

2. How Social Environment may influence decision on :a. To invest or not to invest in a certain locationb. To continue investment or to quit.

3. How Social environment change create :a. new business opportunityb. threat to business

4. How business may create problem for social environment

Old Business Environment1. How social environment changes business paradigm

New Business Environment

Stability, PredictabilitySize & scaleLeadership from the topOrganizational rigidityControl by rules and hierarchyInformation closely guardedQuantitative analysis

Discontinuous ChangeSpeed and responsivenessLeadership from everyonePermanent flexibilityControl by vision and valuesInformation shared

Creativity and intuition

20th Century 21st CenturyHow social environment changes business paradigm

Need for certaintyReactive, risk-averseCorporate independenceVertical integrationFocus on internal organizationSustainable competitive advantageCompeting for todays marketsTolerance of ambiguityProactive;entrepreneurialCorporate interdependenceVirtual integrationFocus on competitive environmentConstant reinvention of advantageCreating tomorrows markets20th Century 21st CenturyHow social environment changes business paradigm

2.1 Decision to Invest or Not to InvestPotential Conflict leading to violenceGrouping of population, by ethnic, religion, social economic status, political orientation, membership in social organization,Sons of Soil vs Outsiders.

Inequality of power: (economic, bureaucracy, prestige) among groups. Ambon case ( economy controlled by muslim, Bureaucracyby Christian)

The History of conflicts among groups. (From colonial periodnow)a. How long? How many incidents? How big were the casualties.b. How many groups were involved

b. Human QualityLevel of education of populationLevel of unemploymentBad habits (drinking, gambling, laziness)Crime rates ( killing, stealing, burglar, drug trafficking) c. Spiritual AspectDevoutness to religion/custom (death, etc).Sacred placesCustom Law (hukum adat)-Tribal lawd. Land ownershipHak wulayat (how many tribal groups are involved).

e. Central Government PolicyUnfair and unjust policies which deprive local peoplesright toward their land and resources ( e.g Hak PengusahaanHutan (Right of Forest Concession). Dayak people live in their own land but have no right to the land and its reources.Tata Niaga Cengkeh ( Clove Regulated Trade) causesthe price of clove extremely low, and devastating to thefarmers quality of Life

f. Weak Law enforcementThe coflict between Dayak & Madura people in West and Central Kalimantan. A violation against Law (such askilling of one ethnic group member) was not brought to the Court. No follow-up, that makes one party feels betrayed.

g. Transition from Authoritarian Regime to Democracy(Lawlessness).

Decentralization of authority, institutions, personnel,and financial matter to local government. Law no 22, 1999 & Law no. 25, 1999.Transfer Corruption, Colusion, and Nepotism fromCentral Government to Local Government. Why? : Weak political figures, because of weak political recruitment processDecentralization -1National and Local Issues

e. BureaucracyMindset of bureaucracy Behaving as a landlord/King or treating business people as partner of success.

Facilities being offered. -local tax incentives, -smoothness in processing of permit. -economic infrastructure?

3. Conflict between executive and legislativeCorruption, Collusion and Nepotism

2.2 Decision to Stay or to QuitThis decision is made on the basis of cost benefitsanalysis for the long-term benefitsCost:-Premanisme/ Bandit-Land claim-Operational blockade/Demo/intimidation-Bureaucracy cost-Stealing of companys assets.-Asking for job by unqualified local people.-Asking for profit sharing-Heavy burden of taxes

3. How Social environment change create Business Opportunities-Western Culture Hegemony-Global life style-Change from Collectivism into Individualism-More stressful life-Paradox of Globalization

4. How business may create problems for social environmentInvestment that kills the local people source of incomePollution and environmental decayNegative multiplier effects (social problems, such as prostitution drinking habits, etc).Breaking social cohesiveness