TOWARD HEALTHY ORGANIZATION BY IMPLEMENTING GOOD UNIVERSITY GOVERNANCE

TOWARD HEALTHY ORGANIZATION BY IMPLEMENTING GOOD UNIVERSITY GOVERNANCE (GUG) BACKROUND THEORITICAL REVIEW METHODOLOGY ANALYSIS & DISCUSSION TATIK SURYANI STIE PERBANAS SURABAYA – INDONESIA CONCLUSION STIE PERBANAS SURABAYA INDONESIA, www. perbanas. edu

BACKGROUND o ONLY HEALTHY HIGHER EDUCATION (HE) ORGANIZATION HAS SUSTANABILITY AND GAINING COMPETITIVE ADVANTAGE. o HEALTH INSTITUTION COULD ONLY DEVELOP IN A HEALTHY SYSTEM THAT ENCOURAGE A PROACTIVE APPROACH TO MANAGE EACH INDIVIDUAL BECOMING EFFICIENT AND EFFECTIVE ORGANIZATION, WITH CLEAR RIGHTS, RESPONSIBILITY AND ACCOUNTABILITY o --- NOT MANY HEIs CAN DO THAT, ESPECIALLY IN o PRIVATE HE STIE PERBANAS SURABAYA INDONESIA

WHY? o THEY PERCEIVE THAT CREATING GUG IN UNIVERSITY (AMONG THE DIVISION) IS THEIR RESPONSIBILITY, BUT RELATING WITH THE SHAREHOLDER (FONDATION) ARE NOT THEIR AUTHORITY. o THEY PERCEIVE THAT ONLY THEIR FOUNDATION HAS POWER TO MAKE DECISION ABOUT GUG. HOW ABOUT THE FACT ? STIE PERBANAS SURABAYA INDONESIA

RESEARCH OBJECTIVE o To explore the perception about the importance of GUG from the top management perspective o To elaborate the constraints to implement it o To explore implementation GUG in managing HE. SCOPE ONLY IN PRIVATE HE IN CERTAIN REGION IN INDONESIA WHO GET ASSISTENCE TO SET GUG STIE PERBANAS SURABAYA INDONESIA

THEORITICAL REVIEW o University governance described as a set of relationships between the management (including among division), board of directors, stakeholders and shareholders (foundation) of HE institution. o There a number a techniques and strategies that are required to create a sound university governance infrastructure. These are: - the university values, codes of conduct and other standards of appropriate behavior and the system used to ensure compliance with them STIE PERBANAS SURABAYA INDONESIA

THEORITICAL (Cont…) o A well-articulated HE strategy o The clear assignment of responsibilities and decision-making authorities, incorporating a hierarchy of required approvals from individuals to the board of directors o The establishment of a mechanism for the interaction and cooperation among board of management of HE and the board of foundation. o The mechanism of control systems, including internal and external audit functions. STIE PERBANAS SURABAYA INDONESIA

THEORITICAL (Cont…) o Financial and managerial incentives to act in an appropriate manner. o Communication system (appropriate information flows internally and to the public). o The structure of university governance. STIE PERBANAS SURABAYA INDONESIA

RSEARCH METHODOLOGY RESEARCH DESIGN o Descriptive research o Ex-post factor research VARIABLES o The importance of university governance in their managing activities o The authority of top management HE during GUG implementation. STIE PERBANAS SURABAYA INDONESIA

VARIABLES…. o CONSTRAINT AND LIMITITATION FOR IMPLEMENTING GUG FROM PERSPECTIVE TOP MANAGEMENT OF PRIVATE HE o THE IMPLEMENTATION OF GUG o THE PERCEPTION AND STRATEGY OF BOARD OF MANAGEMENT OF PRIVATE HE IN CREATING HEALTHY ORGANIZATION STIE PERBANAS SURABAYA INDONESIA

METHODOLOGY…. o METHOD OF DATA COLLECTING ----FOCUS GROUP DISCUSSION o METHOD OF ANALYSIS QUALITATIF METHOD DESCRIPTIVE METHOD STIE PERBANAS SURABAYA INDONESIA

RESULT AND DISCUSSION 43% of sample classified in university or institute, and 57% HE institutions are categorized non university form. • 58% have students under 2500, and 42 % have more 2500 students • 64 % of HEI institutions established less than 10 years old. • STIE PERBANAS SURABAYA INDONESIA

RESULT AND DISCUSSION o 93 % PERCEIVE THAT GUG IS VERY IMPORTANT, BUT ONLY 46 % OF THEM BELIEVE THAT IT CAN BE IMPLEMENTED. o ALL RESPONDENTS STATED THAT THEORITICALLY IT SHOULD BE IMPLEMENTED o IN CONTEXT INTERNAL INSTITUTION CAN BE IMPLEMENTED WELL, BUT IN RELATION WITH FOUNDATION IS VERY DIFFICULT. STIE PERBANAS SURABAYA INDONESIA

RESULT Cont…. Why private HLEIs don’t implement GUG in relation with their foundation? o Because they are reluctant with their foundation. o Because they perceive that it’s not their right to establish the system who regulate their relation. o Because of the limitation of resources --- > GUG internal in management can’t be implemented well. STIE PERBANAS SURABAYA INDONESIA

STRATEGY o TO ESTABLISH BASIC REGULATION (STATUTE, STRUCTURE, PROCEDURE IN SYSTEM MANAGEMENT). - ORGANIZATIONAL CHART - PERFORMANCE APPRAISAL SYSTEM - FINANCIAL SYSTEM. - CONTROL SYSTEM ( INTERNAL AND EXTERNAL - OTHER SYSTEM o TO ADOPT THE UNIVERSITY VALUES, CODES OF CONDUCT AND OTHER STANDARDS OF APPROPRIATE BEHAVIOR AND THE SYSTEM IN MANAGEMENT ACTIVITY. o BASIC PRINCIPLES ARE : TRANSPARANCY, ACCOUNTABILITY, RESPONSIBILITY, AND FAIRNESS STIE PERBANAS SURABAYA INDONESIA

INTERNAL POLICY • Collaboration, communication, equality, synergy, among people or part of organization • Empowerment • Participative management to achieve organizational health • Decision making system STIE PERBANAS SURABAYA INDONESIA

EXTERNAL POLICY • Proactive approach, not adaptive and responsive • Based on the principle of partnership, equality, horizontal competition to achieve quality and competitiveness • Balance of contribution between external impact, organizational health, harmony and capacity to improve performance STIE PERBANAS SURABAYA INDONESIA

CONCLUSION o GUG is not only regulate the relation in internal of HE but also with the shareholder (foundation) and other stake holder. o It can be realized it all stakeholders have ability and willingness. STIE PERBANAS SURABAYA INDONESIA

Thank you STIE PERBANAS SURABAYA INDONESIA