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Organizational effectiveness is highly impacted by the quality of decisions taken in due course of operations and interaction between different people and different levels in the organization.
Quality decisions need to be taken by the right people at the right time and according to the right information flow from the people who have this info to those who need it. It also requires the proper level of authorization to be granted to the people who need to make these decisions accordingly !
SUCCESS
Simply:
They lead to employee engagement & human coordination ---> integration ---> better performance ---> better results ---> more profit, growth, and values
Execution is the result of thousands of decisions made every day by employees acting according to the information they have and their own self-interest. Researchers identified four fundamental building blocks executives can use to influence those actions:
1. Clarifying decision rights,
2. Designing information flows,
3. Aligning motivators, and
4. Making changes to structure.
Research shows that actions having to do with decision rights and information are far more important—about twice as effective—as improvements made to the other two building blocks.
Blurring of decision rights tends to occur as a company matures. Young organizations are generally too busy getting things done to define roles and responsibilities clearly at the outset. And why should they? In a small company, it’s not so difficult to know what other people are up to. So for a time, things work out well enough. As the company grows, however, executives come and go, bringing in with them and taking away different expectations, and over time the approval process gets ever more convoluted and murky. It becomes increasingly unclear where one person’s accountability begins and another’s ends.
When information does not flow horizontally across different parts of the company, units behave like silos, forfeiting economies of scale and the transfer of best practices.
Moreover, the organization as a whole loses the opportunity to develop a cadre of up-and-coming managers well versed in all aspects of the company’s operations.
Better productivity, productiveness & sure the SUCCESS
Organizational effectiveness is a performance indicator which shows the effectiveness level in an organization layer
Better productivity, Happy team and Success.
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