THE EFFECTIVE ORGANIZATION 

Leadership is continually concerned with mobilizing the efforts of personnel to accomplish assigned missions. In most organizations, this is not a simple undertaking. At its best, such leadership consists of motivating number of people who possess varied interest, capability and duties – and of integrating their activities so they functions as an organization system.

 To be effective, an executive must base actions upon an

understanding of both the internal affairs of the organization and the external situation faced by it.

 Organizational Effectiveness 

Effectiveness in achieving objectives depends upon the ability to cope with and control the operational environment. For an organization to overcome its operational environments, it requires:

 

 

1.Capacity to evaluate reality - The ability to search out, accurately perceive, and correctly interpret the operational situation, including conditions both internal and external to the organization.

 2. Adaptability - The capacity to solve problems and to react flexibly

to changing demands of the operational situation. 3.Integration - The maintenance of structure and function under

stress and maintenance of a state of relations among subunits that will 4nsure that coordination is sustained and that subunits do not work at cross-purposes.

 4.Operational proficiency - The technical competence to executive

successfully the tasks arising from the demands of the operational situation.

 Essential Characteristics of Effective Organizations

To meet the above requirements, effective organizations usually develop a number of identifiable characteristics. These characteristics include:

1) Organizational Characteristics

1.1 The capacity to learn

 

An effective organization has the capacity to gather information relative to its actions and performance, analyze it, feed it to itself, and change according to what is learned either about situational demands or about the organization itself. All of this makes possible continued development and improvement.

 

1.2 Open and efficient communication

 

An organization must have the ability to generate information about both external and internal conditions and to communicate it validly ad reliably. There must be a flow from one part of the organization in the other of all relevant information important for each decision and action. Members must exchange information and work at clearing up misunderstanding. Because of efficient communication, members are able to achieve the common understanding of problems necessary for well-0integrated action.

1.3 An organizational climate of confidence and trust,

and freedom from threat, especially among key

personnel

 

There must be a preponderance of favorable attitudes on the part of each member toward other members, superiors, duties, and the organization – as well as toward most aspects of his or her situation. Because of these favorable attitudes and loyalties, effective organizations usually develop strong informal values and standards of behavior, particularly in elation to the more important aspects of performance. Thus, each member will do all he reasonably can to help his organization achieve its objectives, and he expects every other members to do the same. A poor climate undermines communication, reduces flexibility, and encourages self-protection rather than commitment to the organization.

1.4 Internal flexibility and innovative ability

An organization must be sufficiently flexible so that shifting of both individual and group assignments is possible when changes in situations demand it. Thus, the organization is able to adapt readily to unanticipated events. Procedures are not so rigid that adjustment to new situation becomes excessively laborious. Furthermore, over formalism and strong dependence upon individual leaders do not exists to the extent that responsibility cannot be easily shifted when situational demands change or when leaders are lost.

1.5 A state of functional integration among subordinate units

Functions and operations of the part of the organization must fit together so that the parts do not operate at cross-purposes.

 

1.6 Operational proficiency

This is essential in performance both of operations directly related to goal accomplishment and of activities required to support the organization.

2) Leader Resources

 2.1 Leader who are able to arrive at valid decisions

speedily and efficiently

 

The energy of leaders and of decision making groups cannot be expended in interminable haggling or over-concentration on inconsequential details, but must be used to develop constructive solutions to critical problems.

 

2.2 Leaders skilled in using potential present among subordinates for mission accomplishment

This means that talent is not wanted, the organization knows how to locate, develop, and use member abilities to the best advantage.

3) Personnel Resources

3.1 Commitment of personnel to organizational objectives, and a high level of motivation to perform

Furthermore, there must be a minimum of conflict in the organization about basic objectives. There can be no effective coordination actions if there is no conflict among influential members about objectives or about means for accomplishing them, It means that if deep-seated differences exists within the key management group, even though not expressed, unified action is not like to result. From commitment to objectives comes willingness to work hard and to change when necessary.

3.2 A sense of identity

Personnel must have knowledge and insight about what the organization is, what its objectives, wheat it is to do, and what it stands for.

Bases of Effectiveness

In effective organizations, characteristics such as those described can be frequently observed. It is important to note that many of these characteristics are only remotely related to the adequacy of organizational doctrine, operating policies, or technical procedures. Good organizational techniques are important for providing a stable environment within which people may work. A secondly engineered structure is no assurance, however, that the organization will function properly. Organizational techniques assume tht people will behave in accordance with the logic of the system,, but people do not always carry out their duties in accordance with the4 assumptions made by the formal, national system. Therefore, strains may develop in the organization, causing loss of effectiveness will become of him – a phenomenon that is most important because of its effect upon motivation and morale.

A series of possible dilemmas runs through complex organizations:

 1. Clear organizational lines are essential to operational effectiveness but, if they become too fixed, they tend toward inflexibility.

2. Well-defined objectives increase the efficiency of the organization, but they often make it difficult to change direction.

3. Levels of authority assure an effective chain of responsibility, but the hierarchy is another factor that encourages the development of inflexibility.

4 .Clearly understood rules, methods and procedures make it possible to operate consistently and with coordination, but they circumscribe subordinates’ initiative as they increase in number.

5 Close supervision ensures control but stifles motivation.

An executive, operating within exacting requirements for coordination and control; must rely upon formal structures and organizational principles to obtain much of his results. He must also strive, however, to simultaneously combat, negative motivational forces that are, in part, created by the very system that is intended to make performance more effective. This contradictory interplay of procedures required for coordination and control, and practices designed to stimulate performance, crease a conflict that appears to constitute one of the central problems of executive leadership.

 Necessary Organizational Conditions 

The fundamental problem is: How can the leader of an organization consisting of a diverse membership with varied responsibilities develop it into the integrated system? Many practical activities can be taken. First, however, it is important to examine certain underlying general conditions that are necessary to the formation and effective functioning of an organization.

These conditional are necessary because they are the means for reconciling the conflict between the formal and informal areas of organization. When properly developed, they provide the motivational forces for melding diverse individuals and units in an effectively functioning entity. Regardless of the particular techniques used, most of the developmental efforts of executives are devoted to creating such conditions. The general conditions essential to the formation and functioning of an effect9ive organization are common objectives conducive to copea5ive action among personnel and group, shared experiences in the pursuit of common objectives, a stable and efficient organization and shared norms of performance and behavior.

 Objectives Conducive to Cooperation 

The development of a unified organization occurs through the interactions of personnel who possess common objectives and, hence, common motives. When people share objectives that require cooperative action to achieve, they work together.

 

The phrase conducive to cooperation should not be overlooked. All objectives experienced by personnel at the same time and in the same place are not necessarily conducive to cooperation. The phrase implies that members must perceive, even though dimly, that other people also face a set of circumstances or that a problem can be solved, ignored, or deal with in some fashion by cooperating with one another. Therefore it is not sufficient that an organization merely possesses objectives. It is equally important for every member to consciously perceive that such objectives exist and that cooperative effort is required to achieve them.

 Shared Experiences 

When people work together toward common objectives and undergo common experiences that are meaningful, the resulting interaction produces changes in their perceptions, emotions, thinking, attitudes, and actions. The distinguishing feature of those changes is that the individual begins to identify his feelings, thinking, attitudes, and actions with the organization. Furthermore, persisting personal relationships and values evolve and become stabilized. These provide each individual with organized, enduring, and motivationally significant ties with the organization. Thus, over time, the individual becomes a part of a functioning system that exerts a more influence upon his experiences and his actions.

A Stable and Efficient Organization

Coordinated action requires that each individual be able to predict with a reasonable degree of accuracy how other relevant members will behave and what others expect. In short, organized effort requires a system of stable expectations in terms of how each member should and will perform.

 That state of group affairs – commonly referred to as

solidarity, cohesion, or unit integrity – is largely a consequence of a stabilized structure of relationships in which the various members meet expectations that define their particular roles and functions. When a group reaches a level in which all members have clear expectations of how each relevant person will perform and, more important, have strong confidence that every individual can be relied on to fully meet these expectations, high cohesion can then be said to exist.

 

The senior executive who organizes subordinates manages and relevant staff members into a cohesive group of which he is an actively functioning member, lays to foundation for well integrated action throughout his organization. Since these people occupy key positions, heir influence on performance is get. When they function with the executive as a team, they learn his expectations, his preferred ways of operating, what his performance standard are, and how he desired the organization to be led.

Staff members, because of their key position, are able to infuse the executive’s viewpoints into the next lower level. When, therefore, each level is linked to succeeding levels in similar ways, influence from the higher echelon can permeate the organization. In effect, this is how an organizational climate is developed.

The effectiveness of the organization and its capacity to deal with difficult problems depend upon the effectiveness of the linking groups of which the structure consists. The more effectively the linking function is performed, the more integrated and better coordinated the total organization.

Shared Norms of Performance and Behavior

 

As people work together to develop an organization, by-products of their activities begin to emerge. Similarly, routines, rules of conduct, standards of performance, and values emerge. This superstructure of customs, rules, standards, and values is referred to as the norms of the organization.

 

Norms are attitudes and codes of behavior held in common by all, or most, of the members. An organization may develop norms relative to what constitutes a fair day’s work, what level of performance is desirable, what kinds of conduct are good or ad, and so on. In short, norms can be developed around just about anything having to do with the lie and work of the personnel

 

From the leader’s standpoint, norms are important because of the strong influence they exert on actions of personnel. Norms regulate the behavior of members. When people have its emotional investment in an organization and have internalized its values, norms, provide them with a basis for governing their behavior and for evaluating the actions of others.

For these reasons, it behooves every executive to do everything possible to create conditions that will results in norms that are constructive for the performance of his organizations. Norms that are counter to official objectives are exceedingly difficult to change.

 

Developing an Effective Organization

 

The development of an effective organization is rewarding, although sometimes frustrating endeavor. The constant temptation to move forward on all fronts simultaneously must be restrained in favor of a clearly recognized sequence. Failure to take things in their natural sequence is probably the single greatest mistake in developing a more effective organization. This is difficult to avoid because the responsible executive naturally feels that he must make a good showing and produce tangible results in a hurry.

If the executive does not remain deliberate, however, he may find himself hopelessly tangle in a series and disruption in his organization. This is not to say that he can afford to sit back until intuition makes every move clear. He usually does not have that much time. There is more danger, though, by failing to make the right moves in their proper order than there is by taking a little more time in the beginning and discovering their natural sequence.

Organization often encounter difficulties because personnel have not learned, or perhaps are not motivated, to function well together, It is possible for a new group composed exclusively of experienced managers to exhibit operational problems until common habits of functioning have evolved. It is possible for highly trained executives lkto be unable somehow to guide an effective staff.

Effective performance is a matter, not only of technical and organizational proficiency, but of such factors as the nature of objectives, the state of motivation, morale and disciple, and the degree fo functional integration amount the effective personnel and units that comprise the organization. The organization most likely to be effective is a tightly knot, efficiently functioning system of people and activities.

One key to creating such an effective organization lies in the development of favorable attitudes on the part of each member toward all other personnel and superiors – as well as toward all aspects of the organizations.

The Formal Structure

Attempts to direct numbers of personnel has resulted in the development of policies and practices intended to control and coordinate their activities.

These activities that people must perform, and the way that personnel are formally arranged relative to them and to the mission, constitute the formal structure of organization.

Any organization must have a set of activities e3specially designed to perform its mission. The system will ordinarily include activities directly required to accomplish the mission and also a set of support activities.

Logic of Organization

The activities are arranged and systematized on the basis of ideas as to how they should be effectively performed and logically coordinated – on the basis of what have been called “the logics of organization”. The ideas stem from experience and technology, and include ideally the best policies, the best methods and the best systems.

They cover what is usually found in such materials as manuals and organization charts – and, together, they make up the formal technical aspect of organization. In accordance with these “logics”, organizations are characterized by:

* The national determination of objectives

* Hierarchical arrangement of personnel in terms of authority, responsibility, coordination, and control

* Missions that require the collaboration of subunits created through the division of labor and responsibility* A certain degree of authority in matters strictly internal

to the organization.

The logical derivation of an organizational structure is almost universally based on the distribution of responsibility. In fact, the very foundation of organization is a basic system of stable expectations regarding differential responsibilities and relationships among the members. With this system, there would be little possibility of coordination or of directed action.

The distribution of responsibility results in a structure characterized by specialization of function and strict lines of authority. The large organization is broken down into smaller components, each having a fairly independent identity. The components are, in turn, usually divided into even smaller identifiable elements. Thus, structure ios laid out so as to create a precise format in which each unit is clearly charted and its missions assigned. The system is designed to prevent duplication of effort and, through control along the lines of authority and responsibility, to ensure that each person knows exactly what he is supposed to do and that he will perform in accordance with expectations.

Organization derived along lines of distribution of responsibilities carried with it a number of principles intended to maximize effectiveness through controls, including:

1. Unity of command - in each organization and at each level, there must be only one source of authority. This principle leads to centralization of decision making and numerous controls to ensure that the decisions are carried out.

2. Chain of authority - there should b a clear-cut line of responsibility. The chain of authority must not be interfered with, by a confusion of duties. Each individual should report to only one superior.

3. Standardization of functions - there must be standardized procedures for most operations. This standardization includes uniformity in the performance of every activity, regardless of the person executing the activity. Such standardization makes planning possible because the actions of all members will be predictable. This also permits the exercise of control by managers.

4.Specialization of functions-in addition to standardization, activities should also be specialized with each individual learning a particular task. This allows each person to prepare the duties with a minimum of training time and effort.

5. Clarity of job specifications and responsibility – effective standardization and specialization require detailed specifications for each position in the organization with explicit descriptions of duties and responsibilities.

6. Line and staff functions – to provide for flexibility in operations and to give full information to executives about the way the organization is functioning, staff positions are created at numerous organizational levels. The staff person gives close attention to his specialized area and recommends actions in this area. If his recommendation is accepted, new order or directives will be issued. The staff person himself, however, never gets into the direct line of authority.

The rationale of formal organization is clear. The structure and the logics upon which it rests are directed toward the influence and control of groups and personnel. This accomplished through communication and decision systems outlined by the chain of authority that specified who communicates with whom and at which levels certain kinds of decisions will be made.

Importance of Formal Structure

Emphasis upon the formal structure and principles is important for two reasons:

First – The proper observance of organizational channels and principles is essential for operational efficiency.

It is necessary that the system function as designed for efficiency of operations to be achieved. When circumstances dictate deviation from these general principles of organization, difficulties often arise.

Second - As efficient system tends to create frustration and conflict among personnel which, int urn, affect performance.

Reason for concern with organizational principles is that an ineffective system tends to create frustration and conflict among personnel. Executive interference with work activities due to breakdowns in the organization can be as devastating to motivation as inadequate working conditions or poor personnel policies. This is important because of its multiplying effects on attitudes. People get frustrated an angry with one another when they have difficulty doing their jobs.

An organization, then, consists of people functioning in a structured system of activities designed to accomplish some objectives. The way the personnel are formally arranged, relative to the activities and the mission, is the structure of the organization. They system of activities and the logics upon which type rest are directed toward the best ways of accomplishing objectives. Accordingly, the degree to which the formal system functions smoothly is on determinant of organizational effectiveness.

The Informal Organization

An organization is a complex system of relationships between individuals in which each person has much contact with a few people, a little contact with some more people, and practically none with most of the their members. These relationships constitute the bonds that hold an organization together.

The develop wherever people are thrown into contact with one another and they exert exceedingly potent influence upon performance.

The interaction that occurs between people is not usually a matter of random contacts. Much of it is determined by the logical division of work and responsibility. Certain people are brought together more frequently that others. There are contacts between superiors and subordinates or between staff personnel working on common problems. Every person has a fairly definite pattern of interactions relating him to certain other members because of his duties prescribed by the organization.

From these relationships arise the cliques, the informal leaders and their followers groups who oppose each other, and those who stand together on certain issues – ranging from office groups arguing over whether to open the windows to high level staffs debating the relative merits of various concepts in the conduct of global marketing.

These patterns of relationships develop spontaneously, influenced but not directed by the formal organization or by the desires of executive.

The Leader’s Dilemma

Many of these problems derived from the numbers of highly organized people whose activities must be influenced and coordinated. The necessity for obtaining smoothly function, well-integrated performance from them can create some critical strains, especially in a large organization.

First - There exists a deep source of strain because size necessitates organizational complexity and formalization – both of which are the most general causes of rigidity.

There is likely to be a direct relationship between the size of an organization and its tendencies toward inflexibility. There are, of course, exception to the general hypothesis that size begets rigidity. Some small units are quite inflexible, while some very large ones are highly responsible to change. These latter exception occur, however they are usually due to skilled leaders who know how rigidity develops and are constantly on guard against it.

Second - Organizational strain centers on the continuous effort to maintain a high level of motivation while also exercising control over the actions of personnel.

Size and the hierarchical arrangement of the organization increase every individual’s distance from people who influence his action, his welfare, and sometimes even his fate.

Although close supervision have a great deal to do with determining his actions, decisions beyond the immediate superior, or even beyond the immediate superior’s superior, set limits on the nature and directions of his activities.

Assumption of the Executive Role

Theoretically, the assumption of leadership of an existing organization should be a relatively painless undertaking. Most organizations supposedly function in accordance with the principle of continuity of operations. Whiel individuals come and go, the offices and positions they fill are supposed to be more or less independent of the personalities of the occupants, and the organization can continue to function regardless of changes in leaders or other personnel.

Therefore, it should be easy for an incoming executive to assume leadership of an ongoing organization. Once he becomes acquainted with his personnel and with his prescribed responsibilities an executive should be able to exert without difficulty the necessary influence on the new organization.

Effects of Executive Succession

Unless radical upheavals have occurred, an organization develops a certain equilibrium or stability that helps it to maintain itself against external disturbances. By equilibrium is meant a kind of balance such that, when some change is imposed on the organization, forces are generated that resist the change and that may restore the original balance the pressure is removed.

An organization strives to retain established patterns in spite of changes that may occur. People may come into the organization, move from position to position in it, and move out again, yet the pattern remains intact. This stability does not mean that there is never any change, for there are constant changes in personnel and activities.

A change of leaders will have organizational and personal consequences. In the organization as a whole, the period of succession will tend to be characterized by a slowdown in activities, lack of agreement on duties and roles, and indecision. On the personal level, individuals may feel insecure, particularly if they occupy high level in the organization.

A major organizational consequence is a change in the type, volume, and direction of the communication of information. There is a major force operating here – it is the desire of individuals to find out or test for the new executive’s expectations.

As a consequence of this need, there is probably be a notable increase in communication upward in efforts to get him to express himself on a variety of mattes.

Another consequence, which is somewhat corollary to the first, involves an upward movements of decision. Because of ambiguity, there will be a tendency to push decisions up to the executive where formerly they were made at lower levels. Whether these decisions later move back down as the organization reaches a new stability will be dependent upon the executive and upon his particular style of leadership.