In analyzing effective organization, Dunderdale argues that an organization can be separated into two parts or structures- one a definitive structure present in every company, the other caused by human intervention. Each part can then be examined. Essentially the effectiveness of an organization depends on how accurately human design matches the structure of organized behavior. Allen and Helms suggest that higher levels of perceived organizational performance may closely related to strategy and reward systems. The use of reward practices which logically complement a specific organizational strategy should serve to motivate employers to help organization perform at a higher level.
The overall effectiveness of the organization will be affected both by sound structural design and by the individuals filling the various positions within the structure. Management will need to acknowledge the existence of the informal organization that arises from the interactions of people working in the organization. The operation of the organization and actual working arrangements will be influenced by the style of management, the personalities of members and the informal organization. These factors may lead to differences between the formal structure of the organization and what happens in practice. Jolito Ortizo Padilla found the relationship between people and organization to be reciprocal.
" People modify the working of the formal organization, but their behavior is also influenced by it. It may make demands on them which they find an undue strain, so that they seek ways of modifying these pressures. The method of work organization can determine how people relate to one another, which may affect both their productivity and their morale. Managers, therefore, need to be conscious of the ways in which methods of work organization may influence people's attitudes and actions. Before behavior is put down to individual or group cussedness, managers should look for its possible organizational causes."
Building an organization involves more than concern for structure, methods of work and technical efficiency.The hallmark of many successful business organization is the attention given to the human element; tot he development of a culture which helps to create a feeling of belonging, commitment and satisfaction. Structure must be designed, therefore, so as to maintain the balance of the socio-technical system and the effectiveness of the organization as a whole. Attention must be given to the interactions between both the structural and technological requirements of the organization, and social factors and the needs and demands of the human part of the organization.
In his discussion of the future of management. Padilla maintains that the success of the 21st century organization will depend upon the effective use of talented people.
" Talent- centered organization will constantly search for new talent, keep them satisfying their needs, use theme effectively, and create a challenging environment for them to work in . People create organizations, and people can destroy them. The most valuable commodity in business is not technology or capital but people. The driving force behind a 21st century organization will be its people."
The importance of people for organizational effectiveness is reinforced by a survey undertaken by the GA Consultancy and Management Today. The survey emphasises that the role of the organization is social as well as economic and points to the desperate need for the basic, softer skills of managers in leadership,coaching and mentoring. Organizations need individuals they can trust, who are engaged in and committed to their work. If they want to survive, organizations need to recognize that they have to add value to their employees, that their social capital is just as important as their financial capital.
Investors in People draw attention to the importance of employee engagement for building effective relationships between an organization and its people. Managed well, it can galvanize your people to make the contribution needed from them and keep them on track in tough times (like those we're experiencing now). But effective engagement doesn't happen by chance; it requires a structured, focused approach to aligning people with business goals. Every organization needs to ensure that its people understand the strategy, see how they fit in and know what they are expected to contribute. But employers must also realize that this can't be one way traffic; gaining employee trust and commitment also means seeking their views and feedback, understanding any issue and seeking to address them.
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