When is an Organization Design Good? 7 Indicators of an Effective Organization

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When is an Organization Design Good? 7 Indicators of an Effective Organization
Marten van der Zee, Student (University), Netherlands, Premium Member
Today, most managers believe that happy, committed, actively involved employees and a positive corporate culture are important measures of effectiveness.
Richard L. Daft in his book 'Organization Theory and Design' says there are seven indicators of an effective organization as seen from an internal process approach:
1. Strong corporate culture and a positive working climate.
2. A high team spirit, group loyalty and teamwork.
3. Confidence, trust and communication between employees and management.
4. Decision making near sources of information, regardless of where those sources are on the organizational chart.
5. Undistorted horizontal and vertical communication; sharing of relevant facts and feelings.
6. Good rewards to managers for performance, for growth and development of workers and for creating an effective work group.
7. Interaction between the...Register

Seven Indicators for Good Organizational Design
Marcel Wiedenbrugge, Consultant, Netherlands, Member
I would call this the holistic approach, which is by nature interactive and collaborative. The challenge is the keep it consistent when the organisati...

Organization Design: 7 Indicators of Effectiveness
Ruud Trietsch, Business Consultant, Netherlands, Member
In addition to Marcel Wiedenbrugge: these indicators are not only applicable to a growing organization but perhaps even more when the organization is ...

How can there be an Effective Organization Without Focus on the Customer?
Eric Schmitz, Belgium, Premium Member
Indicators of an effective organization as seen from an internal process approach are already not effective. An organization should be oriented on his...

More Indicators of an Effective Organizational Design
Loek Hopstaken, Consultant, Netherlands, Member
Daft mentions good points, but misses i.m.o. some crucial elements, such as:
- The organization must be able to repair / update itself (dynamic; ...

How can you Measure those Internal Indicators?
ANTONIO REYERO, HR Consultant, Spain, Member
The purpose of an effective organization is responding to its business goals successfully in a sustainable manner. In my opinion, an internal process ...

Thinking from an Inside-out Paradigm
Gary Wong, Consultant, Canada, Premium Member
I sense we have always looked at an organization chart with an "Outside-In" approach and thus end up creating an internal org structure. But now we kn...

I'd Prefer Things More Fact Based
sourivong, Management Consultant, Hong Kong, Member
In lean management you'll find things like these:
1. Span of control from 7 to 12
2. Effective cascading (smart) objectives (kra, KPIs, etc....

Compare Demings 14 Points for TQM
John Chamberlin
I suggest you compare / contrast those 'Seven Indicators' with W. E. Deming's (1986) '14 Points of ...

Fluid Organograms Via Clutter Free Communication
Arif ur Rehman, Professor, Pakistan, Member
I endorse Eric Schmitz’s and John Chamberlain’s views. Additionally, organizational effectiveness today demands fluid organograms with a pulse on vola...

Indicators of an Effective Organization
Prof. Alkis S. Magdalinos, Business Consultant, Greece, Member
Hi Marten, these principles are very correct. For example these discussions at 12manage are made possible with well educated persons who have open com...

In Favor of Complexity ..
Ulrich Schweiker, Director, Germany, Member
.. I prefer to view an organization BOTH ways: inside-out and outside-in.
An effective and successful design implies the need to focus on both, e...

Indicators for Effective Organizations
Sarel Rossouw, Business Consultant, South Africa, Member
I suggest to add:
- Clearly defined, internalised and instritutionalised enterprise strategy, and
- Clearly defined business unit performanc...

Tools / Indicators for Effectiveness of Organization
Gerhard Friedrich
A lot of helpful comments. But some members have stated desires instead of tools / indicators which ...

Relevance of the Sector in which the Organization is in
Kurt Ludikovsky, Consultant, Austria, Member
It's maybe also a question in which sector are we operating, what kind and what size of operation, as well as under which cultural circumstances do we...

Indicators of Good Organisational Design - An Organization is a Living Thing
david, analysts, Australia, Member
An organization is living entity, thing. To fight a battle, the troops must be with you. Look at: stories, quantity of incidents, poor change processe...

Additional Indicators of an Effective Organization
Raziq Hussain, Manager, Pakistan, Member
I agree an inside-out approach/look is also necessary to be taken. Further the following points must add up to the list of indicators of an effective ...

How to Measure if these Criteria Have been Met?
afshari, Student (MBA), Iran, Member
These 7 criteria for organizational effectiveness are not easy to measure. I agree the size of company as well as the industry it's in are important.<...

Ethical Performance and Compensation
Arif ur Rehman, Professor, Pakistan, Member
@Sarel Rossouw:
- Clearly defined measurements of ethical performance and ethical compensation, a further addit...

Indicators for Effective Organizational Design
Enrique Benjamin Franklin F., Professor, Mexico, Member
The organizational design is key for an organization to cope with competitive pressures, globalization and management of information technology, parti...

7 Indicators of an Effective Organization
Rashid Ali Baloch, Manager, Pakistan, Member
I guess the more important indicator of an effective organization is the wide acceptability of its "product" and the "processes". If the customers (in...

Dealing with Complexity
Ulrich Schweiker, Director, Germany, Member
Dealing with complexity demands a different approach.
- Human capital index summarizes very different aspects into an index... And the interpreta...

Are these 7 truly 'Indicators' of an Effective Organization?
Enrique Benjamin Franklin F., Professor, Mexico, Member
I think you mentioned something important. Daft handles lines of action, great goals, valuable criteria, parameters, but these are not really indicato...

Toyota Production System (TPS) - House of TPS
Ruud Trietsch, Business Consultant, Netherlands, Member
Toyota Production System...For a "best practice"...

Developing in Circles
Ulrich Schweiker, Director, Germany, Member
@Ruud Trietsch: Yes - and no: Toyota has obviously established a very successful system. Whether the TPS describes i...

Use the 7 Elelements for Managing Complexity Down the Organisation
Kurt Ludikovsky, Consultant, Austria, Member
@Ulrich Schweiker: now even as I agree that those seven elements for an effective organization may be a little simpl...

Six Sigma Did not Originate in Toyota
Vishwanath, Professor, United States, Member
@Ruud Trietsch: Sorry, Six Sigma did not originate in Toyota. Motorola was the first company to introduce Six Sigma ...


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