Human Capital Briefs

Characteristics of Effective Organizations – Looking Back and Projecting Ahead

May 07, 2013

I was recently examining an article I wrote in 1986 that was published in the once-titled Personnel Journal called, “The Eight Characteristics of Organizational Effectiveness.” I was struck by how the eight elements mentioned in the article needed to create organizational effectiveness are still relevant to this day, and yet, I instinctively realized that the essence of some of these factors had been transformed over the years and would have to be redefined to meet current and future demands.

The eight characteristics identified in the article were:

1)     Purpose and Direction – Clarity surrounding the Organization’s Mission, Values, and Strategic Direction, and the presence of communication methods to distribute this information.

2)     Performance Standards – Clarity surrounding each person’s contribution to organizational goals and the degree of challenge and excellence required.

3)     Reward and Recognition – Perception of an appropriate connection between performance and rewards/recognition.

4)     Participation and Teamwork – Degree to which people feel part of the organization and identify with it, and readiness to work with others to achieve common goals.

5)     Coordination & Cooperation – Integration of various units within the organization defined by clear roles, structure, and accountabilities.

6)     Formal Support Systems – Built into the organization to help provide adequate resources, information, tools, and working conditions.

7)     Human Resource Development – Degree of support for professional and career development, including participation in-, on-, and off-job training activities.

8)     Relationship to External Environment – Sensitivity to external industry, marketplace, and customer environment, with a commitment to quality products and services.

In addition, two drivers were critical for these characteristics to be present in an organization: skilled leadership behavior and a focus on results.

I invite you to join with me in examining the relevance of these characteristics in a world referenced by The Conference Board as VUCA – Volatile, Uncertain, Complex, and Ambiguous. Which of these factors have undergone the most transformation, what is missing, and where are examples of these characteristics evident in current high-performing organizations?

My initial analyses of these questions include these views:

1)     Purpose and Direction – Needs a more explicit reference to an increased emphasis on Innovation and Sustainability.

2)     Coordination and Cooperation – The reference to clear roles and structure , while not without merit, needs to adapt to the reality of often ambiguous, agile, and global matrix organizations.

3)     Formal Support systems – Perhaps the element that requires the most change, with the emergence and expansion of technology, social media platforms, and cloud-based support systems almost unimaginable twenty-five years ago.

4)     Human Resource Development – Has evolved from a training provider to a true enabler of learning, and now needs to be partnered with HR to help search for an integrated Talent or Human Capital solution to business needs.

What is your take on the evolving nature of these eight characteristics of Organizational Effectiveness? I welcome your thoughts.

 

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