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Organizational effectiveness

As a result of good organizational design

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Organizational effectiveness is a direct result from proper organizational design. It requires leaders to set well-defined goals as well as to outline possibilities to achieve these. This, in turn, provides a framework for managers to establish clear processes aiming at reaching the set business objectives. Finally, it is essential to have employees who are engaged and dedicated to performing in their best possible manner focusing on the desired results. Summing this up, all people in an organization – no matter whether leaders, managers, or employees – need to use their skills and capabilities to the best extent possible to achieve organizational effectiveness.

However, just like there is no universal approach to organizational design, there is no universal measurement for organizational effectiveness. In general, organizational effectiveness is directly related with how efficiently a company achieves its business goals. Measuring the effectiveness of an organization, therefore, depends on the goals that a company has set out for itself. For some this can be a certain growth rate whereas for others it might be about the results of a customer satisfaction survey. Note that it is not always about the financial performance of an organization.

For a company to still be able to evaluate its effectiveness, executives can create a set of criteria reflecting the agreed upon business goals. In doing so, the focus should be on the big picture and not every detail of the organization. Organizational units and even individual employees can then refer to this list of criteria for their own assessment. Once this is done throughout the entire company and processes and structures are adjusted accordingly to meet the criteria where this is not yet the case, organizational effectiveness can be attained. To also maintain this state of effectiveness, it remains important to frequently reevaluate the list of criteria and make sure changed conditions are being reflected.

Using technology to achieve organizational effectiveness

The rapidly changing environment in which organizations are operating is to a great extent caused by the fast development of technology. It can, therefore, be said that technology has contributed in large part to the rising importance of organizational design and organizational effectiveness. Consequently, it is only logical to turn back to technology to overcome these fairly new challenges.

Using the right tools can help you gain a quick overview not only of the organizational structure but also of relevant HR data and key metrics, for instance, through data visualization. As humans tend to be visual beings, especially larger amounts of data can more easily be understood when they are pictured in one way or another. Besides visualizing a classical org chart, this can also be achieved in the form of a dashboard or in a grid analysis. Making use of software can help detect potential issues preventing the organization from achieving its goals as well as derive recommended actions to solve these. While, by now, it should be clear that the ideal approach to organizational design and, thus, org effectiveness looks different for every company, there are some aspects that can be used as a starting point.

Take a look, for instance, at the number of employees in each hierarchy level. Usually, the lower the level, the more employees. If that is not true for your company, analyze why that is, and if changes need to be made to fix this. It may be that one of the hierarchy levels is redundant.

Org Design with Ingentis org.manager - Span of Control and Employee Details

Ingentis org.manager allows for a quick overview of the span of control for each manager using visualization rules. From there, individual employee profiles can be accessed easily.

Org Design with Ingentis org.manager - Span of Control and HR Analytics

Ingentis org.manager highlights managers exceeding a certain span of control. At the same time, it provides comprehensive analytics, regarding e.g. the distribution of grades and levels throughout the workforce.

Another factor to consider can be span of control. While it is not necessary that all managers supervise the same number of employees, it still makes sense to examine the structures a little more closely. Let us assume there are two executives. One of them is leading a team of five people whereas the other one is leading a team of 20 people. Now, this imbalance could result from different levels of complexity regarding the area of responsibility. If these are rather similar and there is no other obvious reason for the disproportion, there is a good chance that a more equal distribution of employees would help the two managers and their departments become more effective.

Should your organization use grades to classify the seniority of employees, this can also be an aspect to investigate. Does the grade match the hierarchy level of the respective employee or are there inconsistencies that need to be addressed? Another question could be whether reporting lines are reasonable? Analyze, for example, if there are employees reporting to someone who actually has a lower grade than themselves and adjust accordingly.

How Ingentis org.manager contributes to organizational effectiveness

Now this may all seem somewhat tedious, but it does not have to be. With its broad feature set, Ingentis org.manager facilitates the achievement of organizational effectiveness. By allowing for data visualizations in almost any form, our software provides an easy but also holistic overview of all kinds of information. In doing so, you can freely choose the metrics on which you want or need to place your focus to make informed business decisions. Visualization rules can be added to further help identify specific areas that address ways of enhancing organizational effectiveness. The situations described in the previous paragraph are just some examples that can be addressed with Ingentis org.manager.

Additionally, its feature for workforce modeling comes in particularly handy in the context of organizational design and organizational effectiveness. Starting from the current state of the corporate structure, various what-if scenarios can be created. Thereby, key metrics affected by potential changes are updated in real-time allowing for an immediate evaluation of their consequences. As a consequence, Ingentis org.manager enables you to more easily make decisions that result in desired outcomes and therefore, support you on your way to achieve and maintain organizational effectiveness.

Organizational Effectiveness through Data Visualization with Ingentis org.manager

Ingentis org.manager provides invaluable insights helping to achieve organizational effectiveness. Span of control, number of levels, or headcount per level are just some examples – you decide on which aspects your company needs to focus on.

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See how visualizing HR data in org charts, dashboards and diagrams created with Ingentis org.manager can help you achieve and maintain organizational effectiveness.

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