9 indicators of an ineffective organization
We’ve probably all joked about the “suggestion box,” and its effectiveness. The problem with the suggestion box is that it is an impersonal method of communicating, and from the employee’s perspective, it represents one-way communication. Essentially the suggestion box makes employees feel inferior to management.
Although the suggestion box isn’t the most effective tool for allowing communication to flow upward, it is better than nothing.
Intimidation can make employees feel as though they are not valued within the organization, and can make them hesitate to disseminate information, especially upward. Concerned employees do not feel as though they can speak with their “superiors” when they feel inferior. Plain and simple, don’t intimidate!
Good managers lead by example and show that they can, and are willing, to do a job alongside line employees. This builds trust and openness with the staff. In addition, employees gain respect for their managers when they realize that the managers understand concerns from their perspective. Working from the line allows managers to see such concerns.
Good managers also employ an open door policy that encourages the free flow of ideas and two-way communication. I once worked for a company that not only encouraged an open door policy for managers, but encouraged line employees to share ideas to use for company policy. If a line employee’s idea was adapted into company policy, the employee received a bonus. In sum, information is much more likely to flow upward in an organization lead by strong managers.
7) Network Doesn’t Network The previous two indicators were essentially a preview of how a communication network may struggle. Today’s competitive marketplace requires effective communication within an organization. Without it, an organization may not be firing on all cylinders, and vital information within the marketplace may go unrecognized or may be misinterpreted. Ineffective communication can lead to key orders being missed, inaccurate information about products, and poor customer service, are among a long list of other severe mistakes companies do not want to make.
Dr. Gwin suggests testing communication within an organization with an Echo Test to verify how well communication flows. An Echo Test is essentially a ping of information from the top to the bottom, and back. In an echo test, a manager will send a piece of information down the pike and measure how quickly and how accurately it returns. The test can be performed through a variety of channels such as memos, letters, word-of-mouth, or any method of sending a message. By performing an echo test, managers can establish a feel for which communication channels work in their organization; can find certain areas where communication falters, and can develop strategies to help communication be more efficient and effective. Failure to understand that information must flow in two directions, for an organization to be effective, is the real issue in a network, that doesn’t network.
8) Excessive Turnover I discussed excessive turnover in my last article, and how controlling it can reduce excessive costs in an organization. Today, I’ll briefly discuss how excessive turnover can make an organization inefficient:
Excessive turnover essentially negates training. This isn’t to say that training should be ignored. On the contrary, training is possibly the most important expense a company can incur. What excessive turnover does, is place investment where there is no return. When an employee leaves a firm, all that the company has invested into the employee leaves with the employee. Such investments might include training wage, skills, and future opportunities that the employee might bring to the company. In addition to the loss of the employee, the company must also train a new employee to replace the old employee, and incur the opportunity costs that exist, while the new employee is learning the skills necessary to perform the job well. As a result,
64 scrapbook business
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