April 12, 2018

Health of Organization



Uploaded Mile Madinah  - A Management Institute
Presentation by Jim Laub

Organizational health is also a concept of importance for top management.

Definitions of Organizational Health

For the organi­zation, the definition of health  may be stated as: a healthy organization is an organization which establishes and maintains a mutually beneficial relationship with its environment.

Organizational health is  the capacity to deliver—over the long term—superior financial and operating performance. (McKinsey)

The capacity to deliver has to be improved along with using it deliver performance.

Even though many authors have not mentioned it, we can describe some characteristics of the organization as disease. An organization where the CEO is despised is a sick organization. No body can be a healthy CEO, who develops hatred in the employees of the organization. Leaders that means managers in the organization must have the capability to assemble followers. They should not become group leaders in organizations and create conflict between employees and create a context for fights, cases and dismissals. In majority of the commercial organizations where conflict among employees is started by the leaders are doomed to fail. There are leaders who join organizations of relative peace and stability but convert them into organizations of strife, mistrust and dissatisfaction.

Shaomin Huang and  Gerald Ramey have proposed a method of measurement of organizational health through four propositions

PROPOSITION 1 (organizational effectiveness):
a)  Strong attention to task orientation will lead to higher organization effectiveness.
b)  A more involved work force will lead to higher organization effectiveness.
c)  An increase in innovative practices among workers will lead to higher organization effectiveness.
d)  Optimal interaction among the variables of innovation, involvement and task orientation (collectively, not individually) within  the work force will improve organization

PROPOSITION 2 (leadership):
a)  An increase in appropriate supervisor support will lead to more leadership within the
b)  A decrease in excessive control mechanisms will create more leadership within the
c)  An increase in autonomy will increase leadership within the organization.
d)  Optimal interaction among the variables of autonomy, control, and supervisor support
(collectively, not individually) within the work force will improve leadership in the

PROPOSITION 3 (team work efficiency):
a)  Increased clarity in all communication will reduce destructive conflict in the organization.
b)  An increase in cohesiveness among peers within the work force will decrease destructive
conflict in the organization.
c)  A reasonable release in work pressure  will decrease destructive conflict in the organization.
d)  Optimal interaction among the variables of clarity, peer cohesion,and work pressure (collectively, not individually) within  the work force will reduce excessive and
destructive conflict in the organization.

Assessment on organization effectiveness, leadership, and team work efficiency showing multiple causalty effects is a valid and appropriate method of evaluating organizational health.

McKinsey - Measurement of Health of Organizations

McKinsey helps you to measure your Organizational Health Index

Healthy organizations perform better. In healthy companies, employees know where the organization is headed; understand how they fit into the strategy to get there; have the tools, capabilities, and motivation to execute; and are empowered to innovate and change.

The Organizational Health Index is a survey-based diagnostic. It  has been deployed by more than 1,300 organizations worldwide. The data collected from employees and executive, provide the consultants and company managers  to understand the underlying mind-sets and behaviors that drive performance. Country- and industry-specific benchmarks are available  to compare like with like.


A detailed article


For the CEO


Shaomin Huang and  Gerald Ramey,    "Organizational Health Assessment: a Romania Firm Case Study"

This article is part of #AtoZChallenge 2017 for Blogging Posts. My Theme for the Challenge is Top Management Challenges - Full List of Articles  http://nraomtr.blogspot.com/2016/12/a-to-z-2017-blogging-challenge-top.html

To Know More About A to Z Blogging Challenge

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Updated on 13 April 2018, 10 April 2017

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