Decipher the unofficial side of the organization
The functioning of companies is not only dictated by official rules but also through informal phenomena. How can you take this into account in the management of the organization?
Smoothly coordinating the various units of the company is critical to performance. However, this often proves more difficult than it seems. Coordination is made all the more difficult by the often contradictory need to create independent units, focused on their own objectives, e.g. innovation, production quality, or customer service.
Faced with this dilemma, many executives see their role as architects. They concentrate on defining the rules that govern how units interact in terms of structure, strategic planning, budgeting, procedures, etc. They think that if these rules are clear and well designed, people will behave accordingly and the organization will operate smoothly.
This mindset blinds them to an essential dimension of smooth organizational operation:
– Recognize the importance of the unofficial side of the organization.
– Manage the impact of this unofficial dimension on performance.
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