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Objective 5.2Organization· 1 min read

Organizational Effectiveness & Development

Organizational Effectiveness & Development

What you will learn

  • Distinguish matrix, functional, and flat structures and define span of control.
  • Tell job enrichment from job enlargement.
  • Recognize rating errors: halo, recency, central tendency, and leniency.
  • Explain the risks of forced distribution and the benefits of ongoing performance conversations.

Organizational effectiveness asks: do structure, processes, and culture help people do their best work? Organizational development is the planned intervention that improves this, from redesigning jobs to changing culture.

Common rating errors

Halo EffectGeneralizing a positive impression of one trait to all others.
Recency EffectOverweighting recent events at the expense of the whole year.
Central TendencyRating everyone as average and avoiding the extremes.
LeniencyRating everyone highly.

Job enrichment vs. job enlargement

EnrichmentEnlargement
DirectionVertical: responsibility, autonomy, decisionsHorizontal: more tasks at the same level
Effect on motivationUsually higherAdds variety, not depth

Forced distribution in small teams

Forcing a fixed share of poor ratings on every team can treat good employees unfairly in small or high-performing teams, push competition over collaboration, and raise discrimination-claim risk.

What matters on the exam

  • A matrix structure gives employees two managers and can cause conflicting priorities.
  • Appreciative inquiry builds on strengths rather than starting from problems.
  • Culture change succeeds when leaders model the behavior and formal systems reward it.
  • Good goals are SMART: specific, measurable, achievable, relevant, time-bound.

Quick check

Answer in your head first, then reveal.

  1. A manager bases the annual rating on a last-month mistake. What error?Reveal the answer

    Recency effect.

  2. What does a wide span of control mean?Reveal the answer

    More employees per manager and fewer management levels.

  3. Which job design adds autonomy and responsibility?Reveal the answer

    Job enrichment.

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Sources

Used to verify the facts. The writing is original to Passuit.