Organizational Development: A Manual for Managers and ... - FPDL
Organizational Development: A Manual for Managers and ... - FPDL
Organizational Development: A Manual for Managers and ... - FPDL
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director ensures more efficient use of all available resources <strong>for</strong> the survival of an organization, but<br />
also negative due to erroneous problem diagnosis, irrational decisions, or poor implementation.<br />
The efficiency of a manager corresponds to the ratio between his or her positive effectiveness<br />
(providing there is some value above zero) <strong>and</strong> the organizational expenses related to having him<br />
or her as the director. The salary is not the main point; often it is insignificant in comparison with<br />
the effect, <strong>and</strong> with other costs of having this manager…<br />
Managerial capacity is the specific ability to manage the organization <strong>and</strong> to ensure the positive<br />
effect of the governing process - including all managers <strong>and</strong> controllers from top to bottom, all<br />
infrastructures they use to per<strong>for</strong>m their functions, <strong>and</strong> any technologies involved.<br />
Larger managerial capacity means an enhanced ability to find better solutions, <strong>and</strong> to implement<br />
them in the best possible way. When suitable solutions are easy to find, <strong>and</strong> implementation does<br />
not have too many challenges or directions – then greater managerial capacity may be not<br />
needed. Reduced capacity may be sufficient <strong>and</strong> much cheaper. Thus, the efficiency of<br />
management should always be considered the primary criteria.<br />
Investments in enhancing managerial capacity may pay off (if the capacity really increases) due to<br />
increased resource potential, or better functioning given the same resources, or a combination of<br />
both. However, it may never be worthwhile if the increased capacity cost too much to create or<br />
maintain, or is not really utilized.<br />
Being an emergent feature of an organization, managerial capacity may rise or change with<br />
changing structure, substituting one particular element <strong>for</strong> another, implementing new procedures,<br />
etc. Thus increasing (or optimizing) managerial capacity is another important feature of the<br />
organizational development process. As such, it should also be controlled <strong>and</strong> managed.<br />
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