Why is an effective organization more competitive?

Question

What will be an ideal response?

Answer 1

An effective organization is able to produce more with its existing resources through an improved customer focus and streamlined work processes. With its increased awareness of its internal and external customers, there is a greater focus on what really needs to be accomplished in order to meet their customers' needs and expectations. As the introduction to this chapter showed, an organization that increases its effectiveness will see improvements in their profitability through increased customer retention. Being able to meet customer expectations the first time and every time will enable the organization to increase its market share as new customers seek them out. Since an effective organization has focused and streamlined its work processes they will benefit from lower costs because of reduced waste and rework. One of the major savings that occurs is fewer customer complaints and warranty claims. More satisfied customers results in greater market share. Improvements will also exist internal to the organization. Because of improved communication and teamwork, effective organizations have good management-employee relations. As problems are solved and the organization begins to run more smoothly, employee involvement and satisfaction will increase, which will lower turnover and absenteeism. Benefits of creating and maintaining an effective organization are summarized in the figure in the text.