July 3, 2006

Nuggets of Management Wisdom #2

Posted by Bizaholic | 11:49 PM | with 1 comments »

Over a period of time, individual effectiveness and productivity of employees tend to move towards the organizational average.

Corollary: Hiring intelligent, productive, and effective people raises the average effectiveness, productivity, and intelligence of organization while hiring mediocrity lowers the organizational average.

It has been long established that environment and surroundings mould attitude and behaviour of people. This is equally true in context of organizations. A vibrant organizational atmosphere inhabited by talented and effective employees raises the performance level of the least talented employees. On the other hand, an organizational atmosphere inhabited by predominantly mediocre people is bound to diminish the productivity, effectiveness as well as efficiency of the most talented employees.

So at individual level, keep an eye on the company you keep, and at organizational level, hire prudently.


  1. Ajit Chouhan // July 5, 2006 at 11:12 AM  

    I think in all organisations you can actually put people in 3 broad categories.

    1) People whose presence makes little or no difference to the results and bottomline.But they are the ones who stick.

    2)One who keeps the wheels moving.The hard working,dedicated and average performer who ensures that the targets are meet and seldom questions the practises.They are most crtical for any stable and consitently performing organisations.

    3) The SMART ones.High Energy,intelligent and strategic thinkers.Organisation find it tough to manage the huge energy and enthusiams they bring in.But on the flip side if you fail to engage them they are the first movers.