Organizational Effectiveness: When Less Yields More

Recent utility performance has been buoyed by a strong economy, unusually warm weather, relatively low interest rates, and declining fuel prices. If these circumstances become less favorable, the consequences of today's elevated operating and maintenance costs will become painfully apparent. Ut...

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Bibliographic Details
Published in:Public utilities fortnightly (1994) 1989-05, Vol.123 (10), p.19
Main Author: Cook, Michael C
Format: Magazinearticle
Language:English
Subjects:
Electric utilities
Implications
Maintenance costs
Operating costs
Overstaffing
Payroll costs
Polls & surveys
Online Access:Get full text
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Summary:Recent utility performance has been buoyed by a strong economy, unusually warm weather, relatively low interest rates, and declining fuel prices. If these circumstances become less favorable, the consequences of today's elevated operating and maintenance costs will become painfully apparent. Utilities' current organizational structures and processes are among the main obstacles to improved cost management. Large staffs and complex organizational structure have resulted in both higher payroll costs and less control over nonwage expenses. To improve organizational effectiveness, 4 steps can be taken: 1. reexamination of markets, competition, and future trends, 2. revision of culture and strategy to meet emerging needs, 3. formation of a new consensus among the management team, and 4. redesign of organizational structure, business activities, and systems to align with the new strategy. When based on a thorough and highly participatory analysis, reorganization can make jobs more meaningful, responsibilities clearer, and employees better able to serve customers and meet corporate goals.
ISSN:1078-5892
1945-2578