1. Introduction
Today, organizations face an increasingly complex range of challenges, including intense competition, rapid technological development, volatile changes in customer demand, stringent regulations, and other similar factors. All these challenges must be faced and anticipated before they become problems and require a major role in organizational effectiveness. Effectiveness in the organization in question is the ability of the organization to achieve goals using existing organizational resources (Baker et al., 1997).
Effectiveness is also manifested by the achievement of employee satisfaction and their effective involvement in the organization.
This organizational effectiveness ensures the success and survival of the organization in a highly dynamic and ever-changing business environment (Cameron, 1986). This shows that to survive, an organization needs to have the ability to perform effectively in all aspects that support and influence it.
An organization's level of effectiveness is highly dependent on its ability to achieve its stated goals (Kwan & Walker, 2003). In contrast, ineffective organizationstend to have difficulties achieving their goals, face problems obtaining the resources needed for the production process, and ultimately can produce performance that is beyond expectations and even tends to be poor. This can also lead to employee dissatisfaction and a lack of commitment from the employees they have.
To survive, organizations must be effective in goal achievement, resource management, and overall performance. Every organization has a specific goal in a specific context, so the perspective on effectiveness may vary depending on the situation. However, it is a tangible indicator of the condition and level of achievement of an organization's performance. With a focus on achieving effectiveness, organizations have a greater chance of success in facing complex and dynamic challenges in the business environment.
Globalization has created a real opportunity for every business to be able to engage on a global scale, explore new potential and opportunities, and create determinants that set them apart. Competition in the industry must be faced with the element of effectiveness as one of the elements of competitive advantage. In addition, to form a competitive advantage, every organization must have knowledge and understanding of how to connect the distribution of elements that support organizational success. This includes aspects distribution organizational culture, job satisfaction levels, interpersonal communication, talent management, knowledge management, and the application of information technology.
Therefore, distribution of organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology are needed to enhancing the organizational effectiveness.
2. Literature Review
There is a link between organizational culture distribution and an effective organization. It is one of the important aspects that influence the performance and achievement of organizational goals. Organizational culture distribution has a significant role in shaping work attitudes and behaviors, as well as directing the way the organization operatesso that it is in line with effortsto achieve long-term goals. An organizational culture that has strength can be used as a basis for norms, values, and ethics that can develop the performance of each member of the organization (Adisa et al., 2020). This will have a broad impact, namely on organizational members as well as work processes and social life in the workplace. All this will contribute to the achievement of a common vision and goals.
Organizational culture contains values, norms, and beliefs that direct work behavior and decision-making within the organization. There are impactssuch asincreased productivity, strength of teamwork, and effective support if an organization has a strong positive culture (Denison et al., 2012). It also has an impact on workers' motivation and engagement to produce quality products, as well as the quality of products or services produced (Alexe & Alexe, 2018).
According to Chatman and O'Reilly (2016), organizational culture is not only abstract but plays a real role in organizational effectiveness, such as productivity, employee retention, product quality, adaptability, and organizational reputation. An et al. (2011) also stated that organizational culture makes an important contribution to shaping the elements of organizational effectiveness. A weak and unclear culture will be an obstacle to the work process in the organization.
A strong organizational culture will show direction and consistency in behavior and decision-making in the organization so that it will lower the potential for disparity and conflict, increase focus and cooperation, increase member participation, and improve work behavior. Thus, the organization can achieve the desired results and compete effectively in the market. Continuous efforts to shape and strengthen the culture in the organization are central to developing overall effectiveness and performance.
According to Ellickson (2002), job satisfaction is a measure of how high the level of fulfillment of employee expectations can be realized by the organization through a balance between rights and obligations. Workers as members of the organization who feel valued will be further involved with the condition that they feel satisfaction in their work environment, giving rise to a tendency for maximum contribution and involvement from them to achieve organizational goals.
There are elements of employee engagement, reward, balance, motivation, and commitment related to efforts to demonstrate the productivity and performance of each member of the organization. Achieving employee satisfaction provides potential for organizational effectiveness. Employee satisfaction will also contribute to positive work behavior, retain the best workers, strengthen team elaboration, and strengthen the organization's reputation. Essentially, worker well-being in line with organizational actions will have a long-term and sustainable impact. This will provide strong motivation and retention for workers (Bangsu et al., 2023). Therefore, the effort to shape employee satisfaction shown by the organization is the right moral step and will be an effective policy to achieve short-term targets and organizational goals and build a reliable and sustainable competitive advantage.
Interpersonal communication is a basic form of individual interaction, which in this case occurs in the workplace. According to Singh (2014), interpersonal communication has an impact on organizational effectiveness. The existence of interpersonal communication will also effectively empower team strength and lead to the power of collaboration among organizational members who understand common efforts and goals (Berger & Roloff, 2019).
In addition, it will reduce conflict and strengthen the quality of effective coordination between work groups in the organization. This enables better synergy among organizational members. In addition, strong interpersonal communication in the work environment will create and encourage conditions for the development of ideas and innovation (Jensen & Helles, 2017).
By maintaining and improving interpersonal communication on an ongoing basis, organizations can maximize their chances of success. The effectiveness of communication and interaction is the basis for establishing a good quality of working life and strengthening social ties among organizational members. The continuity and sustainability of interpersonal communication effectiveness will increase the chances of organizational success. Thus, effective communication determines the creation of harmonious relationships in the workplace and strengthens the social capital of each individual and every other party involved in the organization.
According to Obeidat et al. (2018), talent management has a real role in organizational effectiveness. According to Ashton and Morton (2005), talent management can also play a role in efforts to develop organizational performance in the long term. This is because of the emergence of competitive rivalry, so organizations that are able to identify, develop, and utilize talent effectively will have a clear advantage. Talent management involves the process of recruiting, developing, and retaining talented individuals in organizations (Höglund, 2012).
Having a skilled and high-quality team can provide a significant competitive advantage. According to Silzer and Dowell (2010), talent management is a series of actions, programs, and regulations that have been designed and implemented to attract, manage, develop, and retain talented individuals with the goal of meeting urgent business needs and achieving strategic goals. Successful talent management provides an opportunity for an organization to recognize and address deficiencies in employee skills and competencies needed to achieve its strategic goals. What needs to be emphasized is that talent management involves more than just recruiting talented individuals; it also includes efforts to develop, retain, and use those talents efficiently.
Knowledge management is a special concern of every effort to increase organizational effectiveness in this era (Gold, 2001). Against the background of a business world full of competition and conditions that are increasingly complex and changing rapidly, the ability to access, manage and utilize available knowledge is required (Hislop, 2003).
The influence of knowledge management on organizational effectiveness is significant and strengthens organizational competitiveness (Zheng et al., 2010). According to McAdam and McCreedy (1999), knowledge management carries out the activities of collecting, storing and distributing relevant knowledge throughout the organization.
Good use of knowledge will play a role in realizing better decisions and improving work processes. Knowledge management has the potential to develop work processes efficiently and be ready to face changes in the business environment. Business dynamics require that the ability to apply knowledge to overcome new challenges and pursue new market opportunities is essential.
According to Batra (2006), information technology is the main element in the current era of digitalization and has a role in organizational effectiveness. Rapid changes in industry and business at the global level require organizations to involve the effective use of information technology. This is to provide greater opportunities to achieve competitive advantage and increase operational efficiency through efforts to collect and analyze valuable data, and communicate with customers and business partners more efficiently (Spann et al., 1995; Dewett & Jones, 2001).
Information technology plays an important role in improving operational efficiency and work interactions in organizations. Sophisticated information systems can make it easier to access the data and information needed to make the right and fast decisions. Information technology enables more effective communication, more productive collaboration, and faster decision making. In addition, information technology is the basis for organizations operating in various geographic locations, and in an era that is increasingly connected and highly dependent on technology, the skills to optimize the use of information technology have become a key factor in achieving sustainable success for organizations.
By combining all these elements efficiently, organizations can achieve higher levels of effectiveness, create a productive work environment, and better deal with changes in the marketplace. Therefore, a deep understanding of the role of organizational culture, level of job satisfaction, interpersonal communication, talent management, knowledge management, and information technology is very important in efforts to increase organizational effectiveness.
The novelty fac of this study lies in a comprehensive approach to organizational effectiveness by combining six main internal factors in organizations: organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology. Apart from that, this study also makes a contribution by expanding the framework of competitive organizational values in the manufacturing industry.
Thus, the aim of this study is to investigate and understand the influence of the factors that have been identified on organizational effectiveness, especially in the context of manufacturing companies in Surabaya. The theoretical benefit of this study is a contribution to the literature.
This study will provide a new contribution to the literature on factors that influence organizational effectiveness, especially in the context of manufacturing companies in Surabaya. This will enrich academic knowledge and expand understanding of the relationship between organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology and organizational effectiveness.
This study contributes to the development of a conceptual framework related to the determinants of organizational effectivenessthat is useful for further studies. Practically, this study provides recommendations for practitioner groups and managers in the form of valuable insights, especially business people in the manufacturing industry in Surabaya City.
The findings obtained can be input from the preparation of organizational strategies and policies so that effectiveness develops better and becomes a guide before making decisions. This study can provide guidance to decision-makers in organizations on how to deal with factors that influence organizational effectiveness. They can use these findingsto make more informed decisions. By understanding the factors that influence organizational effectiveness, organizations can adopt more effective strategies to improve performance and achieve their goals. Furthermore, by utilizing the factors that have been studied, organizations can increase their competitiveness in the market, especially in the manufacturing industry in Surabaya. So, this study has significant benefits both from a theoretical and practical perspective and can make a positive contribution to the development of theory, organization, and management practices.
3. Methodology
This study adopted a quantitative approach, focuses on companies in the manufacturing group located in Surabaya as the main object. There were twenty manufacturing companies involved as study targets. The number of employees involved in this study was determined at 10 employees per company. The sample selection process was carried out through the application of random sampling techniques. The main data in this study was collected by questionnaires distribution to 200 employees. The questionnaires that have been distributed have, of course, been designed in a structured manner according to the independent and dependent variable indicators that are part of this study. Distribution of six independent variables, including organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology, along with one dependent variable, namely organizational effectiveness, have predefined indicators as mentioned below.
1. Organizational culture (X.1) is a collection of values, norms, beliefs, and actions that form a system that describes how an organization operates and how its members interact with each other. To measure organizational culture, this can be done by looking at indicators such as principles, organizational norms, communication, leadership, rewards and recognition, teamwork, flexibility and adaptability, and fairness (Alvesson, 1990), which are explained as follows:
a. Principles refer to the values or fundamental principles that form the basis of organizational culture. These principles describe an organization's beliefs and priorities for managing its operations.
b. Organizational norms are standards of behavior or rules followed by organizational members. These norms influence the way people interact and work in organizations.
c. Communication refers to the manner and frequency of communication in an organization. This includes how information is shared, whether there is transparency in communications, and the extent to which communications are open and effective.
d. Leadership concerns the style and quality of leadership within the organization. Good leadership can influence organizational culture by leading by example and promoting the values recognized by the organization.
e. Awards and Recognition relate to the way an organization gives appreciation or recognition to the performance and contributions of team members. This can influence the motivation and sense of appreciation of organizational members.
f. Teamwork includes the extent to which team members work together and collaborate with each other. A culture that encourages cooperation and positive reciprocity can strengthen relationships between members
g. Flexibility and adaptability refer to an organization's ability to adapt to change and be flexible to face new challenges. Flexible organizations tend to be able to survive and thrive in changing environments.
h. Equity refers to the extent to which an organization treats its members fairly and provides equal opportunities for growth and development.
2. Job satisfaction (X.2) is the level of satisfaction or adequacy felt by an individual towards his job and the work environment in which he works. Assessment of job satisfaction can refer to the indicators proposed by Skalli et al. (2008), which include aspects of wages, stability, meaningful work, work situation, and length of time worked, which are explained as follows:
a. Wages are financial rewards that fulfill expectations and match workers' contributions.
b. A sense of security and physical and psychological comfort that workers feel in the work environment.
c. The meaning of work regarding the existence of goals and desires towards achievement felt by workersd.
d. Conditions in the workplace, such as cleanliness, availability of facilities, and equipment available.
e. Duration of work depends on the amount of time to work, accompanied by work-life balance and flexibility of working hours.
3. Interpersonal communication (X.3) shows the interaction between members of the organization with indicators, according to Welch and Jackson (2007), indicated by the following three things:
a. The existence of communication participation, which leads to the level of involvement of organizational members in the communication process.
b. The direction of communication to the parties involved who are interested, such as whether the form of communication is reciprocal or one-way. Communication is considered effective when there is a dynamic process of listening and understanding between parties.
c. Communication material during the communication process that shows the relevance and clarity of the message so that the information circulating is received effectively.
4. Talent management (X.4) leads to processing and optimizing the potential and competence of workers in the organization. Nobarieidishe et al. (2014) pointed out three main indicators of talent management, namely:
a. the recruitment process through effective selection so that there is a relevance of talent and competence to meet organizational needs.
b. HR development so that knowledge and competencies increase, such as through job training processes, career development, coaching, and various other development programs.
c. Talent retention leads to policies to retain qualified workers to be involved in achieving long-term goals.
5. Knowledge management (X.5): to use workers' knowledge to contribute to achieving goals and increasing productivity. Gold et al. (2001) state three indicators that make up this variable, namely:
a. Organizational learning that shows organizational learning derived from experiences of failure and success.
b. Knowledge empowerment so that the organization plays a role in forming new knowledge through research activities, product development, new services and work processes, and innovation.
c. Knowledge distribution so that each member of the organization proportionally has new knowledge and shares it with each other, including the use of new technology or the development of worker competencies.
6. Information technology (X.6) is shown in the presence of software and hardware elements along with networks and computing systems. As a unified system, it processes data to produce information. According to Chung et al. (2013), the four indicators of the use of information technology in organizations are as follows:
a. Time accuracy of information, which leads to the ability of IT systems to provide information when required by organizational actors. This enables quick access to information and supports responsive decision-making.
b. Improved intra-organizational communication as the medium through which members of the organization communicate in the work process, such as through the use of internal email, collaboration platforms, systemized instant messaging, and other communication mediums that enable seamless movement of information.
c. Uncluttered work procedures that remain efficient and productive with the use of IT to automate work processes in the organization. This is effective for manual and repetitive work processes, thereby speeding up operations in the organization.
d. Improved quality of decision-making in IT systems that assist managerial actions appropriately.
7. Organizational effectiveness (Y), which means the realization achieved by the organization in relation to its goals and meeting the expectations of various parties such as organizational members, owners, customers, and the external environment. According to Mott (1972), there are three indicators of organizational effectiveness:
a. Efficiency and reliable processes It leads to the ability of the organization to use resources (such as time, manpower, and funds) optimally to achieve goals. Process reliability refers to the extent to which an organization's operational processes run consistently, which will increase productivity and minimize waste.
b. Capital from the human element, i.e., workers, on the quality and competence of workers and the achievement of job satisfaction. It also looks at how the organization is able to maximize workers' potential optimally.
c. Adaptability to the ever-changing external environment, such as identifying and responding to changes in customer preferences, market competition, regulation, technological advances, and other determinants that affect operations and the achievement of organizational goals.
This study involves the use of multiple linear regression with the help of SPSS version 26 software, with confirmation of validity and reliability tools as well as classical assumption tests to fulfill the requirements for using regression which produces accurate and reliable data output.
4. Result
In summary, the results obtained were that there were 29 employees aged under 21 years, 49 employees aged between 21 and 25 years, 37 employees aged between 26 and 30 years, 46 employees aged between 31 and 35 years, 18 employees aged between 36 and 40 years old, and 21 employees over 40 years old.
Based on the latest educational results of these employees, it can be found that 6 employees completed education up to master's level; 70 employees completed education up to bachelor's level; 8 employees completed education up to diploma level; and 116 employees completed education up to high school level.
The evaluation results based on employees' length of service can be summarized as follows: there are 89 employees with work periods ranging from 1 to 5 years; as many as 67 employees have work periods in the range of 6 to 10 years; there are 35 employees with years of service between 11 and 15 years; there is only 1 employee who has worked for 16 to 20 years; and 8 employees have a service period exceeding 20 years. The guideline used to evaluate validity is to consider the high adjusted total correlation values above 0.30 (corrected item-total correlation) based on all statements from the indicators representing the independent and dependent variables. In addition, if Cronbach's alpha exceeds 0.60, it shows an adequate level of reliability, which means that all the statements in the questionnaire can be trusted.
According to applicable standards, it can be concluded that the results of the validity and reliability evaluation in this study were indeed met, as recorded in Table 1 for the reliability results for each variable studied. Then, the process continues at the stage of evaluating the results of the classical assumption test, which includes data normality tests, autocorrelation tests, and heteroscedasticity tests. Each of these tests hasits own criteria for assessment. When observing a P-Plot graph with a normal distribution, it should be noted that overall, the data points should lie around the diagonal line and follow the pattern of that line. This indicates that the data follows a normal distribution and meets the assumptions of normality. Clearly, Figure 1 provided below shows that the data normality test has been achieved.
Table 1: Reliability Test Results
Figure 1: Normality Test
Autocorrelation can be detected using the Durbin-Watson method, which compares values between -2 and 2. The results of this study imply that the Durbin-Watson value, namely 1.916, indicates a match in the range -2 to 2. Heteroscedasticity can be evaluated using a technique where the data points must be spread evenly around both Y axes. In the context of the established rules, the results of the heteroscedasticity test are supported by Figure 2.
Figure 2: Heteroskedastity Test
Autocorrelation can be detected using the Durbin-Watson method, which compares values between -2 and 2. The results of this study imply that the Durbin-Watson value, namely 1.916, indicates a match in the range -2 to 2. Heteroscedasticity can be evaluated using a technique where the data points must be spread evenly around both Y axes. In the context of the established rules, the results of the heteroscedasticity test are supported by Figure 2.
The next step involves partial and simultaneous testing for the variables under investigation, and finally, testing the coefficient of determination is also proven.
In order to achieve significant results based on the individual influence of organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology variables on organizational effectiveness, the significance value must be below 0.05.
The results are in accordance with the information in Table 2 in the significance column, which clearly shows that the impact is significant because the significance value is below 0.05. The F-calculated value of 999.327 with a significance of 0.000 in Table 2 shows that there is a very significant contribution from all the independent variables that have been tested, including organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology, to the dependent variable, namely organizational effectiveness. This illustrates that testing has collectively verified its correctness. Next, the results of testing the coefficient of determination will be shown, as shown in Table 2. The independent variables, namely organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology, in the context of their influence on organizational effectiveness, have a high level of correlation. very high, reaching a percentage of 98.4%, which shows the strength of a significant relationship. This also indicates that organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology contribute 98.4% to shaping organizational effectiveness. The remaining 1.6% shows a contribution from independent variables that have not been further identified.
Table 2: Parameter Estimate
5. Discussion
5.1. Finding Research
Organizational effectiveness with real results can be realized based on the role provided by organizational culture distribution. There are studies that have been identified based on their conclusions as providing the same results (An et al., 2011; Gochhayat et al., 2017; Naveed et al., 2022).
Organizational culture distribution refers to increasing employee participation and achieving consensus on strategic matters, which creates alignment distribution between organizational and individual goals. Greater understanding regarding values, practices, mission, and goals is essential to achieving the effectiveness of a culture. This means that when this culture is widely implemented and adopted by all, it will create a work environment that is collaborative and has its own resilience, which can increase value for individuals and organizations.
Thus, it becomes imperative that management have a good understanding of organizational culture when carrying out the employee recruitment and development process. They must look for candidates who fit the values and norms of the organization's culture so as to ensure optimal alignment and participation. Management must routinely assess organizational culture and measure the extent to which the culture contributes to organizational effectiveness. This assessment can be the basis for making the necessary changes. Thus, it must be realized that organizational culture can change, and management has a major role in forming, maintaining, and developing a culture that supports organizational efficiency. Consistency between culture, strategy, and management practices is the key to achieving the best level of effectiveness in an organizational context. Organizational culture distribution plays a crucial role in achieving organizational effectiveness, with a focus on employee participation and achieving consensus on strategic matters to create alignment between organizational and individual goals, thereby positively influencing individual and organizational values.
Organizational effectiveness with real results can be realized based on the role provided by job satisfaction. It was found that the studies reviewed through the results also supported this (Sibhoko, 2014; Bayat, 2019). It can be stated that in general, employees feel satisfied with their work and will show actions and behaviors that are beneficial to their duties, co-workers, and the organization as a whole, which in time can realize effectiveness according to the organization's expectations. Management needs to regularly conduct studies or evaluations of employees to measure their level of satisfaction with their work.
This approach may involve the use of surveys or individual interviews. The information obtained will provide deeper knowledge regarding various aspects that require improvement. Smart management will pay attention to the elements that influence employee job satisfaction levels and strive to create a work environment that encourages their well-being and motivation; Adequate income can be an incentive for workers. This effort is expected to have a positive impact on achieving organizational goals and success.
Thus, the importance of management's role in managing and optimizing employee job satisfaction cannot be ignored. The actions and policiestaken by management have a direct impact on organizational effectiveness through their influence on job satisfaction levels, which in turn affect employee performance and the overall results of the organization. Employee job satisfaction has a crucial role in achieving organizational effectiveness, and management needs to regularly evaluate and create a motivating work environment to influence employee performance and overall organizational results. Organizational effectiveness with real results can be realized based on the role provided by interpersonal communication. According to the findings of the same previous study, namely Singh (2014), Interpersonal communication is the main method by which information is disseminated within the organization, which in turn can improve organizational effectiveness.
Effective interpersonal communication can help to recognize and resolve conflicts in a positive way (Gani, 2022; Hariani & Sigita, 2022). Managers need to encourage open communication, respect differences of opinion, and seek solutions that meet the interests of all parties without disrupting productivity.
Managers need to promote a culture that reinforces values such as transparency, collaboration, and mutual respect to ensure organizational success. Therefore, managers who are able to hone and maintain superior interpersonal communication skills will make a significant contribution to the long-term effectiveness and success of the organizations in which they work. Interpersonal communication plays a crucial role in achieving organizational effectiveness by facilitating the distribution of information, positively handling conflict, and promoting a strong organizational culture.
Organizational effectiveness with real results can be realized based on the role provided by talent management. Reviewing the results of previous studies, it was identified that the results of Obeidat et al. (2018), Raheem and Khan (2019), and Yassin and Obeidat (2020) are indeed supportive. From these results, it is seen that when organizations start to allocate investment in talent management practices to recognize, recruit, develop, and retain their best talent, there are two impacts that can be seen: one at the individual level and the other at the organizational level. provide extra attention and show a strong commitment to the implementation of talent management. Thus, careful strategic planning is required to implement talent management programs aimed at identifying, developing, mobilizing, and retaining high-potential individuals in order to achieve optimal levels of operational efficiency. Implementing talent management in organizations requires a high level of involvement, enthusiasm, and commitment from company owners and employees. Management that is able to recognize and advance talent within the organization can place employees who have been trained and have high motivation in key roles. This will, of course, increase the level of efficiency and productivity. Talent management plays an important role in increasing organizational effectiveness, with investmentsin the identification, recruitment, development, and retention of talented individuals having a significant impact at both the individual level and the organization as a whole.
Organizational effectiveness with real results can be realized based on the role provided by knowledge management. It is stated based on the conclusions from the study findings of Zheng et al. (2010), Tang (2017), and Sadq et al. (2020), which are indeed the same as this hypothesis. These findings confirm that knowledge management is a key factor in achieving high effectiveness in organizations in today's information and technology era. For this reason, managers need to regularly facilitate knowledge updates and develop a deep understanding of trends and changes in the industry.
Managers need to ensure that teams have adequate access to the information needed to complete tasks and projects efficiently. Managers need to routinely facilitate knowledge development and encourage a comprehensive understanding of changes and trendsin the industry (Eddine et al., 2023).
The ability of managers to effectively manage, enhance and utilize knowledge in the organization will play a real role to improve effectiveness and lead to long-term success for the organization gradually. Knowledge management plays an important role in improving organizational effectiveness in the age of information and technology and this requires the role of managers to provide ensure adequate access to information, facilitate knowledge updates, and encourage a comprehensive understanding of industry changes.
Organizational effectiveness is shown to be shaped by the presence and implementation of information technology. According to Batra (2006); Sharma and Sharma (2020), information technology is a major element in the development of organizational effectiveness. Managers must maximize the role of information systems to determine the policy of the decisions formed. This is realized by investing in analytical technology and focused training for employees regarding competence in using technology.
The potential for errors due to human involvement requires the role of managers in monitoring and reviewing the effectiveness of technology use. Minimizing human error will also increase productivity, and competitive advantage. However, the important thing to note is that the application of information technology prioritizes not only the technical aspect but also requires careful management. effectively and strategically by managersto achieve desired results for the organization.
5.2. Implications
A comprehensive approach to organizational effectiveness by combining the distribution of six main internal factors in the organization, namely organizational culture, job satisfaction, interpersonal communication, talent management, knowledge management, and information technology isthe key to organizational success. This means that each component of the six main elements has the same distribution of levels of importance to increase organizational effectiveness. This can start by encouraging organizations that do not yet practice an affiliate culture to start adopting it, as this is the best step to increase organizational effectiveness. Job satisfaction is enhanced by providing the necessary resources and assistance for the physical and mental well-being of employees. Effective wellbeing initiatives can reduce stress levels and increase satisfaction levels in the workplace. Improving interpersonal communication can be done through one option that can be done by forming a special team to improve communication throughout the organization and talent management.
Based on this research, in the context of manufacturing companies in Surabaya, Indonesia, a manager who is able to combine a positive culture, prioritize employee satisfaction, encourage effective communication, manage talent and knowledge efficiently, and utilize information technology wisely has a greater opportunity to achieve company goals and survive in tight business competition. Managers within the company must provide support and prioritize knowledge management efforts, or in other words support the learning organization. This is very useful for improving the abilities and skills of employees.
6. Conclusion
This research makes a significant contribution to economic development by expanding the framework of competitive organizational values and considering the influence distribution of six main elements in organizational effectiveness. Additionally, it is important to remember that all of these factors are related to each other and contribute to the overall effectiveness of the organization.
Organizations that are able to combine a positive culture, prioritize employee satisfaction, encourage effective communication, manage talent and knowledge efficiently, and use information technology wisely will have a greater opportunity to achieve their goals and survive business competition. tight. Therefore, paying close attention to all of these elements can be the key to achieving long-term success for the organization. Thus, it becomes a necessity and an input for organizations to focus on improving each of these factors. This can be started by encouraging organizations that do not yet practice an affiliate culture to start adopting it, as this is the best step to increasing organizational effectiveness.
Job satisfaction is increased by providing the necessary resources and assistance for the physical and mental well-being of employees. An effective wellbeing initiative can reduce stress levels and increase levels of satisfaction at work. Improving interpersonal communication can be done through an option that can be done by establishing a specialized team to improve communication throughout the organization. This team can organize training, develop communication guidelines, and identify domains that need improvement. Talent management can improve if there are initiatives to use technology and sophisticated talent management systems to monitor employee development and progress. By recognizing, advancing, and using existing talent within an organization, organizations can gain a significant competitive advantage. Likewise, knowledge management can be carried out with serious involvement from management executives, who play a very crucial role. Leaders in organizations must provide support and prioritize knowledge management efforts.
In addition, information technology can be improved by investing resources in building a robust information technology security infrastructure to maintain the security of organizational data and systems. Data protection is a top priority in this digital era. Therefore, the success of an organization can be achieved through harmonious collaboration between organizational culture, employee satisfaction levels, communication systems, talent management, knowledge management, and the use of information technology. Organizations that are able to integrate and manage these elements efficiently will have a greater opportunity to achieve a competitive advantage and achieve their business goals successfully. It is important for organizations to continuously develop and strengthen these aspects in order to achieve effectiveness, whose development can be achieved in a sustainable manner.
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