Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Distinguished Visiting Fellow at the Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland, publisher of www.GavdosPress.com. Founder and former CEO, Industries, Inc., a Fortune 500 industrial corporation
The linkages listed in this segment and following segments on this topic to be posted in separate categories are based on my experience as senior executive as well as an entrepreneur on managing growth businesses. Because statistical techniques test for probabilities but not certainties, the wordings are stated in terms of likelihoods. Discussions of these linkages are to be presented in future articles. Other executives and entrepreneurs could come to different conclusions compared to those listed in the segments posted. Therefore, those that read my views should take them as the experience of one person and use their judgment as to whether these linkages are to be taken as stated in their case.
Linkage 7-1: The more adequate the information that a CEO obtains from inside the firm, the more adequately authority is distributed, and the more effectively roles are assigned, then the more profitable the firm is likely to be.
Linkage 7-2: The more widely information is shared among employees, and the more effectively roles are assigned, the more rapid sales growth is likely to be.
Linkage 7-3: The more adequate is the information obtained by the CEO inside the firm and the more effectively roles are assigned, then the more effective direction-setting strategy is likely to be.
Linkage 7-4: The more widely information is shared inside the firm, the more able the firm is likely to be to obtain needed outside information, recruits, suppliers, subcontractors and capital and the more effective the CEO’s recruitment strategy is likely to be.
Linkage 7-5: The more adequate is the information obtained by the CEO and the more effectively roles are assigned, the more effective the management recruitment strategy and the more adequate outside information are likely to be.
Linkage 7-6: The more widely information is shared and the more effectively roles are assigned, the better the morale and commitment is likely to be and the more integrated individual and organizational goals are likely to be.
Linkage 7-7: The more widely information is shared, the more likely the CEO and managers are to share the same sense of mission.
Linkage 7-8: The more the CEO delegates responsibility to managers, the less consistent the CEO’s values are likely to be with managers.
Linkage 7-9: The more managers perceive they are given authority, the better integrated are employee and organizational goals.
Linkage 7-10: The more widely information is shared, the better people and supplies are allocated across departments.
Linkage 7-11: CEOs getting adequate inside information and whose work roles are effectively assigned are likely to have (a) more effective resource allocation and (b) better people and supply allocations across departments.
Linkage 7-12: The more effectively roles are assigned, the better technical performance, technical skill, quality, and productivity are likely to be.
Linkage 7-13: The more widely information is shared, the higher technical performance is likely to be.
Linkage 7-14: The more authority managers have to do their work, then the higher the firm’s productivity level is likely to be.
Linkage 7-15: The more able the CEO is to get adequate information from within the firm, the higher the levels of technical skills and performance of employees are likely to be.