•Effectiveness:
the extent to which the organization achieves its goals or goal.
•Efficiency:
Takes into account the amount of resources used to produce the desired output.
Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals.
•Goal Attainment Approach
•Systems Approach
•Strategic Constituencies Approach
•Competing Values Approach
•The Goal Attainment Approach states that an organization’s effectiveness must be appraised in terms of the accomplishment of ends rather than means…
It is the bottom line that counts
–Based on the identification of goals and the achievement of those goals
–Goals must be…
•Clearly identifiable
•Consensual
•Measurable
•Time-bound
•1
•Ultimate Goals
•2
•Goals should be well defined and designed
•3
•Few enough to be manageable
•4
•General agreement on these goals
•5
•Progress must be timely measured
•Failure to sell practitioners on goal setting to ensure commitment.
•Setting goals that are not measurable and realistic.
•Unwillingness to raise and lower goals to maintain optimal difficulty.
•Setting too many goals.
•Focusing too much on outcome goals.
•Here end goals are not ignored; but they are
only one element in a more complex set of
criteria.
only one element in a more complex set of
criteria.
•
Systems models emphasize criteria that
will increase the long term survival of the
organization such as –
Systems models emphasize criteria that
will increase the long term survival of the
organization such as –
•
Its ability to acquire resources, maintain
itself internally as a social organism &
interact successfully with its external
environment.
Its ability to acquire resources, maintain
itself internally as a social organism &
interact successfully with its external
environment.
•
So, this approach focuses not so much on
specific ends as on the means needed for
the achievement of those ends.
So, this approach focuses not so much on
specific ends as on the means needed for
the achievement of those ends.
•Organizations are made up of interrelated
subparts.
subparts.
•
If any one of these subparts performs poorly, it
will negatively affect the performance of the
whole system.
If any one of these subparts performs poorly, it
will negatively affect the performance of the
whole system.
•
Effectiveness requires awareness & successful
interactions with environmental constituencies.
Effectiveness requires awareness & successful
interactions with environmental constituencies.
•
Mgmt has to maintain good relations
Mgmt has to maintain good relations
•
Raw materials must be secured, vacancies
created by employee resignations and
retirements must be filled, declining product
lines must be replaced
Raw materials must be secured, vacancies
created by employee resignations and
retirements must be filled, declining product
lines must be replaced
•
Changes in the economy & the tastes of
customers or clients need to be anticipated
and reacted.
Changes in the economy & the tastes of
customers or clients need to be anticipated
and reacted.
•The system view looks at
factors such as-
factors such as-
•
Relation with the environment
Relation with the environment
•
The efficiency with which the
org. transforms inputs into
outputs
The efficiency with which the
org. transforms inputs into
outputs
•
The clarity of internal
communications.
The clarity of internal
communications.
•
The level of conflict among
the group
The level of conflict among
the group
•
The degree of job satisfaction
The degree of job satisfaction
•
•The two most telling shortcomings of the
systems approach relate to MEASUREMENT &
the issue of whether MEANS REALLY MATTER?
systems approach relate to MEASUREMENT &
the issue of whether MEANS REALLY MATTER?
•
In sports, it is frequently said “it’s whether
you win or lose that counts, not how u play
the game!”
In sports, it is frequently said “it’s whether
you win or lose that counts, not how u play
the game!”
•
Same holds true for orgns.
Same holds true for orgns.
•
If ends are achieved, means are not
important
If ends are achieved, means are not
important
•
But systems approach focus is on MEANS
necessary to achieve effectiveness rather
than on organizational effectiveness
itself.
A final plus for the systems
approach is its applicability where
end goals either are very vague or
cannot be quantified
But systems approach focus is on MEANS
necessary to achieve effectiveness rather
than on organizational effectiveness
itself.
•
Managers using systems approach
are less prone to look for
immediate results
Managers using systems approach
are less prone to look for
immediate results
•
Less likely to make decisions
Less likely to make decisions
•
This approach increases the
Manager’s awareness of the
interdependency of organizational
activities
This approach increases the
Manager’s awareness of the
interdependency of organizational
activities
A final plus for the systems
approach is its applicability where
end goals either are very vague or
cannot be quantified
Strategic constituency approach
•An effective organization is one .
that satisfies the demands of
.those constituencies in its
environment from whom it requires
support for its continued
existence.
Each constituency has a unique
set of values, so it is unlikely
that they are preference will
be in agreement
ØIdentifying the expectations
•An effective organization is one .
that satisfies the demands of
.those constituencies in its
environment from whom it requires
support for its continued
existence.
•
•
It seeks to appease only those in
the environment who can threaten
the organization's survival.
It seeks to appease only those in
the environment who can threaten
the organization's survival.
•
•
For eg. Private universities and
public universities
For eg. Private universities and
public universities
•
•Organization should give
importance to constituency
then it can take this
approach.
importance to constituency
then it can take this
approach.
•
Each constituency has a unique
set of values, so it is unlikely
that they are preference will
be in agreement
•3 major steps
Ø
Asking members to identify the constituents
Asking members to identify the constituents
Ø
Evaluate the list
Evaluate the list
How dependent on it our organization
is?
Does it have considerable power
over us?
Are there alternatives?
ØIdentifying the expectations
What do they want of it?
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