•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.

•
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.

•

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.

•
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.

•
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

•

Changes in the economy & the tastes of


customers or clients need to be anticipated

and reacted.

•The system view looks at

factors such as-

•
Relation with the environment

•
The efficiency with which the

org. transforms inputs into

outputs

•
The clarity of internal

communications.

•
The level of conflict among

the group

•
The degree of job satisfaction

•

•The two most telling shortcomings of the


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!”

•
Same holds true for orgns.

•
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.

•

Managers using systems approach

are less prone to look for

immediate results

•
Less likely to make decisions

•
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.

•

•
It seeks to appease only those in

the environment who can threaten

the organization's survival.

•

•
For eg. Private universities and

public universities

•

•Organization should give

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

Ø
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?