Organisational

Effectiveness III
LECTURER: GILLIAN HULLEY
GILLIAN.HULLEY@GMAIL.COM
Course outline
Introduction to effectiveness

Person-job-environment fit
Job analysis
Recruitment and selection
Job design
Alternative work schedules
Human-machine systems

Measuring human effectiveness

Human performance appraisal systems
Training and development
Course outcomes (1)
Develop an appreciation of the complexity of defining
effectiveness in an organisation.

Develop an appreciation of the variety of different ways of

achieving effectiveness from an industrial/organisational
psychology perspective.

Describe the key components of job analysis, recruitment and

selection, job design, human-machine interactions, and
alternative work schedules.

Describe the key components of human performance appraisal

systems and their consequences.
Course outcomes (2)

Critically analyse a job to uncover the key constituents of a

job and how a job incumbent might be effective in that job.

Critically discuss the impact of environmental and

technological changes on individual and organisational
performance.

Compare and contrast the different approaches to

achieving organisational effectiveness.

Employ academic conventions regarding written work and

to present logical written arguments.
What is an organisation?

Made up of people
Made of physical elements (technology,
equipment, physical building/s, etc.)
Made up of systems of operation (these
determine how the people, technology, and
other physical elements interact) and may
include aspects such as organisational
structure and hierarchy
Usually has some task/role/function speciality
that gives it identity
Definition

Organisational Effectiveness is
defined as:

… “how effective an organisation

is in achieving its desired
outcomes”
 What is organisational
effectiveness?

Organisations typically assess “effectiveness” through “proxy”

measures such as: profits/losses; products/units delivered/outputs;
quality of service delivered; global presence; etc.

“Proxy” measures because they don’t directly measure the

effectiveness but are measures of the marketplace, the receptivity
of their product, the amount of money they have to spend on
opening new branches, etc.

Other measures (i.e. profits, no. outputs) are short term measures
and can vary quite considerably, not necessarily dependent on what
organisation is doing.
 Effectiveness dependent on
organisational type
Legitim organisation must be genuine, ethical, or
acy true to a higher purpose (e.g. an aid
organisation, an Islamic bank, a
Fault- conservation group)to eliminate error or
organisation seeks
driven ineffectiveness (e.g. an airline maintenance
company, an electronics company)
High organisation seeks to be ‘top’ in their
performi industry or values ranking (e.g. a University,
ng a brewing company)
Creativit organisation seeks to be different (e.g. a
y creative advertising agency, a computer
gaming company)
 TYPE OF MACHINE ORGANISM BRAIN
ORGANISATION
Key aspects of Network of parts arranged in a Survival by adaptation to the Rapid and continual information
metaphor specific sequence; environment; high attention to processing; double loop learning,
standardization of output competition; operates as an open distributed memory, and knowledge
system
Environmental Stable, predictable Competitive and complex; rapid Turbulent, constant change, highly
Context technological changes create new competitive; increased rate of
opportunities and challenges technological change; high uncertainty
Key Command and control of Concern with survival; need to better fit Innovation, creativity are primary
Organizational process, information, and products/services to the environment; concerns; rapid response to market,
Concerns decisions to provide reliable creativity and innovation are internal learning, and high information
output increasingly important flow to turn new ideas into outputs rapidly
Work processes Well defined jobs and tasks; Increased communication and Self-organizing groups, redundancy of
characteristics codified processes; vertical teamwork; commitment to skills and functions to enable rapid
decision-making; formalization experimentation; different approaches accommodation to new ideas and
of roles and responsibilities for different tasks; groups empowered information; highly collaborative; ideas
to make decisions; importance of emerge from all parts of the organization;
environmental scanning action is inquiry-driven
Human relations Low individual initiative; Key concern is creating a motivated High individual initiative; individuals
orientation managers plan and think, and empowered workforce; focus on capable of acting on others' behalf due to
workers implement; adherence job enrichment; participation, redundant skills and knowledge; capacity
to rules and regulations highly responsibility; democratization of work to change points of view, argumentation
valued; high monitoring of and decision processes; team players and questioning highly valued
performance highly valued
Key Efficiency, stability, timeliness, Increased productivity, work quality; Cutting edge output, creativity, continuous
product/Service replicability of output external positioning; improving stream of new products/services
issues competitive capacity
 Measures of organisational
effectiveness

Achieving the organisational Quality of work life (and

mission
Product or service quality
Customer satisfaction
Innovation and creativity awards
Ability to Adapt to change
Ability to attract and retain
quality employees
Individual or group performance
general quality of life)
Develop organisational
partnerships and alliances
Operational efficiency (e.g.
waste reduction)
Organisational image or brand
awareness
Corporate social responsibility
Longevity and sustainability
 Dimensions driving
organisational effectiveness
Strategy organisation’s mission, vision, goals,
objectives, intent, policies
Structure organisation’s hierarchy, functional
separation, physical separation)
Culture organisation’s assumptions, values, group
norms
Technolo organisation’s transformations including
gy rules, regulations, and equipment
Human organisation’s training and development,
resources recruitment and selection, performance
management, reward management, career
management
Achieving organisational
effectiveness

Critical Attribute approach (determine organisation’s most

important dimensions and the associate attributes and
focus on these): supply-chain model, agile manufacturing
model, innovation model, knowledge management model

Cause-and-effect approach (establish cause and effect

relationships in organisations and focus on optimising
these)

Strategy approach (Focus on organisation’s strategy): strategic

contingencies model, balanced scorecard model (Kaplan &
Norton, 1996)
 Quinn and Rohrbaugh’s (1983)
competing values model/framework

Organisational structure: flexibility/adaptability vs. stability/control

Organisational focus: internal focus vs. external focus

Means-end continuum: achieving outcome objectives vs. how objectives are

achieved

The Competing Values Framework gives a classification of four corporate cultures, which indicate how a
company operates, how employees collaborate and what the corporate values are.
 Quinn and Rohrbaugh’s (1983)
competing values model of
organization and management
1. Human Relations model (Clan): high internal focus, high flexibility; means:
discussion, participation, consensus, teamwork, employee development;
ends: employee morale and cohesion; organisational commitment; human
resources development

2. Internal Process model (Hierarchy) : high internal focus, high stability/control; means:
information management and communication, standardized processes and
communication, formal structure; ends: timeliness, stability, efficiency

3. Open Systems model (Adhocracy): high external focus, high flexibility; means:
commitment to initiative, experimentation, insight, and adaptation; ends:
creativity, innovation, cutting edge, growth, external support

4. Rational Goal model (Market): high external focus, high stability/control; means:
goal clarification, external positioning, direction, decisiveness, and planning,
measurable goals; ends: external ranking, productivity, goal achievement
 Quinn and Rohrbaugh’s
(1983) competing values
model
 Triple Bottom Line
(Elkington, 1998)
Economic
Capital

Eco- Socio-
efficiency efficiency

Eco- Socio-
effectiveness
Natural Capital effectiveness
Social Capital

Sufficienc Ecological
y equity
 Triple Bottom Line
Organisational
Economic longevity
Work efficiency Capital
Productivity
programmes interventions
Eco- Socio-
efficiency efficiency
Occupational Health
Lean production & Safety
Employee
design
wellbeing
Usabilit
y
Eco- Communit Socio-
effectiveness y effectiveness
Natural Capital Social Capital
engageme
nt
Sufficiency Ecological equity
Corporate
Change Social
management Responsibility
 Historical approaches to achieving
organisational effectiveness
Old Way Current way New way
Bureaucratic control Engagement Networking & collaboration
Internal orientation External awareness & External positioning &
adaptation orientation
Internal focus on hierarchy & Internally oriented lateral External relationships,
processes relationships partnerships & alliances
Generic organisational design Contingent organisational Flexible and fluid network
design organisational design
Organisations designed Organisations designed Organisations designed
around function/s around customers/products around positioning
Value-add is management Value-add is employees Value-added is alliances
Management focus Leadership focus Facilitation focus
What does organisational
effectiveness mean for I/O psychology?
Job and work analysis
Recruiting and selecting to match
organisational needs
Design of work and jobs
Performance management and performance
appraisal
Career development
Compensation, incentives, and benefits
Employee Safety and health
Managing labour relations