Organizational

Effectiveness
Organizational Behavior
Presented By:

A
Abhishek Gupta(01)
Amit kumar(02)
What is an Organization
It is a consciously coordinated social
unit composed of two or more people
that functions on a relatively continuous
basis to achieve a common goal or set of
goals
They may vary from manufacturing and
service firms to schools, hospitals,
churches, military units etc.
Organizational Effectiveness
Organizational effectiveness is the concept of
how effective an organization is in achieving
the outcomes the organization intends to
produce.
Meeting Organizations objectives and
prevailing social expectations in the near
future, adapting and developing in the near
future and surviving in the distant future.
Historical Perspective
 FREDERICK TAYLOR
 ELTON MAYO
 HENRI FAYOL
Frederick Taylor
EFFECTIVENESS IS DETERMINED BY
FACTORS SUCH AS :

1. PRODUCTION MAXIMIZATION
2. COST MINIMIZATION
3. TECHNOLOGY EXCELLENCE
Elton Mayo
Effectiveness is a function
of
1. Productivity.
2. Employee Satisfaction.
3. Behaviors of employees
Henri Fayol
Effectiveness is a function of

1. Clear authority
2. Discipline within an organization
3. Clear division of duties.
Efficiency
Takes into account the amount of
resources used to produce the
desired output.
The more optimized the resource
utilization the more efficient is the
organization
Effectiveness
The degree to which objectives &
goals are achieved and the extent to
which targeted problems are solved.
An efficient organization may not be
effective.
APPROACHES TO
ORGANIZATIONAL
EFFECTIVENESS
GOAL Approach
Approach associated with OUTPUT
This approach emphasizes the ability of organization
to achieve its operating goals.
Examples,
Market share
Profit Increase
Sales target etc.
What are the advantages and
disadvantages of the resource-based
approach versus the goal approach for
measuring organizational effectiveness?
Pros
Straightforward approach, especially when goals
are measurable.
Often appropriate for for-profit organizations
(profitability, market share,...)
Cons
Goals are not always easy to identify & to
measure, especially for non-profit organizations
(EX: "public safety" as a police department goal)
goals are often multiple & conf licting
System Resource Approach (Approach
associated with INPUT)
It Emphasizes the ability of the organization to
acquire scarce and valued recourses.
Here end goals are not ignored but they are one
element in a complex set of criteria
system model emphasize criteria that will
increase long term survival of the organization

Eg. Donations received by NGO

PROS
It is mostly useful when other indicators of
performance are unavailable.
EX: quality of a university measured as
amount of research grants, acquisition of top
faculty, average SAT score of entering
students
CONS
It vaguely consider the organization’s link to the
needs of the customers
In it the assessment of effectiveness is indirect
(EX: police department has acquired 3 new cruisers;
but did the crime rate go down?)
The approach assumes stability in the market
place and fails to adequately consider the changing
value of various resources as competitive
environment and customer
Strategic Constituents Approach
This approach measures effectiveness by focusing on
the satisfaction of key stakeholders.
Stakeholders are divided into different constituent
groups such as owners, employees, customers, creditors,
community etc.
Each of these constituents have different criterion of
effectiveness
An Effective organization is one that satisfies the
demand of those constituencies in its environment from
whom it required support for its continuous existence.
Competing Values Model
This approach to effectiveness acknowledges that
organisations do many things and have many Outcomes
It combines several indicators of effectiveness into a
single framework. The model was originally developed
by Robert Quinn and John Rohrbaugh.
Their analysis found underlying dimensions of
effectiveness criteria that represented competing
management values in organisations.
New product innovation
Market share
What are the similarities and
differences between assessing
effectiveness on the basis of competing
values versus the strategic constituents
approach?
Similarities
The similarity between assessing
effectiveness on basis of Strategic
constituents approach and Competing values
model is that both of these models take into
consideration that effectiveness has no single
measure and there can be different indicators
of effectiveness in an organisation.
Dissimilarities
The major difference between these two
models is of the indicators of effectiveness.
Strategic constituents approach measures
effectiveness through the different
effectiveness criteria of the strategic
constituents and competing values model
measures effectiveness through the
management values of the organization
Internal Process Approach
Effectiveness Is the ability to excel at
internal efficiency, coordination,
motivation and employee satisfaction.
Comparison of approaches
Models of Organizational Effectiveness
.
HUMAN
RELATION

OPEN SYSTEM INTERNAL

PROCESS

RATIONAL
GOAL
HUMAN RELATION MODEL
Focuses on the development of the organization’s
personnel.

EXAMPLE:- Marlin travel sends its agents on

the familiarization trips to expand their
knowledge of specific hotels , cruises &
destination.
INTERNAL PROCESS MODEL
Focuses on the effectiveness of the internal
transformation process .

EXAMPLE:- when Hamilton's sletcolne

examine its steel making method to determine
price & quality competitiveness it is focusing in
its internal process
OPEN SYSTEM MODEL
An organization is effectiveness to the degree that it
acquire inputs from its environment & has outputs
accepts by environment.

EXAMPLE:- he university of Alberta follows

this model when it is concerned about the
quality and number of students applying for
admission & what jobs they receive an
graduation.
RATIONAL GOAL METHOD
Effectiveness of an organization is effective to the
extent that it accomplished its stated goals.

EXAMPLE:-The formal goals of the Toronto

blue jays are to win their division , the
American league pennant and the world series.
HOW TO INCREASE ORGANISATIONAL
EFFECTIVENESS
To increase organizational effectiveness, winning
companies create sustainable competitive
advantage by aligning their talent & business
strategies.
Merges or acquisition , restructuring or shifts in
business strategy are example of fundamental
organizational changes that create strong demand
for process & system to bring focus and restore the
organization’s capability to function effectively.
Our organizational effectiveness capability brings
values to our clients organizations by facilitating the
integration & alignment of the business strategy
with a workable talent management strategy.
At the heart of right management’s organizational
effectiveness capabilities is our holistic approach to
helping companies build and align the capabilities
process, attitudes and talent needed to more
effectively implement its chosen strategy.