Organization Effectiveness Final

ORGANIZATIONAL

EFFECTIVENESS

PROF. DOLLY ROY

Presented by:-

• Sanchi Gaikwad P-07

• Sneha Sharma P-41

• Kavita Singh P-44

• Meghna Rajpura P-45

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ORGANIZATION EFFECTIVENESS &GOAL ATTAINMENT

APPROACH…

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Effectiveness and Efficiency

• 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.

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Organization Effectiveness…?? 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.

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Importance of Organization Effectiveness

What makes an organization effective???

The answer to this question is proper organization structure.

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Effectiveness and Efficiency in Organizations

Low Goal AttainmentLow Use of Resources

Low Goal AttainmentHigh Use of Resources

High Goal AttainmentHigh Use of Resources

High Goal AttainmentLow Use of Resources

Low High

EFFECTIVENESS

Low

Hig

h

EF

FIC

IEN

CY

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Effectiveness Criteria…

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Four Approaches to Organization Effectiveness…

• Goal Attainment Approach• Systems Approach• Strategic Constituencies Approach• Competing Values Approach

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GOAL ATTAINMENT APPROACH

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Goal Attainment 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.

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Goal Attainment Approach

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– Based on the identification of goals and the achievement of those goals

– Goals must be… • Clearly identifiable • Consensual• Measurable• Time-bound

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Goal Implies Assumptions:-

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Barriers to Goal Attainment Approach…!!!

• 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.

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SYSTEM APPROACH

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Systems Approach• 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.

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Assumptions• 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.

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How Managers can apply the systems approach?

• 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

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Limitations of systems approach…

• 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.

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Contd..

• Systems Approach uses means goals

• The approach that is more meaningful and which is easy to quantify should be used

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Value to Managers

• 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.

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Strategic-Constituencies Approach…

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• 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

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Assumptions

• 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.

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How can manager apply this?

• 3 major steps Asking members to identify the constituents Evaluate the list

How dependent on it our organization is?Does it have considerable power over us?Are there alternatives?

Identifying the expectationsWhat do they want of it?

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Problems

• Distinguishing strategic constituencies from larger environment is not easy to practice

• Identifying the expectations that the strategic constituencies hold for the organization

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Value to managers

• It is important for manager to understand just who it is that survival is contingent upon

• Manager might ignore or upset a group whose power could significantly hinder the organization’s operations

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Competing Values

Approach

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Competing Values Approach

The Competing Values

Approach is the criteria you value and use in assessing an organizations effectiveness.

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Criteria

• Return on investment

• Market share

• New product innovation

• Job security

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Assumptions

• No best criterion for evaluating an organization effectiveness.

• There cannot be one single goal that everyone can agree upon.

• The concept of OE is subjective.

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Problem to the approach

This approach’s perception is on how well an organization is doing

on the criteria rather than clarifying in which criteria the constituencies

are emphasizing

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Values to manager

By reducing a large number of effectiveness criteria, this can guide

the manager in identifying the appropriateness of different criteria

to different constituencies and in different life cycle stages.

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Approach Definition When Useful

Goal Attainment An organization is effective to the extent that it accomplishes its stated goals.

The approach is preferred when goals are clear, time bound and measureable.

Systems It acquires needed resources.

A clear connection exists between inputs and outputs.

Strategic Constituencies

Strategic Constituencies are at least minimally satisfied.

Constituencies have powerful influence on the organization, and it must respond to demands.

Competing Values The emphasis of the organization in the four major areas matches constituent preferences.

The organization is unclear about its own emphases, or changes in criteria over time are of interest.

Approaches to measuring

organizational effectiveness

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Approaches to measuring organizational effectiveness

• External resource approach

• Internal systems approach

• Technical approach

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External resource approach

• A method managers use to evaluate how effectively an organization manages and controls Its external environment

• Suppliers• Customers• Competitors• government

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Internal systems approach

• A method that allows managers to evaluate how effectively an organization functions and operates

• Structure • culture• Flexibility • Co-ordination• Motivation

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Technical approach

• A method managers use to evaluate how efficiently an organization can convert some fixed amount of organizational resources into finished goods and services

• Technical effectiveness is measured in terms of productivity and efficiency (output: input)

• Process• technology

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Goals to be set to measure effectivenessExternal resource approach

 Lower costs of inputs• Obtain high-quality inputs of raw materials and employees• Increase market share• Increase stock price• Gain support of stakeholders such as government or environmentalists 

Internal systems approach

• Cut decision-making time• Increase rate of product innovation• Increase coordination and motivation of employees• Reduce conflict• Reduce time to market 

Technical approach

• Increase product quality• Reduce number of defects• Reduce production costs• Improve customer service• Reduce delivery time to customer 

CASE STUDY

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SANCHI P-07SNEHA P-41KAVITA P-44MEGHNA P-45

BIBLIOGRAPHY

• Behaviour in Organization – Garett Jones

• Organization theory – Stephen P Robbins

• www.google.com

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SPECIAL THANKS TO PROF. DOLLY ROY. 45