ORGANIZATIONAL EFFECTIVENESS EFFECTIVENESS – is often described as

“doing the right things” that is those work activities that will help the organization reach its goals.

EXAMPLE: At the Siemens factory, goals include

reducing equipment installation time for customers and cutting costs. Through various work programs these goals were pursued and achieved. Page 8

MEANING OF EFFICIENCY AND EFFECTIVENESS EFFICIENCY- refers to resource usage

with low or no wastage. Management strives for low resource waste –high efficiency

EFFECTIVENESS – refers to goal attainment. High goal attainment – high effectiveness Page 8

MANAGEMENT LOOKING FORWARD: PAGE 8 Management is concerned then not

only with getting activities completed and meeting organizational goals (effectiveness) but also with doing so as efficiently as possible.

In successful organizations, high efficiency and high effectiveness typically go hand in hand.

Poor management is most often due to both inefficiency and ineffectiveness

MANAGERIAL VS. ORGANIZATIONAL EFFECTIVENESS PAGE 466-468 (8TH EDITION)

We define managerial effectiveness as goal attainment. Can this apply to organizational effectiveness. YES

ORGANISATIONAL EFFECTIVENESS- is a measure of how well an organization is achieving those goals. It also involve ability to exploit its environment to obtain scarce and valued resources.

KEY CHARACTERISTIC OF EFFECTIVE ORGANIZATION

CLEARLY DEFINED VISION AND GOALS

-organization with clear vision and goals will know their values and their contribution towards their customers.

Understanding this will be the first step in delivering value added services or products that stand out from its competitors.

EFFECTIVE TEAM WORK INDEPENDENTLY Flexible, participative decision

making is possible because of the effective team building. As such the team will be highly motivated.

Organization such as SOUTHWEST AIRLINES possess superior teams that meets the needs of customers to deliver superior value added services

BUSINESS PROCESSES These organizations typically have

demanding customers and operates in dynamic marketplaces should have clear business processes.

They value consistent behavior, emphasized on continuous improvement, and relied heavily on data and results

TOYOTA is using JIT (just in time) and TQM ( total quality management)

ENTREPRENEURIAL SPIRIT Magnetic leaders and bold, with

impossible dreams. Leaders tended to be hands-off; individual initiative and risk taking was encouraged; meaningful rewards and recognition was provided and opportunity widespread. HONDA CORPORATION

These organizations worked hard at ensuring they had selected the right people. Employees were rewarded in terms of what they created and the personal risks taken (high risks/high rewards)..

INDIVIDUAL ACHIEVEMENT

Their employees were ambitious; individual growth and goal achievement were linked with and led to high levels of organizational performance; there were high rewards to those that met their goals

RECOGNITION AND CELEBRATION They had inspiring leaders, a

compelling history and legacy, and were in fast-changing marketplaces. Employees were provided with meaningful recognition and rewards, and were valued for their contribution.

Individual and group accomplishments were recognized and rewarded in an environment characterized by enthusiasm, fun and excitement.

© 2007 Prentice Hall, Inc. All rights reserved.

18–11

EXHIBIT 18–9 TYPES OF CONTROL

ACCURATE AND TIMELY PERFORMANCE

feedback- feed forward controls

The most desirable type of control is feed forward control. It prevents anticipated problems since it takes place before the actual activity.

FEED FORWARD CONTROL IN PRACTICE Eg. Mc Donald’s opened its first

restaurant in Moscow, it sent company quality control experts to help Russian farmers learn technique for growing high quality potatoes and bakers to learn processes for baking high quality breads.

© 2007 Prentice Hall, Inc. All rights reserved.

18–14

TOOLS FOR CONTROLLING ORGANIZATIONAL PERFORMANCE

Feedforward Control A control that prevents anticipated

problems before actual occurrences of the problem.

Building in quality through design. Requiring suppliers conform to ISO 9002.

Concurrent Control A control that takes place while the

monitored activity is in progress. Direct supervision: management by walking

around.

© 2007 Prentice Hall, Inc. All rights reserved.

18–15

TOOLS FOR CONTROLLING ORGANIZATIONAL PERFORMANCE (CONT’D)

Feedback Control A control that takes place after an activity

is done. Corrective action is after-the-fact, when the

problem has already occurred.

Advantages of feedback controls: Provide managers with information on the

effectiveness of their planning efforts. Enhance employee motivation by providing

them with information on how well they are doing.

ENVIRONMENT ADAPTATION

Companies strive to scan the environment for recognizing the change that is taking place either the GENERAL OR SPECIFIC environment of the organization.

Failure to adapt to changes in the environment will lead to inability to respond to the change and exploit the market opportunity or to avoid potential threats.

GROUP PRESENTATION

Select an organization/business of your choice : Discuss the key attributes of your

organization to be effective and deliver value to customers