ORGANIZATIONAL EFFECTIVENESS

ORGANIZATIONAL EFFECTIVENESS
MEETING ORGANIZATIONAL OBJECTIVES AND PREVAILING SOCIETAL EXPECTATIONS IN THE NEAR FUTURE, ADAPTING AND DEVELOPING IN THE INTERMEDIATE FUTURE, AND SURVIVING IN THE DISTANT FUTURE.

COMPONENTS
Managerial Policies and Practices
Environmental Characteristics Employee Characteristics Organizational Characteristics

How is an effective organization created?

What is the business the organization is really in? What is the mission of the organization? What are the primary products or services the organization provides to their customers? Who are their customers? What do their customers expect and need? How does the organization know what the customers needs and expectations are?

What benefits can be gained from creating an effective organization?

Improved profitability Increased customer retention Reduced customer complaints and warranty claims Reduced costs through less waste, rework Greater market share Increased employee involvement and satisfaction, lower turnover

Organizational Effectiveness Framework

HISTORICAL OPINIONS ABOUT ORGANIZATIONAL EFFECTIVENESS

1. FREDERICK TAYLOR 2. HENRI FAYOL 3. ELTON MAYO

FREDERICK TAYLOR
EFFECTIVENESS WAS DETERMINED BY FACTORS SUCH AS PRODUCTION MAXIMIZATION, COST MINIMALIZATION, TECHNOLOGICAL EXCELLENCE, Etc.

HENRI FAYOL
EFFECTIVENESS IS A FUNCTION OF CLEAR AUTHORITY AND DISCIPLINE WITHIN AN ORGANIZATION

ELTON MAYO
EFFECTIVENESS IS A FUNCTION OF PRODUCTIVITY RESULTING FROM EMPLOYEE SATISFACTION

APPROACHES TO MEASURING ORGANIZATIONAL EFFECTIVENESS

Goal Approach: Effectiveness is the ability to excel at one or more output goals. Internal Process Approach: Effectiveness is the ability to excel at internal efficiency, coordination, motivation, and employee satisfaction. System Resource Approach: Effectiveness is the ability to acquire scarce and valued resources from the environment.

 Constituency Approach: Effectiveness is the ability

to satisfy multiple strategic constituencies both within and outside the organization. Domain Approach: Effectiveness is the ability to excel in one or more among several domains as selected by senior managers.

MODEL OF ORGANISATIONAL EFFECTIVENESS

Factors Affecting Organizational Success

Strategic Factors Market Product Technology Customers Suppliers Vision Value Creation Strategy Organizational Factors Strategic Deployment Effective Leadership Policies Procedures Processes Continuous Improvement Culture Problem-solving Commitment Culture Measures of Performance Trust, Honesty, & Ethical Behavior

People Factors Employee Involvement Education Training Internal Supplier-Customer Relations Motivation Teamwork Communication Safety

Environmental Factors Social Economic Competitive Technology

Benefits of Creating and Maintaining an Effective Organization

Improved: profitability competitiveness customer satisfaction management-employee relations focus on key goals communications teamwork employee morale company image revenue service to customers (internal & external) effectiveness planning work environment decision making Greater: market share adaptability Reduced: customer complaints warranty claims cost waste rework employee turn-over

Increased:

employee involvement
employee satisfaction ability to attract new customers

A NEW REALITY
As the results of our study uncovered, to create organizational effectiveness and ensure sustainability, business leaders need to focus their attention on aligning their people, the systems, the structure and roles with the organizations strategy, while engaging their employees with their jobs and with the organization.

CONCLUSION
Every organization, regardless of industry or country, seeks to be more effective and achieve superior results. Business strategy is developed to achieve this. It amounts to nothing, though, if it remains on the drawing board and is never executed. Execution occurs when structure, roles, capability, leadership, systems, and culture are all pulling together and aligned with the strategy. One without the other will create misalignment and success will not be realized.