Organizational Effectiveness

Organizational Effectiveness

Introduction

'Organizational effectiveness' reflects the effectiveness of an organization in achieving its predetermined goals and objectives. This idea is comparatively more essential for those organizations that work on charities and donations, because, the donors are increasingly interested in the outcome of the donations they make and whether the desired goal is achieved. Organizational effectiveness takes into account the performance of the organization, i.e., the numerous internal as well as external performance measures which are related to effective and efficient operations (Richard et al, 2009).

Discussion

Organizational effectiveness, according to Fredrick Taylor, is determined through elements like technological excellence, production maximization, cost minimization, and so on. Henri Fayol believed it to be a function of discipline and clear authority inside an organization while Elton Mayo considered it a function of productivity arising out the satisfaction that the employees have within the organization (Cameron, 1983).

Organizational effectiveness can be simply defined as achieving (in the near future) the goals and objectives set by the organization while meeting the expectations prevalent in the society, developing to adjust in the intermediate future and successfully surviving in the distant future. There are four basic approaches to organizational effectiveness, the goal attainment approach - which focuses on the accomplishment of goals and objectives, and is preferable when the goals/objectives are clear and measurable; the constituencies approach - which aims to satisfy each and every strategic constituency (at least up to a certain minimum level), and it is preferred the influence of the constituencies upon the organization is immense requiring the organization to respond immediately; the system resource approach - this approach focuses on the effectiveness in terms of procuring the required resources, and it is preferred if the there is an existence f a clear connection amid inputs and outputs; and the internal process approach - which aims to achieve effectiveness through combining internal efficiency with affective health, and is preferable when outputs, costs and satisfaction can be measured easily (Campbell, 1977).

Quinn and Rohrbaugh developed the 'competing values model' which is a theory developed from the research on key indicators of organizations that were effective. They discovered two main dimensions that cover the concept of effectiveness - Focus and Structure (Quinn, 1981).

'Focus' determines, whether or not the dominant values, impact inter and external issues of the organization. Inter focus addresses the concerns of the management for the well being as well as the efficiency of the organization's ...