Organizational Effectiveness 7 Organizational Effectiveness The degree to which an organization realizes its goals

Contingency Effectiveness Approach Draw value chain of an organization: inputs, internal transformation and outputs Goal Approach to effectiveness is concerned with the output side Indicators Use: easily measurable, evaluate performance Problems: multiple goals are conflicting Some are difficult to measure e.g. employee welfare etc.

Contingency Effectiveness Approach Resource Based Approach: Looks at the input side Indicators: materials, capabilities, competencies Use: valuable in Non-Profit Organizations (NPOs) Problem: vague Internal Process Approach: Measures internal organizational health Indicators: culture, team spirit, trust, undistorted vertical and horizontal communication, reward on performance Use: stress on internal elements Problem: output and environment ignored

How to develop capabilities and competencies

Balanced Effectiveness Approaches Stakeholder Approach: . Stakeholder Effectiveness Criteria Owners financial return Employees satisfaction, pay Customers quality Creditors creditworthiness Community contribution to community Suppliers satisfactory transactions Government Obedience to law, regulations

Balanced Effectiveness Approaches Competing Values Approach: Around two values focus (internal or external) structure (stability vs. flexibility)

Balanced Effectiveness Approaches Competing Values Approach: Four models resulted: HR model Open systems model Internal process model Rational goal model Use: brings together the competing forces under the umbrella of Effectiveness