Organizational Effectiveness Scale

OES

By

Santosh Dhar (Jaipur)

Upinder Dhar (Jaipur)

Rhea Dhir 1633259

Introduction

Organizational effectiveness can be defined as the competence of the company to

achieve its goals. The organization is able to produce results and achieve optimum efficiency

in the time period given. The net profit of the organization would be one of the measures of

the company’s effectiveness. The culture of the organization should be such that it promotes

net growth. Warren Buffet commented on how it takes a longer time to build an organization

and a few seconds to tarnish it. Many organizations work very hard to create a desirable

culture. Leadership is any other factor affecting work effectiveness. The more leadership

roles provided, the more will be the sense of achievement leading to better growth

opportunities. Human resources, technology, finance and management come together to

provide a prudent work effective environment.

The six systems of organizational effectiveness (Anderson & Adams,2015)

accounts six factors to create overall effectiveness. These being, leadership, communication,

delivery systems, human performance, accountability and metrics. The vision of the

organization needs to be clear, communication should be promoted, methods to successfully

develop products should be built, teams and individuals should be accountable and measuring

everything should be important.

Talent management is extremely important in this complex and highly

competitive corporate world. Very few organizations are able to foster and recognize talent.

Few years ago talent management was only restricted to the human resource department but

now the view is changing. Now it is vital for each organization to nurture the talent available

to them. Effective talent management takes place when gaps have been identified and goals
have been formulated. Readiness to move higher in the position is also a must to manage

talent. Performance management should also be structured in a way that it increases pressures

of achieving new opportunities and builds new technologies.

When an organization is set up in such a way that it enhances ambition, everyone

performs well. Strategies should be made to keep the values of an organization in tact.

Strategies can be defined as long term goal fulfillment of an organization by resource

management. There are different levels of strategies. The first one being corporate level

strategy which determines the role of every department in the organization, second, business

level strategy which focuses on competing with other businesses and the last one is functional

level strategy which includes activities like human resource, research and development,

marketing, finance, production. The purpose of developing a proper organizational design is

to coordinate tasks well, match and mismatch jobs and clear lines of authority. Culture

alignment takes place when the employees and the employer have the same feelings about the

organization’s goals and plans. Succession planning is also an important factor leading to

high effectiveness.

There is a greater market for customers and there is reduced costs. It is quite

impossible to measure organizational effectiveness. Certain approaches have been identified

to measure organizational effectiveness. The four common strategies are goal approach,

internal approach, system resource approach and strategic approach. It improves employee

involvement and satisfaction. Ethics is also an important measure which has been found

under the umbrella of effectiveness. There is a great need to effectively measure this.

The organizational effectiveness scale is a standardized psychometric tool which

is being used to measure effectiveness in the Indian context. This test has 78 items which are
given on a 5-point Likert scale. It was executed on 200 executives. After doing the

correlational study 74 items were finalized. The items finally chosen after factor analysis

were Competent Superiors, Commitment, Task Significance, Innovation, Growth

Opportunities, Transparency, Working Hours, Belongingness, Governance, Pro Activity,

Employee Dedication, Security, Communication, Goal Orientation, Conflict Management,

Problem Solving Orientation, Vigilance and Realistic Goals. These factors were then clubbed

into different dimensions that were Communication, Advanced Opportunities, Proactivity,

Belongingness, Task Significance, Goal Orientation and Security.

The use of this scale lies in tests on a large group, for review and research. It can

be used in organizations to test its effectiveness. It is very easy to administer and is very easy

to score. The authorities can identify where problem lies and can rectify it.
Methodology

Aim

To measure the effectiveness of the organization in which the subject works by

administrating the Organizational Effectiveness Scale.

Sample

The subject is a 40-year-old male. He is a Hindu from Jain community. He is the managing

director of his company Tushar Flooring Selections, Palakkad, Kerala. He has been working

in the company for 7 years. Before that he was an independent businessman involved in

export and import. He has been committed to the company and puts all his work in.

Measure or Tool

The Organizational Effectiveness Scale has been developed by Dr. Santosh Dhar, who is a

senior professor at Jaipura Institute of Management in Jaipur and Dr. Upinder Dhar, the

director at J.K. Lakshmipat University at Jaipur. The reliability of the tool was determined

applying the Spearman-Brown prophecy formula by the split half method on the data

collected from 200 sample size. The reliability coefficient was 0.997. validity was calculated

using the reliability index that measures the dependence of real scores.

The factors Competent Superiors, Commitment, Task Significance, Innovation, Growth

Opportunities, Transparency, Working Hours, Belongingness, Governance, Pro Activity,

Employee Dedication, Security, Communication, Goal Orientation, Conflict Management,

Problem Solving Orientation, Vigilance and Realistic Goals. These factors were then clubbed

into different dimensions that were Communication, Advanced Opportunities, Proactivity,

Belongingness, Task Significance, Goal Orientation and Security were clubbed into

dimensions.

Dimension I of commitment consisted of factors 1,13 and 16, dimension II of Advanced

Opportunities consisted of factors of commitment, growth opportunities and employee

dedication, Dimension III of Advanced Opportunities consisted of factors like proactivity and

realistic goals, Dimension IV of belongingness consisted of factors of belongingness and

Governance, dimension V of Task Significance consists of conflict management and task

significance, Dimension VI of goal orientation consisted of factors like transparency,

working hours and goal orientation and finally dimension VII of security consists of factor 12

of security.

Procedure

The scale is self administering. The instructions are read out clearly. No time limit is given,

however 15 minutes is enough time to complete it. Also emphasis on marking it quickly

should be given and confidentiality is to be maintained. The subject is to be told that there are

no wrong or right answers and the scale does not rate them as good or bad employees.
Instructions

Keeping the organization you are working in mind, please write the number of your choice

against each statement. There is no right or wrong answer. It is only an exercise to get an idea

of your perception about your workplace. The choices are –

1. Strongly disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly Agree

Scoring Responses Score

The scale is self administrating. Each item is scored from 5 to 1 Awarded

corresponding to strongly disagree, agree, not sure, disagree and Strongly 5

strongly disagree. All 74 items are computed under factors and total agree

score is calculated. For dimensions scores only 73 is taken into Agree 4

consideration and factor 17 is dropped. Not Sure 3

Disagree 2

Strongly 1

Disagree
Results

FACTOR SCORE INTERPRET

ATION

1 74 HIGH

2 54 HIGH

3 40 HIGH

4 29 HIGH

5 45 HIGH

6 10 HIGH

7 10 HIGH

8 15 HIGH

9 10 HIGH

10 8 NORMAL
TABLE 1- factor wise
11 15 HIGH
result
12 10 HIGH

13 9 NORMAL

14 10 HIGH

15 5 NORMAL

16 5 HIGH

17 5 NORMAL

18 10 HIGH

TOTAL 359 HIGH

DIMENSION SCORE INTERPRETATION

I 88 HIGH

II 109 HIGH

III 47 HIGH

IV 25 HIGH

V 45 HIGH

VI 30 HIGH

VII 10 HIGH

TOTAL 354 HIGH

Table 2 – dimension wise result

Result

The result overall shows that the subject has HIGH occupational effectiveness. Except factor

10, 13, 15 and 17 that is proactivity, communication, conflict management and vigilance in

which the subject has scored a normal score, every other factor has been scored high. The

subject has scored high in combined dimensions as well.

Discussion/ interpretation

The subject has scored a total of 359 in factor analysis which is high and a score of 354 in

total in dimensions which is again high. This gives us the result that organizational

effectiveness according to the subject is high.

The subject has scored 74 in factor 1 which was on Competent superiors. The subject thinks

that his superiors are very proficient and skilled. They handle the organization very well.

Since he is the managing director of the company, he also comes as a superior to others and

hence has rated his capabilities as well.

The subject has scored 54 in factor 2 which was Commitment. The subject is fully committed

to the organization. He has worked in the organization for 7 years and most of the policy

changes and rules are because of him. He believes that most of the success of the company is

also because of his hard work and commitment of others. All in all, he believes that his

organization is very effective.

The subject scored 40 in factor 3 which was Task significance which is interpreted as high.

He feels that the values of the organization align with his values. It also gives him new

opportunities to grow and develop. Also his job, he believes, gives him time and value to use

his abilities to the maximum. He feels that his responsibilities are satisfactory and he is able

to carry them out very well.

The subject scored 29 in factor 4 and 45 in factor 5 which were innovation and growth

opportunities. The scores are high. He believes that there is enough utilization of time by his

superiors and peers and they all are skilled in carrying out tasks assigned to them. He believes

that his organization is very innovative and comes up with new ideas very easily. No one is

idle in the workplace and they all put their full in their work.

The subject scored a 10 in both factor 6 and 7 which were transparency and working hours.

The subject is happy with the social situation in the office and believes that they are cordial

enough to work in. Also everyone has a reasonable amount of trust and faith in each other

and they don’t doubt their peers and superiors. He sees his organization as a family and also

thinks that his schedule is perfect.

The subject scored a 15, 10, 8 and 15 in factors 8, 9, 10 and 11 which were belongingness,

governance, proactivity and employee dedication. Mr. Jain believes that it is very easy to

solve problems in the work place and risk taking is encouraged. He’s willing to put extra time

and effort in the office. He also thinks that his organization benefits others in socioeconomic

ways. He has good hope in the future of the company and wants to grow with it.

The subject scored a 10, 9 and 10 in factors 12, 13 and 14 which were monitoring,

communication and goal orientation. He believes that the communication is good and the

other two are better comparatively. He believes that the inter office communication is very

effective and and he has a steady employment which provides for all his needs. He believes

that he can easily communicate with his superiors and they respond well to him. The

organization he works at provides him with support and trust.

The subject scored a 5 in factors 15, 16 and 17 and a 10 in factor 18 which were conflict

management, problem solving, vigilance and realistic goals. He believes that he is an

efficient problem solver and doesn’t rest till he solves it. He also believes that people in his

workplace respond well to both opportunities and work. The goals and objectives are

realistic to achieve and his target is well maintained.

The dimensions that were used to measure the subject’s effectiveness were communication,

advancement opportunities, proactivity, belongingness, task significance, goal orientation and

security. The subject scored high in all these dimensions. Overall the subject is highly

satisfied with his organization and the overall effectiveness of the company. His company

promotes independent thinking and provides a comfortable environment to grow. It allows

progress in every sphere and is flexible in decision making. Any kind of assignment and

work is acceptable for the organization. The values are in congruence and the management is

highly effective.

Conclusion

The subject has high organizational effectiveness. He feels that his organization is like his

family and he feels the need to protect and grow with it. His commitment towards the

organization is very high and he feels that his work is highly appreciated. There are great

growth opportunities and the working hours support a personal life as well. The work is

challenging in some ways and is conducive of everyone’s abilities.

References

 Strategy, organization design and Effectiveness. (2015, October 12). Retrieved from

https://www.slideshare.net/NaazSheikh/strategy-organization-design-and-

effectiveness

 Anderson, B., & Adams, B. (2015, November). The Six Systems of Organizational

Effectiveness - The Leadership Circle. Retrieved from

https://leadershipcircle.com/the-six-systems-of-organizational-effectiveness/

 Right management. (2010). organizational Effectiveness. Retrieved from

https://eoeleadership.hee.nhs.uk/sites/default/files/1317116794_DGgD_organisational

_effectiveness_-_how_to_make_it_happ.pdf

 Fapahunda, M. (1978, July 1). Increasing Organization Effectiveness Through Better

Talent Management. Retrieved from

https://www.researchgate.net/publication/262002673_Increasing_Organization_Effect

iveness_Through_Better_Talent_Management
Appendix

Observation

The subject is in his early 40s and readily established rapport and was open. The subject was

neatly groomed. He was calm and very patient while listening to the instructions. He

respected the time limit and immediately answered the questions. He was evaluated for about

twenty minutes in which he failed to show signs of confusion. Towards the end of the study

the subject seemed to be a little exhausted and remarked about the length of the questionnaire

but did not show the exhaustion in the quality of his answers. Since the conditions met the

requisites, the validity of the result of this test was high.

Introspective report

The test was very informative. It forced me to take another look at my job and introspect my

organization again. It was a little long than expected and took a little time to fill. The

examiner was also very patient and understanding. She gave me enough time to fill the whole

questionnaire and made me feel comfortable enough to answer every question truthfully. I’m

very excited to know what my results are.