21-Oct-19

FACTORS
AFFECTING AND
Submitted By:
STRATEGIES TO Sara Bharat Budhiraja (Roll No: 28)
Shivanshu Gupta (Roll No: 30)

IMPROVE Organisation Behaviour (6104)

MBA B (Sem 1)
ORGANISATIONAL
EFFECTIVENESS
Submitted To: Ms. Sushma Yadav
TABLE OF CONTENTS

FACTORS AFFECTING ORGANIZATIONAL EFFECTIVENESS .................................... 2

CAUSAL VARIABLES ............................................................................................................ 2
INTERVENING VARIABLES ................................................................................................ 2
END-RESULT VARIABLES ................................................................................................... 3
INTER-RELATIONSHIP OF VARIABLES ............................................................................. 3
STRATEGIES TO IMPROVE ORGANIZATIONAL EFFECTIVENESS ........................... 4
MAKE USE OF HUMAN RESOURCES ............................................................................... 4
FOCUS ON EDUCATION AND GROWTH ......................................................................... 4
KEEP THE CUSTOMERS IN MIND ..................................................................................... 5
WORK ON QUALITY SERVICES OR PRODUCTS .......................................................... 5
USE TECHNOLOGY ............................................................................................................... 5
REFERENCES .............................................................................................................................. 6

1
FACTORS AFFECTING ORGANIZATIONAL EFFECTIVENESS

Effectiveness refers to the degree of how much an outcome of an organization is aligned with the
organizational goals.
The factors affecting organizational effectiveness can be classified into three variables:
 Causal Variables
 Intervening Variable
 End Result Variables

CAUSAL VARIABLES

Causal variables are those independent variables that determine the course of developments
within an organization and the objectives achieved by an organization. These variables include
only those independent variables, which can be altered by the organization and its
management.
Causal variables include organization and management policies, decisions, business and
leadership strategies, skills and behavior.

INTERVENING VARIABLES

Intervening variables are those variables that reflect the internal state and health of an
organization. For example, employee loyalties, attitudes, motivations, performance goals and
perceptions of all the members and their collective capacity for effective interaction,
communication and decision-making.

2
 END-RESULT VARIABLES

End-result variables are the dependent variables that reflect achievements of an organization
such as its productivity, costs, loss and earnings.

INTER-RELATIONSHIP OF VARIABLES

The three variables such as causal, intervening and end-result are interrelated. The inter-
relationship may be visualized as psychological process where stimuli or causal variables acting
upon the organism or intervening variables and creating certain responses or end-result variables.
The causal, intervening and end-result variables comprise a complex network with many
interdependent relationships. The causal variables are the key to organizational effectiveness.
Hence, to make organization effective, attempt should be made to improve the causal variables,
while other variables will be corrected or improved automatically because of causal variables.

CASUAL INTERVENING END-RESULTS

VARIABLES VARIABLES VARIABLES

Leadership Style Commitment to Objective Production

Management Decision Motivation and Morale Cost
Organizational Philosophy Communication Leadership Sales
Objectives and Policies Skills
Earning
Technology Conflict Resolution
Turnover
Decision –Making
Management Union
Relationship

3
STRATEGIES TO IMPROVE ORGANIZATIONAL EFFECTIVENESS

The key to organizational effectiveness is using the right tools and strategies to accomplish a
specific goal.
Below mentioned are the 5 major strategies to improve organisational effectiveness:
 Make Use of Human Resources
 Focus on Education and Growth
 Keep the Customers in Mind
 Work on Quality Services or Products
 Use Technology

MAKE USE OF HUMAN RESOURCES

The human resources department of any company plays a key role in the organizational
effectiveness of a company. Since the human resources professionals in a company play an
essential role in hiring new employees, they also impact the company goals.
Involving human resource professionals in the design and implementation of changes within
the company improves the organization. They offer unique perspectives that leaders may
overlook and play an active role in identifying the right professionals for new positions within
the company.

FOCUS ON EDUCATION AND GROWTH

A leader must understand the strengths and weaknesses of different professionals before
making a plan of action to improve the effectiveness of the organization.
Before making any changes to the company, educating professionals in different areas of the
business is required. Find out about their abilities, skills and strengths. Identify their
weaknesses or the areas where specific professionals face difficulties when working as a team.
Develop teams with complementary skills and strengths. Encourage professionals to work
toward specific goals and give assignments based on their skills, knowledge and background.

4
KEEP THE CUSTOMERS IN MIND

Organizational effectiveness only works well when evaluating the needs and interests of the
customers. If a professional does not provide a quality product or service, then customers look
for alternatives for their needs and goals.
Ask customers to fill in surveys or answer questions about the services provided. Find out what
the customers want from the company or the services they find the most valuable for their
needs and goals. Allow customers to leave comments or point out weaknesses from the
company by asking questions on social media or a company blog.

WORK ON QUALITY SERVICES OR PRODUCTS

Although clients play a role in the effectiveness of a company, a business must also identify
an appropriate level of quality for the products or services provided. The key is focusing on a
balance of quality with cost effective solutions. The goal of any business is improving the
products without exceeding a set budget or price range.
By involving different professionals from multiple fields in the decision-making process, a
leader gains multiple perspectives and ideas about better ways to improve the organization.

USE TECHNOLOGY

Technological tools play an essential role in the efficiency and effectiveness of a company.
Make use of computers, tablets or smartphones to improve the efficiency of the company. Use
software or sharing tools to keep different members of a team up-to-date with the state of a
project.
Use software programs designed specifically to improve efficiency or effectiveness in the
office. For example, use spreadsheets for better organization or set up an office-wide system
for sharing information among team members or different professionals in the business.

5
REFERENCES

 Robbins, S., Judge, T. and Vohra, N. (2019). Organizational Behavior. 18th ed. Pearson.

 Hasan, B. and Ali, J. (2007). An Empirical Examination of Factors Affecting Group

Effectiveness in Information Systems Projects. Decision Sciences Journal of Innovative
Education, 5(2).

 En.wikipedia.org. (2019). Organizational effectiveness. [online] Available at:

https://en.wikipedia.org/wiki/Organizational_effectiveness [Accessed 20 Sep. 2019].