ORGANIZATION

AL
EFFECTIVENESS

PROF. DOLLY ROY

 PRESENTED bY:-

• SANChI GAIkwAD P-07

• SNEhA ShARmA P-41

• kAVITA SINGh P-44

• mEGhNA RAjPuRA P-45

SNEHA SHARMA P-41 2

 ORGANIZATION
EFFECTIVENESS &
GOAL ATTAINmENT
APPROACh…

SNEhA ShARmA P-41 3

EFFECTIVENESS AND
EFFICIENCY
• EFFECTIVENESS:
ThE ExTENT TO whICh ThE ORGANIZATION
AChIEVES ITS GOALS OR GOAL.

• EFFICIENCY:
TAkES INTO ACCOuNT ThE AmOuNT OF
RESOuRCES uSED TO PRODuCE ThE DESIRED
OuTPuT.

SNEHA SHARMA P-41 4

ORGANIZATION
EFFECTIVENESS…??
ORGANIZATIONAL EFFECTIVENESS IS ThE
CONCEPT OF hOw EFFECTIVE AN ORGANIZATION
IS IN AChIEVING ThE OuTCOmES ThE
ORGANIZATION INTENDS TO PRODuCE. ThE IDEA
OF ORGANIZATIONAL EFFECTIVENESS IS
ESPECIALLY ImPORTANT FOR NON-PROFIT
ORGANIZATIONS AS mOST PEOPLE whO DONATE
mONEY TO NON-PROFIT ORGANIZATIONS AND
ChARITIES ARE INTERESTED IN kNOwING
whEThER ThE ORGANIZATION IS EFFECTIVE IN
ACCOmPLIShING ITS GOALS.

SNEHA SHARMA P-41 5

SNEHA SHARMA P-41 6
 ImPORTANCE OF
ORGANIZATION
EFFECTIVENESS
whAT mAkES AN ORGANIZATION
EFFECTIVE???

ThE ANSwER TO ThIS quESTION IS PROPER

ORGANIZATION STRuCTuRE.

SNEHA SHARMA P-41 7

 EFFECTIVENESS AND
EFFICIENCY IN
ORGANIZATIONS
High

Low Goal Attainment High Goal Attainment

Low Use of Resources Low Use of Resources
EFFICIENCY

Low Goal Attainment High Goal Attainment

High Use of Resources High Use of Resources
Low

Low High

SNEHA SHARMA P-41 EFFECTIVENESS

EFFECTIVENESS CRITERIA…

SNEHA SHARMA P-41 9

 FOuR APPROAChES TO
ORGANIZATION
EFFECTIVENESS…

• GOAL ATTAINmENT APPROACh

• SYSTEmS APPROACh
• STRATEGIC CONSTITuENCIES APPROACh
• COmPETING VALuES APPROACh

SNEHA SHARMA P-41 10

 GOAL
ATTAINmENT
APPROACh

SNEhA ShARmA P-41 11

SNEHA SHARMA P-41 12
GOAL ATTAINmENT
APPROACh
• ThE GOAL ATTAINmENT APPROACh
STATES ThAT AN ORGANIZATION’S
EFFECTIVENESS muST bE APPRAISED IN
TERmS OF ThE ACCOmPLIShmENT OF ENDS
RAThER ThAN mEANS…

• IT IS ThE bOTTOm LINE ThAT COuNTS.

SNEHA SHARMA P-41 13

GOAL ATTAINmENT
APPROACh
– bASED ON ThE IDENTIFICATION OF GOALS AND
ThE AChIEVEmENT OF ThOSE GOALS

– GOALS muST bE…

• CLEARLY IDENTIFIAbLE
• CONSENSuAL
• mEASuRAbLE
• TImE-bOuND

SNEHA SHARMA P-41 14

GOAL ImPLIES ASSumPTIONS:-

SNEHA SHARMA P-41 15

bARRIERS TO GOAL ATTAINmENT
APPROACh…!!!
• FAILuRE TO SELL PRACTITIONERS ON
GOAL SETTING TO ENSuRE COmmITmENT.
• SETTING GOALS ThAT ARE NOT
mEASuRAbLE AND REALISTIC.
• uNwILLINGNESS TO RAISE AND LOwER
GOALS TO mAINTAIN OPTImAL DIFFICuLTY.
• SETTING TOO mANY GOALS.
• FOCuSING TOO muCh ON OuTCOmE GOALS.

SNEHA SHARMA P-41 16

 SYSTEm
APPROACh
SANChI GAIkwAD P-07
17
 SYSTEmS APPROACh
• hERE END GOALS ARE NOT IGNORED; buT ThEY
ARE ONLY ONE ELEmENT IN A mORE COmPLEx
SET OF CRITERIA.
• SYSTEmS mODELS EmPhASIZE CRITERIA ThAT
wILL INCREASE ThE LONG TERm SuRVIVAL OF
ThE ORGANIZATION SuCh AS –
• ITS AbILITY TO ACquIRE RESOuRCES, mAINTAIN
ITSELF INTERNALLY AS A SOCIAL ORGANISm &
INTERACT SuCCESSFuLLY wITh ITS ExTERNAL
ENVIRONmENT.
• SO, ThIS APPROACh FOCuSES NOT SO muCh ON
SPECIFIC ENDS AS ON ThE mEANS NEEDED FOR
ThE AChIEVEmENT OF ThOSE ENDS.

SANCHI GAIKWAD P-07

 ASSumPTIONS
• ORGANIZATIONS ARE mADE uP OF INTERRELATED
SubPARTS.
• IF ANY ONE OF ThESE SubPARTS PERFORmS POORLY, IT
wILL NEGATIVELY AFFECT ThE PERFORmANCE OF ThE
whOLE SYSTEm.
• EFFECTIVENESS REquIRES AwARENESS & SuCCESSFuL
INTERACTIONS wITh ENVIRONmENTAL CONSTITuENCIES.
• mGmT hAS TO mAINTAIN GOOD RELATIONS
• RAw mATERIALS muST bE SECuRED, VACANCIES CREATED
bY EmPLOYEE RESIGNATIONS AND RETIREmENTS muST bE
FILLED, DECLINING PRODuCT LINES muST bE REPLACED
• ChANGES IN ThE ECONOmY & ThE TASTES OF CuSTOmERS
OR CLIENTS NEED TO bE ANTICIPATED AND REACTED.

SANCHI GAIKWAD P-07

 hOw mANAGERS CAN APPLY
ThE SYSTEmS APPROACh?

• ThE SYSTEm VIEw LOOkS AT FACTORS SuCh AS-

• RELATION wITh ThE ENVIRONmENT
• ThE EFFICIENCY wITh whICh ThE ORG.
TRANSFORmS INPuTS INTO OuTPuTS
• ThE CLARITY OF INTERNAL COmmuNICATIONS.
• ThE LEVEL OF CONFLICT AmONG ThE GROuP
• ThE DEGREE OF jOb SATISFACTION

SANCHI GAIKWAD P-07

 LImITATIONS OF SYSTEmS
APPROACh…
• ThE TwO mOST TELLING ShORTCOmINGS OF ThE SYSTEmS
APPROACh RELATE TO mEASuREmENT & ThE ISSuE OF
whEThER mEANS REALLY mATTER?
• IN SPORTS, IT IS FREquENTLY SAID “IT’S whEThER YOu
wIN OR LOSE ThAT COuNTS, NOT hOw u PLAY ThE GAmE!”
• SAmE hOLDS TRuE FOR ORGNS.
• IF ENDS ARE AChIEVED, mEANS ARE NOT ImPORTANT
• buT SYSTEmS APPROACh FOCuS IS ON mEANS NECESSARY
TO AChIEVE EFFECTIVENESS RAThER ThAN ON
ORGANIZATIONAL EFFECTIVENESS ITSELF.

SANCHI GAIKWAD P-07

 CONTD..

• SYSTEmS APPROACh uSES mEANS GOALS

• ThE APPROACh ThAT IS mORE

mEANINGFuL AND whICh IS EASY TO
quANTIFY ShOuLD bE uSED

SANCHI GAIKWAD P-07

 VALuE TO mANAGERS

• mANAGERS uSING SYSTEmS APPROACh ARE

LESS PRONE TO LOOk FOR ImmEDIATE RESuLTS
• LESS LIkELY TO mAkE DECISIONS
• ThIS APPROACh INCREASES ThE mANAGER’S
AwARENESS OF ThE INTERDEPENDENCY OF
ORGANIZATIONAL ACTIVITIES
• A FINAL PLuS FOR ThE SYSTEmS APPROACh IS
ITS APPLICAbILITY whERE END GOALS EIThER
ARE VERY VAGuE OR CANNOT bE quANTIFIED.

SANCHI GAIKWAD P-07

 STRATEGIC-
CONSTITuENCI
ES
APPROACh…

mEGhNA RAjPuRA P-45

24
• AN EFFECTIVE ORGANIZATION IS ONE ThAT
SATISFIES ThE DEmANDS OF ThOSE
CONSTITuENCIES IN ITS ENVIRONmENT FROm
whOm IT REquIRES SuPPORT FOR ITS CONTINuED
ExISTENCE.

• IT SEEkS TO APPEASE ONLY ThOSE IN ThE

ENVIRONmENT whO CAN ThREATEN ThE
ORGANIZATION'S SuRVIVAL.

• FOR EG. PRIVATE uNIVERSITIES AND PubLIC

uNIVERSITIES

MEGHNA RAJPURA P-45 25

 ASSumPTIONS
• ORGANIZATION ShOuLD GIVE
ImPORTANCE TO CONSTITuENCY ThEN IT
CAN TAkE ThIS APPROACh.

• EACh CONSTITuENCY hAS A uNIquE SET

OF VALuES, SO IT IS uNLIkELY ThAT
ThEY ARE PREFERENCE wILL bE IN
AGREEmENT.

MEGHNA RAJPURA P-45 26

 hOw CAN mANAGER APPLY
ThIS?
• 3 mAjOR STEPS
 ASkING mEmbERS TO IDENTIFY ThE CONSTITuENTS
 EVALuATE ThE LIST
hOw DEPENDENT ON IT OuR ORGANIZATION IS?
DOES IT hAVE CONSIDERAbLE POwER OVER uS?
ARE ThERE ALTERNATIVES?
 IDENTIFYING ThE ExPECTATIONS
whAT DO ThEY wANT OF IT?

MEGHNA RAJPURA P-45 27

 PRObLEmS
• DISTINGuIShING STRATEGIC CONSTITuENCIES
FROm LARGER ENVIRONmENT IS NOT EASY TO
PRACTICE

• IDENTIFYING ThE ExPECTATIONS ThAT ThE

STRATEGIC CONSTITuENCIES hOLD FOR ThE
ORGANIZATION

MEGHNA RAJPURA P-45 28

 VALuE TO mANAGERS

• IT IS ImPORTANT FOR mANAGER TO

uNDERSTAND juST whO IT IS ThAT
SuRVIVAL IS CONTINGENT uPON

• mANAGER mIGhT IGNORE OR uPSET A

GROuP whOSE POwER COuLD
SIGNIFICANTLY hINDER ThE
ORGANIZATION’S OPERATIONS

MEGHNA RAJPURA P-45 29

 COmPETING
VALuES
APPROACh

SNEhA ShARmA P-41

mEGhNA RAjPuRA P-45 30
COmPETING VALuES
APPROACh

ThE COmPETING VALuES

APPROACh IS ThE CRITERIA YOu
VALuE AND uSE IN ASSESSING AN
ORGANIZATIONS EFFECTIVENESS.

SNEHA SHARMA P-41 31

MEGHNA RAJPURA P-45
 CRITERIA
• RETuRN ON INVESTmENT

• mARkET ShARE

• NEw PRODuCT INNOVATION

• jOb SECuRITY

SNEHA SHARMA P-41 32

MEGHNA RAJPURA P-45
 ASSumPTIONS
• NO bEST CRITERION FOR EVALuATING AN
ORGANIZATION EFFECTIVENESS.

• ThERE CANNOT bE ONE SINGLE GOAL ThAT

EVERYONE CAN AGREE uPON.

• ThE CONCEPT OF OE IS SubjECTIVE.

SNEHA SHARMA P-41 33

MEGHNA RAJPURA P-45
 PRObLEm TO ThE
APPROACh
ThIS APPROACh’S PERCEPTION IS ON
hOw wELL AN ORGANIZATION IS DOING
ON ThE CRITERIA RAThER ThAN
CLARIFYING IN whICh CRITERIA ThE
CONSTITuENCIES ARE EmPhASIZING

SNEHA SHARMA P-41 34

MEGHNA RAJPURA P-45
 VALuES TO mANAGER

bY REDuCING A LARGE NumbER OF

EFFECTIVENESS CRITERIA, ThIS CAN
GuIDE ThE mANAGER IN IDENTIFYING
ThE APPROPRIATENESS OF DIFFERENT
CRITERIA TO DIFFERENT
CONSTITuENCIES AND IN DIFFERENT LIFE
CYCLE STAGES.

SNEHA SHARMA P-41 35

MEGHNA RAJPURA P-45
Approach Definition When Useful
Goal Attainment An organization is The approach is
effective to the preferred when
extent that it goals are clear, time
accomplishes its bound and
stated goals. measureable.
Systems It acquires needed A clear connection
resources. exists between
inputs and outputs.

Strategic Strategic Constituencies have

Constituencies Constituencies are powerful influence
at least minimally on the organization,
satisfied. and it must respond
to demands.
Competing Values The emphasis of the The organization is
organization in the unclear about its
four major areas own emphases, or
matches constituent changes in criteria
preferences. over time are of
interest.
36
SNEhA ShARmA P-41
APPROAChES TO
mEASuRING
ORGANIZATIONAL
EFFECTIVENESS

kAVITA SINGh P-44

37
 APPROAChES TO mEASuRING
ORGANIZATIONAL
EFFECTIVENESS

• ExTERNAL RESOuRCE APPROACh

• INTERNAL SYSTEmS APPROACh

• TEChNICAL APPROACh

KAVITA SINGH P-44

ExTERNAL RESOuRCE
APPROACh
• A mEThOD mANAGERS uSE TO EVALuATE hOw
EFFECTIVELY AN ORGANIZATION mANAGES
AND CONTROLS ITS ExTERNAL ENVIRONmENT

• SuPPLIERS
• CuSTOmERS
• COmPETITORS
• GOVERNmENT

KAVITA SINGH P-44

INTERNAL SYSTEmS
APPROACh
• A mEThOD ThAT ALLOwS mANAGERS TO
EVALuATE hOw EFFECTIVELY AN
ORGANIZATION FuNCTIONS AND OPERATES

• STRuCTuRE
• CuLTuRE
• FLExIbILITY
• CO-ORDINATION
• mOTIVATION

KAVITA SINGH P-44

 TEChNICAL APPROACh

• A mEThOD mANAGERS uSE TO EVALuATE hOw

EFFICIENTLY AN ORGANIZATION CAN CONVERT SOmE
FIxED AmOuNT OF ORGANIZATIONAL RESOuRCES INTO
FINIShED GOODS AND SERVICES
• TEChNICAL EFFECTIVENESS IS mEASuRED IN TERmS OF
PRODuCTIVITY AND EFFICIENCY (OuTPuT: INPuT)
• PROCESS
• TEChNOLOGY

KAVITA SINGH P-44

 GOALS TO bE SET TO mEASuRE EFFECTIVENESS
External Lower costs of inputs
resource • Obtain high-quality inputs of raw materials and employees
approach • Increase market share
• Increase stock price
• Gain support of stakeholders such as government or
environmentalists

Internal • Cut decision-making time

systems • Increase rate of product innovation
approach • Increase coordination and motivation of employees
• Reduce conflict
• Reduce time to market

Technical • Increase product quality

approach • Reduce number of defects
• Reduce production costs
• Improve customer service
• Reduce delivery time to customer
 CASE
STuDY

SANChI P-07
SNEhA P-41
kAVITA P-44 43
mEGhNA P-45
 bIbLIOGRAPhY

• bEhAVIOuR IN ORGANIZATION – GARETT jONES

• ORGANIZATION ThEORY – STEPhEN P RObbINS

• www.GOOGLE.COm

44
SPECIAL ThANkS TO
PROF. DOLLY ROY. 45