ORGANIZATIO

NAL
EFFECTIVENES
S
PROF. DOLLY ROY

Presented by: Sanchi Gaikwad

P-07

Sneha Sharma

P-41

Kavita Singh

P-44

Meghna Rajpura

SNEHA SHARMA P-41

P-45

ORGANIZATION
EFFECTIVENESS &
GOAL ATTAINMENT
APPROACH

SNEHA SHARMA P-41

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

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 nonprofit organizations and charities are
interested
in
knowing
whether
the
organization is effective in accomplishing its
goals.

SNEHA SHARMA P-41

SNEHA SHARMA P-41

Importance of Organization
Effectiveness
What makes an organization effective???
The answer to this question is proper
organization structure.

SNEHA SHARMA P-41

High

Effectiveness and Efficiency

in Organizations
High Goal Attainment
Low Use of Resources

Low Goal Attainment

High Use of Resources

High Goal Attainment

High Use of Resources

Low

EFFICIENCY

Low Goal Attainment

Low Use of Resources

Low
SNEHA SHARMA P-41

High

EFFECTIVENESS

Effectiveness Criteria

SNEHA SHARMA P-41

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 organizations 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

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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

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SYSTEM
APPROACH
SANCHI GAIKWAD

P-07
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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 its 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 Managers
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

StrategicConstituencie
s Approach

MEGHNA RAJPURA P-45

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 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

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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

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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

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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

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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 organizations operations

MEGHNA RAJPURA P-45

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Competing
Values
Approach
SNEHA SHARMA
MEGHNA RAJPURA

P-41
P-45

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Competing Values
Approach
The Competing Values
Approach is the criteria you
value and use in assessing an
organizations effectiveness.

SNEHA SHARMA
P-41
MEGHNA RAJPURA P-45

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Criteria
Return on investment
Market share
New product innovation
Job security

SNEHA SHARMA
P-41
MEGHNA RAJPURA P-45

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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
MEGHNA RAJPURA P-45

33

Problem to the
approach
This approachs 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
MEGHNA RAJPURA P-45

34

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
MEGHNA RAJPURA P-45

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Approach

Definition

When Useful

Goal Attainment

An organization is
effective to the
extent that it
accomplishes its
stated goals.

The approach is
preferred when
goals are clear, time
bound and
measureable.

Systems

It acquires needed
resources.

A clear connection
exists between
inputs and outputs.

Strategic
Constituencies

Strategic
Constituencies are
at least minimally
satisfied.

Constituencies have
powerful influence
on the organization,
and it must respond
to demands.

Competing Values

The emphasis of the

organization in the
four major areas
matches constituent
preferences.

The organization is
unclear about its
own emphases, or
changes in criteria
over time are of
interest.

SNEHA SHARMA P-41

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Approaches to
measuring
organizational
effectiveness

KAVITA SINGH P-44

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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
resource
approach

Lower costs of inputs

Obtain high-quality inputs of raw materials and employees
Increase market share
Increase stock price
Gain support of stakeholders such as government or
environmentalists

Internal
systems
approach

Cut decision-making time

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

Technical
approach

Increase product quality

Reduce number of defects
Reduce production costs
Improve customer service
Reduce delivery time to customer

CASE
STUDY
SANCHI
SNEHA
KAVITA
MEGHNA

P-07
P-41
P-44
P-45

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BIBLIOGRAPHY
Behaviour in Organization Garett Jones
Organization theory Stephen P Robbins
www.google.com

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SPECIAL THANKS TO
PROF. DOLLY ROY.

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