ORGANIZATIONAL EFFECTIVENESSPROF. DOLLY ROY

Presented by:-Sanchi Gaikwad P-07

Sneha Sharma P-41

Kavita Singh P-44

Meghna Rajpura P-45 SNEHA SHARMA P-41*

ORGANIZATION EFFECTIVENESS &GOAL ATTAINMENT APPROACHSNEHA SHARMA P-41*

Effectiveness and EfficiencyEffectiveness: 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 non-profit 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

Effectiveness and Efficiency in OrganizationsLow Goal AttainmentLow Use of ResourcesLow Goal AttainmentHigh Use of ResourcesHigh Goal AttainmentHigh Use of ResourcesHigh Goal AttainmentLow Use of ResourcesLow HighEFFECTIVENESSLow HighEFFICIENCYSNEHA SHARMA P-41

Effectiveness Criteria*SNEHA SHARMA P-41

Four Approaches to Organization EffectivenessGoal Attainment ApproachSystems ApproachStrategic Constituencies ApproachCompeting Values Approach*SNEHA SHARMA P-41

GOAL ATTAINMENT APPROACHSNEHA SHARMA P-41*

*SNEHA SHARMA P-41

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

Goal Attainment Approach

*Based on the identification of goals and the achievement of those goals

Goals must be Clearly identifiable ConsensualMeasurableTime-boundSNEHA SHARMA P-41

Goal Implies Assumptions:-*SNEHA SHARMA P-41

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

SYSTEM APPROACHSANCHI GAIKWAD P-07*

Systems ApproachHere 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

AssumptionsOrganizations 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 relationsRaw materials must be secured, vacancies created by employee resignations and retirements must be filled, declining product lines must be replacedChanges 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 environmentThe efficiency with which the org. transforms inputs into outputs The clarity of internal communications.The level of conflict among the groupThe degree of job satisfactionSANCHI 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 importantBut 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 usedSANCHI GAIKWAD P-07

Value to Managers

Managers using systems approach are less prone to look for immediate resultsLess likely to make decisionsThis approach increases the Managers awareness of the interdependency of organizational activitiesA 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-Constituencies Approach

MEGHNA RAJPURA P-45*

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*

AssumptionsOrganization 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

How can manager apply this?

3 major stepsAsking members to identify the constituentsEvaluate the listHow dependent on it our organization is?Does it have considerable power over us?Are there alternatives?Identifying the expectationsWhat do they want of it?*MEGHNA RAJPURA P-45

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

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

Competing Values Approach SNEHA SHARMA P-41MEGHNA RAJPURA P-45*

Competing Values Approach The Competing Values Approach is the criteria you value and use in assessing an organizations effectiveness.*SNEHA SHARMA P-41MEGHNA RAJPURA P-45

Criteria Return on investment

Market share

New product innovation

Job security*SNEHA SHARMA P-41MEGHNA 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-41MEGHNA RAJPURA P-45

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-41MEGHNA 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-41MEGHNA RAJPURA P-45

SNEHA SHARMA P-41*

Approach DefinitionWhen UsefulGoal AttainmentAn organization is effective to the extent that it accomplishes its stated goals. The approach is preferred when goals are clear, time bound and measureable.SystemsIt acquires needed resources.A clear connection exists between inputs and outputs.Strategic ConstituenciesStrategic Constituencies are at least minimally satisfied.Constituencies have powerful influence on the organization, and it must respond to demands.Competing ValuesThe 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.

Approaches to measuring organizational effectivenessKAVITA SINGH P-44*

Approaches to measuring organizational effectiveness

External resource approach

Internal systems approach

Technical approachKAVITA SINGH P-44

External resource approach A method managers use to evaluate how effectively an organization manages and controls Its external environment

SuppliersCustomersCompetitorsgovernmentKAVITA SINGH P-44

Internal systems approachA method that allows managers to evaluate how effectively an organization functions and operates

Structure cultureFlexibility Co-ordinationMotivation

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 servicesTechnical effectiveness is measured in terms of productivity and efficiency (output: input)Processtechnology

KAVITA SINGH P-44

Goals to be set to measure effectiveness

External resource approachLower costs of inputsObtain high-quality inputs of raw materials and employeesIncrease market shareIncrease stock priceGain support of stakeholders such as government or environmentalists

Internal systems approachCut decision-making timeIncrease rate of product innovationIncrease coordination and motivation of employeesReduce conflictReduce time to market

Technical approachIncrease product qualityReduce number of defectsReduce production costsImprove customer serviceReduce delivery time to customer

CASE STUDY*SANCHI P-07SNEHA P-41KAVITA P-44MEGHNA P-45

BIBLIOGRAPHY

Behaviour in Organization Garett Jones

Organization theory Stephen P Robbins

www.google.com*

SPECIAL THANKS TO PROF. DOLLY ROY.*

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