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BA 5201Organization and Management

Goals and effectiveness

Instructor: Çağrı Topal

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Organizational goalA statement that establishes the

desired future state an organization is attempting to achieve

Official goalsOperative goalsOperational goals

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Primary vs. secondary beneficiaries

Primary: the people the organization serves

Secondary: the people other than customers or clients who benefit in some way or another from the organization

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Short- vs. long-term goalsShort-term goals: the goals that an

organization hopes to accomplish within one year or accounting cycle

Long-term goals: the goals that can be accomplished within more than one year or accounting cycle

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Official goalsMission statementsSetting general direction and

philosophyIdentifying product or service,

market niche, production methods, and financial objectives

“The mission of the Middle East Technical University is to reach, produce, apply and promote knowledge, and to educate individuals with that knowledge for the social, cultural, economic, scientific and technological development of our society and humanity. This is to be done by bringing teaching, research and social services up to universal standards.”

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Operative goalsDepartment or unit level goalsProviding standards and guidelines

for departments and business unitsGoals related to market, financial

performance, resource, innovation, productivity, management development, employee performance and attitudes, social responsibility and ethical behavior

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Purposes of goalsGuidance and directionMotivationLegitimacyStandardsStructure and designUnification of effort

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Managing goals

Negotiating and bargainingSatisfacingOrdering• Setting priorities• Sequencing

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Organizational effectivenessBecoming successfulRelated to but not limited to

achieving goalsHaving many dimensionsA question of which stakeholder

asks the question

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Approaches to effectivenessInternal effectiveness• Efficiency• Emotional or affective health

Goal achievementResource acquisitionStakeholders’ perspectives

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Effectiveness: contradictions model

There is no total effectiveness1. Organizations face complex

environments2. Organizations have multiple

conflicting goals3. Organizations face multiple

internal and external stakeholders4. Organizations have short-term

and long-term goals and demands

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Effectiveness: competing values model

No single measure of effectiveness is satisfactory• The human relations model: human resource development• The open systems model: growth and resource acquisition• The internal process model: efficiency and stability• The rational goal model: productivity and goal achievement

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Effectiveness: balanced scorecard

A multidimensional approach to effectiveness

Simultaneous achievement in financial performance, internal operational performance, customer performance, and innovation and learning performance

Relations between four performance measures