Mesure of OE

8/10/2019 Mesure of OE

1/26

ORGANIZATIONAL

EFFECTIVENESS


2/26

HISTORICAL OPINIONS

ABOUT ORGANIZATIONALEFFECTIVENESS

1. FREDERICK TAYLOR

2. HENRI FAYOL

3. ELTON MAYO


3/26

FREDERICK TAYLOR

EFFECTIVENESS WAS DETERMINED BY

FACTORS SUCH AS PRODUCTION

MAXIMIZATION, COST

MINIMALIZATION, TECHNOLOGICAL

EXCELLENCE, Etc.


4/26

HENRI FAYOL

EFFECTIVENESS IS A FUNCTION OF CLEAR

AUTHORITY AND DISCIPLINE WITHIN AN

ORGANIZATION


5/26

ELTON MAYO

EFFECTIVENESS IS A FUNCTION OF

PRODUCTIVITY RESULTING FROMEMPLOYEE SATISFACTION


6/26

NEAR

FUTURE

INTERMEDIATE

FUTURE

DISTANT

FUTURETIME

DIMENSIONApprox.

1 year

Approx.

5 years

EFFECTIVENESS

CRITERIA

The organization

must be

1. EFFECTIVE inaccomplishing its

purpose(s)

2. EFFICIENT in the

acquisition and use

of scarce resources

3. A SOURCE OF

SATISFACTION

to its owners,

employees,

customers and

clients, and

society.

The organization

must be4. ADAPTIVE to

new opportunities

and obstacles

5. CAPABLE OF

DEVELOPING

the ability of its

members and of

itself

The organization

must be6. CAPABLE OF

SURVIVAL in

a world of

uncertainties.


7/26

ORGANIZATIONAL

EFFECTIVENESS

MEETING ORGANIZATIONAL OBJECTIVES AND

PRVAILING SOCIETAL EXPECTATIONS IN THE

NEAR FUTURE, ADAPTING AND DEVELOPING IN

THE INTERMEDIATE FUTURE, AND SURVIVING

IN THE DISTANT FUTURE.


8/26

APPROACHES TO MEASURING

ORGANIZATIONAL EFFECTIVENESS

Goal Approach: Effectiveness is the ability to

excel at one or more output goals.

Internal Process Approach:Effectiveness is theability to excel at internal efficiency, coordination,

motivation, and employee satisfaction.

System Resource Approach: Effectiveness is the

ability to acquire scarce and valued resources from

the environment.


9/26

Approaches to Measuring Org.

Effectiveness, continued Constituency Approach:Effectiveness is

the ability to satisfy multiple strategic

constituencies both within and outside theorganization.

Domain Approach:Effectiveness is the

ability to excel in one or more amongseveral domains as selected by senior

managers.


10/26

Flow Charts ofApproaches to

Organizational EffectivenessGoal Approach

TRANSFORMATIONINPUTS OUTPUTS

GOAL APPROACH


11/26


Organizational EffectivenessInternal Process Approach


INTERNAL PROCESS APPROACH


12/26


Organizational EffectivenessSystem Resource Approach


SYSTEM RESOURCE APPROACH


13/26

Flow Charts ofApproaches toOrganizational Effectiveness

Constituency Approach


STRATEGIC CONSTITUENCIES APPROACH


14/26

COMPARISON OF THE FOUR OEAPPROACHES

Approach Definition When Used

An organization is effective Preferred when:

to the extent that:

Goal attainment it accomplishes its stated goals goals are clear, time

bound and measurable

System Resource it acquires needed resources a clear connection exists

between inputs and outputs

Constituencies all strategic constituencies constituencies have powerful

are at least minimally influence on the organization,

satisfied and the organization must

respond to demands

Internal Processes combines internal efficiency costs, outputs & satisfaction

and affective health are easily measurable


15/26

OE Criteria for Selected

ConstituenciesConstituency Typical Criteria

Owners Return on Investment; growth in earnings

Employees Compensation; fringe benefits; job satisf.Customers Satisf. w/price, quality, service

Suppliers Satisf. w/payments, future sales

Creditors Satisf. w/debt payments

Unions Satisf. w/competitive wages & benefits;

satif. working conditions, fairness inbargaining

Local Communities Involvement in local affairs; environmental

damage

Government Agencies

Compliance w/laws, avoidance of penalties


16/26

The Contradictions Model of

Organizational Effectiveness

The idea of trying to characterize a whole organization as

totally effective or ineffective is problematic. In any complex

organization there may be parts of the organization that function

well and suggest effectiveness while other aspects of that same

organization perform poorly.


17/26

Four Central Assumptions of

the Contradictions Model

1. Organizations face complex environments that place multiple and

conflicting demands and constraints on them. It may not be possible

to succeed in meeting all the environmental conditions an organization

faces.

2. Organizations have multiple, conflicting goals. It is impossible to

maximize achievement of all goals.3. Organizations face multiple internal and external stakeholders or

constituent groups that make competing or conflicting demands. It

may be impossible to satisfy all groups of people who express interest

in a company.

4. Organizations must manage multiple and conflicting time demands.Satisfying short- or long-term demands at the expense of the other may

result in sub-optimal performance.


18/26

Competing Values Model

Organizational goals and performance are

defined by top and middle management. By

comparing the diverse effectiveness indicators

used by managers and researchers, Quinn &Rohrbaugh looked for underlying similarities

and found underlying dimensions of effectiveness

criteria that reflected competing management

values in organizations.


19/26

Competing Values Dimensions I

Focus: whether dominant values concern issues that are

internalto the organization or externalto it.

I nternal focusreflects management concern for well-beingand efficiency of employees. External focusreflects an

emphasis on the well-being of the organization itself and its

fit with its environment.


20/26

Competing Values Dimensions II

Structure: whether stabilityversus flexibilityis the

dominant structural consideration.

Stabilityreflects a management value for efficiency

and top-down control, while flexibilityrepresents

a management value for learning and change.


21/26

Dimensions of EffectivenessStructureFlexibility

Control

FocusInternal External

I II

III IV


22/26

Four Models of Effectiveness

Quadrant I: Human Relations Modelinternal

Focus and flexible structure. Management

concern is on the development of human

resources. Employees are given opportunities

for autonomy and development. Management

works toward sub-goals of cohesion, morale, and

training opportunities. Organizations using this

are more concerned with employees than the

environment.


23/26

Four Models of Effectiveness II

Quadrant II: Open Systems ModelCombination

of external focus and flexible structure.

Managements goals are primarily growth and

resource acquisition. Sub-goals are flexibility,readiness, and positive evaluation by the external

environment. Dominant value is establishing

a good relationship with the external environment

to grow and acquire resources. Similar to theSystems Resource Model.


24/26

Four Models of Effectiveness III

Quadrant III: Internal Process ModelReflects

the values of internal focus and structural

control. Seeks a stable organizational setting that

maintains itself in an orderly way. Wellestablished in environment and just wish to keep

their current position. Sub-goals include

mechanisms for efficient communication,

information management, and decision-making.


25/26

Four Models of Effectiveness IV

Quadrant IV: Rational Goal ModelReflects

Management values of structural control and

external focus. Primary goals are productivity,

efficiency, and profit. Organization wants toachieve output goals in a controlled way.

Sub-goals include internal planning and

goal-setting, which are rational management

tools. Similar to the Goal Approach.


26/26

Competing Values

Four different opposing value sets within the

organization. Exist simultaneously, and the

right balance for the organization is subject

to managerial discretion.

Emphasis may change over time, especially as the

organization evolves through its life cycle.

Examples: hospitals, airlines

Mesure of OE

Documents

Transcript of Mesure of OE