Organizational Effectiveness

What is Organizational Effectiveness? Effectiveness refers to the degree of congruence between organizational goals and some observed outcome. Three reasons why the concept of organizational effectiveness remains muddled. There are important differences in the way scholars have conceptualized organizations. The complexity of organizations. Researchers have often used different, non-overlapping criteria, thus limiting the accumulation of empirical evidence about organizational effectiveness.

What is Organizational Effectiveness? Organizations can be effective or ineffective in a number of different ways, and these ways may be relatively independent of one another. Productivity Efficiency employee absenteeism Turnover goal consensus Conflict participation in decision making Stability communications.

The Rational Goal Model The goal model is the most common theoretical perspective on effectiveness. It is both simple and complex. In its simplest form, the goal model defines effectiveness as the degree to which an organization realizes its goals. The model posits that organizations can be understood as rational entities. Evaluators assume that an organization’s goals can be identified. Evaluators assume that organizations are motivated to meet those goals and progress toward them can be measured.

Difficulties with Goal Model Most organizations have multiple and conflicting goals. Conflicting goals reflect conflicts absorbed by the organization from society at large. Public organizations are designed to be ineffective when effectiveness is ascertained by a broad based goal model. Official goals are generally for public consumption and can be found in annual reports and broad policy statements. Operative goals are generally derived from official goals but tell us exactly what the organization is trying to do.

Difficulties with Goal Model Another problem with focusing on organizational goals relates to the consequences of measuring goal attainment. A final concern about the goal model of effectiveness deals with the relationship between goal attainment and consequences for the organization.

Internal Process approach Under this model, effectiveness is described as a process rather than an end state, as might be the case under the goal model. The process approach consists of three related components: goal optimization, a systems perspective, and an emphasis on behavior within organizations. Goal optimization refers to the need to balance goals and thus to optimize multiple goals rather than achieve a particular one.

Internal Process approach A systems view incorporates concerns for changes in an organization’s environment The behavioral emphasis suggests attention to the possible contributions of individual employees to organizational effectiveness. The effective organization is one in which goals are responsive to the environment, optimization of multiple goals is pursued, and employees are contribute to meeting those goals.

Open System Model. Organizations are not assumed to possess goals, nor is goal accomplishment a relevant consideration. Instead, an organization is effective to the extent that it can obtain needed resources from its environment.

Human Relations Model Participation Discussion Openness are ways to achieve employee morale and job satisfaction.

Methods of Assessing Effectiveness Reviewing a variety of theoretical perspectives on effectiveness is useful because it not only points out the limitations of the each model but also provides alternative ways of considering organizations.