BA 5201 Organization and Management Goals and effectiveness Instructor: Ça ğ rı Topal 1

Organizational goal A statement that establishes the desired future state an organization is attempting to achieve Official goals Operative goals Operational goals 2

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 3

Short- vs. long-term goals Short-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 4

Official goals Mission statements Setting general direction and philosophy Identifying 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.” 5

Operative goals Department or unit level goals Providing standards and guidelines for departments and business units Goals related to market, financial performance, resource, innovation, productivity, management development, employee performance and attitudes, social responsibility and ethical behavior 6

Purposes of goals Guidance and direction Motivation Legitimacy Standards Structure and design Unification of effort 7

Managing goals Negotiating and bargaining Satisfacing Ordering Setting priorities Sequencing 8

Organizational effectiveness Becoming successful Related to but not limited to achieving goals Having many dimensions A question of which stakeholder asks the question 9

Approaches to effectiveness Internal effectiveness Efficiency Emotional or affective health Goal achievement Resource acquisition Stakeholders’ perspectives 10

Effectiveness: contradictions model There is no total effectiveness 1.Organizations face complex environments 2.Organizations have multiple conflicting goals 3.Organizations face multiple internal and external stakeholders 4.Organizations have short-term and long- term goals and demands 11

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 12

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 13