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Concept of Organizational Effectiveness Concept of Organizational Effectiveness Organizational effectiveness is defined as an extent to which an organization achieves its predetermined objectives with the given amount of resources and means without placing undue strain on its members.
Sometimes efficiency and effectiveness are used as synonyms. However, there exists a difference between the two concepts. Therefore, it is important to explain the difference between the concepts of effectiveness and efficiency to understand why organizations may be effective but not efficient, or efficient but not effective.
Effectiveness Orgnizational effectiveness a broad concept and takes into account a collection of factors both inside and outside an organization. It is commonly referred to as the degree to which predetermined goals are achieved.
On the other hand, efficiency is a limited concept that pertains to the internal working of an organization. It refers to an amount of resources used to produce a particular unit of output.
It is generally measured as the ratio of inputs to outputs. Further, effectiveness concentrates more on human side of organizational values and activities whereas efficiency concentrates on the technological side of an organization.
Such approaches can be grouped into following three approaches: Goal Approach Goal attainment is the most widely used criterion of organizational effectiveness.
In goal approach, effectiveness refers to maximization of profits by providing an efficient service that leads to high productivity and good employee morale. Several variables such as quality, productivityefficiency, profitturnover, accidents, moralemotivation and satisfaction, which help in measuring organizational effectiveness.
However, none of the single variable has proved to be entirely satisfactory. The main limitation of this approaches the problem of identifying the real goals rather than the ideal goals. Functional Approach This approach solves the problem of identification of organizational goals.
Parson states that since it has been assumed that an organization is identified in terms of its goal, focus towards attainment of these goals should also aim at serving the society.
Thus, the vital question in determining effectiveness is how well an organization is doing for the super-ordinate system. The limitation of this approach is that when organizations have autonomy to follow its independent courses of action, it is difficult to accept that ultimate goal of organization will be to serve society.
As such, it cannot be applied for measuring organizational effectiveness in terms of its contributions to social system. Both the goal and functional approach do not give adequate consideration to the conceptual problem of the relations between the organization and its environment.
The interdependence takes the form of input-output transactions and includes scarce and valued resources such as physical, economic and human for which every organization competes.
The limitation of this model is that an acquisition of resources from environment is again related to the goal of an organization. Therefore, this model is not different from the goal model. Thus, discussion of organizational effectiveness leads to the conclusion that there is no single indicator of effectiveness.
Instead, the approach should focus on operative goals that would serve as a basis for assessment of effectiveness.
Managerial effectiveness is a causal variable in organizational effectiveness. It has been defined in terms of organizational goal-achieving behavior, i.Search CareerBuilder for Organizational Effectiveness Jobs and browse our platform. Apply now for jobs that are hiring near you.
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Program Description. This specialization is a cooperative program with the Manitoba Quality Network (QNET) and is designed to link general management theory with specialized training in improving organizational effectiveness..
Specialization courses are taken from specific seminars and workshops offered through QNET. Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce.
Organizational Effectiveness groups in organizations directly concern themselves with several key areas. The efficiency with which an association is able to meet its objectives. The main measure of organizational effectiveness for a business will generally be expressed in terms of how well its net profitability compares with its target profitability.
Additional measures might include growth data and the results of customer satisfaction surveys. Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal.