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EFFECTIVENESS
HISTORICAL OPINIONS
ABOUT ORGANIZATIONAL
EFFECTIVENESS
1. FREDERICK TAYLOR
2. HENRI FAYOL
3. ELTON MAYO
FREDERICK TAYLOR
EFFECTIVENESS WAS DETERMINED BY
FACTORS SUCH AS PRODUCTION
MAXIMIZATION, COST
MINIMALIZATION, TECHNOLOGICAL
EXCELLENCE, Etc.
HENRI FAYOL
EFFECTIVENESS IS A FUNCTION OF CLEAR
AUTHORITY AND DISCIPLINE WITHIN AN
ORGANIZATION
ELTON MAYO
EFFECTIVENESS IS A FUNCTION OF
PRODUCTIVITY RESULTING FROM
EMPLOYEE SATISFACTION
NEAR
FUTURE
TIME
DIMENSION
INTERMEDIATE
FUTURE
Approx.
1 year
DISTANT
FUTURE
Approx.
5 years
The organization
must be
1.
EFFECTIVENESS
CRITERIA
2.
3.
EFFECTIVE in
The organization
accomplishing its
must be
purpose(s)
EFFICIENT in the 4. ADAPTIVE to
new opportunities
acquisition and use
and obstacles
of scarce resources
5. CAPABLE OF
A SOURCE OF
DEVELOPING
SATISFACTION
the ability of its
to its owners,
members and of
employees,
itself
customers and
clients, and
society.
The organization
must be
6. CAPABLE OF
SURVIVAL in
a world of
uncertainties.
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.
APPROACHES TO MEASURING
ORGANIZATIONAL EFFECTIVENESS
Goal Approach: Effectiveness is the ability to
excel at one or more output goals.
Internal Process Approach: Effectiveness is the
ability 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.
INPUTS
TRANSFORMATION
OUTPUTS
GOAL APPROACH
INPUTS
TRANSFORMATION
OUTPUTS
INPUTS
TRANSFORMATION
OUTPUTS
INPUTS
TRANSFORMATION
OUTPUTS
Definition
An organization is effective
to the extent that:
When Used
Preferred when:
Goal attainment
System Resource
Constituencies
Internal Processes
Typical Criteria
2.
3.
4.
Dimensions of Effectiveness
Structure
Flexibility
II
Focus Internal
External
III
IV
Control
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