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Organizational Effectiveness
                        Reference:
1. Human Resource Management
        by
        Ashwathappa

2. Leadership Enhancing the Lessons of Experience
          by
        Richard L Hughes, Robert C Ginnett, Gordon J Curphy

3. Managerial Behaviour and Effectiveness
        by
        E. Ananda Raja/N R V Prabhu/ P Lameshwara Rao
Concept of Organizational Effectiveness
                    (Ref. book 1)

• Efficiency Vs Effectiveness

  Efficiency: Represents the Cost/Benefit rate
  incurred in the pursuit of these goals.

  Effectiveness: The Degree in which operative
  goals have been attained
Approaches to Measure Effectiveness
•   Goal Approach
•   Behavioural Approach
•   System Resource Approach
•   Strategic constituencies Approach
Criteria For Organisational Effectiveness


Causal Factors     Intervening      End-Result
                   Criteria         Criteria

    • Strategy         • Product        • Growth Rate
    • Technology         Related        • Profitability
    • People           • Customer       • Shareholder
    • Structure          Related          Value
                       • People         • Social
                         Related          Performance
Managerial Effectiveness
                             Organizational Environment



Individual Characteristics                                Organizational results
•Intelligence                    Transformation           •Profit maximization
•Aptitude                        Process                  •Organizational efficiency
•Knowledge                                                •High Productivity
•Temperament                     •Managerial Job          •Employee Satisfaction
•Preference                      dimension
•Expectation                                              Feedback
                                 •General functions       •Customer satisfaction
•Ability
• Feedback                       &
•Motivation                      Specialized functions
•Opportunity



      Person                           Process                       Product
Managerial Effectiveness

 • The Managerial Grid
High
                      1,9                                 9,9
 Concern for people




                                         5,5




                      1,1                                 9,1
       Low
                                 Concern for Production     High
The Person
•   Qualities include           •   Qualities include
   Ability to sustain defeat      Alert
   Ambitious                      Assertive
   Capable of good judgment       Confident
   Competitive                    Creative
   Decisive                       Dedicated
   Defensive                      Dynamism
   Emotional stability            Energetic
   Extrovert                      Fear of failure
   Group oriented                 Honest
   Intelligent                    Mentally strong
   Optimistic                     Pragmatic
   Predictable                    Realistic
   Self-controlled                Tolerant
The Person
Most Descriptive of Successful Key   Least Decretive of Successful Key
           Executive                            Executive
             Decisive                            Amiable
           Aggressive                          Conforming
          Self-Strarting                           Neat
           Productive                           Reserved
          Well-informed                         Agreeable
           Determined                          Conservative
            Energetic                             Kindly
             Creative                           Mannerly
            Intelligent                          Cheerful
           Responsible                            Formal
           Enterprising                         Courteous
          Clear Thinking                         Modest
The Process
•   Answers how managers manage successfully
•   Manage work instead of people
•   Plan and organize effectively
•   Set goals realistically
•   Decisions based on consensus but accept responsibility
•   Delegate frequently and effectively
•   Rely on others to help solve problems
•   Communicate precisely
•   Cooperate with others
•   Display consistent and dependable behavior
•   Win with grace
•   Express hostility tactfully
The Product
These reflect on outcome of effective managing
  and include:
• Organizational efficiency
• High productivity
• Profit maximization
• Organizational stability
• Employee welfare
• Social welfare
Effectiveness Through Adaptive Coping
                 Cycle
• Stages of Adaptive-Coping Cycle
  – Sensing of Change
  – Importing the Relevant Information
  – Changing Conversion Process
  – Stabilizing Internal Changes
  – Exporting New Outputs
  – Obtaining Feedback
Developmental Plan
                      (Bridging Gaps)


• Conducting a GAPS Analysis

• Identifying and Prooritizing development Needs

• Bridging the Gaps: Building a development Plan

• Reflecting on Learning: Modifying development Plans

• Transferring Learning to New Environment
Developmental Plan
                                    (Bridging Gaps)

 • Recall : Motivation by Porter and Lawer

                                                                  Perceived
   Value               Abilities                                  Equitable
  Reward                                                           Rewards
                                                      Intrisic
                                                      Reward                  Satisfaction
             Effort                Performance

                                                      Extrinsic
Perceived
                         Role                         Reward
  Effort-
 Reward               Perception
Probablity
Developmental Plan (Ref. Book 2)
                                          (Bridging Gaps)

                   Goals:                                              Abilities:
Where do you Want to Go?                             What can You Do Now?



Step 1: Career Objectives                            Step 2: What strengths do you have for your
                                                     career Objectives?

            Career strategies                        Step-3: What development Needs will you
                                                     have to overcome?



                 Standards:                                           Perceptions:
What does your boss or the Organisation              How do others See You?
Expect?

                                                     Step 4: 360 –Degree and Performance Review
                                                     Results, and Feedback from others:

Step 5: Expectations                                 Boss
                                                     Peers
                                                     Direct Reports
Developmental Plan
                       (Bridging Gaps)


• Bridging The GAPS: Building a Development Plan

  Step 1: Career and Development Objectives
  Step 2: Criteria for Success
  Step 3: Action Steps
  Step 4: Whom to Involve and Reassess dates
  Step 5: Stretch Assignment
  Step 6: Resources
  Step 7: Reflect with a Partner
Measuring Managerial Effectiveness

• Common Measures

  – Superiors’ Effectiveness and Performance Ratings

  – Subordinates’ Ratings of Satisfaction, Organizational
    Climate, Morale, Motivation, and Leadership
    Effectiveness

  – Unit Performance Indices
Measuring Managerial Effectiveness

       Measure                      Advantages                         Disadvantages

                                                             •Superiors’ Biases
                                                             •Raters unware of true Performance
   Superiors’ Ratings      Frequently Used
                                                             •Raters’ unwillingness to provide
                                                             tough feedback


                                                             •Unmotivated subordinators
                           •Subject of Leaders’ Behaviours
 Subordinates’ Ratings                                       •May be no links between ratings
                           •Multiple Raters
                                                             and unit performance

                                                             Results due to factors beyond
Unit Performance Indices   Actual Results
                                                             leaders’ control
Current Industrial and Government Practices in
                 The Management of Managerial Effectiveness (Ref. Book 3)

•    Sets up procedures to ensure high quality of work

•    Arrange for training and executive development programmes

•    Involvement on career development programme of its employees

•    Monitor the quality of work through performance appraisal

•    Verification of information through feedback

•    Checking the accuracy of one’s own and others’ work

•    Developing and using systems to organize and keep track of information or work

     progress

•    Carefully preparing for meetings and presentations

•    Organizing information or materials for others

•    Careful reviews
Current Industrial and Government Practices in
            The Management of Managerial Effectiveness




• Developing Initiative

• Encouraging Self-Management Approach

• Facilitating Appropriate Communication
Current Industrial and Government Practices in
              The Management of Managerial Effectiveness




• Developing Initiative
  – Drive

  – Energy

  – Self-Starter
Current Industrial and Government Practices in
                  The Management of Managerial Effectiveness




• Encouraging Self-Management Approach
  – Team Player
  – Leader
  – Develops Subordinates
  – Disciplined
Current Industrial and Government Practices in
                  The Management of Managerial Effectiveness




• Facilitating Appropriate Communication
   – Articulate
   – Persuasive
   – Supportive
   – Confident
Current Industrial and Government Practices in
                  The Management of Managerial Effectiveness




• The Skills and Competencies required to Perform Better
   – Ability to Plan
   – Organize
   – Execute
   – Meet deadlines
Managerial Effectiveness Development
                                 Adoption of Skills By Managers for
 Organizational Interventions    Effective Management of Corporate
• OD Values                      •   Problem Solving
                                 •   Analytical Thinking
   –   Respect for Employees     •   Forward Thinking
   –   Trust and Support         •   Conceptual Thinking
   –   Power Equalization        •   Strategic Thinking
   –   Confrontation             •   Technical Expertise
                                 •   Entrepreneurial Orientation
   –   Participation
                                 •   Fostering Innovation
• OD Intervention Techniques     •   Result Orientation
   –   Sensitivity Training      •   Decisiveness
   –   Survey Feedback           •   Self-Confidence
                                 •   Stress Management
   –   Process Consultation      •   Personality Credibility
   –   Team Building             •   Flexibility
   –   Inter-Group development
Manager as a Optimizer

• According to campbell, in his behavioral
  approach says , effective manager is said to be
  an optimizer in utilizing all the available and
  potential resources …..
Manager as a Optimizer

• Effective manager focuses on what he is doing
  and effectively deals with how we are doing .
  As it is a known fact that efficiency is doing
  the task correctly and refers to the
  relationship between inputs and outputs .
Manager as a Optimizer
• Effective managers do differently from their less-effective counterparts.
•   Have high concern for people and productivity
•   Effective managers are able to communicate
• Spend Time in Managing
• Using General Style
• Allow Employees to Influence them
• Have influence upward
• Minimize Status Differences
Manager as a Optimizer
Spend Time Managing

     The effective manager spend most of their
 time manager . That is they spend most of
 their time identifying opportunity for
 improvement, locating problems, training
 subordinates , developing contacts with other
 in the organization, working through inter- unit
 differences .
Manager as a Optimizer
The actions he is to take will arise from the answers a manager gives to
   these questions.

          What is my potential contribution?

          What are my objectives?

          What does it take to be effective here?

          What needs changing?

          What is organization’s philosophy

          What can I do now?
Manager as a Optimizer
The actions he is to take will arise from the answers a manager gives to these questions.


  What is my potential contribution?                How can I improve my superior ‘s
                                                        effectiveness ?
   What are my objectives?
                                                     How can I improve my coworker’s
   What does it take to be effective here?
                                                        effectiveness ?
  What needs changing?
                                                     How can I improve my subordinate
   What is organization’s philosophy                    ‘s effectiveness ?

   What can I do now?                               How can I change the technology ?

                                                     What is my future ?

                                                     What will the future demand ?
Manager as a Optimizer

Effective manager is excepted to work
 as an optimizer by focusing on
low waste and high goal attainment

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Measuring & Developing Managerial Effectiveness

  • 1. Organizational Effectiveness Reference: 1. Human Resource Management by Ashwathappa 2. Leadership Enhancing the Lessons of Experience by Richard L Hughes, Robert C Ginnett, Gordon J Curphy 3. Managerial Behaviour and Effectiveness by E. Ananda Raja/N R V Prabhu/ P Lameshwara Rao
  • 2. Concept of Organizational Effectiveness (Ref. book 1) • Efficiency Vs Effectiveness Efficiency: Represents the Cost/Benefit rate incurred in the pursuit of these goals. Effectiveness: The Degree in which operative goals have been attained
  • 3. Approaches to Measure Effectiveness • Goal Approach • Behavioural Approach • System Resource Approach • Strategic constituencies Approach
  • 4. Criteria For Organisational Effectiveness Causal Factors Intervening End-Result Criteria Criteria • Strategy • Product • Growth Rate • Technology Related • Profitability • People • Customer • Shareholder • Structure Related Value • People • Social Related Performance
  • 5. Managerial Effectiveness Organizational Environment Individual Characteristics Organizational results •Intelligence Transformation •Profit maximization •Aptitude Process •Organizational efficiency •Knowledge •High Productivity •Temperament •Managerial Job •Employee Satisfaction •Preference dimension •Expectation Feedback •General functions •Customer satisfaction •Ability • Feedback & •Motivation Specialized functions •Opportunity Person Process Product
  • 6. Managerial Effectiveness • The Managerial Grid High 1,9 9,9 Concern for people 5,5 1,1 9,1 Low Concern for Production High
  • 7. The Person • Qualities include • Qualities include  Ability to sustain defeat  Alert  Ambitious  Assertive  Capable of good judgment  Confident  Competitive  Creative  Decisive  Dedicated  Defensive  Dynamism  Emotional stability  Energetic  Extrovert  Fear of failure  Group oriented  Honest  Intelligent  Mentally strong  Optimistic  Pragmatic  Predictable  Realistic  Self-controlled  Tolerant
  • 8. The Person Most Descriptive of Successful Key Least Decretive of Successful Key Executive Executive Decisive Amiable Aggressive Conforming Self-Strarting Neat Productive Reserved Well-informed Agreeable Determined Conservative Energetic Kindly Creative Mannerly Intelligent Cheerful Responsible Formal Enterprising Courteous Clear Thinking Modest
  • 9. The Process • Answers how managers manage successfully • Manage work instead of people • Plan and organize effectively • Set goals realistically • Decisions based on consensus but accept responsibility • Delegate frequently and effectively • Rely on others to help solve problems • Communicate precisely • Cooperate with others • Display consistent and dependable behavior • Win with grace • Express hostility tactfully
  • 10. The Product These reflect on outcome of effective managing and include: • Organizational efficiency • High productivity • Profit maximization • Organizational stability • Employee welfare • Social welfare
  • 11. Effectiveness Through Adaptive Coping Cycle • Stages of Adaptive-Coping Cycle – Sensing of Change – Importing the Relevant Information – Changing Conversion Process – Stabilizing Internal Changes – Exporting New Outputs – Obtaining Feedback
  • 12. Developmental Plan (Bridging Gaps) • Conducting a GAPS Analysis • Identifying and Prooritizing development Needs • Bridging the Gaps: Building a development Plan • Reflecting on Learning: Modifying development Plans • Transferring Learning to New Environment
  • 13. Developmental Plan (Bridging Gaps) • Recall : Motivation by Porter and Lawer Perceived Value Abilities Equitable Reward Rewards Intrisic Reward Satisfaction Effort Performance Extrinsic Perceived Role Reward Effort- Reward Perception Probablity
  • 14. Developmental Plan (Ref. Book 2) (Bridging Gaps) Goals: Abilities: Where do you Want to Go? What can You Do Now? Step 1: Career Objectives Step 2: What strengths do you have for your career Objectives? Career strategies Step-3: What development Needs will you have to overcome? Standards: Perceptions: What does your boss or the Organisation How do others See You? Expect? Step 4: 360 –Degree and Performance Review Results, and Feedback from others: Step 5: Expectations Boss Peers Direct Reports
  • 15. Developmental Plan (Bridging Gaps) • Bridging The GAPS: Building a Development Plan Step 1: Career and Development Objectives Step 2: Criteria for Success Step 3: Action Steps Step 4: Whom to Involve and Reassess dates Step 5: Stretch Assignment Step 6: Resources Step 7: Reflect with a Partner
  • 16. Measuring Managerial Effectiveness • Common Measures – Superiors’ Effectiveness and Performance Ratings – Subordinates’ Ratings of Satisfaction, Organizational Climate, Morale, Motivation, and Leadership Effectiveness – Unit Performance Indices
  • 17. Measuring Managerial Effectiveness Measure Advantages Disadvantages •Superiors’ Biases •Raters unware of true Performance Superiors’ Ratings Frequently Used •Raters’ unwillingness to provide tough feedback •Unmotivated subordinators •Subject of Leaders’ Behaviours Subordinates’ Ratings •May be no links between ratings •Multiple Raters and unit performance Results due to factors beyond Unit Performance Indices Actual Results leaders’ control
  • 18. Current Industrial and Government Practices in The Management of Managerial Effectiveness (Ref. Book 3) • Sets up procedures to ensure high quality of work • Arrange for training and executive development programmes • Involvement on career development programme of its employees • Monitor the quality of work through performance appraisal • Verification of information through feedback • Checking the accuracy of one’s own and others’ work • Developing and using systems to organize and keep track of information or work progress • Carefully preparing for meetings and presentations • Organizing information or materials for others • Careful reviews
  • 19. Current Industrial and Government Practices in The Management of Managerial Effectiveness • Developing Initiative • Encouraging Self-Management Approach • Facilitating Appropriate Communication
  • 20. Current Industrial and Government Practices in The Management of Managerial Effectiveness • Developing Initiative – Drive – Energy – Self-Starter
  • 21. Current Industrial and Government Practices in The Management of Managerial Effectiveness • Encouraging Self-Management Approach – Team Player – Leader – Develops Subordinates – Disciplined
  • 22. Current Industrial and Government Practices in The Management of Managerial Effectiveness • Facilitating Appropriate Communication – Articulate – Persuasive – Supportive – Confident
  • 23. Current Industrial and Government Practices in The Management of Managerial Effectiveness • The Skills and Competencies required to Perform Better – Ability to Plan – Organize – Execute – Meet deadlines
  • 24. Managerial Effectiveness Development Adoption of Skills By Managers for Organizational Interventions Effective Management of Corporate • OD Values • Problem Solving • Analytical Thinking – Respect for Employees • Forward Thinking – Trust and Support • Conceptual Thinking – Power Equalization • Strategic Thinking – Confrontation • Technical Expertise • Entrepreneurial Orientation – Participation • Fostering Innovation • OD Intervention Techniques • Result Orientation – Sensitivity Training • Decisiveness – Survey Feedback • Self-Confidence • Stress Management – Process Consultation • Personality Credibility – Team Building • Flexibility – Inter-Group development
  • 25. Manager as a Optimizer • According to campbell, in his behavioral approach says , effective manager is said to be an optimizer in utilizing all the available and potential resources …..
  • 26. Manager as a Optimizer • Effective manager focuses on what he is doing and effectively deals with how we are doing . As it is a known fact that efficiency is doing the task correctly and refers to the relationship between inputs and outputs .
  • 27. Manager as a Optimizer • Effective managers do differently from their less-effective counterparts. • Have high concern for people and productivity • Effective managers are able to communicate • Spend Time in Managing • Using General Style • Allow Employees to Influence them • Have influence upward • Minimize Status Differences
  • 28. Manager as a Optimizer Spend Time Managing The effective manager spend most of their time manager . That is they spend most of their time identifying opportunity for improvement, locating problems, training subordinates , developing contacts with other in the organization, working through inter- unit differences .
  • 29. Manager as a Optimizer The actions he is to take will arise from the answers a manager gives to these questions. What is my potential contribution? What are my objectives? What does it take to be effective here? What needs changing? What is organization’s philosophy What can I do now?
  • 30. Manager as a Optimizer The actions he is to take will arise from the answers a manager gives to these questions. What is my potential contribution? How can I improve my superior ‘s effectiveness ? What are my objectives? How can I improve my coworker’s What does it take to be effective here? effectiveness ? What needs changing? How can I improve my subordinate What is organization’s philosophy ‘s effectiveness ? What can I do now? How can I change the technology ? What is my future ? What will the future demand ?
  • 31. Manager as a Optimizer Effective manager is excepted to work as an optimizer by focusing on low waste and high goal attainment