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MODELS OF ORGANIZATIONAL EFFECTIVENESS
Traditional –Effectiveness Indicators
organization
Products &
services
Resource inputs
Resource
based
approach
Goal
approach
Internal
processes
approach
• Resource based indicators:
– Bargaining position
– Decision making
– Managerial intelligence
– Respond to changes
Process based indicators:
– Adaptive culture
– Operational efficiency
– Growth of employees
– Communication channels
Traditional effectiveness Indicators
• Goal based indicators:
– Profitability
– Market share
– Growth
– Social responsibility
Traditional effectiveness Indicators
Modern Effectiveness Indicator
Balanced Score Card
Overall
Mission
Financial
Internal
Processes
Learning
and
growth
Customers
Perspectives
• GOALS & PERFORMANCE MEASURES
– Financial perspective
• How do we look to shareholders?
– Customer perspective
• How do customers see us?
– Internal Business perspective (BPR)
• What must we excel at?
– Innovation & Learning perspective
• Can we continue to improve & create value?

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Lecture 8 models of effectiveness

  • 1. MODELS OF ORGANIZATIONAL EFFECTIVENESS
  • 2. Traditional –Effectiveness Indicators organization Products & services Resource inputs Resource based approach Goal approach Internal processes approach
  • 3. • Resource based indicators: – Bargaining position – Decision making – Managerial intelligence – Respond to changes Process based indicators: – Adaptive culture – Operational efficiency – Growth of employees – Communication channels Traditional effectiveness Indicators
  • 4. • Goal based indicators: – Profitability – Market share – Growth – Social responsibility Traditional effectiveness Indicators
  • 5. Modern Effectiveness Indicator Balanced Score Card Overall Mission Financial Internal Processes Learning and growth Customers
  • 6. Perspectives • GOALS & PERFORMANCE MEASURES – Financial perspective • How do we look to shareholders? – Customer perspective • How do customers see us? – Internal Business perspective (BPR) • What must we excel at? – Innovation & Learning perspective • Can we continue to improve & create value?