Organizational Theory by Stephen P Robbins and Mary Mathew chapter 3 ppt slides

1. Organization Theory
structure, Design and
applications
Chapter # 3
Organizational Effectiveness

2. Learning objectives
 Approaches to organizational effectiveness
 Assumptions of each OE approach
 How managers can operationalized each approach?
 Identifying key problems with each approach
 Value of each approach to practicing manager
 Compare the conditions under which each is useful for managers

3. Importance of organizational
effectiveness
 Every discipline in the administrative science contributes in some way
To helping managers make organization more effective.
 Marketing: Expanding revenues
 Production & operations: designing efficient processes
 Accounting: Information to enhance quality of decisions
 Organization theory: As a discipline, it clarifies which organizational
structure will lead to or improve organizational effectiveness
The effectiveness of an organization is depends on its structure.

4. Organizational effectiveness criteria:
• Overall effectiveness
• Productivity
• Efficiency
• Profit
• Quality
• Accidents
• Growth
• Absenteeism
• Turnover
• Job satisfaction
• Motivation
• Morale
• Control
• Conflict
• Flexibility
• Planning and goal
setting
• Goal consensus
• Internalization of org
• Role and norms
congruence
• Managerial
interpersonal skills
• Managerial task skills
• Information
management &
communication
• Readiness
• Utilization of
environment
• Evaluation by external
entities
• Stability
• Value of human
resources
• Participation and
shared influence
• Training and
development
emphasis
• Achievement
emphasis

5. The Goal Attainment Approach
The goal attainment approach states that an organization effectiveness must be appraised
in term of accomplishment of end rather than Mean.
Popular goal attainment criteria include profit maximization, bringing the enemy to
surrender.
Assumptions
The goal attainment approach assumes that organizations are deliberate, rational, goal-
seeking entities
 Organizations must have ultimate goals
 These goals must be identified and define well enough to be understood
 These goals must be few enough to be manageable
 There must be general consensus or agreement on these goals
 Progress towards these goals must be measurable

6. Making goal operative
The goal attainment approach is probably most explicit in management by
objective (MBO)
Problems
the goal attainment-approach is fraught with the numbers of problems that make its
exclusive use highly questionable. And these are related directly to the assumptions
Its one thing to talk about goal is general, but when you operationalized the goal
attainment approach you have to ask:
 Whose goals?
 Top management’s?
 If so, who is included?
 Who is excluded?

7. Value to managers
 The validity of the identified goals can probably be increased significantly by:
 Ensuring that input is received from all those having a major influence on formulating
the
 official goals, even if they are not part of senior management
 Including actual goals obtained by observing the behavior of organization members;
 Recognizing that organizations pursue both short- and long-term goals;
 Insisting on tangible, verifiable, and measurable goals rather than relying on vague
 statements that merely mirror societal expectations
 Viewing goals as dynamic entitics that change over time rather than as rigid or fixed
statements of purpose