ORGANIZATIONAL EFFECTIVENESS EFFECTIVENESS – is often described as“doing the right things” that is those workactivities that will help the organization reachits goals. EXAMPLE: At the Siemens factory, goals includereducing equipment installation time forcustomers and cutting costs. Throughvarious work programs these goals werepursued and achieved. Page 8
MEANING OF EFFICIENCY AND EFFECTIVENESS EFFICIENCY- refers to resource usage withlow or no wastage. Management strives forlow resource waste –high efficiency EFFECTIVENESS – refers to goalattainment. High goal attainment – higheffectiveness Page 8
MANAGEMENT LOOKING FORWARD: PAGE 8 Management is concerned then not only withgetting activities completed and meetingorganizational goals (effectiveness) but alsowith doing so as efficiently as possible. In successful organizations, high efficiencyand high effectiveness typically go hand inhand. Poor management is most often due to bothinefficiency and ineffectiveness
MANAGERIAL VS. ORGANIZATIONALEFFECTIVENESS PAGE 466-468 (8TH EDITION) We define managerial effectiveness asgoal attainment. Can this apply toorganizational effectiveness. YES ORGANISATIONAL EFFECTIVENESS- is ameasure of how well an organization isachieving those goals. It also involve abilityto exploit its environment to obtain scarceand valued resources.
KEY CHARACTERISTIC OF EFFECTIVEORGANIZATION CLEARLY DEFINED VISION AND GOALS -organization with clear vision and goalswill know their values and their contributiontowards their customers. Understanding this will be the first step indelivering value added services orproducts that stand out from itscompetitors.
EFFECTIVE TEAM WORK INDEPENDENTLY Flexible, participative decision making ispossible because of the effective teambuilding. As such the team will be highlymotivated. Organization such as SOUTHWESTAIRLINES possess superior teams thatmeets the needs of customers to deliversuperior value added services
BUSINESS PROCESSES These organizations typically havedemanding customers and operates indynamic marketplaces should have clearbusiness processes. They value consistent behavior, emphasizedon continuous improvement, and reliedheavily on data and results TOYOTA is using JIT (just in time) andTQM ( total quality management)
ENTREPRENEURIAL SPIRIT Magnetic leaders and bold, with impossibledreams. Leaders tended to be hands-off;individual initiative and risk taking wasencouraged; meaningful rewards andrecognition was provided and opportunitywidespread. HONDA CORPORATION These organizations worked hard at ensuringthey had selected the right people.Employees were rewarded in terms of whatthey created and the personal risks taken(high risks/high rewards)..
INDIVIDUAL ACHIEVEMENT Their employees were ambitious; individualgrowth and goal achievement were linkedwith and led to high levels of organizationalperformance; there were high rewards tothose that met their goals
RECOGNITION AND CELEBRATION They had inspiring leaders, a compellinghistory and legacy, and were in fast-changingmarketplaces. Employees were providedwith meaningful recognition and rewards,and were valued for their contribution. Individual and group accomplishmentswere recognized and rewarded in anenvironment characterized by enthusiasm,fun and excitement.
ACCURATE AND TIMELY PERFORMANCEfeedback- feed forwardcontrols The most desirable type of control is feedforward control. It prevents anticipatedproblems since it takes place before theactual activity.
FEED FORWARD CONTROL IN PRACTICE Eg. Mc Donald’s opened its firstrestaurant in Moscow, it sent companyquality control experts to help Russianfarmers learn technique for growing highquality potatoes and bakers to learnprocesses for baking high quality breads.
ENVIRONMENT ADAPTATION Companies strive to scan the environmentfor recognizing the change that is takingplace either the GENERAL OR SPECIFICenvironment of the organization. Failure to adapt to changes in theenvironment will lead to inability to respondto the change and exploit the marketopportunity or to avoid potential threats.
GROUP PRESENTATION Select an organization/business of yourchoice : Discuss the key attributes of yourorganization to be effective and deliver valueto customers