This document discusses organizational effectiveness from several perspectives. It defines organizational effectiveness as an organization achieving its goals and objectives. Historical views of effectiveness emphasized employee satisfaction (Elton Mayo) and clear authority/discipline (Henry Fayol). There are four main approaches discussed: goal attainment focuses on excelling at outputs; system resources focuses on acquiring needed resources; internal processes focuses on efficiency and employee relationships; and strategic constituencies focuses on satisfying external stakeholder demands. Each approach has limitations, such as setting unrealistic goals, neglecting external relationships, or difficulty identifying stakeholder expectations.

1. Organizational Effectiveness
Arsal Ahmad
arsal_ahmad@msn.com

2. Introduction
• Organizational effectiveness is the extent to which an organization achieves
its goals.
• It can also be termed as meeting the organizational objectives in the near
future.
• Organizational effectiveness is the concept of how effective an organizations
is in achieving its intended outcomes.

3. Historical Views of Organizational Effectiveness
• Elton Mayo
“Effectiveness is a function of productivity
resulting from employee satisfaction ”
• Henry Fayol
“Effectiveness is a function of clear
authority and discipline within an organization ”

4. Approaches to Organizational Effectiveness
• Goal Attainment
•System Resource
• Internal Process
• Strategic Constituencies

5. Goal Attainment Approach
• Organizational Effectiveness is the ability to excel at one or more outputs
• An organization’s effectiveness must be appraised in terms of the
accomplishment of ends rather than means
• Goals must be clearly identifiable , consensual, well defined and measurable.

6. Limitations of Goal Attainment Approach
• Setting too many goals at same time can cause failure.
• Setting goals that are not measureable or realistic
• Unwilling to raise or lower goals as needed from time to time.

7. System Resource Approach
• This model was proposed by Yuchtman and Seashore in 1967.
• Organizational Effectiveness is the ability to acquire scarce and valued
resources from the environment.
• An organization is effective to the extent that it can obtain needed resources
from its environment.
• It focuses on the means needed for the achievement of desired ends.
(Arsal Ahmad)

8. Limitations of System Resource Approach
• The acquisition of resources is not independent but instead it is dependent
on what the organization is trying to achieve.
• If ends are achieved, then means are not important.
• This approach focuses more on acquisition of resources rather than
achievement of goals.
(Arsal Ahmad)

9. Internal Process Approach
• This model was proposed by Likert in 1967.
• Organizational Effectiveness is the ability to excel at internal efficiency,
coordination and employee satisfaction.
• Internal Process approach focuses on internal affairs of the organization such
as commitment, work involvement, environment and employee relationships.

10. Limitations of Internal Process Approach
• This approach was critcised on the point that it focuses on the internal
process relationships whereas neglecting the external relationships.
• There is also no valid evidence that an organization will be ineffective if it has
less than satisfactory internal process relationships.
• The existence of conflict and organizational slack may indicate inefficiency in
internal processes, but conflict may be essential for innovation and change,
and slack may help an organization in its long-term survival and adaptability.

11. Strategic Constituencies Approach
• This approach is also known as participant satisfaction approach.
• An effective organization is one that satisfies the demands of those
constituencies in its environment from whom it requires support for its
continued existence.
• Organizational Effectiveness is the ability to satisfy strategic constituencies
both within and outside the organization.

12. Limitations of Strategic Constituencies Approach
• This model provides a partial view of organizational effectiveness.
• An organization may still be effective even if it does not satisfy the needs of
all its constituencies.
• It is difficult to Identify the expectations that the strategic constituencies hold
for the organization which it needs to satisfy.

13. THANK YOU 