The document discusses traditional and modern models of organizational effectiveness. Traditional models focus on resource inputs, goals like profitability and market share, and internal processes. A modern model is the balanced scorecard, which evaluates organizational effectiveness from four perspectives: financial, customer, internal business processes, and innovation/learning. The balanced scorecard establishes goals and performance measures within each perspective to assess how the organization is viewed by shareholders, customers, and its ability to improve.

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?