8. Effectiveness and Efficiency in Organizations Low Goal Attainment Low Use of Resources Low Goal Attainment High Use of Resources High Goal Attainment High Use of Resources High Goal Attainment Low Use of Resources Low High EFFECTIVENESS Low High EFFICIENCY SNEHA SHARMA P-41
36. SNEHA SHARMA P-41 Approach Definition When Useful Goal Attainment An organization is effective to the extent that it accomplishes its stated goals. The approach is preferred when goals are clear, time bound and measureable. Systems It acquires needed resources. A clear connection exists between inputs and outputs. Strategic Constituencies Strategic Constituencies are at least minimally satisfied. Constituencies have powerful influence on the organization, and it must respond to demands. Competing Values The emphasis of the organization in the four major areas matches constituent preferences. The organization is unclear about its own emphases, or changes in criteria over time are of interest.
42. Goals to be set to measure effectiveness External resource approach Lower costs of inputs • Obtain high-quality inputs of raw materials and employees • Increase market share • Increase stock price • Gain support of stakeholders such as government or environmentalists Internal systems approach • Cut decision-making time • Increase rate of product innovation • Increase coordination and motivation of employees • Reduce conflict • Reduce time to market Technical approach • Increase product quality • Reduce number of defects • Reduce production costs • Improve customer service • Reduce delivery time to customer
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