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“ORGANIZATIONAL EFFECTIVENESS”
PRESENTED BY:
ANINDITA DAS
M.PHIL SCHOLAR
DEPT.OF BUSINESS ADMINISTRATION
SAMBALPUR UNIVERSITY
A
PRESENTATION
ON
WHAT IS ORGANISATION?
 THE WORD ORGANISATION IS DERIVED
FROM THE GREEK WORD “ORGANON”
 AS WE KNOW ‘ORGAN’ MEANS A
COMPARTMENT FOR A PARTICULAR JOB.
 SO AN ORGANIZATION IS A SOCIAL GROUP
WHICH DISTRIBUTES TASKS FOR A
COLLECTIVE GOAL.
 DIVISION OF WORK
EFFECTIVENESS
 THE DEGREE TO WHICH OBJECTIVES AND GOALS
ARE ACHIEVED AND THE EXTENT TO WHICH THE
PROBLEMS ARE SOLVED.
 ORGANIZATIONAL EFFECTIVENESS IS THE CONCEPT
OF HOW EFFECTIVE AN ORGANIZATION IS IN
ACHIEVING THE OUTCOMES THE ORGANIZATION
INTENDS TO PRODUCE.ORGANIZATIONAL
EFFECTIVENESS GROUPS IN ORGANIZATIONS
DIRECTLY CONCERN THEMSELVES WITH SEVERAL
KEY AREAS.
 THEY ARE TALENT MANAGEMENT, LEADERSHIP
DEVELOPMENT, ORGANIZATION DESIGN AND
STRUCTURE, DESIGN OF MEASUREMENTS AND
IMPLEMENTATION OF CHANGE AND
TRANSFORMATION,
HISTORICAL OPINIONS ABOUT
ORGANIZATIONAL EFFECTIVENESS
 EFFECTIVENESS WAS DETERMINED BY FACTORS
SUCH AS-
 PRODUCTION MAXIMIZATION
 COST MINIMIZATION
 TECHNOLOGICAL EXCELLENCE
F.W.TAYLOR
 EFFECTIVENESS IS A FUNCTION OF
 CLEAR AUTHORITY
 DISCIPLINE WITHIN AN ORGANIZATION
• HENRY FAYOL
 EFFECTIVENESS IS A FUNCTION OF
 PRODUCTIVITY
 EMPLOYEE SATISFACTION
• ELTON MAYO
CHARACTERISTICS OF AN
EFFECTIVE ORGANIZATION
 PURPOSE AND DIRECTION
 PERFORMANCE STANDARDS
 REWARD AND RECOGNITION
 PARTICIPATION AND TEAMWORK
 COORDINATION AND COOPERATION
 FORMAL SUPPORT SYSTEMS
 HUMAN RESOURCES DEVELOPMENT
 RELATIONSHIP TO THE EXTERNAL
APPROACHES TO
ORGANIZATIONAL EFFECTIVENESS
 THERE ARE FOUR APPROACHES IN
ORGANIZATIONAL EFFECTIVENESS,SUCH AS
 GOAL ATTAINMENT APPROACH
 SYSTEM APPROACH
 INTERNAL PROCESS APPROACH
 STRATEGIC CONSTITUENCIES APPROACH
GOAL ATTAINMENT APPROACH
 THE GOAL ATTAINMENT APPROACH STATES
THAT AN ORGANIZATION’S EFFECTIVENESS
MUST BE ACHIEVED IN TERMS OF THE
ACCOMPLISHMENT OF THE OBJECTIVES.
 BASED ON THE IDENTIFICATION OF THE
GOALS AND THE ACHIEVEMENT OF THOSE
GOALS,GOALS MUST BE-
 CLEARLY IDENTIFIABLE
 MEASURABLE
 TIME BOUND
 ITS FOCUS IS ON THE OUTPUT TO FIGURE
OUT THE ESSENTIAL OPERATING
OBJECTIVES LIKE PROFIT,INNOVATION AND
FINALLY PRODUCT QUALITY.
 BUT THE PEOPLE INVOLVED SHOULD BE
COMMITTED TO FULFILLING GOALS.
SYSTEMS APPROACH
 THIS APPROACH TREATS AN AS AN OPEN
SYSTEM.THIS ORGANIZATION OBTAINS
INPUTS,PARTICIPATES IN TRANSFORMATION
PROCESSES AND GENERATES OUTPUT.
 IT ASSUMES THAT THE ORGANIZATION
CONSISTS OF INTERRELATED
SUBSYSTEMS.IF THE SUBSYSTEM
FUNCTIONS EFFICIENTLY,IT IS GOING TO
INFLUENCE THE PERFORMANCE OF THE
WHOLE ORGANIZATIONAL SYSTEM
INTERNAL PROCESS APPROACH
 ORGANIZATIONAL EFFECTIVENESS IS
ASSESSED AS INTERNAL ORGANIZATIONAL
HEALTH AND EFFECTIVENESS.
 IT LOOKS AT THE INTERNAL
ACTIVITIES.ACCORDING TO INTERNAL
PROCESS APPROACH,EFFECTIVENESS IS
THE CAPABILITY TO GET BETTER AT
INTERNAL EFFICIENCY,CO-
ORDINATION,COMMITMENT AND EMPLOYEE
SATISFACTION
 BY EFFECTIVENESS,IT IS MEANT THAT THE
ORGANIZATION IS INTERNALLY HEALTY AND
EFFICIENT.
 THE MEMBERS ARE COMPLETELY PART OF
THE SYSTEM AND THE SYSTEM ITSELF
WORKS SMOOTHLY.
 THE RELATIONSHIP BETWEEN THE
MEMBERS IS BASED ON TRUST,HONESTY
AND GOODWILL.
STRATEGIC CONSTITUENCIES
APPROACH
 THIS APPROACH SUGGEST THAT AN EFFICIENT
ORGANIZATION IS ONE WHICH FULFILLS THE
DEMANDS OF THOSE CONSTITUENCIES IN ITS
ENVIRONMENT FROM WHOM IT NEEDS SUPPORT
FOR ITS SURVIVAL.
 IT DEALS WITH THE EFFECT OF AN ORGANIZATION
ON ITS STAKEHOLDERS AND THEIR INTERESTS.
 THIS APPROACH INVOLVES HOW DO ALL THE
PEOPLE CONNECTED WITH THE ORGANIZATION.
 THESE PEOPLE MAY HAVE DIFFERENT ROLES SUCH
AS USERS OF THE PRODUCTS AND SERVICES,THE
RESOURCE PROVIDER,THE FACILITATORS OF THE
ORGANIZATION’S OUTPUT,OTHER SUPPORTERS AND
THE DEPENDENTS OF THE ORGANIZATION.
FACTORS AFFECTING
ORGANIZATIONAL EFFECTIVENESS
 LIKERT HAS CLASSIFIED THE FACTORS
AFFECTING ORGANIZATIONAL
EFFECTIVENESS INTO FOLLOWING THREE
VARIABLES:
 CAUSAL
 INTERVENING
 END RESULT
 CAUSAL VARIABLES
CAUSAL VARIABLES ARE THOSE INDEPENDENT
VARIABLES THAT DETERMINE THE COURSE OF
DEVELOPMENTS WITHIN AN ORGANIZATION AND
THE OBJECTIVES ACHIEVED BY AN ORGANIZATION.
THESE CAUSAL VARIABLES INCLUDE ONLY THOSE
INDEPENDENT VARIABLES, WHICH CAN BE
ALTERED BY ORGANIZATION AND ITS
MANAGEMENT. CAUSAL VARIABLES INCLUDE
ORGANIZATION AND MANAGEMENT’S POLICIES,
DECISIONS, BUSINESS AND LEADERSHIP
STRATEGIES, SKILLS AND BEHAVIOR.
 INTERVENING VARIABLES
INTERVENING VARIABLES ACCORDING TO LIKERT
ARE THOSE VARIABLES THAT REFLECT THE
INTERNAL STATE AND HEALTH OF AN
ORGANIZATION. FOR EXAMPLE, EMPLOYEE
LOYALTIES, ATTITUDES, MOTIVATIONS,
PERFORMANCE GOALS AND PERCEPTIONS OF ALL
THE MEMBERS AND THEIR COLLECTIVE CAPACITY
FOR EFFECTIVE INTERACTION, COMMUNICATION
AND DECISION-MAKING.
 END-RESULT VARIABLES
END-RESULT VARIABLES ARE THE DEPENDENT
VARIABLES THAT REFLECT ACHIEVEMENTS OF AN
ORGANIZATION SUCH AS ITS PRODUCTIVITY,
COSTS, LOSS AND EARNINGS.
STRATEGIES TO IMPROVE
ORGANIZATIONAL EFFECTIVENESS
 HELP EMPLOYEES TO UNDERSTAND THEIR ROLES TO
ACHIEVE THE OBJECTIVES.
 ENSURE THAT THE ORGANIZATION HAS THE RIGHT
NUMBER OF LEVELS OF WORK.
 MAKE MANAGERS ACCOUNTABLE FOR THE RESULTS OF
THEIR SUBORDINATES.
 GIVE EMPLOYEES SUFFICIENT AUTHORITY TO
UNDERTAKE THEIR RESPONSIBILITIES.
 MAKE MANAGERS ACCOUNTABLE FOR COACHING THEIR
STAFF.
 DEVELOP THE EMPLOYEES AND CREATE A SUCCESSION
PLAN.
 SET UP OCCUPATIONAL HEALTH AND SOCIAL FACILITIES.
 CREATE OPPORTUNITIES FOR EMPLOYEE FEEDBACK
AND PARTICIPATION.
THANK YOU

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organizational effectiveness

  • 1. “ORGANIZATIONAL EFFECTIVENESS” PRESENTED BY: ANINDITA DAS M.PHIL SCHOLAR DEPT.OF BUSINESS ADMINISTRATION SAMBALPUR UNIVERSITY A PRESENTATION ON
  • 2.
  • 3. WHAT IS ORGANISATION?  THE WORD ORGANISATION IS DERIVED FROM THE GREEK WORD “ORGANON”  AS WE KNOW ‘ORGAN’ MEANS A COMPARTMENT FOR A PARTICULAR JOB.  SO AN ORGANIZATION IS A SOCIAL GROUP WHICH DISTRIBUTES TASKS FOR A COLLECTIVE GOAL.  DIVISION OF WORK
  • 4. EFFECTIVENESS  THE DEGREE TO WHICH OBJECTIVES AND GOALS ARE ACHIEVED AND THE EXTENT TO WHICH THE PROBLEMS ARE SOLVED.  ORGANIZATIONAL EFFECTIVENESS IS THE CONCEPT OF HOW EFFECTIVE AN ORGANIZATION IS IN ACHIEVING THE OUTCOMES THE ORGANIZATION INTENDS TO PRODUCE.ORGANIZATIONAL EFFECTIVENESS GROUPS IN ORGANIZATIONS DIRECTLY CONCERN THEMSELVES WITH SEVERAL KEY AREAS.  THEY ARE TALENT MANAGEMENT, LEADERSHIP DEVELOPMENT, ORGANIZATION DESIGN AND STRUCTURE, DESIGN OF MEASUREMENTS AND IMPLEMENTATION OF CHANGE AND TRANSFORMATION,
  • 5. HISTORICAL OPINIONS ABOUT ORGANIZATIONAL EFFECTIVENESS  EFFECTIVENESS WAS DETERMINED BY FACTORS SUCH AS-  PRODUCTION MAXIMIZATION  COST MINIMIZATION  TECHNOLOGICAL EXCELLENCE F.W.TAYLOR
  • 6.  EFFECTIVENESS IS A FUNCTION OF  CLEAR AUTHORITY  DISCIPLINE WITHIN AN ORGANIZATION • HENRY FAYOL
  • 7.  EFFECTIVENESS IS A FUNCTION OF  PRODUCTIVITY  EMPLOYEE SATISFACTION • ELTON MAYO
  • 8. CHARACTERISTICS OF AN EFFECTIVE ORGANIZATION  PURPOSE AND DIRECTION  PERFORMANCE STANDARDS  REWARD AND RECOGNITION  PARTICIPATION AND TEAMWORK  COORDINATION AND COOPERATION  FORMAL SUPPORT SYSTEMS  HUMAN RESOURCES DEVELOPMENT  RELATIONSHIP TO THE EXTERNAL
  • 9. APPROACHES TO ORGANIZATIONAL EFFECTIVENESS  THERE ARE FOUR APPROACHES IN ORGANIZATIONAL EFFECTIVENESS,SUCH AS  GOAL ATTAINMENT APPROACH  SYSTEM APPROACH  INTERNAL PROCESS APPROACH  STRATEGIC CONSTITUENCIES APPROACH
  • 10. GOAL ATTAINMENT APPROACH  THE GOAL ATTAINMENT APPROACH STATES THAT AN ORGANIZATION’S EFFECTIVENESS MUST BE ACHIEVED IN TERMS OF THE ACCOMPLISHMENT OF THE OBJECTIVES.  BASED ON THE IDENTIFICATION OF THE GOALS AND THE ACHIEVEMENT OF THOSE GOALS,GOALS MUST BE-  CLEARLY IDENTIFIABLE  MEASURABLE  TIME BOUND
  • 11.  ITS FOCUS IS ON THE OUTPUT TO FIGURE OUT THE ESSENTIAL OPERATING OBJECTIVES LIKE PROFIT,INNOVATION AND FINALLY PRODUCT QUALITY.  BUT THE PEOPLE INVOLVED SHOULD BE COMMITTED TO FULFILLING GOALS.
  • 12. SYSTEMS APPROACH  THIS APPROACH TREATS AN AS AN OPEN SYSTEM.THIS ORGANIZATION OBTAINS INPUTS,PARTICIPATES IN TRANSFORMATION PROCESSES AND GENERATES OUTPUT.  IT ASSUMES THAT THE ORGANIZATION CONSISTS OF INTERRELATED SUBSYSTEMS.IF THE SUBSYSTEM FUNCTIONS EFFICIENTLY,IT IS GOING TO INFLUENCE THE PERFORMANCE OF THE WHOLE ORGANIZATIONAL SYSTEM
  • 13. INTERNAL PROCESS APPROACH  ORGANIZATIONAL EFFECTIVENESS IS ASSESSED AS INTERNAL ORGANIZATIONAL HEALTH AND EFFECTIVENESS.  IT LOOKS AT THE INTERNAL ACTIVITIES.ACCORDING TO INTERNAL PROCESS APPROACH,EFFECTIVENESS IS THE CAPABILITY TO GET BETTER AT INTERNAL EFFICIENCY,CO- ORDINATION,COMMITMENT AND EMPLOYEE SATISFACTION
  • 14.  BY EFFECTIVENESS,IT IS MEANT THAT THE ORGANIZATION IS INTERNALLY HEALTY AND EFFICIENT.  THE MEMBERS ARE COMPLETELY PART OF THE SYSTEM AND THE SYSTEM ITSELF WORKS SMOOTHLY.  THE RELATIONSHIP BETWEEN THE MEMBERS IS BASED ON TRUST,HONESTY AND GOODWILL.
  • 15. STRATEGIC CONSTITUENCIES APPROACH  THIS APPROACH SUGGEST THAT AN EFFICIENT ORGANIZATION IS ONE WHICH FULFILLS THE DEMANDS OF THOSE CONSTITUENCIES IN ITS ENVIRONMENT FROM WHOM IT NEEDS SUPPORT FOR ITS SURVIVAL.  IT DEALS WITH THE EFFECT OF AN ORGANIZATION ON ITS STAKEHOLDERS AND THEIR INTERESTS.  THIS APPROACH INVOLVES HOW DO ALL THE PEOPLE CONNECTED WITH THE ORGANIZATION.  THESE PEOPLE MAY HAVE DIFFERENT ROLES SUCH AS USERS OF THE PRODUCTS AND SERVICES,THE RESOURCE PROVIDER,THE FACILITATORS OF THE ORGANIZATION’S OUTPUT,OTHER SUPPORTERS AND THE DEPENDENTS OF THE ORGANIZATION.
  • 16. FACTORS AFFECTING ORGANIZATIONAL EFFECTIVENESS  LIKERT HAS CLASSIFIED THE FACTORS AFFECTING ORGANIZATIONAL EFFECTIVENESS INTO FOLLOWING THREE VARIABLES:  CAUSAL  INTERVENING  END RESULT
  • 17.  CAUSAL VARIABLES CAUSAL VARIABLES ARE THOSE INDEPENDENT VARIABLES THAT DETERMINE THE COURSE OF DEVELOPMENTS WITHIN AN ORGANIZATION AND THE OBJECTIVES ACHIEVED BY AN ORGANIZATION. THESE CAUSAL VARIABLES INCLUDE ONLY THOSE INDEPENDENT VARIABLES, WHICH CAN BE ALTERED BY ORGANIZATION AND ITS MANAGEMENT. CAUSAL VARIABLES INCLUDE ORGANIZATION AND MANAGEMENT’S POLICIES, DECISIONS, BUSINESS AND LEADERSHIP STRATEGIES, SKILLS AND BEHAVIOR.
  • 18.  INTERVENING VARIABLES INTERVENING VARIABLES ACCORDING TO LIKERT ARE THOSE VARIABLES THAT REFLECT THE INTERNAL STATE AND HEALTH OF AN ORGANIZATION. FOR EXAMPLE, EMPLOYEE LOYALTIES, ATTITUDES, MOTIVATIONS, PERFORMANCE GOALS AND PERCEPTIONS OF ALL THE MEMBERS AND THEIR COLLECTIVE CAPACITY FOR EFFECTIVE INTERACTION, COMMUNICATION AND DECISION-MAKING.  END-RESULT VARIABLES END-RESULT VARIABLES ARE THE DEPENDENT VARIABLES THAT REFLECT ACHIEVEMENTS OF AN ORGANIZATION SUCH AS ITS PRODUCTIVITY, COSTS, LOSS AND EARNINGS.
  • 19. STRATEGIES TO IMPROVE ORGANIZATIONAL EFFECTIVENESS  HELP EMPLOYEES TO UNDERSTAND THEIR ROLES TO ACHIEVE THE OBJECTIVES.  ENSURE THAT THE ORGANIZATION HAS THE RIGHT NUMBER OF LEVELS OF WORK.  MAKE MANAGERS ACCOUNTABLE FOR THE RESULTS OF THEIR SUBORDINATES.  GIVE EMPLOYEES SUFFICIENT AUTHORITY TO UNDERTAKE THEIR RESPONSIBILITIES.  MAKE MANAGERS ACCOUNTABLE FOR COACHING THEIR STAFF.  DEVELOP THE EMPLOYEES AND CREATE A SUCCESSION PLAN.  SET UP OCCUPATIONAL HEALTH AND SOCIAL FACILITIES.  CREATE OPPORTUNITIES FOR EMPLOYEE FEEDBACK AND PARTICIPATION.