The document discusses organizational excellence and its keys. Organizational excellence is the ability of an organization to distinguish itself through specialization while achieving its goals. Keys to organizational excellence include having a clear mission, vision, values and strategic management plan, as well as effective organizational structure, systems, and processes for renewal. Organizational excellence is important as it allows an organization to evaluate and maximize its success, maintain discipline, and gain competitive advantages through alignment of functions. There are different forms of organizational excellence such as competitive, institutional, rejuvenatory, missionary, versatile, and creative excellence.
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Organizational Effectiveness
MG345
Organizations & Environment
Tony Buono
Universal & Centurion
Jack Harris’ Universal$600 m sales480 employeesProfitability through:EffectivenessEmployee SatisfactionNo organization chartsCross-training & inter-departmental collaborationControl through commitment / mutual adjustment
Len Semp’s Centurion$750 m sales550 employeesProfitability through:EfficiencyProcess Standardization Detailed org chartsNarrowly defined jobs & functional responsibility Control through command / compliance
Management Control & Organizational Effectiveness
EFFECTIVENESS
High
Low
Command/
Compliance
Commitment/
Mutual Adjustment
MANAGEMENT CONTROL
ORIENTATION
Programmable Non-programmable
Type of Work
Perspectives on
Organizational Effectiveness
Input
Conversion
Process
Output
Organizations as Input-Process-Output Systems
Resource-based
(System Resources)
Internal Process Excellence &
Competency Efficiency
Goal
Strategic Constituencies
(Stakeholder Model)
Goal ApproachOfficial goals: Formally stated, abstract goals that are often difficult to measureOperative goals: reflect the activities the organization is actually performing
profitability growth market share
product quality efficiency diversification
employee welfare financial stability R&D
social responsibility management development Limitations:multiple goals identification of operative goalssubjective indicators of goal attainment Examples:
Perspectives on
Organizational Effectiveness
Input
Conversion
Process
Output
Organizations as Input-Process-Output Systems
Resource-based
(System Resources)
Internal Process Excellence &
Competency Efficiency
Goal
Strategic Constituencies
(Stakeholder Model)
Strategic Constituencies
Approach (Stakeholder Model)Organizational effectiveness as the extent to which key stakeholders are satisfied with the firm’s performance.
Stakeholder
Owners/investors
Employees
Customers
Creditors
Local community
Suppliers
Government
Example Effectiveness Criteria
Financial return, shareholder value
Job satisfaction, compensation
Quality and cost of goods/services
Creditworthiness, company rating
Contribution to community affairs
Satisfactory transactions
Adherence to laws, regulations
The Balanced Scorecard:
Integrating Goals & Stakeholders
Process-Centric
People-Centric
Internal
Focus
External
Focus
Organization
Results
Investor
Results
Employee
Results
Customer &
Other Relevant
Stakeholder
Results
Source: Adapted from Ulrich, et al, Results-Based Leadership (2000)
Perspectives on Organizational Effectiveness
Input
Conversion
Process
Output
Organizations as Input-Process-Output Systems
Resource-based
(System Resources)
Internal Process Excellence &
Competency Efficiency
Goal
Strategic Constituencies
(Stakeholder Model)
Resource-based ApproachKey assumption: to be effective organizations must obtain scarce and valued resourc.
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1. Submitted By: Mugdha Satyawan Pednekar
Roll No: 03(HR)
Allana Institute of Management Studies
2. Meaning
“Organization excellence is the ability of an
organization not only to survive or meet goals but to
distinguish itself from general population of
organization by achieving some manner of
specialization.”
Aligns effort and provide focus.
Participatory, team work
Improves productivity
3. Keys to organizational
excellence
Mission, Vision of excellence and core values
Style of management
Strategic Management
Structure and Systems
Organizational Renewal Processes
4. Importance of Organizational
Excellence
Evaluate and differentiate level of success
Maximize organization’s material, commercial,
social and intellectual capacity.
High level of organizational discipline.
Ensures all functions are aligned and work
cohesively.
Provide competitive advantage.
5. Forms of organizational
excellence
Competitive organizational excellence
Clear cut criterion of performance
Adopt specific than general missions
Commitment to ethics and idealism
Focused diversification
6. Forms of organizational
excellence
Institutional organizational excellence
Sustained high achievement over long period of time
Restricted to few key performance indicators
Professional altruistic participative style
Complex differentiation(matrix structure)
7. Forms of organizational
excellence
Rejuvenatory organizational excellence
Vast improvement over past performance
Rejuvenation comes in 2 phases
Restoring confidence of stakeholders
Unfreeze organizational paralysis
Rectify glaring defects
Credibility building
8. Forms of organizational
excellence
Missionary organizational excellence
Dedication to some social mission or ideal
Networking with other organizations for mission
accomplishment
Decision making decentralized
Leadership should be idealistic
9. Forms of organizational
excellence
Versatile organizational excellence
Desire and ability to meet expectations of all
stakeholders
Multiple goals are differentiated
Global excellence
‘learning rich’ information anomalies
10. Forms of organizational
excellence
Creative organizational excellence
Commitment to pioneering innovation
Flexibility, openness
Rapid, opportunistic growth
Brainstorming experiments, intrapreneurship
Nirma Chemical Works which gave strong competition to FMCG giants like HLL and P&G during the 1990s is an example of Competitive excellence. It achieved so, sheer on the basis of
Competitive strategy and excellent marketing skills.
Bajaj Auto has sustained high achievement through high quality technical knowledge and years of experience of Indian market and culture.
Tata Motors through acquiring Jaguar and LandRover re-entered the international race of manufacturing automobiles.
Blind Men’s Association whose mission has been dignity and self-reliance for blind and handicapped
SEWA – mission is uniting and uplifting poor women
Tata Steel of India shows versatile excellence as it is able to excel at satisfying the expectations of most of its stakeholders.
Institute of Engineering and Rural Technology shows creative excellence as it offers creative services like technical hospital, community development cell, curriculum development centre etc.