Organizational effectiveness is critical to success in any economy. In order to achieve increased and sustainable business results, organizations need to execute strategy and engage employees. However, our research indicates that most organizations are struggling to get it right.
FREDERICK TAYLOR: EFFECTIVENESS WAS DETERMINED BY FACTORS SUCH AS PRODUCTION MAXIMIZATION, COST MINIMALIZATION, TECHNOLOGICAL EXCELLENCE, Etc
HENRI FAYOL: EFFECTIVENESS IS A FUNCTION OF CLEAR AUTHORITY AND DISCIPLINE WITHIN AN ORGANIZATION
ELTON MAYO: EFFECTIVENESS IS A FUNCTION OF PRODUCTIVITY RESULTING FROM EMPLOYEE SATISFACTION
APPROACHES TO MEASURING ORGANIZATIONAL EFFECTIVENESS:
• Goal Approach: Effectiveness is the ability to excel at one or more output goals.
• Internal Process Approach: Effectiveness is the ability to excel at internal efficiency, coordination, motivation, and employee satisfaction.
• System Resource Approach: Effectiveness is the ability to acquire scarce and valued resources from the environment.
• Constituency Approach: Effectiveness is the ability to satisfy multiple strategic constituencies both within and outside the organization.
• Domain Approach: Effectiveness is the ability to excel in one or more among several domains as selected by senior managers.
Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce.[1] The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to nonprofit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals.
However, scholars of nonprofit organizational effectiveness acknowledge that the concept has multiple dimensions [2] and multiple definitions. [3] For example, while most nonprofit leaders define organizational effectiveness as 'outcome accountability,' or