ORGANIZATIONAL EFFECTIVENESS. HISTORICAL OPINIONS ABOUT ORGANIZATIONAL EFFECTIVENESS. FREDERICK TAYLOR HENRI FAYOL ELTON MAYO. FREDERICK TAYLOR. EFFECTIVENESS WAS DETERMINED BY FACTORS SUCH AS PRODUCTION MAXIMIZATION, COST MINIMALIZATION, TECHNOLOGICAL EXCELLENCE, Etc. HENRI FAYOL.
EFFECTIVENESS WAS DETERMINED BY FACTORS SUCH AS PRODUCTION MAXIMIZATION, COST
MINIMALIZATION, TECHNOLOGICAL EXCELLENCE, Etc.
EFFECTIVENESS IS A FUNCTION OF CLEAR
AUTHORITY AND DISCIPLINE WITHIN AN
EFFECTIVENESS IS A FUNCTION OF
PRODUCTIVITY RESULTING FROM
4. ADAPTIVE to
5. CAPABLE OF
the ability of its
members and of
6. CAPABLE OF
a world of
MEETING ORGANIZATIONAL OBJECTIVES AND
PRVAILING SOCIETAL EXPECTATIONS IN THE
NEAR FUTURE, ADAPTING AND DEVELOPING IN
THE INTERMEDIATE FUTURE, AND SURVIVING
IN THE DISTANT FUTURE.
INTERNAL PROCESS APPROACH
SYSTEM RESOURCE APPROACH
STRATEGIC CONSTITUENCIES APPROACH
Approach Definition When Used
An organization is effective Preferred when:
to the extent that:
Goal attainment it accomplishes its stated goals goals are clear, time
bound and measurable
System Resource it acquires needed resources a clear connection exists
between inputs and outputs
Constituencies all strategic constituencies constituencies have powerful
are at least minimally influence on the organization,
satisfied and the organization must
respond to demands
Internal Processes combines internal efficiency costs, outputs & satisfaction
and affective health are easily measurable
Constituency Typical Criteria
Owners Return on Investment; growth in earnings
Employees Compensation; fringe benefits; job satisf.
Customers Satisf. w/price, quality, service
Suppliers Satisf. w/payments, future sales
Creditors Satisf. w/debt payments
Unions Satisf. w/competitive wages & benefits;
satif. working conditions, fairness in
Local Communities Involvement in local affairs; environmental
Compliance w/laws, avoidance of penalties
The idea of trying to characterize a whole organization as
totally effective or ineffective is problematic. In any complex
organization there may be parts of the organization that function
well and suggest effectiveness while other aspects of that same
organization perform poorly.
the Contradictions Model
Organizational goals and performance are defined by top and middle management. By comparing the diverse effectiveness indicators used by managers and researchers, Quinn & Rohrbaugh looked for underlying similarities and found underlying dimensions of effectiveness criteria that reflected competing management values in organizations.
Focus: whether dominant values concern issues that are
internal to the organization or external to it.
Internal focus reflects management concern for well-being
and efficiency of employees. External focus reflects an
emphasis on the well-being of the organization itself and its
“fit” with its environment.
Structure: whether stability versus flexibility is the
dominant structural consideration.
Stability reflects a management value for efficiency
and top-down control, while flexibility represents
a management value for learning and change.
Quadrant I: Human Relations Model – internal
Focus and flexible structure. Management
concern is on the development of human
resources. Employees are given opportunities
for autonomy and development. Management
works toward sub-goals of cohesion, morale, and
training opportunities. Organizations using this
are more concerned with employees than the
Quadrant II: Open Systems Model – Combination
of external focus and flexible structure.
Management’s goals are primarily growth and
resource acquisition. Sub-goals are flexibility,
readiness, and positive evaluation by the external
environment. Dominant value is establishing
a good relationship with the external environment
to grow and acquire resources. Similar to the
Systems Resource Model.
Quadrant III: Internal Process Model – Reflects
the values of internal focus and structural
control. Seeks a stable organizational setting that
maintains itself in an orderly way. Well
established in environment and just wish to keep
their current position. Sub-goals include
mechanisms for efficient communication,
information management, and decision-making.
Quadrant IV: Rational Goal Model – Reflects
Management values of structural control and
external focus. Primary goals are productivity,
efficiency, and profit. Organization wants to
achieve output goals in a controlled way.
Sub-goals include internal planning and
goal-setting, which are rational management
tools. Similar to the Goal Approach.
Four different opposing value sets within the
organization. Exist simultaneously, and the
“right” balance for the organization is subject
to managerial discretion.
Emphasis may change over time, especially as the
organization evolves through its life cycle.
Examples: hospitals, airlines