Organisational Effectiveness

Organisational effectiveness, also called as organisational success or growth, is defined as: The degree to which an organisation realizes its goals. (Amitai Etzioni) Effectiveness of an organisation can be seen in terms of the survival of the organisation. (John Kimberly) Effectiveness was determined by factors such as production maximization, cost minimization, technological excellence, etc. (Fredrick Taylor) Effectiveness is a function of clear authority and discipline within an organization (Henry Fayol) Effectiveness is a function of productivity resulting from employee satisfaction (Elton Mayo) 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. To create organizational effectiveness, business leaders need to focus on aligning and engaging their people, the people management systems, and the structure and capabilities (including organizational culture) to the strategy.

 The key elements of organizational effectiveness, as illustrated in the figure below, are needed to drive employee engagement in an organization. Engagement influences the customers 'experience and, ultimately, the overall performance of an organization in terms of productivity and profitability.

How do you achieve organizational effectiveness? Through an integrated framework that address the following organizational effectiveness elements: Strategy The role, purpose, and strategic direction that summarizes the work of the organization and/or division being clear and appropriate Capable people doing the right work through a fit for purpose structure and clearly described role accountabilities and relationships. Leaders have the capability and capacity to drive sustainable business success.

Structure, Capacity, and Capability Leadership

People, System & Processes

Leaders need to be supported by good people systems and processes. These systems and processes work in organizations to send messages, share information, and make well-informed decisions across the business. Organizational processes and systems are an extension of leadership, creating consistency and trust. A set of shared, basic assumptions about how to behave and carry out work within the organization that is aligned to business strategy. The systems, symbols, and behaviors that leaders and other employees are exposed to within an organization must align to the desired culture to achieve the business strategy. High numbers of engaged employees whose hearts and minds are aligned with both the job that they do and the organization that they work for. Engaged employees are: Satisfied with their current job and their organization as an employer. Committed to making the job and organization successful. Proud of their organization and the work they do. Willing to positively talk about their job and the organization. High levels of customer satisfaction and loyalty achieved through employees being aware of customer needs, acting on customer feedback, and being supported to deliver what customers require. Organizations are environmentally responsible and support the community.

Culture & Values

Employee Engagement

Customer Experience

Criteria for organisational Effectiveness

Rensis Likert has identified three variables- Casual, Intervening and Output Variableswhich are useful in determining organisational effectiveness. 1) Casual Variables: Casual factors are those variables which influence the course of development within an organisation. These variables can be changed by the organisation and its management according to the needs of the organization's environment. Since environment is dynamic, management changes casual factors from time to time. The major casual variables in an organisation are its strategy, technology, people and structure. Intervening Variables: intervening criteria are mostly internally focused and are used by the organisation to judge whether it will meet its end result criteria. Intervening Variables reflect the internal state of the organisation. Intervening criteria are generally grouped into three categories; product related, customer related, personnel related

(A) Product Related Criteria: 1) Product quality and performance 2) Product cost and price 3) New products introduced (B) Customer Related Criteria: 1) Customer Service 2) Customer Satisfaction 3) Customer Loyalty (C) Personnel Related Criteria: 1) Attracting and retaining human talent 2) Personnel ability and skills 3) Personnel motivation and attitudes to work

End result Variable: End-result criteria are externally focused and are, often, used to measure organisational effectiveness. Endresult criteria of an organisation convey what it intended to achieve and what actually it has achieved.