Organizational Effectiveness

983 Words Jun 5th, 2012 4 Pages
Organizational effectiveness is a tool manager’s use to measure how effective they; and their organizations are at achieving outcomes and creating value. Organizational effectiveness can be very difficult to measure in an organization. Why? The answer is because organizations can be diverse and very large. Also one organization can have multiple goals and perform many activities at the same time. Managers must decide which indicators they want to measure in order to determine the effectiveness of their organization. There are three approaches managers can use in evaluating effectiveness. They are the external resource approach (Control); the internal systems approach (Innovation); and the technical approach (Efficiency). Each approach …show more content…
Even though the external resource approach can be very valuable when other measures are not available it does have its downside. The approach only vaguely considers the organization’s link to the needs of customers in the external environment.
The internal systems approach allows managers to evaluate how well their organization functions and how smooth it operates. An organization needs to be able to rapidly create products, make services available; and speed up decision making in order to adapt and respond quickly to the forever changing environment. To measure an organization’s capacity for innovation the length of time taken to make decisions, the amount of time taken to get a new product on the market, and the amount o f time spent coordinating duties of different departments are all factored in . “These factors can often measured objectively” (Jones, 2007, p. 17). For example If an organization was to improve its decision making process it would help it to introduce new products or services to the market sooner and keep up with or surpass its competitors in productivity. When organizations make changes to increase employee morale and coordination this can have a direct impact on its ability to respond to the environment. When employees