Organizational Effectiveness - Module 1 - Part 2
Organizational Effectiveness - Module 1 - Part 2
Organizational Effectiveness - Module 1 - Part 2
Functions of Management
1. Planning – Concept, Nature, Types, Analysis
2. Management by objectives (MBO)
3. Organization Structure – Concept, Structure, Principles,
Centralization, Decentralization, Span of Management;
Organizational Effectiveness.
[3] Organization Structure –
Organizational Effectiveness
Organizational Effectiveness
The ability of an organization to maximize its performance within a
competitive external environment is its organizational effectiveness.
Effectiveness is achieved when organizational resources are optimally utilized
by creating suitable structures, processes and systems, culture and people
fully aligned to the organization’s business purpose and direction.
Every organization working in a highly competitive environment aspires to
excel by improving its effectiveness. For this a clear purpose and direction
is a must.
– A high performance organization is enormously valuable, yet few achieve it and many do
not even try.
– Organizations are complicated and multi-dimensional, yet few have identified the
culture they need to develop and actively work towards it.
– Even high performance organizations must evolve, yet few rigorously assess
organizational health over time.
Guidelines for Organizational Effectiveness
• The lines of authority should be clearly stated and should run from top to bottom
of the organization.
• Each person in the organization should report to only one boss.
• The responsibility and authority of each supervisor should be established clearly
and in writing
• The higher managers are responsible for the acts of their subordinates
• The number of levels of authority should be as few as possible.
• The authority and responsibility should be delegated as far down the hierarchical
line as objectively possible.
• The principle of specialization should be applied wherever possible.
• The line function and staff function should be kept separate.
• The span of control should be reasonable and well established.
• The organization should be simple and flexible.
Organizational Culture factor
• It is a set of norms, values and assumptions that are available to staff and
is thus inseparable from action and process.
• It is a learned set of rules written and unwritten that instructs individuals
about working effectively with each other and with their environment.
• It is the most crucial and difficult organizational attribute to change as it is
long lasting compared to all other physical attributes of the organization.
The organization is in its initial stage with ambiguous goals and high creativity level
Entrepreneurial
Stage
Collectivity Innovation continues and the organization mission is clarified.
Stage Employees are committed to organization goals and have informal
communication.
Formalization Here organizational rules and procedures are put
in place as the organization structure is more
& Control e stabilized. Innovation takes a back seat with
Stage emphasis on stability and efficiency.
Products and services are diversified and decision
Making is decentralized at this level. The structure Elaboration of
becomes more complex with multiple departments Structure Stage
and multiple relationships. Decline Stage
Organizational
Effectiveness
Consiste
Customer
Deep Focus
High
Talent Measure &
Meritrocracy Quality
Talent Incentives
Frontline
Fit Capacity to Continuou
Support
Performance High Change Evaluation
Culture Performance