TOPIC 8
ORGANISATIONAL EFFECTIVENESS
8.1: Meaning of organizational effectiveness
Organizational effectiveness can be defined as the efficiency with which an association is able to meet its objectives. This means an organization that produces a desired effect or an organization that is productive without waste. Organizational effectiveness is about each individual doing everything they know how to do and doing it well; in other words organizational efficiency is the capacity of an organization to produce the desired results with a minimum expenditure of energy, time, money, and human and material resources.
8.2 Meaning of organizational goals
These are goals are the objectives, aims or purposes which are to be achieved by an organisation over varying periods of time. Goals are the result of planning which is related to future
Importance of these goals has been described under the following heads:
1. Focus Attention of Individuals and Groups to Specific Activities and Efforts of Organisations:
When organisation’s goals are known to individuals and group, it will help them in channelizing their activities towards attaining organisation’s goals. In other words the goals prescribe the course of action to individuals and groups which will be helpful and complementary to the achievement of organisation’s goals.
2. Provide a Source of Legitimacy to Action by Members:
Once this course of action has been decided for the individuals and the groups within the framework of organisational goal, it will promote legitimacy and justification to individual’s or group’s actions and decisions.
3. Serve as a Standard of Performance:
Goals provide a measure of individual’s or group’s performance. They may help the organisation members to evaluate the level of their performance in the perspective of organisation’s goals.
4. Affect the Structure of Organisation:
Goals and structure are intimately related to each other. The relationship among people in the form of authority and responsibility or the positions to be created at different levels has to be decided on the basis of organisational goals. In other words, what the organisation proposes to do will be determined by the organisational setup it will structure. Similarly, it will be the structure also which will influence the goals.
5. Provide Clues about the Nature and Character of Organisation:
The nature and character of an organisation may be known by its goals. For instance, the goal of maintaining the quality of product without much regard to return on investment may help the outsider to hold the organisation and its members in very high esteem.
8.3 Types of organizational goals
Strategic goals-Strategic goals are stated in general terms.They are developed in view of the mission of the organization.They outline overall organizations goals relating to different dimensions of their business like profit making,product development,resources allocation,human resource development,research priorities, and so on.These are therefore,organization set strategic goal.The board of directors and the top management of the organization set strategic goals.While setting such goals,they seek inputs from staff specialist and middle managers.Strategic goals,they seek inputs from staff specialists and middle managers.Strategic goals,thus,indicate the real in tensions of an organization.The executive management of an organization of an organization usually determines the strategic goals.These top leaders scan the external environment for opportunities or threats to the organization aim is to match internal strengths and weakness to changes in the external environment in order to create new opportunities.
Tactical or intermediate goals-Tactical or intermediate goals are set to translate the strategic goals into action. These goals involve the middle level managers. Compared with strategic goals, these goals have a some what shorter time span, and more specific and concrete focus .The focus of tactical goals is on how to open rationalize actions necessary to achieve the strategic goals.
Operational goals-Operational goals are set for lower-level management. The main concern here is with shorter term issues associated with intermediate or tactical goals. The supervisory level staff members are responsible for develop in and implementing operational goals that will meet the tactical goals. Activities and resources are assigned to individuals and groups to carry out some portion of the operational goals. The operational goals affect employees day to-day-activities.
Note: Setting such goals is done by following a popular technique called SMART, which implies:
- Specific – a goal that is focused on the overall vision of your organization,
- Measurable – that which can be quantified and checked for efficacy,
- Achievable – a goal that is attainable,
- Realistic – that which is feasible as well as viable,
- Time Bound – a goal that has a specified time within which it should be achieved.
8.4 Process of measuring organizational performance
Planning is central to good program design and effective measurement. Program logic can be used to assist planning. This includes:
- defining or selecting outcomes
- defining impacts
- identifying outputs
- identifying resources.
Indicators must:
- measure performance
- refer to a result rather than being descriptive
- be well-defined, relevant and informative
- be within the control or influence of Directorates
- be available, timely and cost-effective
- be comparable with a benchmark or previous results over time.
Conduct program in line with program logic.
Monitor performance. Data considerations include:
- gathering relevant data by set timeframes
- ensuring the data is accurate, comprehensive and comparable.
Reporting must:
- explain the difference between planned performance and actual performance
- provide a picture of overall performance
- provide an unbiased and complete picture
- identify assumptions, gaps and variances
- present information clearly and concisely
- provide explanations of assumptions, gaps and variances.
Evaluate and modify. If performance measurement indicates that the program or strategy is not effective, evaluate the program or strategy and consider modifying it.
