Slides shows how effectiveness of an organization measured or look for

1. Submitted By:-
Mehul Chandana(141231)
Monil Shah(141232)
Parag Chaubey(141233)

2. Introduction
Four Effectiveness Approaches
 Goal Approach
 Resource-Based Approach
 Internal Process Approach
 Strategic Constituent Approach

3. Four Approaches

4. Que. 1
 What are the advantages and disadvantages of the
resource-based approach versus the goal approach for
measuring organizational effectiveness?

5. Answer 1
 Goal Approach (approach associated with OUTPUT)
This approach emphasizes the ability of organization
to achieve its operating goals.
 Examples,
 Market share
 Profit increase
 Sales target etc

6. Answer 1
Pros:
 Straightforward approach, especially when goals are
measurable.
 Often appropriate for for-profit organizations
(profitability, market share,...)
Cons:
 goals are often multiple & conflicting
 goals are not always easy to identify & to measure,
especially for non-profit organizations (EX: "public
safety" as a police department goal)

7. System Resource Approach
System Resource Approach (Approach associated
with INPUT)
 It Emphasizes the ability of the organization to acquire
scarce and valued recourses.
 Example,
 Donations received by NGO

8. System Resource Approach
Pros:
 It is mostly useful when other indicators of
performance are unavailable.
 EX: quality of a university measured as amount of
research grants, acquisition of top faculty, average SAT
score of entering students

9. System Resource Approach
Cons:
 It vaguely consider the organization’s link to the needs
of the customers
 In it the assessment of effectiveness is indirect (EX:
police department has acquired 3 new cruisers; but did
the crime rate go down?)
 The approach assumes stability in the market place
and fails to adequately consider the changing value of
various resources as competitive environment and
customer

10. Question 2
 What are the similarities and differences between
assessing effectiveness on the basis of competing
values versus the strategic constituents approach?
Explain.

11. Answer 2
Strategic Constituents Approach
 This approach measures effectiveness by focusing on
the satisfaction of key stakeholders.
 Stakeholders are divided into different constituent
groups such as owners, employees, customers,
creditors, community etc
 Each of these constituents have different criterion of
effectiveness

12. Answer 2
Competing Values Model
 This approach to effectiveness acknowledges that
organisations do many things and have many
outcomes
 It combines several indicators of effectiveness into a
single framework. The model was originally developed
by Robert Quinn and John Rohrbaugh.
 Their analysis found underlying dimensions of
effectiveness criteria that represented competing
management values in organisations.

13. Answer 2
 Similarity
The similarity between assessing effectiveness on basis
of Strategic constituents approach and Competing
values model is that both of these models take into
consideration that effectiveness has no single measure
and there can be different indicators of effectiveness in
an organisation.

14. Answer 2
 Differences
The major difference between these two models is of
the indicators of effectiveness. Strategic constituents
approach measures effectiveness through the different
effectiveness criteria od the strategic constituents and
competing values model measures effectiveness
through the management values of the organisation