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Orgganizational effectiveness

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Orgganizational effectiveness

  1. 1. Objectives At the end of this session each participant will be able to: •Define Efficiency andEffectiveness. •Identify the Purpose of organizationaleffectiveness. •Identify Factors that determineEffectiveness •Identify Factors Associated with Increased Productivity andEfficiency •understand that Effectiveness and Efficiency influence eachother •discuss How can an organization measureeffectiveness Identify How do manager measure OrganizationalEffectiveness
  2. 2. •Organizational Effectiveness •discuss the main models of Organizational Effectiveness. •Mention Methods To Measuring The Effectiveness Of The Organization (Approaches). •Identify Basic Activities Determine The OrganizationalEffectiveness. •Discuss Theoretical And PracticalPressures. •Identify Source OfPressure. •Identify The Benefits Will Give To TheOrganization
  3. 3. OUTLINES •introduction •Effectiveness and Efficiency •Purpose •Factors that determine Effectiveness •Factors Associated with Increased Productivity and Efficiency •Effectiveness and Efficiency influence each other •How can an organization measure effectiveness?
  4. 4. •Organizational Effectiveness •How can manager foster Organizational Effectiveness •Criteria determine Organizational Effectiveness •Managers role •Methods To Measuring The Effectiveness Of The Organization Approaches •Basic activities determine the Organizational Effectiveness •Theoretical and practical pressures •source of pressure •What are the benefits will give to the Organization.
  5. 5. —Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals. Introduction
  6. 6. yEfficiency: Takes into account the amount of resources used to produce the desired output. Effectiveness: •The degree to which objectives & goals are achieved and the extent to which targeted problems are solved. •Effectiveness means "doing the right thing". Efficiency and effectiveness
  7. 7. Purpose —To review assessing organizational performance. —To compare and contrast approaches to quality assurance and quality improvement. —To describe strategies to achieve an effective health care organization.
  8. 8. —Clear authority —Discipline within anorganization —Productivity —Employee satisfaction Effectiveness is function of
  9. 9. Efficiency: Takes into account the amount of resources used to produce the desired output. Effectiveness: •The degree to which objectives & goals are achieved and the extent to which targeted problems are solved. Effectiveness means "doing the rightthing
  10. 10. Purpose •To review assessing organizational performance •To compare and contrast approaches to quality assurance and quality improvement •To describe strategies to achieve an effective health care organization.
  11. 11. •Production maximization •Cost minimization Technological excellence Effectiveness was determined by factors such as ;
  12. 12. •Information and feedback •Interdepartmental coordination and resource sharing •Compensation systems oriented toward rewarding productivity orefficiency •Physician involvement in decision making andgovernance •Concentration of staff work andactivity •Active governing boards that deal with environmentalpressures •Type ofownership •Chain ownership and contractmanagement •Degree of systemintegration Factors associated with increased productivity and efficiency
  13. 13. •Effectiveness and efficiency are exclusive, yet, at the same time, they influence each other. •There fore it is important for management to assure the success in both areas. Organizational performance = effectiveness x efficiency Effetiveness and efficiency influency each other
  14. 14. Discipline within anorganization •Productivity Employee satisfaction Efectiveness is function ofClear authority
  15. 15. •should have the skills to understand the nature of the environment environment protection and fulfillment of social responsibilities. •Organizations are effective when they are able to change the organization structure, and regroup the resources. •In corporate changes in technology •Reorientation of organization policies •Flexibility and willingness to adapt to the change •assess their current position in the small and mid sized business market and develop a Change Management Plan for how they are going to get to number one in sales figures. The role of manager
  16. 16. •Managerial duties .How effective is this person in areas such as setting context and boundaries, planning, and delegating? Are these things being done? •Team work .How effective is the team as a whole? What is their level of performance? Are projects and work being completed on time? On budget? In accordance with quality standards.
  17. 17. •Developing a mentoring culture within theorganization •Empowering staff to support organizational objectives– •Reflective leadership practices Employee Engagement How can manager foster orgnizational effectiveness
  18. 18. •Adaptability and ability to solve problems. •Ability and flexibility to react to change. •A sense of identity •Capacity to test reality –accurately perceive and correctly interpret the properties of the environment. State of integration among the sub-parts of the Organization to avoid cross- purpose working. Criteria determine organizational effectivness
  19. 19. •Attainment Approach •Systems Approach •Strategic Constituencies Approach •Competing Values Approach Method to measuring the effectiveness of approach organization
  20. 20. •Effectiveness is the ability to excel at one or more out put goals •who will set goals for Individuals & Organizations •The Goal Attainment Approach states that an organization‘s effectiveness must be appraised in terms of the accomplishment of ends rather than mean. It is the bottom line that counts. Goal attainment approach
  21. 21. •Goals must be… •Clearlyidentifiable •Consensual •Measurable Time-bound Based on the identification of goals and chievement of those goal
  22. 22. •SystemsApproach •Here end goals are not ignored; but they are only one element in a more complex set of criteria. •Systems models emphasize criteria that will increase the long term survival of the organization such as– •Its ability to acquire resources, maintain itself internally as a social organism & interact successfully with its external environment. •So, this approach focuses not so much on specific ends as on the means needed for the achievement of those ends.
  23. 23. •An organization is a system and is a part of the environmental suprasystem •In this approach , the nature of interaction between the organization and the environment to determine its Organization effectiveness •In the systems theory, an organization remains effective as long as it uses its resources in an efficient manner and continues to contribute to the larger systems
  24. 24. Strategic-Constituencies Approach… Effectiveness is the ability to satisfy multiple strategic constituencies both within and outside the organization. requires support for its continued existence. It seeks to appease only those in the environment who can threaten the organization's survival. For e.g. Private universities and public universities. The strategic constituencies that determine effectivenessare owners, managers, employees, customers, suppliers &TheGovt. .
  25. 25. Important Factors of Strategic Constituency Approach Identify critical constituencies . Similar to systems approach in this method. Prioritize the critical constituencies Identify the expectations of various competinggroups Identify the environmental changes
  26. 26. Competing Values ApproachBehavioural The Competing Values Approach is the criteria you value and use in assessing an organizations effectiveness. According to this, the extent to which individual and organizational goals are integrated affects the degree of organizational effectiveness. McGregorDouglas in his Book―Leadership and Motivation‖:-lla nehw , slaog fo noitargetni eurT eht erahs slaudividnislaog noitazinagro.
  27. 27. Basic activities determine the Organizational Effectiveness Identificationandprocuremenofvarious resourcesneedeforthe production Efficient use of in puts Production of tangible assets/services Performance of various technical and administrative functions Scanning the environment, identifyivarious factors which impact organization
  28. 28. •Market survey and modification of goals (if required) •Training and Development •Evaluation of Human Capital •Development of organizational culture, ethos, and climate •Ensuring quality of work life •Maintaining an ideal work life balance
  29. 29. Theoretical and practical pressures the concepts of effectiveness and performance have evolved as a result of considerable pressure
  30. 30. source of pressure •difficulty of conceiving a theory of organizations that does not include the construct of effectiveness •the need to improve the conceptualization, measurement and assessment of the construct. •the ambiguity and confusion surrounding the construct of effectiveness •The numerous areas ofconflict •the lack of agreement on how to measure it and the disparity in its use by practitioners and academics •the contemporary economic environment represents a source of pressure on almost every aspect of the organization. Even if today there is some agreement that
  31. 31. Even if today there is some agreement that •organizational effectiveness requires multiple criteria, •it must consider both means and ends •the choice of model and criteria should be flexible and appropriate for the context the definition, circumscription and criteria identification of organizational effectiveness remain problematic, and no definitive theories have been put forth.
  32. 32. What are the benefits will give to the Organization. Improved: •profitability •competitiveness customer satisfaction •management-employeer elations •focus on key goals •communications •Team work •Employee morale •Company image
  33. 33. •revenue •service to customers (internal& external •effectiveness •planning •Work environment •Decision making
  34. 34. Reduced: •Customer complaints •Warranty claims •cost •waste •rework •employeeturn-over Greater: •Market share •adaptability Increased: •Employee involvement •Employee satisfaction •ability to attract new customers