1. ORGANIZATIONAL EFFECTIVENESS
 EFFECTIVENESS – is often described as
“doing the right things” that is those work
activities that will help the organization reach
its goals.
 EXAMPLE:
 At the Siemens factory, goals include
reducing equipment installation time for
customers and cutting costs. Through
various work programs these goals were
pursued and achieved. Page 8

2. MEANING OF EFFICIENCY AND EFFECTIVENESS
 EFFICIENCY- refers to resource usage with
low or no wastage. Management strives for
low resource waste –high efficiency
 EFFECTIVENESS – refers to goal
attainment. High goal attainment – high
effectiveness Page 8

3. MANAGEMENT LOOKING FORWARD: PAGE 8
 Management is concerned then not only with
getting activities completed and meeting
organizational goals (effectiveness) but also
with doing so as efficiently as possible.
 In successful organizations, high efficiency
and high effectiveness typically go hand in
hand.
 Poor management is most often due to both
inefficiency and ineffectiveness

4. MANAGERIAL VS. ORGANIZATIONAL
EFFECTIVENESS PAGE 466-468 (8TH EDITION)
 We define managerial effectiveness as
goal attainment. Can this apply to
organizational effectiveness. YES
 ORGANISATIONAL EFFECTIVENESS- is a
measure of how well an organization is
achieving those goals. It also involve ability
to exploit its environment to obtain scarce
and valued resources.

5. KEY CHARACTERISTIC OF EFFECTIVE
ORGANIZATION
 CLEARLY DEFINED VISION AND GOALS
 -organization with clear vision and goals
will know their values and their contribution
towards their customers.
 Understanding this will be the first step in
delivering value added services or
products that stand out from its
competitors.

6. EFFECTIVE TEAM WORK INDEPENDENTLY
 Flexible, participative decision making is
possible because of the effective team
building. As such the team will be highly
motivated.
 Organization such as SOUTHWEST
AIRLINES possess superior teams that
meets the needs of customers to deliver
superior value added services

7. BUSINESS PROCESSES
 These organizations typically have
demanding customers and operates in
dynamic marketplaces should have clear
business processes.
 They value consistent behavior, emphasized
on continuous improvement, and relied
heavily on data and results
 TOYOTA is using JIT (just in time) and
TQM ( total quality management)

8. ENTREPRENEURIAL SPIRIT
 Magnetic leaders and bold, with impossible
dreams. Leaders tended to be hands-off;
individual initiative and risk taking was
encouraged; meaningful rewards and
recognition was provided and opportunity
widespread. HONDA CORPORATION
 These organizations worked hard at ensuring
they had selected the right people.
Employees were rewarded in terms of what
they created and the personal risks taken
(high risks/high rewards)..

9. INDIVIDUAL ACHIEVEMENT
 Their employees were ambitious; individual
growth and goal achievement were linked
with and led to high levels of organizational
performance; there were high rewards to
those that met their goals

10. RECOGNITION AND CELEBRATION
 They had inspiring leaders, a compelling
history and legacy, and were in fast-changing
marketplaces. Employees were provided
with meaningful recognition and rewards,
and were valued for their contribution.
 Individual and group accomplishments
were recognized and rewarded in an
environment characterized by enthusiasm,
fun and excitement.

11. © 2007 Prentice Hall, Inc. All
rights reserved.
18–11
EXHIBIT 18–9 TYPES OF CONTROL

12. ACCURATE AND TIMELY PERFORMANCE
feedback- feed forward
controls
 The most desirable type of control is feed
forward control. It prevents anticipated
problems since it takes place before the
actual activity.

13. FEED FORWARD CONTROL IN PRACTICE
 Eg. Mc Donald’s opened its first
restaurant in Moscow, it sent company
quality control experts to help Russian
farmers learn technique for growing high
quality potatoes and bakers to learn
processes for baking high quality breads.

14. © 2007 Prentice Hall, Inc. All
rights reserved.
18–14
TOOLS FOR CONTROLLING ORGANIZATIONAL
PERFORMANCE
 Feedforward Control
 A control that prevents anticipated problems
before actual occurrences of the problem.
 Building in quality through design.
 Requiring suppliers conform to ISO 9002.
 Concurrent Control
 A control that takes place while the monitored
activity is in progress.
 Direct supervision: management by walking around.

15. © 2007 Prentice Hall, Inc. All
rights reserved.
18–15
TOOLS FOR CONTROLLING ORGANIZATIONAL
PERFORMANCE (CONT’D)
 Feedback Control
 A control that takes place after an activity is
done.
 Corrective action is after-the-fact, when the
problem has already occurred.
 Advantages of feedback controls:
 Provide managers with information on the
effectiveness of their planning efforts.
 Enhance employee motivation by providing them
with information on how well they are doing.

16. ENVIRONMENT ADAPTATION
 Companies strive to scan the environment
for recognizing the change that is taking
place either the GENERAL OR SPECIFIC
environment of the organization.
 Failure to adapt to changes in the
environment will lead to inability to respond
to the change and exploit the market
opportunity or to avoid potential threats.

17. GROUP PRESENTATION
 Select an organization/business of your
choice :
 Discuss the key attributes of your
organization to be effective and deliver value
to customers