Organizational Behavior

1. Organizational
Effectiveness

2. What is Organizational
Effectiveness?
 Effectiveness refers to the degree of congruence
between organizational goals and some observed
outcome.
 Three reasons why the concept of organizational
effectiveness remains muddled.
 There are important differences in the way scholars have
conceptualized organizations.
 The complexity of organizations.
 Researchers have often used different, non-overlapping
criteria, thus limiting the accumulation of empirical
evidence about organizational effectiveness.

3. What is Organizational
Effectiveness?
 Organizations can be effective or ineffective in a
number of different ways, and these ways may be
relatively independent of one another.
 Productivity
 Efficiency
 employee absenteeism
 Turnover
 goal consensus
 Conflict
 participation in decision making
 Stability
 communications.

4. The Rational Goal Model
 The goal model is the most common theoretical
perspective on effectiveness.
 It is both simple and complex. In its simplest form, the
goal model defines effectiveness as the degree to which
an organization realizes its goals.
 The model posits that organizations can be understood as
rational entities.
 Evaluators assume that an organization’s goals can be
identified.
 Evaluators assume that organizations are motivated to
meet those goals and progress toward them can be
measured.

5. Difficulties with Goal Model
 Most organizations have multiple and conflicting
goals.
 Conflicting goals reflect conflicts absorbed by the
organization from society at large.
 Public organizations are designed to be ineffective
when effectiveness is ascertained by a broad based
goal model.
 Official goals are generally for public consumption and
can be found in annual reports and broad policy
statements.
 Operative goals are generally derived from official goals
but tell us exactly what the organization is trying to do.

6. Difficulties with Goal Model
 Another problem with focusing on
organizational goals relates to the
consequences of measuring goal attainment.
 A final concern about the goal model of
effectiveness deals with the relationship
between goal attainment and consequences for
the organization.

7. Internal Process approach
 Under this model, effectiveness is described as a
process rather than an end state, as might be the
case under the goal model.
 The process approach consists of three related
components:
 goal optimization,
 a systems perspective,
 and an emphasis on behavior within organizations.
 Goal optimization refers to the need to balance
goals and thus to optimize multiple goals rather
than achieve a particular one.

8. Internal Process approach
 A systems view incorporates concerns for changes
in an organization’s environment
 The behavioral emphasis suggests attention to the
possible contributions of individual employees to
organizational effectiveness.
 The effective organization is one in which goals are
responsive to the environment, optimization of
multiple goals is pursued, and employees are
contribute to meeting those goals.

9. Open System Model.
 Organizations are not assumed to possess
goals, nor is goal accomplishment a relevant
consideration. Instead, an organization is
effective to the extent that it can obtain
needed resources from its environment.

10. Human Relations Model
 Participation
 Discussion
 Openness are ways to achieve employee
morale and job satisfaction.

13. Methods of Assessing
Effectiveness
 Reviewing a variety of theoretical
perspectives on effectiveness is useful
because it not only points out the limitations
of the each model but also provides
alternative ways of considering
organizations.

14. 14
The Challenge of Performance
 Aspects of Organizational Performance
Assessment
 Efficacy
 Appropriateness
 Effectiveness

15. 15
The Challenge of Performance
 Aspects of Organizational Performance
Assessment
 Productivity
 Efficiency
 Organizational Effectiveness
 Cost-Effectiveness

16. 16
The Challenge of Performance
 Factors Associated with Increased
Productivity and Efficiency
 High standard and goals
 Information and feedback
 Interdepartmental coordination and resource
sharing

17. 17
The Challenge of Performance
 Factors Associated with Increased
Productivity and Efficiency
 Compensation systems oriented toward
rewarding productivity or efficiency
 Physician involvement in decision making and
governance

18. 18
The Challenge of Performance
 Factors Associated with Increased
Productivity and Efficiency
 Concentration of staff work and activity
 Active governing boards that deal with
environmental pressures

19. 19
The Challenge of Performance
 Factors Associated with Increased
Productivity and Efficiency
 Type of ownership
 Chain ownership and contract management
 Degree of system integration