An organization’s effectiveness is dependent on its communicative competence and ethics. The term “Organizational Effectiveness” can be used interchangeably with the concept of “Organizational Development”, especially when used as the name of a department or part of an organization’s Human Resources. Organizational development is an ongoing, systematic process to implement effective change in an organization and is known as a field of applied behavioral science focused on understanding and managing organizational change, as well as, a field of scientific study and inquiry .
While organizational development is considered to be interdisciplinary in nature because it draws on sociology, psychology, and theories of motivation, learning, and personality, organizational effectiveness enables people to use their creativity, energy, and resources for the issues that really matter to a corporation. Organizational effectiveness surrounds the concept of how effective an organization is in achieving the outcomes it intends to produce .
Due to the fact that ethics is a foundation within organizational effectiveness, a company must be a place of respect, honesty, integrity and equity to allow communicative competence within its employees.
Along with ethics and communicative competence, employees can achieve their intended goals. I view organizational effectiveness as “the ability of an organization to fulfill its mission through a balance of sound management, strong governance, and a persistent rededication to achieving results” .
This topic is relevant to me because, while maintaining a set of management practices, the organization I would like to have a long-term career with should be able to ensure its employees the overall health and longevity of the business. Some characteristics of an organization’s continued existence include: quality of staffing; productivity; adaptability; acquisition of resources; staff morale; succession planning; and volunteer participation.
On the other hand, factors that could negatively affect a corporation’s organizational effectiveness could fall into one of the following categories of: personal characteristics; leadership styles; organizational culture; working environment; model of organizational operation; flexibility; or organizational commitment . In completing this paper, I decided to interpret and analyze the real-world theory of organizational effectiveness by further investigating the management issues surrounding this theory.
Based on what I learned in class, I applied the following questions to help provide a detailed description of the topic: How do managers influence productivity? Why is control such an important managerial function? How can four techniques help establish standards and measure performance? How do successful companies implement controls? What are the financial tools I would need to know? How do top companies improve the quality of their products or services? What are the keys to successful control? What are the barriers to control success?
How managers influence productivity is important because it determines whether a company will make a profit and affects the organizational effectiveness. One way to influence productivity would be to ensure employees have acquired necessary education and training which would help them to perform well. These skills will enable a more efficient application of knowledge which will then allow the business to meet its strategic goals and competitive challenges. Another way to influence productivity would be to communicate effectively.
In communicating effectively, problems can be solved and creative thinking can flow. The ability to achieve strategic project objectives frequently depends on the problem solving and creative thinking skills of a company’s workforce. For an employer to succeed, employees must be motivated which is why goals for managing personal and profession growth need to be developed. While encouraging employees to embrace company policies and procedures, an employer should also instill into employees: values, culture, traditions and philosophies.
In connecting corporate citizenship with its quality vision, a manager would be stimulating a feeling of belonging to the company. This would produce workers who are knowledgeable about the history, culture, traditions and values of the company. These employees will share their successes with other employees which will redefine and enhance jobs while improving the work of others. In the end, both employer and employees need to actively communicate and collaborate, in an attempt to learn from one another.
Controlling, monitoring performance, comparing it with goals, and taking corrective action as needed is required for a company to sustain its success. It is such an important managerial function because it is essential to an organization’s ability to: adapt to change and uncertainty; discover irregularities and errors; reduce costs, increase productivity, add value; detect opportunities; deal with complexity; decentralize decision making; and facilitate teamwork. In using these abilities, a company can use techniques to establish standards and measure performance.
When establishing standards, the performance standard should be the preferred level for a given goal, where it is measured when the standard can be proven. While performance measurements are usually obtained from written reports, oral reports, and personal observations, these standards should be compared to performance standards. In fact, a control principle describes how managers should be informed of a situation only if data demonstrates a significant variation from standards.
A successful company would implement controls strategically, tactically, and operationally. By means of monitoring performance a corporation would be ensuring the implementation of: strategic plans and possibly taking corrective action, as needed; tactical plans, at the divisional or departmental level; and the operational plans of day-to-day physical, human resources, informational, financial, structural, and cultural goals.
When speculating about the preferred financial tools, an effective organizational strategy would be to: form a financial projection; allocate increased or decreased funds to a department by using the last budget period as a reference point; force each department to start from zero in projecting it’s funding for the coming budget period; allocate resources on a single estimate of costs; and vary resources in proportion with various levels of activity.
In using a balance sheet to summarize overall financial worth at a specific point in time, this tool can be applied to the income statement which summarizes an organization’s financial results over specified period of time. In addition, liquidity ratios indicate how easily a firm’s assets can be converted to cash, debt management ratios determine the degree to which a firm can meet its long-term financial obligations, and return ratios calculate how effective management is generating profits. The last sets of financial tools involve audits which are formal verification of an rganization’s financial and operational systems. An external audit would be performed by outside experts while an internal audit is performed by an organization’s own professional staff. One approach top companies employ to improve the quality of their products and services is through William Edwards Deming’s Theory of Management which entailed a four-part system of “Profound Knowledge”. In Deming’s “appreciation of a system”, understanding the overall processes involving suppliers, producers, and customers of goods and services was discussed.
His “knowledge of variation” illustrated the range and causes of variation in quality and use of statistical sampling in measurements. The third system, “theory of knowledge” explained knowledge and the limits of what can be known. Deming’s fourth system, “Knowledge of psychology”, portrayed concepts of human nature. Another approach these companies utilize is the theory of Total Quality Management (TQM). This involves a comprehensive approach, led by top management and supported throughout the organization, which involved commitment to continuous quality improvement, training, and customer satisfaction.
Furthermore, two focal principles of TQM are: people orientation, where everyone involved in the organization are supposed to focus on delivering value to customers and improvement orientation, when everyone is supposed to work on continuously improving work processes. Additional TQM techniques would be to bring into play: employee involvement; benchmarking; outsourcing; ISO 9000 series; reduced cycle time; statistical process control; or Six Sigma and Lean Six Sigma. In today’s business world, many people ask the important question, “What are the keys to successful control? These successful keys to control are: strategic and results oriented; timely, accurate and objective; realistic, positive, understandable and encourage self-control; and flexible. On the opposite end, the barriers to control these key successes involve: too much control; too little employee participation; overemphasis on means instead of ends; overemphasis on paperwork; and overemphasis on one instead of multiple approaches. These strengths and weaknesses are acknowledged and found to be constructive to many companies, currently.
An organization can establish many goals and objectives. While measuring organizational performance , I recognize there are certain subject matters I would need to take into consideration. In measuring my organization’s effectiveness, I would need to take into consideration the performance of its: quality of programs, number of positive reviews, caliber of artists, community recognition, social impact on inspiring other artists, educating the community through programming, expanding the body of work in the artistic discipline.
From the marketing aspect, the following would need to be monitored: sales and attendance trends; effectiveness of advertising; department costs versus earned income; demographics of the audience served; patron renewal rates; new patron acquisition; direct mail impact; telemarketing conversions; website hits; external communication accuracy; branding ability; and audience satisfaction. On the whole, every organization is unique. The suggestions above may not fit for every organization. Mainly, to improve organization effectiveness, a manager must transform all possible methods to meet specific requirements of the organization and situation.
Individuals who promote organizational effectiveness must also make the effort to invest additional time to learn their business and understand the need to align people’s skills with business goals in an ever more competitive market. As described in the breakdown of organizational effectiveness, there are a variety of components that need to be considered in understanding an organization more profoundly. The political, economic, social, and technological environment is supplemented by an analysis of how an organization succeeds within its industry and competitive environment.
Further views of organizational effectiveness can be distinguished between three levels: (1) the technical level which is the part of the organization carrying on the productive function; (2) the managerial level, comprising those activities relating to the control of the production function; and (3) the institutional level, consisting of those activities relating the organization to the larger community and institutional sectors. Exemplary performances of each department and their ability to achieve stated artistic, human, financial, and technological goals and objectives will add to an organization’s effectiveness.
Overall, the insight gained by assessing the external and internal factors will allow management to focus on broader community impacts on consumers. Only then will an organization have a deeper understanding of its impact and how its vision and values are imparted. All types of organizations can benefit from understanding their own organizational and management structures and processes. This type of understanding can be the basis for shifting these structures, processes, and management strategies to align with the goals of productivity and innovation. Works Cited “Organizational Development. ” Encyclopedia of Management. Ed. Marilyn M.
Helms. Gale Cengage, 2006. eNotes. com. 2006. 12 Mar, 2010 . “Organizational effectiveness. ” Wikipedia. San Francisco, CA: Wikimedia Foundation, Inc. , 2010. 12 Mar, 2010 . “Providing a Long-Term ‘Map’ for Organizational Effectiveness. ” First Nations Development Institute. (2004): 5-27. Print. Min-Huei, Chien. “A study of the factors effecting organizational effectiveness. ” Overseas Chinese Institute of Technology 9 June 2003: 1-9. Print. Thibodeau, Bruce D. “Evaluating Organizational Effectiveness: Performance Measurement in Action. ” the Monthly Newsletter of the Arts Consulting Group November 2008: 1-4. Web. 12 Mar 2010. .
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