Organizational Effectiveness

Table of Content

Effective communication and ethical behavior are essential for the success of an organization. The terms “Organizational Effectiveness” and “Organizational Development” are frequently used interchangeably, particularly in relation to the Human Resources department or division of a company. Organizational development is an ongoing and systematic process that aims to implement successful changes. It is considered both a field of applied behavioral science, which focuses on comprehending and managing organizational change, and a field of scientific study.

Organizational development is considered interdisciplinary as it incorporates sociology, psychology, and theories of motivation, learning, and personality. On the other hand, organizational effectiveness empowers individuals to utilize their creativity, energy, and resources in addressing significant corporate matters. It revolves around the effectiveness of an organization in achieving its intended outcomes.

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According to my perspective, organizational effectiveness is determined by ethics. This means creating a workplace that values respect, honesty, integrity, and equity. Such an environment fosters communicative competence among employees and helps them achieve their goals. In my opinion, organizational effectiveness can be achieved when an organization maintains efficient management, robust governance practices, and a long-term commitment to achieving desired outcomes.

I am interested in this subject because I hope to work for a company that values the well-being and sustainability of its employees and business. Key factors for ensuring long-term success include having skilled workers, maintaining productivity, being adaptable, obtaining resources, boosting staff morale, planning for succession, and encouraging volunteerism.

Despite the presence of numerous factors that may negatively affect a corporation’s organizational effectiveness, these factors can be categorized into personal characteristics, leadership styles, organizational culture, working environment, model of organizational operation, flexibility, and organizational commitment. To gain practical insight into how the theory of organizational effectiveness applies in real-world scenarios, I will specifically examine management issues pertaining to this theory.

Using the knowledge obtained in class, I posed a series of questions to provide a thorough description of the topic. These questions include: How do managers influence productivity? Why is control important as a managerial function? What are four techniques that can assist in establishing standards and assessing performance? How do successful companies implement controls? Which financial tools should one be knowledgeable about? How do leading companies improve product or service quality? What factors are necessary for effective control? What obstacles impede the effectiveness of control?

It is crucial for managers to understand their impact on productivity as it directly affects a company’s profitability and overall effectiveness. One effective approach to influence productivity is by ensuring employees receive adequate education and training, enabling them to perform their tasks effectively. Possessing these skills allows for a more efficient utilization of knowledge, assisting the organization in achieving its strategic objectives and overcoming competitive challenges. Additionally, effective communication serves as another means to enhance productivity.

Effective communication plays a crucial role in problem-solving and fostering creative thinking. The skills of problem-solving and creative thinking are essential for achieving strategic project objectives within a company’s workforce. Employers must motivate their employees by setting goals for personal and professional growth to ensure success. Additionally, employers should promote adherence to company policies and procedures while also teaching employees about values, culture, traditions, and philosophies.

By integrating corporate citizenship into its quality vision, the company strengthens employees’ connection to the organization and enhances their commitment. This, in turn, cultivates a profound appreciation for the company’s heritage, culture, customs, and principles among employees. As a result of this knowledge, these individuals actively share their accomplishments and insights to support their coworkers, ultimately reshaping and enhancing job responsibilities while boosting overall productivity. A crucial element for accomplishing this lies in promoting transparent communication and collaboration between employers and employees with the aim of constant mutual learning.

Controlling, monitoring performance, comparing it with goals, and taking corrective action as needed is necessary for a company to maintain its success. This managerial function is vital because it helps an organization to: adapt to change and uncertainty; identify irregularities and errors; cut costs, boost productivity, and add value; identify opportunities; handle complexity; distribute decision-making authority; and promote teamwork. By employing these abilities, a company can utilize techniques to set standards and assess performance.

When setting standards, the preferred level for a specific goal should be the performance standard, which is measurable when the standard can be proven. Performance measurements are typically derived from written reports, oral reports, and personal observations, and these standards should be compared to performance standards. This comparison is guided by a control principle, which states that managers should be informed of a situation only if data shows a significant deviation from standards.

A company can achieve success by strategically, tactically, and operationally implementing controls. Monitoring performance allows the corporation to ensure the implementation of strategic plans and make necessary corrections, as well as execute tactical plans on a divisional or departmental level, along with operational plans that include physical, human resources, informational, financial, structural, and cultural goals on a day-to-day basis.

When considering the preferred financial tools, a successful organizational strategy involves several steps. First, create a financial projection. Next, use the last budget period as a reference point to allocate more or less funds to each department. Then, require each department to start from scratch when projecting their funding for the upcoming budget period. Additionally, allocate resources based on a single estimate of costs. Finally, adjust resources in accordance with different levels of activity.

The use of a balance sheet summarizes an organization’s 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 a specified period. Additionally, liquidity ratios indicate the ease of converting a firm’s assets into cash, debt management ratios determine the ability to meet long-term financial obligations, and return ratios calculate the effectiveness of profit generation. Audits are formal verifications of an organization’s financial and operational systems. External audits are performed by outside experts, while internal audits are conducted by the organization’s own professional staff. To enhance product and service quality, top companies employ William Edwards Deming’s Theory of Management, which involved a four-part system of “Profound Knowledge”. One aspect of Deming’s theory is the appreciation of a system, which entails understanding the overall processes involving suppliers, producers, and customers of goods and services.

His “knowledge of variation” demonstrated the extent and reasons for variability in quality and the application of statistical sampling in measurements. The third system, “theory of knowledge,” elucidated understanding and the boundaries of what can be understood. Deming’s fourth system, “Knowledge of psychology,” represented principles of human behavior. Another method employed by these companies is the theory of Total Quality Management (TQM). This encompasses a holistic approach, spearheaded by upper management and embraced throughout the organization, which entails dedication to perpetual quality enhancement, training, and ensuring customer satisfaction.

Moreover, TQM emphasizes two main principles: prioritizing people and delivering value to customers, as well as promoting continuous improvement in work processes. Additionally, TQM employs various techniques such as employee involvement, benchmarking, outsourcing, ISO 9000 series, reduced cycle time, statistical process control, and Six Sigma and Lean Six Sigma. In the present business landscape, a common question arises: “What factors contribute to successful control?” The essential elements for successful control encompass being strategic and results-oriented, timely, accurate and objective, realistic, positive, understandable and encouraging self-control while remaining flexible. Conversely, obstacles to achieving these successes include excessive control measures, insufficient employee participation levels,
an excessive focus on means rather than outcomes,
an excess of paperwork burdens,
and an overemphasis on singular solutions instead of considering multiple approaches.
These strengths and weaknesses have been identified
and prove advantageous for numerous companies today.

When evaluating the performance of an organization, several factors need to be taken into account. These factors encompass program quality, positive reviews quantity, artist caliber, community recognition, inspiring other artists with social impact, educating the community through programming, and expanding the artistic discipline’s body of work.

From a marketing standpoint, it is important to monitor the following aspects:

  • sales and attendance trends
  • effectiveness of advertising
  • department costs compared to earned income
  • demographics of the target audience
  • patron renewal rates
  • acquisition of new patrons
  • impact of direct mail campaigns
  • conversion rates for telemarketing efforts
  • number of website hits
  • To enhance organizational effectiveness, individuals must allocate additional time to acquire knowledge about their business and acknowledge the significance of aligning employees’ skills with business objectives in a progressively competitive market. To gain a more profound comprehension of an organization, it is imperative to contemplate several factors as detailed in the breakdown of organizational effectiveness. This encompasses evaluating the political, economic, social, and technological aspects, along with assessing how an organization flourishes within its industry and competitive landscape.

    There are three levels of organizational effectiveness: the technical level, managerial level, and institutional level. The technical level is responsible for carrying out productive functions, the managerial level involves controlling production functions, and the institutional level connects the organization with the broader community and institutional sectors. Exemplary performance in each department is key to enhancing organizational effectiveness and achieving artistic, human, financial, and technological goals.

    Overall, evaluating both the external and internal factors allows management to gain a comprehensive understanding of how their organization impacts the broader community and consumers. This understanding is vital for organizations to comprehend their influence and ensure effective communication of their vision and values. All organizations can benefit from comprehending their own organizational structures, processes, and management strategies. This knowledge serves as a basis for implementing necessary changes to align these elements with productivity and innovation goals.

    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.

    The cited sources on organizational effectiveness include a book titled “Helms” published by Gale Cengage in 2006, an article on also from 2006, a Wikipedia page titled “Organizational effectiveness” published by Wikimedia Foundation, Inc., an article called “Providing a Long-Term ‘Map’ for Organizational Effectiveness” from the First Nations Development Institute published in 2004, a study by Min-Huei Chien from Overseas Chinese Institute of Technology in June 2003, and an article titled “Evaluating Organizational Effectiveness: Performance Measurement in Action” by Bruce D. Thibodeau from the Monthly Newsletter of the Arts Consulting Group in November 2008.

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