Write 6 pages thesis on the topic how do managers measure organizational effectiveness. There have been various attempts to explain organizational effectiveness. some believe it to be completely financial based, others explain it completely based on profits. The next section is a research that tries to explain what organizational effectiveness really is and what role managers play in this.
Organizational effectiveness is one of the most essential and most elusive research subjects since the birth of organizational theory. There has been no one explanation for this. There is no ready literature on measures of organizational effectiveness. however there have been four key models that have been mentioned in the literature to measure organization performance. The models approaches are quite different in a few ways however they all aim at one common goal – organization effectiveness.
To briefly touch upon these models, the first model focused on production which was considered as the companies output, leadership which highlighted the degree of influence and personal ability, inter – personal conflicts highlighted the possible misunderstanding between team members and team supervisors and lastly commitment which refers to the amount of attachment to the organization.
The second model was mainly developed as a management tool. It focused on interrelated organizational processes. This approach used organizational survival and maximized returns as key to effectiveness. Also along with these variables it utilized a few other minor variables which were equally important to run the business smoothly and effectively. These variables were sensitivity to change, promotions, flexibility, adaptability, efficiency, transformations, etc. (Helms, 2008).
The third model was a little different and believed that there were six indicators to organizational effectiveness.