What is organizational effectiveness? Discuss three approaches to evaluating effectiveness and the problems associated with each approach.
Question:
What is organizational effectiveness? Discuss three approaches to evaluating effectiveness and the problems associated with each approach.
Organizational effectiveness is when certain resources can be used and made into a value. The three approaches that are used are the external resource approach, internal systems approach and technical approach.
The External Resource Approach: Control is a method managers use to evaluate how effectively an organization manages and control its external environment. Top managers watch the price of their company’s stock very closely because of the impact it has on shareholder expectations.
The Internal Systems Approach: Innovation is a method that allows managers to evaluate how effectively an organization functions and resources operate. To be effective, an organization needs a structure and a culture that fosters adaptability and quick responses to changing conditions in the environment. The organization also needs to be flexible so it can speed up decision making and create products and services rapidly.
The Technical Approach: Efficiency is a method managers use to evaluate how efficiently an organization can convert some fixed amount of organizational resources into finished goods and services. Technical effectiveness is measured in terms of productivity and efficiency (the ratio of outputs to inputs.
Information Systems Today Managing in the Digital World
ISBN: 978-0132971218
6th edition
Authors: Joseph Valacich, Christoph Schneider