Question

hese three questions should be asked when dealing with the framework in order to get the most out of the quadrants: 1. What are the main criteria for determining if an organization is effective or not? 2. What key factors define organizational effectiveness? 3. When people judge an organization to be effective, what indicators do they have in mind? (Cameron & Quinn).

Answer 1

1. Organizational effectiveness is defined as an extent to which an organization achieves its predetermined objectives with the given amount of resources and means without placing undue strain on its members.

a. Goal Approach

Goal attainment is the most widely used criterion of organizational effectiveness. In goal approach, effectiveness refers to maximization of profits by providing an efficient service that leads to high productivity and good employee morale. Several variables such as quality, productivity, efficiency, profit, turnover, accidents, morale, motivation and satisfaction, which help in measuring organizational effectiveness. However, none of the single variable has proved to be entirely satisfactory.

The main limitation of this approaches the problem of identifying the real goals rather than the ideal goals.

b. Functional Approach

This approach solves the problem of identification of organizational goals. Parson states that since it has been assumed that an organization is identified in terms of its goal, focus towards attainment of these goals should also aim at serving the society. Thus, the vital question in determining effectiveness is how well an organization is doing for the super-ordinate system.

The limitation of this approach is that when organizations have autonomy to follow its independent courses of action, it is difficult to accept that ultimate goal of organization will be to serve society. As such, it cannot be applied for measuring organizational effectiveness in terms of its contributions to social system.

c. System Resource Approach

System-resource approach of organizational effectiveness emphasizes on inter-dependency of processes that relate the organization to its environment. The interdependence takes the form of input-output transactions and includes scarce and valued resources such as physical, economic and human for which every organization competes.

The limitation of this model is that an acquisition of resources from environment is again related to the goal of an organization. Therefore, this model is not different from the goal model.

2. Factors affecting organizational effectiveness into following three variables:

a. Causal Variables: Causal variables are those independent variables that determine the course of developments within an organization and the objectives achieved by an organization. These causal variables include only those independent variables, which can be altered by organization and its management. Causal variables include organization and management’s policies, decisions, business and leadership strategies, skills and behavior.

b. Intervening Variables: Intervening variables according to Likert are those variables that reflect the internal state and health of an organization. For example, loyalties, attitudes, motivations, performance goals and perceptions of all the members and their collective capacity for effective interaction, communication and decision-making.

c. End-Result Variables: End-Result variables are the dependent variables that reflect achievements of an organization such as its productivity, costs, loss and earnings.

3.The indicators that people have in mind are:

(a) One that “differentiates a focus on flexibility, discretion, and dynamism from a focus on stability, order, and control”; and (b) A second that “differentiates a focus on an internal orientation, integration, and unity from a focus on an external orientation, differentiation, and rivalry