BU398 Lecture 6: Lecture 6 – Assessing Effectiveness
Document Summary
Effectiveness : the degree to which an organization realizes its shareholder goals: degree to organizational components (goals, strategy, structure, culture) are aligned w one another and w the environment. Efficiency: the amount of resources used to produce a unit of output: the ratio of inputs to outputs. Contingency resource-based: ability of the organization to obtain scarce and valued resources. Indicators: bargaining position, understanding of external environment, use of resources to achieve superior performance, organization responds to environment. Indicators: culture/climate, team spirit / teamwork, confidence / trust in mgt, decision making near information sources, undistorted communication, rewards for mgt"s development of subordinates, conflict resolved in the interest of the org. Stakeholder goals: many possible indicators, company goals, contingency perspective approaches, values in the competing values model, balanced scorecard metrics. The principle: greater fit between the organization"s design and the environment should lead to greater effectiveness.
