Organization Effectiveness: Course Project

Expectations
Description of the selected organization
Introduction (Mission/Vision, Goals/objectives) Scope of the organization (Geography, products/services) Size (business volume [production/processing/sales volume, financial turnover/fund generated and utilized)

Structural description
Structural dimensions (facts with inferences & examples) Comment on configuration hypothesis

Expectations
Context of the organization
Size (No. of employees ratios) Environment Strategy Technology Power Authority Structural Configuration

Expectations
Discussion on congruence hypothesis (Organizational effectiveness relates to fit between design parameters and contingency factors)

How would you deal with incongruence, if any? OE Competing Values Framework applied to the selected organization (for this assume that you are insider and use the most direct source of information that you need. You may also make assumption about the organization in case of non-availability of information but standard clause regarding validity of assumptions apply.) Presentation: 15 +5 Minutes Mail soft copy by 5:00 p.m. on February 13

 OE is the degree to which the organization realizes its goals. OE implicitly takes into account a range of variables at both the organizational and departmental levels. It evaluates the extent to which multiple goals whether officials or operative are attained Whose goals? Which of the goals?

 Efficiency limited to internal workings of the organization amount of resources used to produce a unit of output In some cases efficiency leads to effectiveness but in other cases the two may not be related

 OE Research - beset with controversy, including debates about the primary factors that constitute OE and questions about validity of measuring the construct at all Organization theory has produced a plethora of models exploring OE - in factthere are as many models as there are studies of OE

Goal Attainment Approach

Indicators: Operative Goals Usefulness: Output goals can be readily measured Issues: Identifying the goals multiplicity of goals subjective indicator of goal attainment

Systems Approach
External Environment Organization Resource Inputs
Internal activities and processes

Product and Service Outputs

Resource-based approach

Internal process approach

Goal approach

Systems Approach
The ultimate survival of the organization depends on its ability to adapt to the demands of its environment In meeting these demands, the total cycle of input-process-output must be the focus of managerial attention

Resource Based Approach

Indicators: Bargaining position, decision makers ability to perceive and correctly interpret properties of external environment, ability of managers to use tangible and intangible resources to achieve superior performance, organizational ability to respond to changes in the environment Usefulness: in not-for profit organizations where output goals or internal efficiency is hard to measure Issues: vague link with customers need, fails to consider the changing value of various resources as the environment changes

Internal Process Approach

Indicators: Economic efficiency, HR Indicators such as strong & positive work culture, confidence, communication & trust, decision making near source of information, undistorted communication, rewarding performance, growth & development of subordinates, internal interaction Usefulness: internal processes particularly soft aspects such as communication, decision making are very critical Issues: Total output and organizations relation with the external environment not evaluated, evaluation of internal processes are often subjective due to non-quantifiability

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Strategic Constituencies Approach: OE Criteria for Selected Constituencies

Constituency Typical Criteria

Owners Employees Customers Suppliers Creditors Unions

Local Communities Government Agencies

Return on Investment; growth in earnings Compensation; fringe benefits; job satisf. Satisf. w/price, quality, service Satisf. w/payments, future sales Satisf. w/debt payments Satisf. w/competitive wages & benefits; satif. working conditions, fairness in bargaining Involvement in local affairs; environmental damage Compliance w/laws, avoidance of penalties

Competing Values Approach

Flexibility

Means

People/ Internal

Organization/ External

Ends

Control

Competing Values Model of Organizational Effectiveness

STRUCTURE
Flexibility

Human Relations Emphasis

Open Systems Emphasis

Primary Goal: growth, resource acquisition Subgoals: flexibility, readiness,
External

F O C U S

Internal

End: human resource development Means: cohesion, morale

Internal Process Emphasis

Primary Goal: stability, equilibrium

Rational Goal Emphasis

Primary Goal: productivity, efficiency, profit Subgoals: information management, Subgoals: planning, goal setting communication
Control
Adapted from Robert E. Quinn and John Rohrbaugh, A Spatial Model of Effectiveness Criteria: Toward a Competing Values Approach to Organizational Analysis, Management Science 29 (1983): 363-377; and Robert E. Quinn and Kim Cameron, Organizational Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary Evidence, Management Science 29 (1983): 33-51.

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Competing Values
Four different opposing value sets within the organization. Exist simultaneously, and the right balance for the organization is subject to managerial discretion.

Emphasis may change over time, especially as the organization evolves through its life cycle.

Workshop Activity

Competing Values and Organizational Effectiveness

Goal or subgoal Performance Gauge How to measure Compare percentages of workers who left Source of data What do you consider effective? 25% reduction in first year

(Example) Equilibrium 1 Open System 2 3 Human Relations 4 5 Internal Process 6 7 Rational Goal 8

Turnover rates

HRM files

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Open system
Goal / Sub Goal Growth/Resource Acquisition: Increase the number of partners at the local level to efficiently transfer the resources to the target communities. Percentage of increase in number of partners. To increase the area of operation .

Performance Gauge

Increase in projects and project area from the last quarter

How to measure?
Source of data What do you consider effective?

Compare the number in two quarters

Antara-MIS and Outreach Department 20% increase in partners on YOY basis.

impact area of projects will be compared

Project progress report Involving atleast 10 new communities in one quarter

Human Relations
Goal / Sub Goal Decrease attrition rate which is high Introduction of regular appraisal system

Performance Gauge

Job Satisfaction feedback form.

Acceptance of PAF by employees

How to measure?

Detailed questionnaires , Exit interviews.

Monitor for 3 quarters

Source of data

Performance management system

Feedback from the employee.

What do you consider effective?

Atleast 50% reduction from the previous level.

More than 90% accepted.

Internal Process
Goal / Sub Goal Timely availability of funds to all concern departments so as to reduce the dissent among the departments and improve efficiency. Standard process for departments to vie for the projects so that redundancy of effort and interdepartmental conflicts are checked.

Performance Gauge
How to measure? Source of data

No of project which had delayed funding

Measuring the time lag from standard disbursement period. Disbursement data from finance department Complete elimination of delays in funding due to avoidable reasons.

Standardization of process to get new projects

No of time different department approach for same project in a quarter. MIS, Different department heads

What do you consider effective?

No overlapping

Rational Goal
Goal / Sub Goal Productivity in terms of social mobilization Diversity of funding agencies

Performance Gauge

Whether the project is sustainable at the end of the stipulated time period

New tie-up with the external agencies catering to the all focus areas.

How to measure?

Local communities to run and sustain the projects once the organization exits Project progress report

Counting the numbers of new agencies in different focus areas.

Source of data

MIS and outreach department.

What do you consider effective?

Less than 3 projects assessed to be unsustainable.

10% Increase in new agencies focus area wise.

OE Measurement: A sample
Structure

Human Relation Emphasis

Flexibility
Open System Emphasis

Focus

Internal

External

Cohesion Foundation Trust Internal Process Emphasis Rational Goal Emphasis

Control