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Organizational effectiveness means to study the organizational structure in order to understand the basic working. It helps in evaluating and analyzing the performance of the organization. There are various components of organizational effectiveness they are:
1. Managerial Policies and Practices
2. Environmental Characteristics
3. Employee Characteristics
4. Organizational Characteristics
1. Managerial Policies and Practices: It helps to combine the organization as a whole in order to maintain a balance between the various interest groups in an organization and to accommodate them according to the environment of the organization. There are various policies and procedures which need to be formulated and implemented at various occasions of the organization they are:
a) Strategy: It refers to the plan in order to interact between the competitive companies to achieve the goals effectively. These strategies are selected on the basis of environmental needs, and then are redesigned by the top management to achieve the desired results.
b) Leadership: It enables to influence the employees towards the effective goal achievements. Leaders enable to identify the organizational goals and also try to initiate the steps towards them.
c) Decision Making: Managerial decisions play a very important role in the success of an organization which is taken out of the various alternatives available at a given point of time.
d) Rewards: Rewards are given to the employees to recognize their efforts towards effective achievement of the organizational goals. It is done to encourage the employees and boost their morale which enables them to improve the quality and quantity of work.
e) Communication: It contributes a lot in the event of organizational change as it helps in the proper communication and linkage between the members of the organization.
2. Environmental characteristics: The external environment plays a very important role in achieving organizational effectiveness. It has various characteristics of environment which helps in understanding the status of the organization they are:
a) Predictability: It refers to the state of certainty or uncertainty in an organization towards supply of human resources, human, raw material etc. Predictability is an element of external environment.
b) Complexity: It refers to the heterogeneity and the range of activities that proves relevant to the operations in the organizations.
c) Hostility: It is an environment in which the foundation of the organization is threatened. It refers to the view by which people view the organization.
3. Employee Characteristics: It is an important characteristic as the source of human resources can make or break an organization. Employee Characteristics reflects the success and failure of the organization and its major characteristics are goals, skills, motives, attitudes and values.
a) Goals: It refers to the direction in which an organization is inclined to go. They can be termed to as intentions that an individual of an organization would like to accomplish during his course of working. It provides directional nature to behaviour of the people and guides their thoughts and actions.
b) Skills: It refers to ability to engage in a set of behaviour that is related to one another. It is the ability that leads to a desired performance in a specified are and it can be technical, administrative, managerial, behavioral etc.
c) Motives: It is an inner state of mind that helps a person to be energized, motivated and directed towards the accomplishment of a pre-defined goal. It is observed that motivated employees have high zeal and enthusiasm to perform better to achieve their respective organizational goals.
d) Attitudes: They are evaluative statements (favorable or unfavorable) concerning objects, events or people and influences job behaviour as well effectiveness of the organization.
e) Values: It refers to as specific code of conduct or basic sincerity possessed by an individual in the organization. It is highly influential in individual attitude and behaviour. It influences the motivation of an individual as well as his behaviour in the organization.
4. Organizational Characteristics: It refers to the general conditions that exist within an organization. The various characteristics that influence the effectiveness of organizations are structure, technology and size.
a) Structure: It defines the formal division, grouping and coordination of the job tasks within the organization. There are six important elements in an organizational structure that are needed for organizational effectiveness. These six elements are work specialization, departmentation, chain of command, span of control, centralization and decentralization, and formalization.
b) Technology: It refers to the ways and means by which an organization transfers its inputs into outputs. The organizational efficiency is largely dependent on the choice of technology and its use.
c) Size: It refers to the number of people in an organization. In broader sense, it can also be referred to as the physical capacity of the organization, the personnel available to the organization, the organizational inputs or outputs and the optional resources available to an organization. The effectiveness and efficiency of an organization is dependent on the size of the organization.
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