Case Study Of ENRON Power Corporation

1.Overview Of The ENRON Power Corporation:

Enron Corporation was an American energy, commodities, and services company based
in Houston, Texas. It was founded in 1985 as a merger between Houston Natural
Gas and InterNorth, both relatively small regional companies. Before its bankruptcy on
December 3, 2001, Enron employed approximately 29,000 staff and was a
major electricity, natural gas, communications and pulp and paper company, with claimed
revenues of nearly $101 billion during 2000.[1] Fortune named Enron "America's Most
Innovative Company" for six consecutive years.
At the end of 2001, it was revealed that Enron's reported financial condition was sustained by
institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron
scandal. Enron has since become a well-known example of willful
corporate fraud and corruption. The scandal also brought into question the accounting practices
and activities of many corporations in the United States and was a factor in the enactment of
the Sarbanes–Oxley Act of 2002. The scandal also affected the greater business world by causing
the dissolution of the Arthur Andersen accounting firm, which had been Enron's main auditor for
years.
[4]

Enron Corporation

Enron logo

Former type Public

Traded as NYSE: ENE

Industry Energy
 Fate Bankruptcy

InterNorth (Northern Natural Gas Company)

Predecessor
Houston Natural Gas
merger in 1985
Successor Dynegy
Prisma Energy International
Founded 1985 in Omaha, Nebraska, United States

Founder Kenneth Lay

Defunct 2001

Headquarters 1400 Smith Street

Houston, Texas
, 
United States
Area served United States, India, Caribbean,
Key people Kenneth Lay (Founder, Chairman and CEO)
Jeffrey Skilling (former President, COO, and CEO)Jordon
Patkus (Current President and CEO)
Andrew Fastow (former CFO)
Rebecca Mark-Jusbasche(former Vice Chairman,
Chairman and CEO of Enron International)
Stephen Trauber (Interim CEO and CRO)

Services Energy

Revenue $100.789 billion

Net income $0.979 billion
Total assets $67.503 billion
Number of 29,000 (2001)
employees

Key Concept: The passage is talk about how the element of general and task environment
create and effect opportunity for enron and also discuss the various way in which enron adapted
to it's environment.
Summary: Enron based in Houston, Texas emerged as the largest seller of the natural gas
and other energy resources in America in 1990s. It was a multinational corporation providing
energy, communication services and heavy goods employing approximately twenty nine
thousand staff. Kenneth Lay founded the company in the year 1985 after Houston Natural Gas
and InterNorth merged together. The company’s earnings increased when it followed a
diversification strategy when it decided to expand its product base from natural gas to other
products like coal, steel, paper and pulp, broadband communications etc. The rise of the
company was evident from its revenue earnings which amounted to $ 112 billion during the year
2000 and it was rated as the most innovative company by the Fortune magazine during that year
(Miceli da Silveris, 2013). The real misfortune of the company began at the end of 2001 when
the financial state of affairs of the company was uphold by a deliberate accounting fraud which
was renowned as Enron Scandal.

Case Question And Ans:

1.Identify how dimension of the task environment created new opportunity for Enron.

Answer: While Enron was running in trouble, CEO Kenneth Lay tried to persuade Government
regulators to change the rules. To avoid financial ruin CEO decided to abandon to his purchasing
contracts. Meanwhile, new opportunity created of the task environment to Enron -

1.Regulators: regulatory agencies are specific government agencies that have direct influence
on organizational activities and operations. These agencies have the power to enforce laws in
their respective fields.

In this case study the regulators changed the rules for everyone and thus the pipeline
companies were free to buy and sell gas supplies in the marketplace. Thus they created new
opportunities for Enron

2.Customers: The basic goal for of any business organization is making profits and the profits
are created by customers. Hence, knowledge about the customer’s needs and fulfilling these
needs is an organization’s primary concern.

when no one was selling gas and electricity ENRON tried to sell electricity using their
experience of selling gas. But ENRON couldn’t sell the electricity or gas if the customers were
not ready to buy. So the customers eventually helped ENRON in spreading its market.
3.Suppliers: A supplier is a group of persons, company, or organization that sells or supplies
something such as goods , raw materials, equipment to another company or business.
Suppliers also influence a company’s task environment. Choosing the right supplier is an
important strategic decision.

Enron had a sprawling network of suppliers who helped them to trade power supplies at 25%
higher volume than its competitors. Thus the suppliers helped them create new opportunities.

4.Competitors: Any person or entity that is in the same industry or a similar industry, or which
offers a product similar to that of another person or entity, is called its competitor.

The market in which Enron was doing business had a lot of competitors. Because of them
Enron always tried to push their Network and became such a large company. So competitors in
some ways unintentionally helped Enron building its huge company.

5.Strategic partners: A strategic partnership is a relationship between two commercial

enterprises, usually formalized by one or more business contracts. A strategic partners will
usually fall short of a legal partnership entity, agency, or corporate affiliate relationship.

In ENRONs case strategic partners such as Sun Microsystems helped Enron to create large
distribution network which they never could create without their help. Thus the strategic
partners helped Enron to create new opportunities.

2. How elements of enron’s general environment affected its ability to exploit new
opportunities.

External environment of an organization includes a variety of factors, whose existence,

influence its behavior and performance. The action of these factors may be direct (for example, the

actions of competitors) or indirect (for example, changes in business climate). There are 5 types of
general environments.

In this case we find out two types of general environments that affects enron’s organization to exploit new
opportunities.

i. Economic dimension
ii. Political-legal dimension
iii. International dimension

Economic Environment consists of factors like inflation rates, interest rates, consumers’
incomes, economic policies, market conditions etc. which affect the performance of a business
firm.
In this case in mid 1980s when oil prices dropped lower than gas prices. It affects market
conditions. Economic factors that directly affect business organizations by interest rates,
inflation, exchange rate, fiscal policy, price fluctuations, etc.

Political Environment consists of forces such as political stability and peace in the country and
attitude of the ruling party and its representatives towards business. The legal framework
includes all laws and legal regulations and policy framework refers to the relational system
created between political power and business. Example: commercial law regime of taxes, labor
law, environmental law etc. From this perspective we can speak of the need to ensure a climate
of political and legal stability, which may encourage or discourage business, avoiding the risk.

In this case we find that regulations simplified the company’s planning process in many ways, it
also prevented Enron from adjusting its pricing, regardless of actual supply and demand.

International Environment

The environment that includes the elements within the organization’s boundaries.

In this case Enron’s starts their journey on USA as a power industry. Spread to their business to
other countries, Enron be gan to widen its reach as well. Country by country, it became the
The company also entered the Indian
largest energy trading company in Europe.
market by building a giant generating plant.

3.Discuss the various ways in which enron adapted to its environment. what other
adaptions would allow Enron to maintain its market leadership in the power industry

Answer: . The various ways in which Enron adapted to it’s environment is giving below:
1. Information system: Environmental Scanning actively monitoring the environment through activities
such as observation and reading. We see in the case study that, Enron allowed the management to
monitoring issue affecting future energy prices closely such as regional weather pattern.

2. Strategic response: Strategic Response: is like adopting an entirely new strategy, maintaining status
quality.

In that case we noticed that as deregulation spread other countries, Enron began to widen its reach as
well, country to country, it become the largest energy trading company in Europe. The company also
entered the Indian market as well

3.Direct influence: Many organization are able to directly influence their environments in many way. We
noticed that Enron’s latest venture is buying and selling excess bandwidth that carry internet
connection. Telecommunication firm offered only long -term , fixed-rate contract for connection
4. Acquisition : Enron acquired a specialized software company to help develop a system for switching
surplus bandwidth with only 15 minutes of lead time

5.Alliance: We found that, the company partnered with Sun Microsystem to create a gigantic
distribution network for fiber-optic bandwidth

Some other adaptions :

 Organization design and flexibility: A flexible organization structure is one in which workers can
easily adapt to their customers’ needs , efficiently complete their work and expedite decision-
making when necessary. Several types of internal organization structure are flexible enough to
meet these objectives. A flexible organization does not have any unwanted or unnecessary
restrictions or rules that can have a negative effect on the morale of the employees

 Social responsibility: Enron should adapt Corporate social responsibility. Corporate social
responsibility (CSR) is a self-regulating business model that will helps Enron's company be
socially accountable — to itself, its stakeholders, and the public. By practicing corporate social
responsibility, also called corporate citizenship, Enron’s companies can be conscious of the kind
of impact they are having on all aspects of society including economic, social, and
environmental.

 Improving Feedback: To improve the opportunity, Enron industry should implement procedures
and practices to provide systematic feedback on diagnostic performance to individual helps to
point out the mistake and that can be viewed as opportunities for growth and improvement

Conclusion: Thus the government is pretty rigid and strict to their policy but they have created
various opportunity for their pipeline companies here . So, Enron used their opportunities in a
effective way also other task factors helped them to grow and spread their ways towards
success a pretty good alliances with suppliers as well as their customers eased their way into
the state they are now. Also their continuous upgrading of the networking side really played a
huge part in terms of their success.

Recommendations: As gas and electricity is the new hope of efficient energy rather than oil
Enron should look out for more possible opportunities that they can enlarge their gas and
electricity distribution considering the future market and taking the minimal risk they should
ensure efficient market plan for upcoming years.

Also the current multi layered business model is very effective as it seems so they should move
on and the pricing should be flexible but it should not vary in a larger scale.

1.The Organization Environment

An organizational environment is composed of forces or institutions surrounding an organization
that affect performance, operations, and resources. Organization have both an external and
internal environment.

The External Environment

The external environment is everything outside an organization that might affect it. An external
environment is composed of all the outside factors or influences that impact the business. An
organization ‘s external environment consists of two layers :

i. The general environment – refers to those nonspecific dimensions and forces in an

organization's surroundings that might affect its activities. It includes economic,
technological, socio-cultural, political-legal, and international forces.

ii. The task environment - refers to those specific organizations or groups that
influence an organization. It consists of competitors, customers, suppliers,
regulators, unions and owners.

The General Environment: The general environment of an organization refers to a range of

factors or forces outside an organization that may influence the performance and operation of a
business.

1. The Economical Dimension: The economic dimension of an organization’s general environment

is the overall condition of the economic system in which the organization operates. The
important economic factors for business are economic growth inflation, interest rates and
unemployment.
2. The Technological Dimension: The technological dimension refers to the methods available for
converting resources into products or services.
3. The Sociocultural Dimension : The sociocultural dimension includes the customs morals ,values
and demographic characteristic of the society in which the organization functions. These factors
are important because control the products or services that society values .
4. The Political /Legal Dimension: The political dimension refers to governments regulations of
business and the relationship between business and government . These dimension are very
important because legal system defines what an organization can do and cannot do,
government influences business activities and lastly without political stability no business can
run smoothly.
5. The International Dimension: The international dimension is the extent to which the
organization is affected by business in other countries.

The Task Environment : Task environment consists of those industry factors which are
external to the firm but have a direct and specific impact on the organization and are in turn
affected by the organization’s operations.
1. Competitor:

Competition is the basic element of an organization. The interests of both the organization and
the customers are better served when choices in the market are available. Competition
encourages progress and product-developments. It forces organizations to be more innovative
and productive.

2 Customers:

Customers create demand for products and are the source of income for the business. Customers are
the basic reason for the existence of any business organization is making profits and the profits
are created by customers.

3 Suppliers:

Suppliers provides necessary resources for the organization. So it’s important to hold on the
suppliers and maintain good relationship with them. Companies often maintain more number
of suppliers for reducing risk.

4 Regulators :
Regulators are elements of the task environment that they have the potential to control ,
legislate or influence an organization policies and practices .

5 Strategic Partners
Another dimension of the task environment is strategic partners also known as strategic allies.
Here two or more companies that work together in joint venture or other partnerships . For
example ROBI and AIRTEL joined together to achieve their common goal.

The Internal Environment

An organization's internal environment consists of the entities, conditions, events, and
factors within the organization that influence choices and activities. An
organization's internal environment is composed of the elements within the
organization, including current employees, management.

1. Owners : The owners of the business are , of course , the people who have legal
property rights to that business .
2. Employees : The employees are the one who work for achieving the goal of the
organization An organization’s employees are a major element of its internal
environment .
3. Board of Directors: A corporate board of directors are elected by the stockholders and
charged for the management for ensuring the growth of the organization .
 4. Physical work environment :One of the most important part of internal environment is
the actual physical environment of the organization and the work that employees does .

2. The Organization and Culture

Organization Culture

A systems of shared assumptions, values, and beliefs which governs how people behave in
organization. These shared values have a strong influence on the people in the organization and
dictate how they dress, act, and perform their jobs. Every organization develops and maintain a
unique culture which provides guidelines & boundaries for the behavior of the members of the
organization.

Importance of Organization Culture:

A common platform where individuals work in unison to earn profits as well as a livelihood for themselves is called
an organization. A place where individuals realize the dream of making it big is called an organization. Every
organization has its unique style of working which often contributes to its culture. The beliefs, ideologies, principles
and values of an organization form its culture. The culture of the workplace controls the way employees behave
amongst themselves as well as with people outside the organization.

 The culture decides the way employees interact at their workplace. A healthy culture encourages the
employees to stay motivated and loyal towards the management.
 The culture of the workplace also goes a long way in promoting healthy competition at the
workplace. Employees try their level best to perform better than their fellow workers and earn recognition
and appreciation of the superiors. It is the culture of the workplace which actually motivates the employees
to perform.
 Every organization must have set guidelines for the employees to work accordingly. The culture of an
organization represents certain predefined policies which guide the employees and give them a sense
of direction at the workplace. Every individual is clear about his roles and responsibilities in the
organization and know how to accomplish the tasks ahead of the deadlines.
 No two organizations can have the same work culture. It is the culture of an organization which makes it
distinct from others. The work culture goes a long way in creating the brand image of the
 organization. The work culture gives an identity to the organization. In other words, an organization is
known by its culture.
 The organization culture brings all the employees on a common platform. The employees must be
treated equally and no one should feel neglected or left out at the workplace. It is essential for the
employees to adjust well in the organization culture for them to deliver their level best.
 The work culture unites the employees who are otherwise from different back grounds, families and
have varied attitudes and mentalities. The culture gives the employees a sense of unity at the workplace.

Certain organizations follow a culture where all the employees irrespective of their designations have to
step into the office on time. Such a culture encourages the employees to be punctual which eventually
benefits them in the long run. It is the culture of the organization which makes the individuals a successful
professional.

 Every employee is clear with his roles and responsibilities and strives hard to accomplish the tasks within
the desired time frame as per the set guidelines. Implementation of policies is never a problem in
organizations where people follow a set culture. The new employees also try their level best to understand
the work culture and make the organization a better place to work.
 The work culture promotes healthy relationship amongst the employees. No one treats work as a
burden and moulds himself according to the culture.
 It is the culture of the organization which extracts the best out of each team member. In a culture
where management is very particular about the reporting system, the employees however busy they are
would send their reports by end of the day. No one has to force anyone to work. The culture develops a
habit in the individuals which makes them successful at the workplace.
Determinants of Organization Culture

-Organization’s founder
The entrepreneur who started a business. If multiple entrepreneurs were involved in the creation
of the company, they are referred to as the founders. The origin of the word is that a founder
originally meant a person who forges steel; similarly, the founder of a company is forging the
new entity.

-Symbols, stories, heroes, slogans, and ceremonies

Symbols
An object, act, or event that conveys meaning to others.

Story
A narrative based on true events that is repeated frequently and is shared among organization
employees.

Hero
A figure who exemplifies the deeds character, and attributes of a strong corporate culture.

Slogan
A phrase or sentence that succinctly expresses a key corporate value.

Ceremony
A planned activity at a special event that is conducted for the benefit of an audience.

Symbols, stories, heroes, slogans, and ceremonies that embody and personify the spirit of the
organization.

-Corporate success:
That strengthens the culture. How employees succeed in their corporate life

- Shared experiences:
Shared experiences bond organizational member together. It also motivate
employees.
Managing Organization Culture:
The manager must understand the organization current culture. If upper level manager find any
problem in culture than they should change the culture or they don`t find any lacking then they
maintain same culture. Articulate the culture through slogans, ceremonies, and shared
experiences.
Articulate the culture through slogans, ceremonies, and shared experiences.
Reward and promote people whose behaviors are consistent with desired cultural values.

Changing Organization Culture

Three major steps are involved in changing an organization's culture.

 Understand your current culture.

 Decide where your organization wants to go, define its strategic direction, and decide
what the organizational culture should look like. What vision does the organization have
for its future, and how must the culture change to accomplish that vision?
 The individuals in the organization must decide to change their behavior to create the
desired organizational culture. This is the hardest step in culture change.
How Environment Affects Organization:
Three basic perspective can be used to describe how environments affect organization.

I. Environmental change and complexity

II. Competitive forces
III. Environmental turbulence

1.Environmental change and complexity:

The environment can described in two dimension, one is its degree of change and
another is its degree of homogeneity. The degree of change is the extent to which the
environment is relatively stable or dynamic. The degree of homogeneity is the extent to
which the environment is relatively simple or relatively complex. These two dimension
interact to determine the level of uncertainty faced by the organization.

The least environmental uncertainty is faced by organizations with stable and simple
environments. Although no environment is totally without uncertainty, some
entrenched franchised operations and many container manufacturers have relatively
low levels of uncertainty to contend with.
Moderate degree of uncertainty is Organizations with dynamic but simple environment
Examples of organizations functioning in such environments include clothing
manufacturer and music producers.
2.Competitive Forces:
Porter's Five Forces Analysis is an important tool for understanding the forces that shape
competition within an industry. It is also useful for helping to adjust the strategy to suit one’s
competitive environment, and to improve your potential profit.

Threat of
new
entrants

Threat of
Competiti
substituti ve rivalry
on
Five
competiti
ve forces

Buyer Supplier
power power

1. Threat of new entrants : Profitable markets attract new entrants, which erodes profitability.
Unless incumbents have strong and durable barriers to entry, for example, patents,
economies of scale, capital requirements or government policies, then profitability will
decline to a competitive rate.

2. Competitive rivalry : The main driver is the number and capability of competitors in the market.
Many competitors, offering undifferentiated products and services, will reduce market
attractiveness.
Where rivalry is intense, companies can attract customers with aggressive price cuts and high-
impact marketing campaigns. Also, in markets with lots of rivals, your suppliers and buyers can go
elsewhere if they feel that they're not getting a good deal from you.
On the other hand, where competitive rivalry is minimal, and no one else is doing what you do, then
you'll likely have tremendous strength and healthy profits .
3. Supplier power: An assessment of how easy it is for suppliers to drive up prices. This is driven by
the: number of suppliers of each essential input; uniqueness of their product or service; relative size
and strength of the supplier; and cost of switching from one supplier to another.

4. Buyer power: An assessment of how easy it is for buyers to drive prices down. This is driven by
the: number of buyers in the market; importance of each individual buyer to the organisation; and
cost to the buyer of switching from one supplier to another. If a business has just a few powerful
buyers, they are often able to dictate terms .

5. Threat of substitution: Where close substitute products exist in a market, it increases the
likelihood of customers switching to alternatives in response to price increases. This reduces both
the power of suppliers and the attractiveness of the market. For example, if you supply a unique
software product that automates an important process, people may substitute it by doing the
process manually or by outsourcing it. A substitution that is easy and cheap to make can weaken
your position and threaten your profitability.

3.Environmental turbulence: The unexpected changes and upheavals, five competitive

forces can be studied assessed systematically, and plasn can be developed for dealing with
them. An organization can face the environmr=ental changes or turbulences. The common
form of organizational turbulences are-

-Terrorist attacks: Terrorist attack is an obious illustration of environmental turbulences.

Organization need to consider the safety of their employees as they go about their day-to-day
business. They also need to consider their response if indirectly affected .

-Workplace violence: Workplace violence is violence or the threat of violence against workers.
It can occur at or outside the workplace and can range from threats and verbal abuse to
physical assaults and homicide, one of the leading causes of job-related deaths. 4 types of
workplace valances are Criminal intent, customer or client Worker-on-worker Personal
relationship.

- Political violence the political environment can impact business organizations in many ways. It
could add a risk factor and lead to a major loss. You should understand that the political factors
have the power to change results.

-Computer viruse: Computer viruses can hamper the entire information system of the
organization. This can result losses of information ,leaks data, misuse of confidential data of the
company.
How Organization Adapt to Their
Environment
Every organization exists in an environment and interacts with it to some extent. When the environment
changes in a significant way the, organization goes through a process of adaption. If sufficient adaption
does not take place strain will develop and organization will being to move toward irrelevance,
extinction, or some form of forced, changed . Some adaption’s are:

1. Information management: Important when forming an initial understanding of the

environments and when monitoring the environments for signs of change

 Boundary Spanner: an employee who spends much of their time in contact with others
outside the organization. Example: Learning what others doing
 Environmental Scanning: Actively monitoring the environments through activities such
as : reading and observation

2 .Strategic Responses:  An organization may also adapt to its environment through strategic response.
By maintaining quality, slightly alerting strategy

Example: Starbuck’s growth in U.S.A slowing ; by spading into international markets to speed up growth
gain

3 .Merger: when two or more firms combine to form a new firm.

Example: Delta and Northwest made Delta-Northwest

4. Acquisition : When one firm buys another

Example :Starbucks taking over Seattle Coffee Company

5. Alliance : A firm under take a new venture with another firm

Example: Expanding presence in a current market

6. Organization design and flexibility: An organization may also adapt to the environmental condition
by incorporating flexibility in its structural design. Thus a firm, operating in a dynamic and complex
environment might choose a design with relatively few standard procedures
6.The environment and organizational effectiveness:

Organizational effectiveness can be defined  as the efficiency with which an association is able
to meet its objectives. This means an organization that produces a desired effect or an
organization that is productive without waste.

6.1-Model of organizational Effectiveness:

Organizational effectiveness continues to be  a  popular  topic in management  settings,

seminars,  and  research projects.  Similar levels of attention prevail  in  area  of sport 
management. OE is at the theoretical center of all  organizational  models  and  is the ultimate
dependent variable of organizational studies. As the study of organizational effectiveness  in 
profit organizations is  complex  and confused,  studying the construct in nonprofit 
organizations  like sporting  organizations  may be even more  troublesome due to  their 
distinctive nature. Result showed five major approaches to measuring organizational 
effectiveness,  i.e.,  Goal  attainment,  systems of resources, internal procedure, multiple
constituency and competing values framework have been reported in the literature.

6.1.1. Systems Resources Approach:

This approach to organizational effectiveness focus on inputs — that is, on the extent to which
the organization can acquire the resources it needs. This perspective attributes effectiveness to
organization’s that exhibit low performance or productivity, so long as they are able to acquire
the necessary resources.

6.1.2. The Process Approach :

This approach is known as the process approach which pays attention to the transformation
process and is dedicated to seeing to what extent the resources are officially used to give services
or produce goods By effectiveness, it is meant that the organization is internally healthy and
efficient and the internal processes and procedures in that place are quite well-oiled. In an
effective organization, there is no trace of stress and strain. The members are completely part of
the system and the system itself works smoothly. The relationship between the members is based
on trust, honesty, and good will. Finally, the flow of information is on a horizontal and vertical
basis  The trend of this approach in higher educational institutions is to fulfil the objectives by
providing timely and sufficient information to the students, and the academicians. The collection
of information and communication management is of major importance.

6.1.3.The Strategic Constituency Approach :

This approach is the strategic constituency approach. It deals with the effect of the organization
on the main 
stakeholders and their interest. Based on this approach, effectiveness refers to the 
minimal satisfaction of all of the strategic constituencies of the organization. Strategic
constituency involves all the people that are somehow connected to the organization. These
people may have different roles such as the users of the services or products of the organization,
the resource providers, the facilitators of the organization’s output, the main supporters and the
dependents of the organization noted that in academic and research environments in which it is
not quite easy to define the cost-benefit relations, it is sensible to make use of the strategic
constituency approach. This approach assumes an exhaustive attitude toward effectiveness and
evaluates the factors both in the environment and within the organization. In this outlook, the
concept of social responsibility is taken into consideration. This is the notion that was not
formally paid attention to in the traditional approaches, but it is of crucial importance for
academic and research institutions which are financially supported by national money. Policy
makers continuously pay attention to social responsibility because the resources which are
available for research and development have been growing smaller and smaller at all levels of
organizations. Therefore, in order to evaluate how answerable an organization is to the society,
there rises the question of accountability of research activities and outcomes in relation to public
expectations. Besides these approaches, the legitimacy model, and the ineffectiveness model are
involved, dealing with dimensions of the general issue of organizational effectiveness.  Although
different effectiveness models and approaches have evolved.

6.1.4.2.1 The Goal Approach :

The  extensively used approach in organizational effectiveness is the goal approach. Its focus is
on the output to figure out the essential operating objectives like profit, innovation and finally
product quality. There are some basic assumptions for the goal approach. One of them is that
there should be a general agreement on the specific goals and the people involved should feel
committed to fulfilling them. The next assumption is that the number of goals is limited and
achieving them requires certain indispensable resources said the weakened significance of the
goal-based approach for the evaluation of the effectiveness of research organizations and
academic establishments is depicted in the accurate and clear measurement of the results. In fact,
it is crucial in the vividness of the goals and output measures. The goal model is suitable only
when these conditions are met. However, this is not usually applicable for the educational
research organizations specifically in conditions where they are responsible to the goals and
there must be justifications for their large-scale social functions. Moreover, any
research possesses an exploratory nature and for the job of inquiry, freedom is essential. These
are the facts which must not be restricted by narrow goals. In this case, the goal-oriented
approach will be only partly suitable.

6.2.How do you achieve organizational effectiveness:

Organizational effectiveness relates to the efficiency of a business; however, a professional must
also focus on quality services. The key to organizational effectiveness is using the right tools and
strategies to accomplish a specific goal.

1. Make Use of Human Resources. 

2.Focus on Education and Growth.
3.Keep the Customers in Mind. 
4.Work on Quality Services or Products.
5.Use Technology.