Introduction.

While there have been numerous attempts to define organizational effectiveness over
the years, in general, the collaboration of resources, people, and processes to achieve
certain objectives is what makes up organizational effectiveness.

According to a report by the Maxwell School at Syracuse University, transnational

NGO leaders “consider their organizations effective when they achieve
measurable progress toward their goals.”

 They have access to the right resources – and enough resources

 Employees are motivated and cooperative 

 An organization is able to successfully execute and achieve its core

strategies and goals

For instance:

 Wikipedia defines organizational effectiveness as “how effective an organization

is in achieving the outcomes the organization intends to produce.”

 Businessdictionary.com defines it as “the efficiency with which an association is

able to meet its objectives. The main measure of organizational effectiveness for a
business will generally be expressed in terms of how well its net profitability
compares with its target profitability.”

 The consultancy Six Sigma says, “Organization effectiveness is the efficiency of

an organization, group, or company can meet its goals.”

What Are the Determinants of Organizational

Effectiveness?
There are many factors that contribute to an organization’s effectiveness and
success.

They include:
People

Employees operate and manage organizations, so it is only natural that their

performance will affect an organization’s effectiveness.

These areas can include:

 Skills. Skilled employees are faster, more productive, and more effective. 

 Behavior. Organizational behavior can improve employee productivity or

detract from it. Employees that are cooperative and driven, for instance, will
work better together and produce better results.

 Culture. The culture of an organization is related to behavior. It includes

the values, beliefs, and assumptions of an organization. And it affects how they
interact, work together, and perform their jobs, among other things.

Among other things. 

Processes and Systems

Business processes can be efficient, inefficient, slow, profitable, or a mixture of all

of these.

Such processes can include:

 Workflows. An individual employee’s workflow can be efficient,

inefficient, or somewhere in between. How efficient that workflow is will affect
their contribution to the organization.
 Procedures. Established procedures, such as customer service
interactions or internal business procedures, can also be either effective or
ineffective.

 Processes. A business process – a set of tasks, procedures, or activities –

will also affect the performance of a given business function.

Each organization is unique.

This means that every organization should discover which processes are the most
profitable and effective for their unique situation.

Tools and Technology

Another determinant of organizational effectiveness is technology.

The right tools and technology can improve efficiency and results across virtually
every business function.

But the wrong tools – or improper use of those tools – can be ineffective and
costly.

Examples of tools and technology include:

 Software. The right software, especially at the enterprise level, can make a

big impact on business efficiency and effectiveness.

 IT infrastructure. Modern IT systems, such as cloud computing or

backend infrastructure, can also affect the speed, efficiency, and effectiveness
of many business processes.
 Productivity and training programs. Digital tools can be very beneficial
… but only if employees know how to use them properly. Employee training is
another essential contributor to business effectiveness.

Today, digital adoption and digital transformation focus heavily on technology

and productivity.

That is, digital adoption aims to maximize software productivity and software
ROI, rather than merely implementing new technology.

Vision, Mission, and Strategy

Also, an organization’s high-level mission and strategy will determine its

effectiveness.

These can include:

 The philosophy of an organization. What does the organization value? Is

it strictly focused on profit and competition? Or does it aim to add value to
society or its local community?

 Its market positioning. Market positioning – an organization’s strategic

position relative to competitors – will also affect organizational efficiency and
profitability.

 Organizational strategy. Also, an organization’s high-level strategy will

affect how well the company performs within its market, its industry, and
among its customers.

All of the above will determine and contribute to many other areas of a business,
from its culture to the organizational structure.
Organizational Structure

How an organization is structured will also impact its effectiveness.

Common organizational structures include:

 Top-down. Most of us are familiar with top-down hierarchies and business

structures. These include layers such as senior management, middle
management, and frontline employees.

 Flat. Flat hierarchies reduce or remove the role of middle management.

These structures offer more autonomy and decision-making power to frontline
employees.

 Other structures. There are other types of organizational structures, such

as matrix structures or multi-divisional structures.

As with every other factor covered here, there is no “best” approach.

In this case, for instance, there is no “best” approach to an organizational structure.

When it comes to organizational effectiveness, what matters most

is alignment and synergy.

However, regardless of these factors, making a business more effective

means:

 Improving business processes. Better, more efficient processes result in

decreased costs, faster turnarounds, greater process ROI, among other things.
 Enhancing employee relationships. Employee relationships are a key
determiner of successful business operations. Decreasing interpersonal conflict
and improving teamwork can enhance results across an entire organization.

 Building worker skills. The right skills are necessary for any employee to
function effectively. This is especially true today, with the widening digital
skills gap and the burgeoning necessity for digital literacy.

 Improving the employee experience. Another way to increase employee

productivity is to improve their experience. Better worker experiences can
increase worker satisfaction, output, and motivation. All of which, in turn, will
improve their effectiveness and the organization’s effectiveness.

 Aligning business functions with organizational strategy. Misaligned

business functions can achieve goals that are out of sync with the organization’s
main goals. Such an approach is ineffective and wastes resources.

 Creating the right employee culture and behavior. A culture defines

what people believe and value. Corporate cultures attract certain types of talent,
attitudes, and mindsets. The right culture can improve efficiency and
effectiveness by improving behavior.

Roles that help improve organizational effectiveness often include:

 Human resources professionals. Human resources directors, managers,

and specialists are all intimately involved with the employee experience. As we
progress into the digital age, they are becoming more and more responsible for
improving employee well-being, motivation, productivity, and retention. All of
which impact organizational effectiveness.

 Employee experience managers. Employee experience managers are

directly involved with managing, guiding, and influencing the employee
experience. They have the ability to help improve employee motivation,
 increase worker productivity, and enhance the workplace itself. And all of this
contributes to increasing the effectiveness of individual workers and teams.

 Unit managers and business leaders. Any business leader can help

initiate and improve the effectiveness of their domain. A department head, for
instance, can help improve efficiency in their department, decrease costs, and
make other positive changes. 

 Change management professionals. Change managers play a crucial role

in improving an organization. Every change project has the potential to enhance
and evolve an organization. This is all the more reason to enlist the help of
change management professionals, such as consultants, coaches, and trainers.

Is Organizational Effectiveness the Same as Organizational

Efficiency?

 The idea of efficiency is included within some organizational efficiency

models. 
 However, efficiency and effectiveness are two different concepts.
 Effectiveness refers to how well a desired result is achieved.
 Efficiency refers to the amount of waste, effort, and resources used in a
process.
 Achieving an outcome efficiently means minimizing waste, resource usage,
effort, and so forth.
 When an objective is achieved effectively, it means that the objective has
been achieved successfully.
 Below, we will look at how organizational efficiency can improve
effectiveness.
 But first, let’s examine a few models of organizational effectiveness.

4 Models of Organizatonal Effectiveness

The Canadian Center of Science and Education conducted a review of four
separate models of organizational effectiveness.

This study, which focused on organizational effectiveness within higher education,

included:

 The Goal Approach – Defining effectiveness based on organizational

objectives such as profit, innovation, and profit quality.

 The System Resource Approach – This model explains effectiveness

based on an organization’s ability to obtain necessary resources.

 The Process Approach – This approach focuses on the efficiency and

effectiveness of the processes within an organization.

 The Strategic Constituency Approach – Finally, this model defines

effectiveness based on the interests of the stakeholders.
1. Leadership

The first step in organization effectiveness is ‘Leadership’. In this step,

management and project leaders set forth the overall vision of the organization.
What goals they hope to accomplish with this project, how to carry them out, and
what results they must strive for are in Leadership.

2. Communication

Of course, Leadership is only as effective as the group’s overall communication.

In the second step, Communication focuses on evenly spreading the goals,
guidelines, and aspirations that derive in Leadership. Furthermore, project
managers must focus on strategic communication, relation information in the
forms that other project members need to complete their tasks.

3. Accountability

In the third step, Accountability, project managers and leaders must uphold other
employees to their tasks and responsibilities. Typically, project team members
receive awards or consequences, based on their performance. As a result,
Accountability greatly determines how smoothly and effectively a project
performs.
 4. Delivery

Your products and services are only successful if customers can receive them. At
the next step, Delivery focuses on ensuring an effective delivery system is in
place. When your organization has a long, complex delivery process, errors will
occur and efficiency is at risk. With smaller, more concise processes, your end
products can be delivered on time to the right people.

5. Performance

As a project manager, you must hire the right people for the correct jobs. Of
course, not everyone fits in the same position. At the ‘Performance’ step, the goal
is to hire, train, and retain the perfect applicants for the processes and tasks you
have.

6. Measurement

A business process is only effective if you can measure it. At the final stage of
organizational effectiveness, you must measure and analyze your project,
process, or other systems. Likewise, you must measure your organization with
the correct metrics. Failing to do so will result in inaccurate or non-usable data.

Organizational Effectiveness: The Definitive Complete Guide (walkme.com)

Know about Organizational Effectiveness and its 6 Steps - SixSigma.us (6sigma.us)

Œuvre : Structural Determinants of Organizational Effectiveness

What Is Organizational Effectiveness? (walkme.com)