An organization structure defines how jobs and tasks are formally divided, grouped and co-ordinate. Six key elements are: • Work specialization and specification. • Departmentalization • Chain of control • Span of control • Centralization and decentralization • Formalization Work specialization: Example Henry Ford’s automobile assembly line. 1) Work can be performed more efficiently if persons are allowed to specialize. This is also known as division of labour. 2) Rather than the entire job, by one individual it is broken down into a number of steps, with each step being computed by a separate individual. Individuals specialize in doing a part of an activity. 3) Management saw this as a means of making the most efficient use of employee skills .They felt that if all workers had to do all activities. They would have had to be trained in all skills demanded by the job. The result is that except hen doing the most skilled or highly complex task, employees would be working beyond their skill level. They would have to be paid more as wages are determined by the highest level of skill. 4) Skill increases with repetition. Less time is spent in changing tasks, in putting away tools and equipments of one job and getting ready for another. Its easier and less costly to train workers to do highly repetitive work It increases productivity.

5. By the 1960s :- studies revealed that people suffered from boredom , fatigue, stress, low productivity , poor quality , increased absenteeism &high turnover. II Departmentalization:1. Once jobs have been divided as per speciation they are to be grouped together so that common tasks can be co-ordinated. This is called departmentalization .it is process of . 2. The major benefit is that it provides for efficiency by putting specialists together dividing the work of an organization into various departments 3. Jobs can be departmentalsed by the type of product .each product is departmentalized proctor & gambles. Cadburys. this leads to increased accountability for product performance. Since all activity are under the supervision of one manager. 4. It may be departmentalized by the service offered payroll - retirement, expense, taxes, etc. 5. Departmentalization can be done on the basis of geography or territory. Coal fields…… eastern/western, sales department. 6. Process departmentalization: - this is based on the process of production 7. Type of customers: - this helps to solve problem of customers because generally they tend to have similar type of problems & needs.

Chain of command : - authority & unity of command is spelt out. Choosing the basis for departmentalization : Each basis has its own advantages and limitation one basis may not beneficial for another.

It has,however been seen that a composite of several basis

Factors :1.Specialisation:- The organization is merely division of work .Fayol said that the more an organisation structure reflect the economic division of work in an enterprice through grouping of activitiesis a departmental form ,the more effective and efficient it is in attaining organization goals.This is called specialization.but if the work is over specialized ,there is a loss of motivation as well as accomplishment. 2.Co.ordination:- Every department has the same organization goal-there may be a difference in departments,the nature of jobs and skills required.Therefore,there must be coordination and cooperation.In order to make the best use,sometimes different jobs and skills are put under one manager for better coordination. 3.Control:- Control means to ensure that work is going on as per plan,and to locate the point of direction where there is adiscrepancy.Departmental bifurcation helps not only in physical control,but also control over production and ensure accountability. 4.Economy:- Departmentalisation costs more money.New departments require additional managerial personnel,equipments,manpower etc.After there is interpersonal departmental interaction which require extra time.This may put heavy burden on the organization. 5.Recognition of local condition:- Manpower and departments should be formed as per availability of member and skill of local people available.So that people get full-time work.

6. Adequate Attention: - There should be adequate attention for each department so that work goes on smoothly and no duplication of work .Future organization requirement should also be kept under consideration.

The span of control determines the shape or configuration of the organization. Factors The number of relationships that can be managed by a superior. Similar work 2. (c) Nature of work 1. Dissimilar work 3. It has to be decided how many persons or departments can be placed under the span of control of one manager. attitudes. [III] Chain of command /span of control The span of control also decides the number of individuals to be employed. Low rate of change over 6. (a) Capacity of manager(physical & psychological fatigue)attitude.7. Better technology 4. etc. Human consideration: . A superior is responsible for all activities of persons working under him. It also determines the complexity of individuals manager’s jobs.All aspects need not be considered mechanically human aspects should also be paid to aspects like culture. Rate of change 4.decision-making. tradition. value system.Efficient subordinates do not need much supervision. (b) Capacity of subordinates: . Type of production-mass scale 5.communication. Degree of Decentralization:- .

Supervision from others:Optimum span is 5-10 Higher level is 8-10 Lower level – depends on the technology Centralization & Decentralization:1. Communication Technique:If communication is moder and fast. 7. But if there is not enough authority or there is ambiguity. 2. Manager cannot delegate authority which he himself does not possess or his entire authority. Can be specific/general. frequent consultations are required. Use of staff assistance:This helps to reduce the manager’s load and increases the span of management. but still retains authority. 6. Delegation is the authorization to act in a certain way. 5. much managerial time is saved. 4. Work delegated competently. Authority delegated can be enhanced. leaves the manager with more time for supervision.Higher the degree of decentralization. 8. Authority is delegated to subordinates. reduced or withdrawn. wider the span of management. 3.written/unwritten. Planning:If subordinates know their jobs & there is taken care well at planning stage they need to consult the supervisor less frequently. . 5.

. Factors of Delegants:1. Competent subordinates can absorb the work and responsibility of their own as well as those of their weaker colleagues. 2.sub increases single superior. There are certain rules. 6.6. 7. Delegation of result expected-authority should be adequate. Democratic style/authoritarian. 2. Party of authority & responsibility. 5. Fear of being exposed because others can do better. Functional definition. Absoluteness of responsibility. Love for authority they want to influence others. 3. 2.responsibility cannot be delegated. Perception of superior & subordinates differ regarding the need of authority of the others. Unity of command. 5. 4. Want to continue making decisions for posts held earlier – does not let go. only authority to do some work. It is an art.according to activities. Managers feel subordinates are not capable. Unwilling to accept risks of blunders made by others so does it himself. Subordinates decide the degree of delegation some delegates have the capacity to assume more responsibility. 4. 3. Principles of Delegation:1. Factors of Delegators:1.

CENTRALISATION & DECENTRALISATION Extent to which the authority is centralized or decentralized :Geographical decentralization = dispersion of the organization Authority = dispersion of authority Function = dispersion of functions . This can be reduced by giving him some status symbol and making him feel an important part of the team. Managers fear to delegate. Free and open lines of communication. a strong subordinate taken over. Authority should not be delegated till the goals and plans for the organization are finished 5. Proper control techniques should be used to ensure that authority is being used properly 6. Prevent overlapping of authority and gaps. 3.3. If the superior is weak. Work climate free from fear and frustration should be established 4. 2. Authority & responsibility of managers should be clearly defined: what is expected of him and limits of his authority. Making delegation effective:1. overburdened or absent. The delegants should be selected in the light of the job to be delegated persons should be trained 7.

Availability of managers 5.Louis M. History of the organization 3. Rate of change in organization 9. Decentralized activities 8. Size of the organization 2. factors determining the degree of decentralization :- 1.“ Centralisation is the systematic reservation of authority at central points with in an organization. functionwise. Management philosophy 4. Decentralization applies to the systematic delegation of authority in an organization wide – context ” ----. Pattern of planning 6. Allen These terms are not absolute terms Difference :- Decentralization denotes dispersal of physical facilities – place wise. The authority may or may not be decentralized. Environmental influence Reasons for centralization :- . Control technique 7.

Q. Motivates managers 4. 2. Integration of efforts 3. APPLICATION OF CONCEPT OF DECENTRALISATION:- .1. Quick decision making 4. Encourages horizontal growth and reduces number of levels 5. Facilitates growth and expansion 3. Communication is easier 5. This helps H. Pinpoints achievements and failures EFFECTIVE DECENTRALIZATION 1. Provides opportunity for personal leadership 2. This enours unity as a whole. It should be an organization of centralized control with decentralized responsibility. Uniformity of action Reasons for decentralization :1. Reduces burden on top management 2. to know what the units are doing. Centralized top policy and control:To be effective policy matter must be centralized. Reduces wastages in duplication 6.

Design involves . DESIGNING ORGNISATION STRUCTURES Structure is the pattern in which various parts of components are interconnected -describes the various activeties. There is a need for developing a proper climate. This way manager are trained to assume responsibility. -describe the interpersonal relationship. Structure is the arrangements of its subsystems and component at a given moment of time this includes the structure as well as process. 3. 4. DEVELOPMENT OF MANAGERS:Success of decentralization depends on the skill and quality of manager who hold various positions.unit manager must be given a free hand in operational matters and held responsible for final results. This will create confusion. Yet at the same time unit managers may feel that they are free to do whatever they like. Competition among unit:This should had to healthy competition.Many a times to managers are happy to find so many people working under him and obeying his orders.

Feature of good organization structure There is no best way. Minimum possible managerial levels – boll needs 7. 4. Encouraging human use of human beings:Provides psychological satisfactions to employees. Application of ultimate responsibility 5. Simplicity both management & operation different departments are created.a sound organization well designed stimulates creativity. Optimal use of technical improvement it involves cost and producers results. Proper delegation of authority 6. Clear Line of Authority 4.-work division groups -the co-ordination required Need:1. Unity of direction and command . Flexibility 3. Encouraging growth:. is the framework with their which the organization this requires a flexible structure. That design is good which meets the requirements. Stimulating creativity:. Facilitating management:. 3. 2. 5.

one man • Work should be specifically allotted • One person should receiver order from one ……. 3. 8. 3. Proper Emphasis on staff Mechanization for Designing structure:1. It brings about Knowledge of dynamics of operation and requirement of the …….manner Advantages:1. What components should be joined and what should be kept apart..• One plan . 2. Process Approach:. • All necessary activities are performed • No unnecessary duplication of work • All necessary activities are performed in …….. .identifying the sequence of events and there deciding the various units of orgn Emphasizes on. This way proper systems like communication denaturalization can be adopted. Helps in improver cooed of function. What is the appropriate placement & relationship of different unit ? Different Approaches of Design:1..What should be the different units of the orgn . 2.

3) Decision Approach:Question are asked and answers invited: 1) What decision are needed for obtaining organization objectives ? 2) What is the nature of such decision ? 3) What is the level which such decision are to ….taken ? 4) What are the activities involved or affected by the decision? The answers would determined this degree of authority in a position. 4) Determining the degree of authority and centralization…. Process in Design:1) Identification of activities 2) Grouping of activities 3) Delegation in authority . There three approaches are integrated aspects of design. Result Approach:Steps:1) Defining business on the basic of market opportunities 2) Establishing objectives to be achieved 3) Determining the requirement for success and function skills to meet them.. it interaction with other positions and the placement of the position in the organization.Limitations:Work well in comparatively smaller organization which consummates on fewer number of related process 2.

Natural outcome at the workplace.structure . 2. CHARACTERSTICS: 1. Behavior is co-ordinate and controlled by group norms. A person may become members if more than on organization at a time. Procedures and guidelines fix the co-ordination II) INFORMAL ORGANIZATION: They are natural grouping on the basis of some similarity.scalar & functional process . Not designed or planned. 2. 4. 3.span of control CHRACTERISTICS: 1. Membership is informal. . Stress in given for the performance of a job in totality.division of labor . Designed by top management to attain organization goal. 4. Created on the basis of similarly amongst members 3. Authority & Responsibility has to be adhere to 5.FORMAL & INFORMAL ORGANIZATION I) FORMAL ORGANIZATION: Called Structure It is a deliberately designed organization built on 4 pillars: . Structure is based on principles of division of labor.

Structure 4. Abolition FORMAL Planned/ deliberate well set goals well structured official positions superior delegated rules &procedures INFORMAL spontaneous social interaction unstructured unofficial persons any one given by group group norms reward/punishment any time sanctions difficult. Desire to socialize with others. 1. . Focus 6.There are inevitable. 3. Origin 2. Hierarchical control and communication. Source of power 8. Source of control 10. 2. Guidelines for Behavior 9. Leadership 7. Inadequacy of formal organization structure to needs of both members and organization. True picture of organization can be had only when both formed be informal groups are considered. RESONS FOR INFORMAL ORGANISATION. Nature 5. Purpose 3. Psychological fatigue of routine tasks.DIFFERENCE: 1.

idle conversation at the cost organisationl time is costly.develops its own media and channels –mostly oralspeedier. Generation of ramous . WORKING OF INFORMAL ORGANISATION 1. It may go against directives.  Protecting their interests. Communication. 1.  Working as regulatory device. gossips. 3.  Filling gaps in managerial attributes. Modern organization requires many changes. Social conflict . Any change is ehemeretly resisted. Authority structure – no formal structure 2. 2.They usually are the basis’s of release of tension.4. Resistance to change – Every group promotes certain value and norms soon these become law to those groups. Leadership – through persuasion 3.grapevine DIFFICULTIES DUE TO INFORMAL ORGANISATION Informal organization produces both functional and disfunctional effects – especially if it is not handle properly.  Exploitation and development of leadership potential.Jokes. Various functions & informal organization to control to contribute to member interest. 4. Role conflict – Official and satisfaction of others.  Protecting of cultural values. Managing Informal Organisation .

(a) Blocks or work centres can be created that allow the workers to actually see their contribution & feel a part of the organization. structure. (b) When changes are invisaged. (c) No repressive action to be taken. (b)Pepole with all skills necessary to complete a job should be placed together. (2) Encouraging (3) Communication: PRINCIPLES OF ORGANIZATION DESIGN 1. . (a) Managers must make the people feel that they are not against the informal groups be supportive. Structural Approach:--Deals with the design of formal organization in such a way as to make room or foster informal organization in such a way that they are sympathetic to the formal organization. The organization structure should direct management attention to the companies’ sources of competitive advantage. (c) Units should be supplied with ful facts.It becomes independent & self-contained. Need for formal organization:-(1) Facilitating Management Action: There has be some sort of formal efficiency: Helps to bring about efficiency in work.1. influence of informal organization should be taken into account. 2. Behavioural Approach:--It can adopt a flexible & accommodating approach towards informal organization.

legal aspect have to be taken into consideration the interest of the stock holders must also be taken care of. While designing. Each assignment must have a manager with specific assignments. The organization structure should enable the corporate parent to add value to the organization. b. The structure reflects the strength. Which market should it compete in. 3. research. The company considers all the constraint that may impede the implementation of the organization structure. product development units which require specialist areas they should be insulted from other departments. The corporate head quarters have to do such functions as maintaining govt. 5. The organization structure protects business units that need distinct cultures. The design should we such as to check whether organization structure provides appropriate responsibilities and reporting relationship for its manager requirement of highly skill staff should be identified changes bring about dissatisfaction.The company should ask a. weakness and motivation of employees. 4. If no particular unit has the responsibility of the target market. . 6. In some organization there are departments like research. How will it gain advantage over its competitor? The structure should distribute responsibilities in such a way that management attention is focused on targeted customers. relation. the organization structure should be revamped 2. The organization structure provides coordination’s solutions for unit to unit link. coordination between units.

7. ORGANISATION TRENDS 1. The organization structure does not have many parents’ level and units. Neo classical 3. Front line units should be allowed to take decision and these decisions should be put up to upper level for approval when those decision can add value unnecessary level should be removed. e. CONTEMP . Pruitt on accounting model b. 8. Emphasis on the detection of errors and their correction after they have happened. These theory considered man to be relatively homogenous and relatively unmodifiable . Classical embodiment of extra pair of hand theory. 9.It is important for different unit to coordinate with each other . Maximizes neatness & control c.this kind of coordination helps in total collaboration between units. d. Modern 1. Classical organization theorya. Organization structure supports effective control Accountability for performance is important for decentralization of work there should be no blurred responsibility and fuzzy measures. Classical 2. A good organization is fit for the present as well as flexible for future. The organization structure facilitated development of new strategies and provides the flexibility to adopt to change.

working condition. They are largely repetitive and cyclic in nature.  Supervision of different areas by the some supervisors or job analysis used in time motion and fatigue. a. especially in routine tasks.f. b. 2. The task do not require complex problem-solving problem Tylor based on his studies in Midvale and Bethlehem perceived several new function of manager. henrey Gantt and Harrington Emersson Effective use of human beings in industrious have been investigated. There are two distract streams in the classical organization theories 1.  Standardization of task. Scientific training of workmen. Stability (minimum change within the employees in a goal in the organization. Behavior in centralization and centralization of authority and control. Co-operations of management and labor. 1. Administrative Scientific management: . period of work. Explain routine jobs with scientific determinants of each method.) g. There jobs are usually performed on the work floor operative levels. Scientific management stream 2. c.tylors frank and Lillian gilbraith . . Tylor have given various principles of scientific management as fallow –  Separation of planning from doing.

It limited itself to shop floss. J. authocity. Henry fayol. The application was not broad. impersonal relation in a bureaucracy Fayol classic theory:The organization functioning from managements point to view and found the activities of an organization to the divided into 6 group1. Reiley.C. nooney and A. L Gulick. Financial 3. Oliver Sheldon. Scientific selection and training of worker  Financial incentives to motivate workers. Max weber has emphasized that autocratic organization is the most rational means of caring out total control over human being there most specialization hierarchy. Accounting 4. Critical analysis :1. Commercial 5. 2.D. Technical 2. Managerial . Security 6. This theories views the central problem as being one where there must be identification of tasks necessary for achieving the general purpose of the organization and the grouping of people into department. They emphasis the psychological variables offering human behavior –more relevant to mechanization and automation – technical aspects of efficiency rather than behavior in an organization Administrative management theory To Max weber .

Order:-There should be a place for every person and thing. Discipline:. 11. Centralisation. Commanding e. Planning b. 13.Equity:-Combination of justice and kindness. 7. Organizing d.Initiative:-Thinking out and executing a plan. Remuneration of personnel. Division of work:. 3. Subordination of individual to general interest. controling PRINCIPLES OF CLASSICAL THEORY:1. 10.ranging from highest to lowest.Stability of Tenure.a. Scalar Chain:. 4. 12.obedience. 8. Unity of command. Unity of direction.benefits of specialisation. energy. 6.respect shown by employees. Authority and Responsibility.flowing through each position in the line of authority. good sense. 5. . Controlling c. application. 2. experience and good nature. 9. behaviour .

Espirit de Corps:-Union is strength. 3. Neo-Classical Theory:- . Coordination. Static-View of Organisation: rigid and static view. 2. Team work.14. 3. 2. 4. Close-system Assumptions: no interaction with environment. Division of work. no need for adjust. Human Behaviour in Organisation. Departmentalisation. 5. CRITICISM 1. 4. Lack of Empirical Research: based only on personal experience. Unrealistic about Human Behaviour: ignores socio-psychological and motivational aspects. Lack of Universality: None of the principles are applicable in all circumstances. SUMMARY 1.

The main propositions are:1.Its importance increases especially when there is a conflict between individuals and organization.Organisations started should be viewed not only as an organization of technical and economic existences.This has developed as a reaction to rationality and efficiency obsession of the classical theory because it disregarded th impact of human beings on an organization. . The social environment of the job affects people and also affects the department.This theory started from the findings of hawthorne Experiments. Both informal as well as formal organizations exist within the organization. Human beings are not totally rational0-behaviour can be predicted in terms of social and psychological factors. Essence:1. 2. It is not affected by management alone. 6.It is important to understand the social process of group behaviour. The integration between individuals and the organization is very important. The organization is a social system. 4. 5. Human diverse motivational pattern and tries to fulfill different types of needs. 3. but also as a social organization. 2.

Communication is necessary because it not only carries information necessary for the functioning of the organ. It is not true that -it is always possible to find a solution that satisfies everybody. 2. there should be wide span of control. Appraisal of neo classical theory:Has given a new dimension to managed in an organization . lack of motivation . -there are sharp confuicts and difference among people . Neo Classical thory & organisation design The organization should be designed in such a way that meets the basic postulates.this help the limitation of the formal system to meet the members need. The emphasis is on flat stretch and provision of informal organizations. Classical theory lack unified approach of organization theory this is merely a modification of classical theory. Essential factors:1. it also coveys the feelings and sentiments of the people.tall structures lead to increased difference between decision makers & implementers. but through behavioural approach.neo. Especially the psychological needs.7. Team -work is essention –This does not come automatically.also expensive because of too many levels.informal organization:. 2 .host of the assumption on which the theoryis based are not true. It suffers from the same problem.the major problem are . decentralisation:- 3. flat structure:. 8. 1.

I. Consideration on for the people working in an organization is important but it has the limitations . system approach:.a suitable organization is which takes care of different variables and factor. And horizontal relationship of new. it has become a model for thinking in regard to advanced information technology. It is comparatively systematic and highly constructively .means direction of involves communication and control.S system are adopted in modern organisation ORGANISATIONAL EFFECTIVENESS .lateral relationships:. Though both are important later relationship achieves co-ordination more effectively by eliminating heirarchial control 3.various structures and designs gives by the neo classical theory are not applicable to allsituations. they easily copy with the envero dynamics. it is concerned with the flow of information in complex integrative system which deals with the organization is it’s totality . It is applicable is not only mechanistic organization . cybernetics:.but also in social systems it regulates complex systems .emphasis is laid on the lateral approach and relationship among people.modern organization model:. 1. people may by fast one of the factors. It suggests 3 aspects of organization studies and analysis the mutually dependent variables is the organization. This is in contrast to vertical relationship emphasized by classical has the system approach & contingencies approach. That is why M. they use different models such as matrix task forces etc. 2:.this approach recognizes the problems involved in managing large and complex organization .classic theory. Modern organisation theory:This is a sophisticated and scientific way of explaining a complex understands the need for flexibility and adaptability in organization structure.

An organisation may be efficient but not effective.. This is required for long term survival.CAMPBEL: “Since an organization can be effective or non effective on a number of differnt facts that may be relatively fifferent from one another. . 1) Efficiency refers to the internal process.This is also called organisation process or grwoth.” JOHN KIMBERLY: “Effectiveness of an organisation can be seen in terms survival of the organisation” EPHRAM YERKHMAN: “An organisation remains effective as long as it uses its resources in an effective as long as it uses its resources in an effeicient manner & contributes to the large system. It is called efficiency. organisation growth. productivity.” JOHN P.BERNARD says that there are 3 types of situations: 1. OE has no operational definition. An organisation may be low – cost producing but it is not able to get matching price LAMEBRETTA SCOOTER. profiatbility.” EFFICIENCY EFFECTIVENESS: CHESTER I . 2. Effectiveness refers to external phenomenon. 2) It may be inefficient but because of external enviornment it may earn profit & show effectiveness. AMITAI ETZIONI: “ Effiectiveness may be defined as the degree to which an organisation realises its goal. An organisation may be effective but not the efficient. 3. 3) Both efficient & effectiveness. An organisation may be both effective as well as efficient.

1. Managemnet must know whether things are being done rightly. --High productivity. GOAL APPROACH:- Effectiveness is measurement in terms of goal achivement. a) They can be: --Profit maximisation. Organistions must satisfy the needs of people by measuring the volumes of satisfaction may be weighed. Factors Quality  Produtivity . 2. 4 TYPES OF APPROACHES TO MEASUREMENT:I. --Good employee morale. This is the most widely accepted approach. what else? 2. That the utlimate goal can be measured and identified empirically. Organisation have a goal towards which they are striving.MEASUREMENT OF EFFECTIVENESS: REASONS: 1. Assumptions:. --Providing efficient service.

It is difficult to identify organisation goals. do not offer the possibility of realistic assessment. say 10 years or with other organisation at a particular point of time. In this method the degree of goal achivement may be compares over a period of time. II. BEHAVIORAL APPROACH: . cultural entities. Goals often arise outside the organisation.Many managers follow many goals simultaneously. 2. Readiness  Effciency  Profit or return  Morale  Motivation  Satisfaction b) Multiple criteria:. Goals as ideal states. 4. Different organisation have different goals.the fulfilment of these goals can be taken as the measure of effectiveness. 3. Comparision is difficult because of variable externals.

2. Alternatives: Low degree of goal integration:.organisation effectiveness is measured by taking intoaccount the behaviour of the people who make up the organisation. 2.1.Degree of organisation effectiveness depends on the degree of integration of organisation & individual Goals.In this approach. in either absolute or relative terms. It excludes any specific goal as .Effectiveness is individual opposed to organisation goals. Assumptions:. It doesnot really offer criteria for measuring effectiveness in an organisation. SYSTEM-RESOURSE APPROACH:- INPUT – THOROUGHPUT – OUTPUT This model emphasises the distinctiveness of the organisationas an identifiable social structure or entity & it emphasises the interdependency of processes. as reflected in the ability of the organisation. It provides clues for achieving effectiveness & helps in assessing effectiveness.organisation effectiveness is defined in terms of bargaining position. They are generally means or facilities that are potentially controlled by social organisations and are usuable in relationship between an organisation and its enviornment. to exploit its enviornment in the acquisition of scarce and valued resources. Moderate degree of goal organisation:. These are scarce and valued resources. Individuals have one knid of goal & collectively. High degree of goal interaction:-   Limitations:1. III. This takes the form of INPUT – OUTPUT transactions of various kinds relating to various things. They have other goals.there is moderate degree of integration of organisation and individuals.

. As a specification of the means or strategies employed by members towrds enhancing the bargaining position of the organisation. 2. Thus the better the bargaining position of the organisation. As a specification of personal goals of certain members or classes of members within an organisation. Movement towards achievment of goals is impossible to measure. To do this.Effectiveness also includes the process and the output of the inputs. 3.this must be compared with organisation in the external enviornment. 2. Limitations:1. It also becomes more capable of attaining the personal goals of its members. IV. To determine their relative positions of the compared organisation. The mobilisation of resources is not a sufficient cause for organisation effectiveness. Measurement of resources required to attain goals is difficult. STRATEGIC CONSTITUENCIES APPROACH:- This approach considers only relevant enviornment of the organisation iunder refrence and takes into account those factors which have impact on the operation of the organisation. 3.the ultimate criterion of organisation to genearte its own resources. The goal is not greatly different from the goal approach. the following steps must be taken:1. To make a list of all resources required (taxonomy) 2. Specific goals may be incorporated in 2 ways:1. The more capable it is in obtaining its varied goals. Identify different types of resources that are required.

2.This pproach considers not only the inputs received from the enviornment. . Identify the relevant 7 strategic constituences & their impact on the organisation. The organisation effectiveness depends on the degree to which the organisation is able to satisfy the constituences. Identify the expectations of the constituencies & the way to meet lose expectations. but also the exports tat are outputs to the enviornment. 1.

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