An organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating

it from its environment Management is interested in organization mainly from an instrumental point of view. For a company, organization is a means to an end to achieve its goals - which are to create value for its stakeholders (stockholders, employees, customers, suppliers, community).

Organizational effectiveness
- Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce.

Organizational Effectiveness
What is an effective organization?
An effective organization, one that excels, is one that continually strives to identify and focus on factors critical to its customers and improves its processes in order to provide the highest-quality product or service possible.

Criteria for measurement
Participant satisfaction, morale, interpersonal skills , information processing, profitability, flexibility, adaptability Clients and customers will naturally focus on output measurements (meets, needs and expectations, promptness, courtesy, sensitivity, etc)

Achieving Organizational Success

How can an organization sustain effective performance ?
Customer Focus Strategic Planning Information and Knowledge management Quality Assurance Lean Manufacturing Leadership
Elimination of Waste Human Resource Management Quality Tools Teams Just-in-time

Factors Affecting Organizational Success
Strategic Factors Market Product Customers Suppliers Vision Organizational Factors Effective Leadership Continuous Improvement Culture Commitment Measures of Performance Trust, Honesty, & Ethical Behavior

People Factors Employee Involvement Education Training Motivation Teamwork Communication

Environmental Factors Social Economic Competitive Technology

Organizational Effectiveness
How is an effective organization created?
How well does the organization meet the needs and expectations of their customers How does the organization know how well it is doing? What is the proof? What are the indicators Do management·s strategies and actions support the business and support the organization in meeting the customers· needs and expectations Do the employees know how the work they do specifically benefits the ultimate, external, customer What improvements have been made based on the answers to these questions What is management doing to support improvement efforts

What is the mission of the organization What is the business the organization is really in What are the primary products or services the organization provides to their customers Who are their customers What do their customers expect and need How does the organization know what the customers needs and expectations are

What benefits can be gained from creating an effective organization?
Improved profitability Increased customer retention Reduced customer complaints and warranty claims Reduced costs through less waste, rework Greater market share Increased employee involvement and satisfaction, lower turnover

Increased ability to attract new customers Improved competitiveness Improved customer satisfaction Improved management-employee relations Improved focus on key goals Improved communication Improved teamwork

The Journey to Organizational Effectiveness
Sustain Control Improve Organize Define Recognize

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