Organizational

Effectiveness
Reference:
1. Human Resource Management
by
Ashwathappa

2. Leadership Enhancing the Lessons of Experience

by
Richard L Hughes, Robert C Ginnett, Gordon
J Curphy

3. Managerial Behaviour and Effectiveness

by
E. AnandaRaja/N R V Prabhu/ P Lameshwara
Rao
 Concept of Organizational
Effectiveness
(Ref. book 1)
• Efficiency Vs Effectiveness


 Efficiency: Represents the

Cost/Benefit rate incurred in the
pursuit of these goals.


 Effectiveness: The Degree in

which operative goals have been
attained
 Approaches to Measure
Effectiveness
• Goal Approach
• Behavioural Approach
• System Resource Approach
• Strategic constituencies Approach

Criteria For Organisational
Effectiveness
 Managerial Effectiveness
Organizational Environment

Individual Organizational
Characteristics Transformation results
Intelligence Process Profit maximization
Aptitude Organizational
Knowledge Managerial Job efficiency
Temperament High Productivity
Preference dimension
Expectation General functions Employee
Ability & Satisfaction Feedback
Feedback Specialized Customer
Motivation functions satisfaction
Opportunity

Person Process Product

 Managerial Effectiveness

 The Managerial Grid

High
1,9 9,9
Concern for people

5,5

1,1 9,1
Low
Concern for Production High
 The Person
• Qualities include Q u a litie s in clu d e
ü Ability to sustain defeat üA le rt
ü Ambitious üA sse rtive
ü Capable of good üC o n fid e n t
judgment üC re a tive
ü Competitive üD e d ica te d
ü Decisive üD yn a m ism
ü Defensive üE n e rg e tic
ü Emotional stability üFe a r o f fa ilu re
ü Extrovert üH o n e st
ü Group oriented üM e n ta lly stro n g
ü Intelligent üPra g m a tic
ü Optimistic üR e a listic
ü Predictable üTo le ra n t
ü Self-controlled
 The Person
Most Descriptive of Successful Least Decretive of Successful
Key Executive Key Executive
Decisive Amiable
Aggressive Conforming
Self-Strarting Neat
Productive Reserved
Well-informed Agreeable
Determined Conservative
Energetic Kindly
Creative Mannerly
Intelligent Cheerful
Responsible Formal
Enterprising Courteous
Clear Thinking Modest
 The Process
• Answers how managers manage
successfully
• Manage work instead of people
• Plan and organize effectively
• Set goals realistically
• Decisions based on consensus but accept
responsibility
• Delegate frequently and effectively
• Rely on others to help solve problems
• Communicate precisely
• Cooperate with others
• Display consistent and dependable behavior
• Win with grace
 The Product
These reflect on outcome of effective


managing and include:

• Organizational efficiency
• High productivity
• Profit maximization
• Organizational stability
• Employee welfare
• Social welfare
 Effectiveness Through
Adaptive Coping Cycle
• Stages of Adaptive-Coping Cycle
– Sensing of Change
– Importing the Relevant Information
– Changing Conversion Process
– Stabilizing Internal Changes
– Exporting New Outputs
– Obtaining Feedback
 Developmental Plan
(Bridging Gaps)

• Conducting a GAPS Analysis

• Identifying and Prooritizing development

Needs

• Bridging the Gaps: Building a development

Plan

• Reflecting on Learning: Modifying

development Plans
 Developmental Plan
(Bridging Gaps)

• Recall : Motivation by Porter and Lawer

Abilities Perceived Equitable Rewards

Value Reward

Intrisic Reward
Effort Performance Satisfaction

Extrinsic Reward
Perceived
Effort-Reward Role Perception
Probablity
 Developmental Plan (Ref. Book 2)
(Bridging Gaps)

Goals: Abilities:
Where do you Want to Go? What can You Do Now?

Step 1: Career Objectives

Step 2: What strengths do you have for your career Objectives

Career strategies Step-3: What development Needs will you have to overcome?

Standards: Perceptions:
What does your boss or the Organisation Expect? How do others See You?

Step 4: 360 –Degree and Performance Review Results, and Feedback fr

Step 5: Expectations Boss

Peers
Direct Reports
 Developmental Plan
(Bridging Gaps)

• Bridging The GAPS: Building a

Development Plan
–
 Step 1: Career and Development Objectives
 Step 2: Criteria for Success
 Step 3: Action Steps
 Step 4: Whom to Involve and Reassess dates
 Step 5: Stretch Assignment
 Step 6: Resources
 Step 7: Reflect with a Partner
 Measuring Managerial
Effectiveness
• Common Measures


– Superiors’ Effectiveness and

Performance Ratings


– Subordinates’ Ratings of Satisfaction,

Organizational Climate, Morale,
Motivation, and Leadership
Effectiveness


– Unit Performance Indices

 Measuring Managerial
Effectiveness
Measure Advantages Disadvantages
Superiors’ Ratings Frequently Used Superiors’ Biases
Raters unware of true Performance

Raters’ unwillingness to provide

tough feedback

Subordinates’ Ratings Subject of Leaders’ Behaviours Unmotivated subordinators

Multiple Raters May be no links between ratings and

unit performance

Unit Performance Indices Actual Results Results due to factors beyond

leaders’ control
 Current Industrial and Government
Practices in The Management of Managerial Effectiveness
(Ref. Book 3)
• Sets up procedures to ensure high quality of work

• Arrange for training and executive development programmes

• Involvement on career development programme of its employees

• Monitor the quality of work through performance appraisal

• Verification of information through feedback

• Checking the accuracy of one’s own and others’ work

• Developing and using systems to organize and keep track of

information or work progress

• Carefully preparing for meetings and presentations

• Organizing information or materials for others

• Careful reviews


 Current Industrial and Government
Practices in The Management of Managerial Effectiveness

• Developing Initiative
• Encouraging Self-Management
Approach
• Facilitating Appropriate
Communication
 Current Industrial and Government
Practices in The Management of Managerial Effectiveness

• Developing Initiative
– Drive
– Energy
– Self-Starter
 Current Industrial and Government
Practices in The Management of Managerial Effectiveness

• Encouraging Self-Management Approach

– Team Player
– Leader
– Develops Subordinates
– Disciplined
 Current Industrial and Government
Practices in The Management of Managerial Effectiveness

• Facilitating Appropriate Communication

– Articulate
– Persuasive
– Supportive
– Confident
 Current Industrial and Government
Practices in The Management of Managerial Effectiveness

• The Skills and Competencies required to

Perform Better
– Ability to Plan
– Organize
– Execute
– Meet deadlines
 Managerial Effectiveness
Development
Adoption of Skills By


Managers for Effective

 Organizational Management of
Interventions Corporate
• OD Values • Problem Solving
– Respect for • Analytical Thinking
Employees • Forward Thinking
– Trust and Support • Conceptual Thinking
• Strategic Thinking
– Power Equalization
• Technical Expertise
– Confrontation
• Entrepreneurial Orientation
– Participation • Fostering Innovation
• OD Intervention • Result Orientation
Techniques • Decisiveness
– Sensitivity Training • Self-Confidence
– Survey Feedback • Stress Management
• Personality Credibility
– Process Consultation
• Flexibility
– Team Building
– Inter-Group
 Manager as a Optimizer
• According to campbell, in his
behavioral approach says ,
effective manager is said to be an
optimizer in utilizing all the
available and potential resources
…..
 Manager as a Optimizer
• Effective manager focuses on what
he is doing and effectively deals
with how we are doing . As it is a
known fact that efficiency is doing
the task correctly and refers to the
relationship between inputs and
outputs .
 Manager as a Optimizer
• Effective managers do differently from their less-effective
counterparts.

• Have high concern for people and productivity

• Effective managers are able to communicate

• Spend Time in Managing

• Using General Style

• Allow Employees to Influence them

• Have influence upward

• Minimize Status Differences

•
 Manager as a Optimizer
Spend Time Managing


 The effective manager spend

most of their time manager . That is
they spend most of their time
identifying opportunity for
improvement, locating problems,
training subordinates , developing
contacts with other in the
organization, working through inter-
 Manager as a Optimizer
The actions he is to take will arise from the answers a


manager gives to these questions.

 What is my potential contribution?
 What are my objectives?
 What does it take to be effective here?
 What needs changing?
 What is organization’s philosophy
 What can I do now?

•
 Manager as a Optimizer
actions he is to take will arise from the answers a manager gives to these questi

 What is my potential H o w ca n I im p ro ve m y
contribution? su p e rio r ‘ s e ffe ctive n e ss ?

 What are my objectives?

H o w ca n I im p ro ve m y
 What does it take to be effective
co w o rke r’ s
here?
e ffe ctive n e ss ?
 What needs changing?
H o w ca n I im p ro ve m y
 What is organization’s su b o rd in a te ‘ s
philosophy e ffe ctive n e ss ?

 What can I do now? H o w ca n I ch a n g e th e

 Manager as a Optimizer


E ffe ctive m a n a g e r is exce p te d

•
to w o rk a s a n o p tim ize r b y
fo cu sin g o n
lo w w a ste a n d h ig h g o a l
a tta in m e n t