Change Management

Unit 12

Unit 12

Organisation Effectiveness

Structure: 12.1 Introduction Objectives 12.2 Organisational Effectiveness-Overview 12.3 Difference between Effectiveness and Efficiency 12.4 Perspective on Organisational Effectiveness 12.5 Approaches to Organisational Effectiveness Goal attainment approach System resource approach Internal process approach Strategic constituencies approach Competing values approach 12.6 Achieving Organisational Effectiveness 12.7 Summary 12.8 Glossary 12.9 Terminal Questions 12.10 Answers 12.11 Case Study

12.1 Introduction
By now you are familiar with the concepts of learning process and organisations. In previous unit we discussed about how to implement tools and techniques in learning organisation, individual skill sets and types of learning organisation. We have also studied the disciplines practiced in organisational learning and defined the culture that supports Learning. All these will help you to understand about learning organisation well. Organisational effectiveness is the scope to which an organisation achieves its goals with the given resources and means. To achieve its goals and effective, an organisation should always respond to the external environmental factors. There rise the questions how can the effectiveness of an organisation be measured? The answer is various models exist which determine organisational effectiveness which produce different products, the different kinds of people whoa re the organisational members and the stages of development of an organisations.

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A private hospital, for example, is concerned with how patients are treated and the success rate of surgeries (the rational goal model). It is also interested in how hospital procedures are performed (the internal process model) and with the skills and abilities of hospital staff (the human relations model). Finally, because it is a private hospital and must make a profit to survive, it needs to take into account how many and what kinds of patients are admitted (the open system model). The hospital must balance the three sets of competing values in order to be effective. This unit discusses about organisation effectiveness, difference between the effectiveness and efficiency, perspective on organisational effectiveness. It even describes the approaches to organisational effectiveness and achieving the organisational effectiveness. Learning Objectives After studying this unit you should be able to: define organisational effectiveness. differentiate between effectiveness and efficiency. explain the perspective on organisational effectiveness. describe the approaches to organisational effectiveness. explain different factors to achieve organisational effectiveness.

12.2 Organisational Effectiveness Overview

An effective organisation is defined as getting to the expectations first, thinking differently, doing the right things in the right time. The success of any effective organisation depends on the active contributions of employees within the organisation, co-ordination and close integration between departments. This implies that if an individual or a department of the organisation fail to perform their role considerably reduces the organisations effectiveness. Organisational effectiveness can be defined as being adaptive, efficient and effective, developing, satisfying and ultimately surviving and achieving the organisations goal. To be effective, todays organisations are required to determine effective criteria needs regular review and update. It must also
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grow and adapt to new environmental demands, should strike a satisfactory balance between organisational and societal goals. Organisational effectiveness has constantly measured how productively organisations achieve their missions through their core strategies. Organisational effectiveness should achieve the outcomes effectively that the organisation intends to produce. Organisational effectiveness studies are concerned with the unique capabilities that organisations develop to assure their success. Thus organisational effectiveness reflects how well the organisation is able to survive in the competitive business world successfully and to grow and develop in future through various strategies. Attaining Organisational effectiveness is important because it provides a valuable focal point for theoretical combination of the emerging and highly diversified field of organisation theory. Effective organisation is needed to recognise that our business is unique and we are dedicated to take the time to know our employees, customers and business goals. Through Effective organisation we give specific services to our business need to achieve an economical advantage in the complex and changing business world. Self Assessment Questions 1. Organisational effectiveness studies are concerned with the unique capabilities that organisations develop to assure their success. (True/False)? 2. Higher the effectiveness, lesser is the satisfaction of needs. (True/False)? 3. Through _____________ we give specific services to our business need to achieve an economical advantage in the complex and changing business world. Activity 1 Visit an organisation and collect information about how the employees understand the concept of organisational effectiveness. (Hint: Refer organisational effectiveness overview)

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12.3 Difference between Effectiveness and Efficiency

In order to be successful, organisations have to be effective and efficient. Effectiveness is to achieve the right things and efficiency is to achieve the things right. Effectiveness and efficiency are generally used very closely or interchangeably, although both these terms have very clear and separate meanings the difference in these two terms can be explained as follows: Organisational effectiveness is commonly referred to as the degree to which predetermined operational and operative goals are achieved, but the concept of efficiency represents the benefit rate incurred in the search of these goals or in other words efficiency is the input to output ratio. It tells the number of inputs that is required to produce certain amount of outputs. For Example, Take two customer service representatives, the first representative is very fast with the customer. If the customer tells him unnecessary information, the first representative tells the customer that is not important and quickly resolves the issues. The first representative ends up handling more number of calls. The second representative is slow with the customer, shows empathy and concern, and resolves the issue, gains customer satisfaction by the end of the call. Here the first representative is efficient and the second representative is effective. There are some major differences between the effectiveness and efficiency. These are shown in the table 12.1.
Table 12.1: Difference between Effectiveness and Efficiency Effectiveness Effectiveness is defined as the measure of actual output meeting the required output. It considers in meeting the end goals. This encourages innovation and different ways to execute the required goal. It is about gaining success. This refers to quality. This is to achieve the right things. Sikkim Manipal University Efficiency Efficiency is defined as the output to input ratio and focuses on achieving the maximum output with minimum resources. It considers the present state and the process. This requires documentation and repetition of same steps many number of times. It is about avoiding errors. This refers to quantity. This is to achieve the things right. Page No. 253

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Creating an effective and efficient organisation leads to the minimum utilisation of resources. The effective and efficient organisation brings to its customers the prize of superior quality and value for money. Self Assessment Questions 4. In order to be successful organisations have to be ________________ and _________________. 5. Effectiveness is to achieve the right things and efficiency is to achieve the things right. (True/False)? 6. Efficiency focuses on the end goal and effectiveness focuses on process. (True/False)? Activity 2: To know more about the differences between effectiveness and efficiency, read an article on web. (Hint: http://geekswithblogs.net/dthakur/archive/2004/06/09/6290.aspx)

12.4 Perspective on Organisational Effectiveness

There is a constant challenge to improve and to achieve higher levels of organisational effectiveness despite of large or small organisation. Individuals make a group and a variety of groups make an organisation. The groups function in synergy. Here synergy happens when people within an organisation bring together their skills, scheme, idea and creativity, and work together so that the individual performances amplify each other and the output of the group taken together exceeds the total of individual contributions. The groups function in synergy and attain synchronisation with various organisational systems and processes. Effectiveness of an organisation depends on individual and group contributions. The greater cohesiveness among group members, the better is the organisational effectiveness. Organisational effectiveness is a complex process. It depends on the strategies the organisation takes for the individual development. This is related to the personal growth of an employee exhibiting high level of work motivation and emotional balance. An organisation is effective when its contribution is larger than the sum total of individual contribution.

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An organisation must achieve synergy between groups and different environmental factors. Organisation must achieve satisfaction of stakeholders, and satisfy public and government requirement. The organisation should be vibrant and seek at a long-term perspective. An organisation must successfully respond to environmental factors to be effective and to attain its goals. Different models of determining organisational effectiveness exist because organisations face different environments, produce different products, and the organisation are at different stages of the development. Every model is very useful to an organisation, that are having a combination of environmental and organisation attributes. Quinn and 2Rohrbaugh discovered individual perceptions of organisational effectiveness are based on three different dimensions. They are: Organisations internal focus versus external focus. Organisations concern for flexibility versus concern for control. Organisations concern for end versus concern for means. That is focus on final outcomes and productivity versus focus on planning and goal setting. The three dimensions are considered to develop models of organisational effectiveness. They are: Rational goal model. Open system model. Internal process model. Human relations model. Rational goal model The rational goal model of an organisation is effective to the extent that it accomplishes its stated goals. This emphasises, control and external focus, and also views planning, goal setting, productivity and efficiency as effective.

faculty.fuqua.duke.edu/~willm/.../QuinnCameron1983.pdf

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Example: 3The American League pennant and World Series are the formal goals to be achieved by the Toronto Blue Jays. Open system model According to Open system model of effectiveness, an organisation is effective to the extent that it acquires inputs from its environment and have outputs accepted by its environment. Example: 4 The University of Alberta follow this model when they are concerned about the quality and number of students applying for admission and the jobs that students receive on graduation. Internal process model The internal process model focuses on the effectiveness of control and internal transformation process. Based on hierarchy, this emphasises on measurement, documentation and information management. These processes bring in stability and control. Hierarchies always function best when the task to be done is well understood and here, the time is not an important factor. Example: 5 Stelco Inc focuses on internal process that is it examines its steelmaking methods to determine price and quality competitiveness. Human relation model The human relations model concern is on the development of the organisations personnel. That is organisation using this model are more concerned with employee. Example: A travel agency sends their agent on familiarisation trips to explore their knowledge on specific hotels, cruises and destinations. The competing values model requires that an organisation examine the balance among the above four effectiveness models. Example: A private hospital focuses on how their patients are treated and success rate of surgeries (rational goal model). It is also concerned about the performance of hospital procedures (internal process model) and skills and ability of the hospital staff (human relations model).Finally to make a profit to survive, the hospital needs to take an account of number and what
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http://apps.business.ualberta.ca/rfield/Organizational%20Effectiveness,%20Structure,%20and%20Techn ology.htm 4 http://apps.business.ualberta.ca/rfield/Organisational%20Effectiveness,%20Structure,%20and%20Techn ology.htm 5 http://apps.business.ualberta.ca/rfield/Organisational%20Effectiveness,%20Structure,%20and%20Techn ology.htm

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kind of patients are admitted. In order to be effective the hospital must balance all the four models. Self Assessment Questions 7. The first dimension is the organisations internal focus versus _________ focus. 8. The second dimension is the organisations concern for __________ versus concern for control. 9. The __________ model of an organisation is effective to the extent that it accomplishes its stated goals. 10. The ___________ model focuses on the effectiveness of control and internal transformation process. Activity 3: Suppose you are a manager of an organisation, how do you handle different groups within an organisation to be effective? (Hint: group function in synergy)

12.5 Approaches to Organisational Effectiveness

Organisational effectiveness in the developing organisation is currently viewed and operated in relation to time and cost criteria. Varying options of what constitutes organisational effectiveness have led to several different approaches.
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Cameron identified five main approaches. They are: Goal attainment approach. System resource approach. Internal process approach. Strategic constituencies approach. Competing approach.

http://books.google.co.in/books?id=6bs9i2bD3cC&lpg=PA42&dq=study%20to%20goal%20attainment%20approches%20on%20organisational%2 0effectiveness&pg=PA42#v=onepage&q&f=false

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Approaches to the Organisational Effectiveness can be represented as in figure 12.1.

Figure 12.1: Approaches to the Organisational Effectiveness

Let us now discuss the approaches in detail: 12.5.1 Goal attainment approach All organisation have to be effective, otherwise they ultimately disappear. An organisation should have defined, manageable and general agreement goals. To measure the effectiveness of the organisation goal attainment approach has been adapted. According to goal attainment approach an organisation exists to achieve set of goals. Goal attainment approach is the most widely used in the evaluation of organisational effectiveness. Goal attainment approach is based on the identification of goals and the approach is concerned on profit and maximum productivity. Goal attainment approach focuses on the effectiveness in terms of internal organisational objectives and performance. Here the effectiveness of an organisation is achieved by ends or outcomes rather than means. Some researches insist that goals are necessary for an organisation. Organisational goals can be either official goals or operative goals. Official goals are used in general purposes such as annual reports, public statement given by mangers. Operative goals achieve the task and activities that are performed within the organisation.

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The diagram for goal attainment approach is shown in Figure 12.2.

Figure 12.2 Goal Attainment Approach to Organisational Effectiveness

The goals set are attainable and realistic. Quantifiable and measurable goals are set for individuals, groups, departments and organisation. Budgeting, linear programming, cost-benefit analysis and incentive pay system are popular practices that are commonly used by organisation to measure the effectiveness of the organisation. Some of the basic activities which determine the effectiveness of an organisation are: Identifying and procuring the resources required for the production. Making efficient usage of inputs. Producing substantial services or resources. Performing different technical and administrative functions. Identifying factors that have impact on efficient functioning of an organisation and using them. Developing growth oriented policies for finance, production and so on. Developing organisational culture. Training and development. Ensuring the quality of work life. Maintaining an ideal work life balance.

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To be efficient, the goal attainment model must have goals that are clear to identify, consensual, measurable and time bounded. The goal attainment approach of organisational effectiveness has some limitations. They are: According to 7Hannan and Freeman most of the problems arise because there is more than one organisational goal to achieve, and most goals are performance oriented or end state oriented. Identifying goals and how to measure the extent to which the goals have been achieved is also one of the limitations. In certain circumstance goals are measured qualitatively and progress towards them is difficult to assess, complicating the use of the goal attainment approach. Price suggests that one way to overcome the problem of goal clarity is to focus on the organisational decision makers, because their statements and actions regarding the organisations operation give an idea about its priorities. Sequential dimension of goals is also one of the important limitations in goal attainment approach. The final problem with goal attainment approach is concerned with variation in thinking about what are the appropriate organisational goals. When the goal attainment approach is applied to measure effectiveness, we have to ask how the goals are measured; the problems faced are identifying the goals, deciding which are important and measuring whether they are achieved. 8Bardach and Kann suggest that goals are dynamic, therefore goals change overtime. 9Warner suggested that goals are difficult to verify as they are multiple, transitional, and indefinable goals. Generally short term goal differ from long term goal in an organisation. Multiple goals always create problems in an organisation. Multiple goals and varied interests within an organisation cannot reach an agreement unless they are stated in a favourable way.

http://books.google.co.in/books?id=6bs9i2bD3cC&lpg=PA42&dq=study%20to%20goal%20attainment%20approches%20on%20organisational%2 0effectiveness&pg=PA42#v=onepage&q&f=false 8 http://eprints.qut.edu.au/archive/00004524 9 http://books.google.co.in/books?id=6bs9i2bD3cC&lpg=PA42&dq=study%20to%20goal%20attainment%20approches%20on%20organisational%2 0effectiveness&pg=PA42#v=onepage&q&f=false

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12.5.2 System resource approach The system resource approach to effectiveness is based on open system model. To determine organisation effectiveness, system resource approach considers the interaction between the organisation and environment within the organisation, here the organisation gets input, undergoes changes and gives the output. An organisation is composed of several interconnected subsystem (Kast and Rosenzweig). If any of the subsystem performance is not good then there is going to be a direct effect on the whole system. The organisation must be in good terms with its constituencies as they can interrupt the operation of the organisation. The diagram for system resource approach is shown in Figure 12.3.

Figure 12.3: System Resource Approach to Organisational Effectiveness

The system resources approach are concerned to the importance of specific goals, they enquire the strengths of the goals selected and the measures used for achieving the progress towards the goals. According to 10Yutchman and Seashore system resource approach of organisational effectiveness views end goals as a set of criteria that would increase the existence of the organisation for a long period.

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Yutchman and Seashore gave five benefits for system research approach. They are: The system resource approach considers the organisation as a frame of reference. In system resource approach the relation between organisations is a component within the environment. The organisations of different types can use the general framework. The system resource approach allows comparative evaluation for variability of measurement techniques. For selecting empirical measures of effectiveness guidelines are provided. System resource approach have some limitations, goals of an organisation are different. Usually organisations have operative goals that differ from organisational goals. The critics of system resource approach are that it focuses on means to achieve effectiveness but not on the organisation effectiveness. 12.5.3 Internal process approach Internal process approach determines the organisational effectiveness. According to internal process approach effective organisations have no internal damage, internal functioning is smooth. Internal process approach focuses on the throughputs or transformation processes within an organisation. The comparison is shown in the above figure 12.1. Throughputs are the internal actions and processes of the organisation by which inputs are converted into outputs. According to 11Daft an effective organisation includes supervisors interest and concern for their employees, team spirit, group faithfulness, teamwork; effective communications, good managers, development of subordinates, and creating effective working group. The diagram for internal process approach is shown in Figure 12.4.

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Figure 12.4 Internal Process Approach to Organisational Effectiveness

Sharing information among employees in an organisation and focuses on employee welfare and happiness are the indicators of internal process approach to effective organisation. Some researchers have suggested that economic efficiency should be the focus, when evaluating the internal processes of an organisation. 12Evan developed a quantitative method for the economic efficiency of an organisation and suggested that the variables input, output and throughput can examined as a ratio to estimate the performance of the organisation. Example: The throughput to input for the local basketball association or the faculty of kinesiology as an indicator of economic effectiveness. There are three possible results. Organisation is ineffective if the cost of the operation is higher than the annual budget then the ratio is X: 1, here X is greater then one. If the cost of the operation is equal to the annual budget then the ratio remains the same. The cost of the operation is less then the annual budget then the ratio is Y: 1, here Y is less then one. The organisation is effective for the last two conditions because the cost of operation is within the planned budget.

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Internal process approach is used to contrast and compare organisations that have different outputs and different inputs. The limitation to this approach relates to the measurement of human resource variables. Important aspects of the internal processes of organisations are complicated concepts to measure in reliable way. Internal process approach is concerned on organisational outputs or on an organisations relationship with its environment. Internal process approach contributes limited view to organisational effectiveness. According to 13Das organisations success is achieved due to a combination of factors and conditions. Small or large change in the factors results in completely a different outcome. The Internal process model focuses on ability of organisations to achieve similar ends through different means. Two organisations with similar internal processes produce different outputs and two organisations with different internal processes end up achieving the same outputs. The internal process model is lacking with the organisations having internal problems, such as ineffective communication, low confidence, and conflict have been overcome and have been successful. 12.5.4 Strategic constituencies approach Strategic constituencies approach it is the control of critical constituencies that would automatically bring effectiveness within the organisation. The strategic constituencies approach of organisational effectiveness satisfies the demands of owners, managers, employees, customers, suppliers and government. Owners should plan organisational mission, take risk, ensure availability of various resources appropriate with the mission set, and make provision for the financial support as the situation arises. Managers should develop the skills of their subordinates; utilise resources wisely, scan the market, and identify trends. They should implement organisational policies and advance the objectives of the organisation. Employees should implement policies, produce product and services that are required for the customers. If all the elements of the organisation function in unity, it is easy to retain customers and increase the number of customers.

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An organisation should consider the government policies and should be responsive towards the society. Strategic constituencies integrates both goal and system approach to effectiveness. The diagram for strategic constituencies approach is shown in Figure 12.5

Figure 12.5: Strategic Constituencies Approach to Organisational Effectiveness

The strategic-constituency Managers have to identify organisation effectiveness. factors are identified. It organisation effectiveness.

approach is similar to the systems approach. various constituencies that are considered for For an organisation to be successful critical is a process of management that achieve

Managers show particular attention for an organisation to be effective they are to: Identify critical constituencies. Arrange the order of priority for constituencies because there are constituencies that are critical. Identify the potential of various challenging groups. Regularly scan the environment to identify the changes that take place. Satisfy all the constituencies that are critical for effecting a change. According to 14 Cameron, for a variety of constituencies strategic constituencies approach is viewed as a summary for the measure of
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organisational goals or as a series of different weightings for specific goals. For an organisation to survive effectively a particular interest groups is necessary to control the resource of organisation that pursue specific goals. Researchers implementing this perspective should request the members of the main association to recognise the constituencies that are critical to organisations survival. The most important constituencies that affect the organisation's survival should be identified if survival is important for an organisation. According to Quinn and Rohr Baugh by implementing strategic constituencies approach, the impact that strategic constituent have on the organisation's operations are minimised. It is difficult and problematic task to separate the strategic constituencies from their environment within which they operate. 12.5.5 Competing values approach The competing values approach is the best criteria that is valued and used in assessing the organisational effectiveness. According to 15 Robin the Competing values approach consists people in an organisation having different goals and hence cannot make an agreement and goals take precedence over others. Usually goals are based on preferences, personal values and interests.
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Quinn and Rohrbaugh recognised certain variables and are joined together to form three fundamental set of values they are: Comparing flexibility with control, here flexibility favours innovation variation and change. Control favours stability order and predictability. Comparing people with organisation, here both gives importance to the development of people in the organisation, but organisation is concerned with its own development. Comparing means with ends they indicate a relation between internal process and final results. The mean is considered as long term variable and the end is considered as short term variable, Each of the above competing values are defined and combined into organisational effectiveness model. The competing values approach is used
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to identify the changes that take place in the stages of organisational life cycle. It is concluded that the effective organisation do not give importance to one model but they balance all the models. Self Assessment Questions 11. Goal attainment approach focuses on the effectiveness in terms of_____________ organisational objectives and performance. 12. To be efficient, the goal attainment model must have goals that are clear to identify, consensual, measurable ________________. 13. The system resource approach to effectiveness is based on ___________ system model. 14. Strategic constituencies integrates both ___________ and ____________ approach to effectiveness. 15. The competing values approach is the best criteria that is valued and used in _____________ the organisational effectiveness. 16. Comparing means with ends they indicate a relation between internal process and _______________. Activity 4: Visit an organisation and collect information on how the organisations would control and bring effectiveness within an organisation. (Hint: Strategic constituencies approach)

12.6 Achieving Organisational Effectiveness

To achieve a goal, each constituent must take responsibility to constantly strive for continuous improvement, and management must take responsibility for leading the effort.
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Witmer suggested four keys to achieve performance excellence in an organisation they are: Culture and values. Tools. Leadership. Alignment.

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Culture and values An organisation that achieves performance excellence displays a culture that genuinely values and empowers all constituency members and that represent mutual caring and trust. The successful organisations are guided by values that describe the organisations behaviours. The values include giving excellent service, provides internal and external quality all over the organisation and an environment that supports and encourages teamwork and individual growth. Tools To achieve performance excellence, an organisation must have the right tools. These organisational attributes include: Functions and constituencies of teams that are authorised to work diagonally. Definite quality improvement processes. Strategic planning techniques. Partnerships with respective customers and suppliers. Use of definite performance and quality assessment measures. Leadership To achieve performance excellence in an effective organisation, organisations have leaders in each area to ensure improvement, by all the members in the organisation and to encourage empowerment, mutual respect, and trust within an organisation. The leaders make sure that if the function and processes of an organisation are in place and if the organisation as developed a focus on customer satisfaction. The leadership encourages continuous learning, development and coaching for those within the organisation and highlights continuous communication to all constituents. Strong and successful leadership develop and achieves effective organisation. Alignment According to Witmer alignment is a factor of performance excellence, it is an essential agreement on strategic and operational across the constituencies. There must be good understanding, open communication for an organisation to be effective. Successful alignment results in ownership and encourages individual motivation a key factor to empowerment.

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Witmer suggested the possibilities of achieving greater effectiveness in organisations, they are: Organisations are required to improve continuously. Non-profit organisations need help to become more organisationally effective as they lag behind when compared to profit organisations. Large resources are available to board members and management that are unused; management leadership should focus on the resources that are not used. Every constituent should contribute to organisation and the directors in the organisation should proactively help the organisation. Action aids organisation effectiveness team provides continuous productive learning and helps in bringing out the creative potential of employees. Generally achieving organisational effectiveness includes: Impact evaluation and shared learning. Human resources and organisational development. Information technology and information system. Developing effective organisation leads to achieve effective organisation, to decide what to achieve is easy, when compared to achieving the goal. Leadership skills are the key to high performance, development to motivate and self managed teams that constantly make the organisation more effective. Improvement process and tools is another key feature to achieve organisational effectiveness. Three sets of process are required for the Improvement process, the first includes quality delivery process; this helps the employees to identify the customers need and to find if they are meeting the customers requirement. The second process includes structured problem solving that helps in guiding towards the best solution. The third process includes continuous improvement. Along with the process the employees use tools that enable them to operate the process effectively. The process and tools are best in practice; they help in fast structured and challenging approach to reduce the cost reductions within the organisation. However the employees are trained on the tools and are motivated to make the best use of it. For an organisation to be effective to achieve its goals it requires to energise and sharpen the creativity of the employees in the
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organisation. An organisation is more effective and achieves the gaols, if the employees understand and bring the value to the organisation and meet the organisational needs as individuals. Self Assessment Questions 17. To achieve effectiveness, Action aids organisation effectiveness team provides continuous ____________ and helps in bringing out the creative potential of employees. 18. Leadership skills are the key to high performance, development to motivate and self managed teams that constantly make the organisation more effective. (True/False)?

Activity 5: To have a clearer picture about achieving organisational excellence, read few articles on web. (Hint: http://www.vta.vic.edu.au/docs/strategic/New%20Mandate%20 Ulrich%201998.pdf)

12.7 Summary
So far, we have learnt about the effectiveness of the organisation. It is considered as the measure to attain goals of the organisation with the given resources. Evaluating organisational effectiveness helps to determine how productive the organisation is and how well the organisation is able to stay in this competitive business market. In this unit, we have also discussed how effectiveness and efficiency differ from each other. Effectiveness evaluates if the actual output meets the desired output whereas efficiency aims to gain maximum output with minimum resources. The perspective on organisational effectiveness is based on individual and group contributions. It is based on three basic models, which include rational goal model, open system model, internal process model and human relations model. We have also discussed the five main approaches to attain organisation effectiveness, which include goal attainment approach, system resource

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approach, internal process approach, strategic constituencies approach and competing approach. Finally we have learnt about developing effective organisation, leadership skills, improving process and tools which are the key to the success for achieving the organisational effectiveness.

12.8 Glossary
Term Familiarisation Framework Perspective Strategies Description To know a particular skill or a thing. Structure supporting or containing something. To view. To plan an action to achieve the specified goal.

12.9 Terminal Questions

1. Explain effectiveness and efficiency and how do they differ from each other 2. Explain briefly the four models of effective organisation 3. Explain in brief about goal attainment approach and system resource approach and give two limitations for any one approach 4. Discuss in brief about Strategic constituencies approach and competing values approach 5. Explain in brief about achieving organisational effectiveness

12.10 Answers
Answers to Self Assessment Questions: 1. True 2. False 3. Effective organisation 4. Effective and efficient 5. True 6. False
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7. External 8. Flexibility 9. Rational goal model 10. Internal process model 11. Internal organisational 12. Time bounded 13. Open system 14. Goal and system approach 15. Assessing 16. Final results 17. Productive learning 18. True Answers to Terminal Questions: 1. Refer section 12.3 Difference between Effectiveness and Efficiency. 2. Refer section 12.4 Perspective on Organisational Effectiveness. 3. Refer section 12.5.1 Goal Attainment Approach and 12.5.2 System Resource Approach. 4. Refer section 12.5.4 Strategic Constituencies Approach and 12.5.5 Competing Values Approach. 5. Refer section 12.6 Achieving Organisational Effectiveness.

12.11 Case Study

Achieving productivity and effectiveness in XYZ: XYZ client is a high-end server manufacturer who had more than 2,000 skilled employees on long-term contracts working a standard 18-10 week. But market conditions required more flexible production schedule, at the same end, the company did not want to lose its in-house expertise in the face of change. The company hired Right Management to allocate talent more appropriately that is to increase the flexibility of the production process,
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and to amplify production efficiency. To achieve this, Right management took over the entire human resources function and managed all workforce associated aspects of the production process. Right management also implemented a broader business-transformation process to transition staff from fixed weekly shift pattern to a flexible environment. As a result, the XYZ client experienced a 30% increase in the availability of suitable human resources, and enjoyed improved manufacturing productivity. Questions 1. What are the steps taken by the Right management to increase the production efficiency? (Hint: Human resource function) 2. How did the XYZ Client achieve the availability of human resource and improve manufacturing productivity? (Hint: Business transformation) References Dr.Radha R. Sharma (2006), Change Management-Concepts and Applications. Bhupen Srivastava (2005), Organisation Design and DevelopmentConcepts and Applications.

E-Reference http://www.differencebetween.net/business/difference-betweenefficiency-and-effectiveness http://www.actionaid.org/main.aspx?PageId=259 http://apps.business.ualberta.ca/rfield/Organizational%20Effectiveness, %20Structure,%20and%20Technology.htm http://geekswithblogs.net/dthakur/archive/2004/06/09/6290.aspx http://apps.business.ualberta.ca/rfield/Organisational%20Effectiveness, %20Structure,%20and%20Technology.htm http://books.google.co.in/books?id=6bs9i2bD3cC&lpg=PA42&dq=study%20to%20goal%20attainment%20approc hes%20on%20organisational%20effectiveness&pg=PA42#v=onepage& q&f=false
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Change Management

Unit 12

http://eprints.qut.edu.au/archive/00004524 www.polyphonic.org/harmony/9/Role_Directors_Judy.pdf http://www.vta.vic.edu.au/docs/strategic/New%20Mandate%20Ulrich%2 01998.pdf

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