Organisational effectiveness means to study the organisational structure in order to understand the basic working. It helps in evaluating and analyzing the performance of the organisation. There are various components of organisational effectiveness they are:
(i) Managerial Policies and Practices
(ii) Environmental Characteristics
(iii) Employee Characteristics
(iv) Organisational Characteristics
(i) Managerial Policies and Practices: It helps to combine the organisation as a whole in order to maintain a balance between the various interest groups in an organisation and to accommodate them according to the environment of the organisation. There are various policies and procedures which need to be formulated and implemented at various occasions of the organisation they are:
(a) Strategy: It refers to the plan in order to interact between the competitive companies to achieve the goals effectively. These strategies are selected on the basis of environmental needs, and then are redesigned by the top management to achieve the desired results.
(b) Leadership: It enables to influence the employees towards the effective goal achievements. Leaders enable to identify the organisational goals and also try to initiate the steps towards them.
(c) Decision-Making: Managerial decisions play a very important role in the success of an organisation which is taken out of the various alternatives available at a given point of time.
(d) Rewards: Rewards are given to the employees to recognize their efforts towards effective achievement of the organisational goals. It is done to encourage the employees and boost their morale which enables them to improve the quality and quantity of work.
(e) Communication: It contributes a lot in the event of organisational change as it helps in the proper communication and linkage between the members of the organisation.
(ii) Environmental Characteristics: The external environment plays a very important role in achieving organisational effectiveness. It has various characte-ristics of environment which helps in understanding the status of the organisation they are:
(a) Predictability: It refers to the state of certainty or uncertainty in an organisation towards supply of human resources, human, raw material etc. Predictability is an element of external environment.
(b) Complexity: It refers to the heterogeneity and the range of activities that proves relevant to the operations in the organisations.
(c) Hostility: It is an environment in which the foundation of the organisation is threatened. It refers to the view by which people view the organisation.
(iii) Employee Characteristics: It is an important characteristic as the source of human resources can make or break an organisation. Employee characteristics reflects the success and failure of the organisation and its major characteristics are goals, skills, motives, attitudes and values.
(a) Goals: It refers to the direction in which an organisation is inclined to go. They can be termed to as intentions that an individual of an organisation would like to accomplish during his course of working. It provides directional nature to behaviour of the people and guides their thoughts and actions.
(b) Skills: It refers to ability to engage in a set of behaviour that is related to one another. It is the ability that leads to a desired performance in a specified area and it can be technical, administrative, managerial, behavioural etc.
(c) Motives: It is an inner state of mind that helps a person to be energized, motivated and directed towards the accomplishment of a pre-defined goal. It is observed that motivated employees have high zeal and enthusiasm to perform better to achieve their respective organisational goals.
(d) Attitudes: They are evaluative statements (favourable or unfavourable) concerning objects, events or people and influences job behaviour as well effectiveness of the organisation.
(e) Values: It refers to as specific code of conduct or basic sincerity possessed by an individual in the organisation. It is highly influential in individual attitude and behaviour. It influences the motivation of an individual as well as his behaviour in the organisation.
(iv) Organisational Characteristics: It refers to the general conditions that exist within an organisation. The various characteristics that influence the effectiveness of organisations are structure, technology and size.
(a) Structure: It defines the formal division, grouping and coordination of the job tasks within the organisation. There are six important elements in an organisational structure that are needed for organisational effectiveness. These six elements are work specialization, departmentation, chain of command, span of control, centralization, decentralization and formalization.
(b) Technology: It refers to the ways and means by which an organisation transfers its inputs into outputs. The organisational efficiency is largely dependent on the choice of technology and its use.
(c) Size: It refers to the number of people in an organisation. In broader sense, it can also be referred to as the physical capacity of the organisation, the personnel available to the organisation, the organisational inputs or outputs and the optional resources available to an organisation. The effectiveness and efficiency of an organisation is dependent on the size of the organisation.
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