Organizational Effectiveness: A Working Definition

While defining organizational effectiveness is considered “elusive” [1, 2], that there is no accepted definition of it [3], some scholars nevertheless consider an attempt to do so will include the concept that successful organizations achieve their missions through their core strategies.  We can’t define it.

Others contend, as admonished by a pioneer in organizational psychology, Dr. Edgar Schein, that attempting to understand organizational effectiveness will require a “careful assessment of … ways to integrate the effort of the different parts of an organization” [4].  In Schein’s view, then, is the notion that organizational effectiveness is a function of its design, how the parts fit together [see, e.g., 3, 5, 6]. As Quinn and Rohrbaugh caution relative to organizational effectiveness, “… different people adhere to different models, and there is no correct way to choose among them” [2].  In other words there is no one size fits all in organizational effectiveness.  There is no perfect model for it.

However, given our work in organizational effectiveness it is important to create for our exploration a launch pad from which we can start our journey.  We recognize that our “working definition” will evolve.  Therefore, we start from the point that any adequate view of organizational effectiveness has to incorporate concepts of adequacy of organizational outcome and outputs, well-utilizing the organization’s resources, and creating a harmonious, positive work environment and accomplishing all in an ethical fashion.  Therefore, we consider organizational effectiveness to be:

The strategically sound employment of all organizational resources in harmonious, efficient and ethical manner to meet key operational, financial, cultural, and corporate objectives in such a manner as to honor all stakeholders expectations.

Stay tuned, the journey has started!

 

References

1.   Rojas, R.R., A Review of Models for Measuring Organizational Effectiveness Among For-Profit and Nonprofit Organizations. NONPROFIT MANAGEMENT & LEADERSHIP, 2000. 11(1).

2.   Quinn, R.E. and J. Rohrbaugh, A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis. Management Science, 1983. 29(3).

3.   Lawler, E.E., From the Ground Up, Six Principles for Building the New Logic Corporation1996, San Francisco, CA: Jossey-Bass. 316.

4.   Schein, E.H., Organizational Psychology. Third ed1980, Englewood Cliffs, NJ: Prentice-Hall. 274.

5.   Nadler, D.A., M.S. Gerstein, and R.B. Shaw, Organizational Architecture, Designs for Changing Organizations1992, San Francisco, CA: Jossey-Bass. 284.

6.   Nadler, D.A. and M.L. Tushman, Competing by Design, The Power of Organizational Architecture1997, New York, NY: Oxford University Press. 240.