The Dynamics of Organization
Content
The Organizational Dynamics :
An Overview
What is an organization?
a consciously coordinated social entity
with a relatively identifiable boundary
functions on a relatively continuous
basis
to achieve common goals
What do they do? How well do they do?
Points to Ponder
Without organization we couldn’t live like
what are today. Any comments?
ENVIRONMENT
System
Inputs
Transformation
Process
Output
Current Trends
Organizations now function in a global economy.
International expansion can provide a competitive
advantage:
– Entering different countries may provide large numbers of
potential customers.
– Building production facilities in countries with low-cost labor may
prove cost-efficient.
– The rapid increase in telecommunications and information
technology enables work to be done more rapidly, efficiently,
and effectively around the globe.
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
CHALLENGES FROM GLOBAL REALITIES
TRENDS IN GLOBAL WORK FORCE
WORK FORCE IS CHANGING:
- DIVERSITY
- VALUES
- SKILLS
THE ORGANIZATION AND
SCHEDULING OF WORK IS
CHANGING:
- NEW WORK OPTIONS
- WORK FORCE FLEXIBILITY
- COMPLEX
RELATIONSHIP WITH
ENVIRONMENTS
- LEARNING
ORGANIZATION
-THE AVERAGE AGE IS RISING
- MORE WOMEN ARE ENTERING THE
FORCE
- ETHNIC MINORITIES, IMMIGRANTS
- ARE INCREASED
- INTERNATIONAL CAREER AND WORK
- FORCE MOBILITY IS INCREASING
- INTERNATIONAL EXPERIENCE IS A
- PREREQUISITE FOR CAREER
- PROGRESSION
GLOBAL CHALLENGE ….
MOVING FROM TRADITIONAL
TO RE-ENGINEERED VALUES
CUSTOMER
EXPECTATIONS ARE
CHANGING: FAST AND
RELIABLE DELIVERIES OF
GOODS AND SERVICES IN
TERM OF:
- QUALITY
- TIME
- PRICE
THE DESIGN AND
CONCEPT OF WORKPLACE
ARE CHANGING:
- THE IMPACT OF IT’S
RADICAL
DEVELOPMENT
- NEW WAYS OF
ORGANIZING
TRADITIONAL:
-THE BOSS PAYS OUR SALARIES; KEEP THE
-
BOSS HAPPY
-TO KEEP OUR JOB, STAY QUIET AND DON’T
- MAKE WAVES
-WHEN THINGS GO WRONG, PASS
- PROBLEM TO OTHERS
-GOOD MANAGER BUILDS AN EMPIRE
-THE FUTURE IS PREDICTABLE; PAST
RE-ENGINEERED:
- SUCCESS MEANS FUTURE SUCCESS
-CUSTOMERS PAY OUR SALARIES; KEEP
- THEM HAPPY
-WORK SMARTER NOT HARDER
- ACCEPT OWNERSHIP FOR PROBLESM;
- HELP SOLVE THEM
-GOOD MANAGER BUILDS TEAMS
-THE FUTURE IS UNCERTAIN; CONSTANT
GLOBAL CHALLENGE …
MANAGERS CHARACTERISTICS ARE CHANGING:
- GLOBAL FOCUS
- BEING GRADUATES
- RESULT DRIVEN
GENDER ROLES ARE CHANGING:
MORE EQUAL INVOLVEMENT
GLOBAL ECONOMY AFFECTS ORGANIZATION OPERATION
HUMAN RIGHTS IN THE WORK PLACE; CREATE PRESSURES FOR:
- EMPLOYEE RIGHT
- JOB SECURITY
- EEO
- EQUITY OF EARNINGS
ETHICS AND MORALITIES BECOME PART OF ORGANIZATION’S SOCIAL
RESPONSIBILITIES
QUALITY OF WORK LIFE:
OVERALL QUALITY OF HUMAN EXPERIENCES IN THE WORK PLACE
PARTICIPATION: INVOLVING PEOPLE FROM ALL
LEVELS OF RESPONSIBILITY IN DECISION MAKING
TRUST: PROVIDE MORE FREEDOM WITHIN THE
SYSTEM
REINFORCEMENT: SHARING THE WEALTHS
RESPONSIVENESS (MAKING THE WORK SETTING
MORE PLEASANT AND ABLE TO SERVE
INDIVIDUAL NEEDS):
- SENSITIVITY TO FAMILY ISSUES
- FRIENDLINESS AND FUN
- RELIGION PRACTICES AT WORK
Current Global Changes
European Economic Community
North American Free Trade
Agreement
The Growth of Asia
– Japan, China, Singapore, Hong
Kong, and Malaysia are significant
economic forces.
General Agreement on Tariffs and
Trade (GATT)
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
TRENDS TOWARD INTERNATIONAL AND
GLOBAL ENTERPRISE
GROWTH IN INTERNATIONAL INVESTMENT AND
TRADE
GROWTH OF MULTINATIONAL ENTERPRISES
(MNEs), DIVERSE NATIONAL CONTEXT OF
OPERATIONS
INTERNATIONAL, MULTINATIONAL WORK FORCE
CROSS-NATIONAL TRANSFER OF MANAGEMENT
AND MANAGEMENT PRACTICES
NEW ORGANIZATION FEATURES
DYNAMIC GLOBAL ECONOMY
BE CUSTOMER RESPONSIVE
PROFITABILITY THROUGH COST AND GROWTH
REDEFINITION OF ORGANIZATION CAPABILITIES
AS THE DNA OF COMPETITIVENESS
LEARNING TO CHANGE: ADAPTATION AND
TRANSFORMATION
MANAGERIAL INNOVATION
KEEPING UP TO TECHNOLOGY INNOVATION
ATTRACTING, RETAINING, AND MEASURING
COMPETENCE AND INTELLECTUAL CAPITAL
CHANGING EMPLOYEE DEMOGRAPHICS, E.G.
MORE WOMEN IN THE WORKFORCE
THEMES IN CHANGING AND
DEVELOPING ORGANIZATION
SPEED
FLEXIBILITY
INTEGRATION
INNOVATION
MINDSET: ALLOW IDEAS, COMPETENCIES EMERGE AT ALL
LEVELS THROUGH:
- LEARNING
- SHARING KNOWLEDGE
- GROUPING PHYSICAL AND INTELLECTUAL ASSETS
Ratio of Market Value to Book Value for Selected
Companies
Company
eBay
Annual
Market
Book
Ratio of
Sales
Value
Value
Market to
($ billions) ($ billions) ($ billions) Book Value
1.2
30.8
3.9
7.9
Microsoft
28.4
254.1
58.3
4.4
Intel
26.8
142.1
35.4
4.0
182.1
20.0
9.4
2.1
Nucor (Steel)
4.8
3.9
2.3
1.7
J. C. Penney
32.3
5.0
6.4
General Motors Corp.
.78
Note: The data on market valuations are as of June 16, 2003. All other financial
data is based on the most recently available balance sheets and income
statements.
CEO Remuneration in U.S. Dollars
CEO/MANUFACTURING
CEO TOTAL
EMPLOYEE TOTAL
REMUNERATION REMUNERATION MULTIPLE
COUNTRY
United States $ 1,404,000
597,000
Brazil
540,000
France
861,000
Argentina
422,000
Germany
546,000
Japan
649,000
Mexico
31
60
15
48
11
11
46
INDONESIAN WAGE SURVEY 2007
CEO
DIRECTOR
SR. MANAGER
JR.
MANAGER
ENTRY
LEVEL
OIL& GAS
35+
30 – 35
25 – 30
20 – 25
2.5 – 5
TELECOM
35+
30 – 35
20 – 25
15 – 20
2.5 – 3
PHARMACY
30+
25 – 30
15 – 20
5–8
2 – 2.5
MANUFACTURE
25+
20 – 25
10 – 15
5-6
1.5 – 2
SERVICES
20+
15 – 20
7–8
5-6
1.5 – 2
AUTOMOTIVE
20+
15 – 20
7–8
5-6
1.5 – 2
ELECTRONICS
20+
15 – 20
7–8
5-6
1.5 – 2
GARMENT
15+
10 - 15
4–6
<4
UMR
FORWARDING
15+
10 - 15
4-6
<4
UMR
AREAS
Points to Ponder
1.
2.
3.
4.
5.
6.
How do we know if an organization is successful?
What are the components of an effective
organization?
What determines the effectiveness of an
organization?
How is an effective organization designed?
What theory can be used to solve organization
problems, i.e. ineffective organization?
How does culture work?
ORGANIZATIONAL EFFECTIVENESS
What is effectiveness? Is it different from
efficiency?
What does it mean “effectiveness is a necessary
condition for survival”? Can an organization die?
What are the parameters used to explain
organization effectiveness?
FOUR APPROACHES TO ORGANIZATION
EFFECTIVENESS
APPROACH
DEFINITION
An organization is effective to the extent
that it ….
WHEN USEFUL
The approach is preferred
when ….
GOAL ATTAINMENT
Accomplishes its stated goals
Goals are clear, time bound, and
measurable
SYSTEM
It acquires needed resources
A clear connection exists
between inputs and outputs
STRATEGIC
CONSTITUENCIES
All strategic constituencies are at least
minimally satisfied
Constituencies have powerful
influence on the organization, and
the organization must repond to
their demands
COMPETING
VALUES
The emphasis of the organization in the four
major areas (i.e. return on investment, market
share, new-product innovation, job security)
matches constituent preferences
The organization is unclear about
its own emphases, or changes in
criteria over time are of interest
A THREE-DIMENSIONAL MODEL OF
ORGANIZATIONAL EFFECTIVENESS
FLEXIBILITY
MEANS
PEOPLE
ORGANIZATION
ENDS
CONTROL
A FOUR MODEL OF EFFECTIVENESS VALUES
HUMANRELATIONS
MODEL
Ends: Skilled
Work force
Means:
Cohesive
Work force
OPEN SYSTEM
MODEL
Means:
Flexibility
FLEXIBILITY
PEOPLE
Ends: acquisition
Of resources
ORGANIZATION
Ends: Productivity
and efficiency
Means: Availability
Of information
Ends:
Stability
INTERNALPROCESS MODEL
CONTROL
Means:
Planning
RATIONALGOAL
MODEL
CRITERIA OF ORGANIZATION EFFECTIVENESS
CRITERIA
FLEXIBILITY
ACQUISITION OF
RESOURCES
PLANNING
PRODUCTIVITY AND
EFFICIENCY
AVAILABILITY OF
INFORMATION
STABILITY
COHESIVE WORK FORCE
SKILLED WORK FORCE
DEFINITION
ABLE TO ADJUST WELL TO SHIFTS IN EXTERNAL CONDITIONS
AND DEMANDS
ABLE TO INCREASE EXTERNAL SUPPORT AND EXPAND SIZE OF
WORK FORCE
GOALS ARE CLEAR AND WELL UNDERSTOOD
VOLUME OF OUTPUT IS HIGH, RATIO OF OUTPUT TO INPUT IS
HIGH
CHANNELS OF COMMUNICATION FACILITATE INFORMING
PEOPLE ABOUT THINGS THAT AFFECT THEIR WORK
SENSE OF ORDER, CONTINUITY, AND SMOOTH FUNCTIONING OF
OPERATIONS
EMPLOYEES TRUST, RESPECT, AND WORK WELL WITH EACH
OTHER
EMPLOYEES HAVE THE TRAINING, SKILLS, AND CAPACITY TO DO
THEIR WORK PROPERLY
Effectiveness Criteria
(Gross; in GIBSON, ET. AL., 1973)
Acquiring resources
Being efficient or cost-effective
Producing outputs
Developing administrative and technical
functions
Investment
Behave according to ethical code of conduct
Satisfying the needs of organization members
Effectiveness Criteria
Expert
Effectiveness Criteria
Gross
Acquiring
resources
Price
Productivity Productiv Producti Adaptati
Institutionali ity
vity
on
zation
-moral
Institu
conformity tionali
adaptation zation
Institutiona
lization
Moral
Adaptation
Institutiona
lization
Mott
Productvity
Adaptation -Adap
tation
-Fleksi
bility
Adaptation
Efficient
Producti Adminis
on
rative &
technical
functions
Productvi Product
ty
vity
Adapta
tion
Fleksibili
ty
Ethical
code
Investment
Satisfying
members’
interests
THE ESSENCE OF AN ORGANIZATION
ALWAYS HAS A PURPOSE:
EFFECTIVE PERFORMANCE
EFFICIENT PERFORMANCE
DEPENDS ON HUMAN EFFORTS
PARADOX BETWEEN DIVISION OF
LABOR AND THE SYNERGY OF ALL
EFFORTS
CRITERIA OF SUCCESS
SURVIVAL
COMPETITIVE
SATISFACTION
COMMITMENT
ORGANIZATIONAL CITIZENSHIP BEHAVIOR
EFFECTIVENESS VS. EFFICIENCY
GOOD
SOME RESOURCES
WASTED
GOALS ACHIEVED,
RESOURCES WELL
UTILIZED
PERFORMANCE EFFECTIVENESS
HOW WELL ARE GOALS
BEING ATTAINED
GOALS NOT ACHIEVED, NO WASTED RESOURCES,
RESOURCES WASTED
BUT GOALS NOT
IN THE PROCESS
ACHIEVED
POOR
POOR
GOOD
PERFORMANCE EFFICIENCY
HOW WELL ARE RESOURCES
BEING UTILIZED
Integrative Concepts in Understanding
Organizational Effectiveness
Strategies
Organizational
Maintenance
-Affirmation of the mission
-Operational adjustment
-Commitment of people
Adaptiveness
-Continuous
experimentation and
learning
-Facilitative leadership
-Movement into new
markets
-Innovative alliance
Parameters
-Efficiency
-Effectiveness
EFFECTIVENESS CRITERIA VS. TIME
Short term
Middle term
Long term
Maintenance:
- Production
- Efficiency
- Satisfaction
Adaptation:
- Investment
- Development
Survival
The Process of Developing Organizational Effectiveness
TIME
SHORT-RUN
INTERMEDIATERUN
LONG-RUN
ADAPTATION PROCESS
Maintenance
Adaptiveness
INVENTING
Organization
THE FUTURE
Maintenance
Adaptiveness
CHANGING SITUATION
PARAMETER OF THE PROCESS
Effectiveness
Efficiency
ENVIRONMENT
An Overview
What is an organization?
a consciously coordinated social entity
with a relatively identifiable boundary
functions on a relatively continuous
basis
to achieve common goals
What do they do? How well do they do?
Points to Ponder
Without organization we couldn’t live like
what are today. Any comments?
ENVIRONMENT
System
Inputs
Transformation
Process
Output
Current Trends
Organizations now function in a global economy.
International expansion can provide a competitive
advantage:
– Entering different countries may provide large numbers of
potential customers.
– Building production facilities in countries with low-cost labor may
prove cost-efficient.
– The rapid increase in telecommunications and information
technology enables work to be done more rapidly, efficiently,
and effectively around the globe.
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
CHALLENGES FROM GLOBAL REALITIES
TRENDS IN GLOBAL WORK FORCE
WORK FORCE IS CHANGING:
- DIVERSITY
- VALUES
- SKILLS
THE ORGANIZATION AND
SCHEDULING OF WORK IS
CHANGING:
- NEW WORK OPTIONS
- WORK FORCE FLEXIBILITY
- COMPLEX
RELATIONSHIP WITH
ENVIRONMENTS
- LEARNING
ORGANIZATION
-THE AVERAGE AGE IS RISING
- MORE WOMEN ARE ENTERING THE
FORCE
- ETHNIC MINORITIES, IMMIGRANTS
- ARE INCREASED
- INTERNATIONAL CAREER AND WORK
- FORCE MOBILITY IS INCREASING
- INTERNATIONAL EXPERIENCE IS A
- PREREQUISITE FOR CAREER
- PROGRESSION
GLOBAL CHALLENGE ….
MOVING FROM TRADITIONAL
TO RE-ENGINEERED VALUES
CUSTOMER
EXPECTATIONS ARE
CHANGING: FAST AND
RELIABLE DELIVERIES OF
GOODS AND SERVICES IN
TERM OF:
- QUALITY
- TIME
- PRICE
THE DESIGN AND
CONCEPT OF WORKPLACE
ARE CHANGING:
- THE IMPACT OF IT’S
RADICAL
DEVELOPMENT
- NEW WAYS OF
ORGANIZING
TRADITIONAL:
-THE BOSS PAYS OUR SALARIES; KEEP THE
-
BOSS HAPPY
-TO KEEP OUR JOB, STAY QUIET AND DON’T
- MAKE WAVES
-WHEN THINGS GO WRONG, PASS
- PROBLEM TO OTHERS
-GOOD MANAGER BUILDS AN EMPIRE
-THE FUTURE IS PREDICTABLE; PAST
RE-ENGINEERED:
- SUCCESS MEANS FUTURE SUCCESS
-CUSTOMERS PAY OUR SALARIES; KEEP
- THEM HAPPY
-WORK SMARTER NOT HARDER
- ACCEPT OWNERSHIP FOR PROBLESM;
- HELP SOLVE THEM
-GOOD MANAGER BUILDS TEAMS
-THE FUTURE IS UNCERTAIN; CONSTANT
GLOBAL CHALLENGE …
MANAGERS CHARACTERISTICS ARE CHANGING:
- GLOBAL FOCUS
- BEING GRADUATES
- RESULT DRIVEN
GENDER ROLES ARE CHANGING:
MORE EQUAL INVOLVEMENT
GLOBAL ECONOMY AFFECTS ORGANIZATION OPERATION
HUMAN RIGHTS IN THE WORK PLACE; CREATE PRESSURES FOR:
- EMPLOYEE RIGHT
- JOB SECURITY
- EEO
- EQUITY OF EARNINGS
ETHICS AND MORALITIES BECOME PART OF ORGANIZATION’S SOCIAL
RESPONSIBILITIES
QUALITY OF WORK LIFE:
OVERALL QUALITY OF HUMAN EXPERIENCES IN THE WORK PLACE
PARTICIPATION: INVOLVING PEOPLE FROM ALL
LEVELS OF RESPONSIBILITY IN DECISION MAKING
TRUST: PROVIDE MORE FREEDOM WITHIN THE
SYSTEM
REINFORCEMENT: SHARING THE WEALTHS
RESPONSIVENESS (MAKING THE WORK SETTING
MORE PLEASANT AND ABLE TO SERVE
INDIVIDUAL NEEDS):
- SENSITIVITY TO FAMILY ISSUES
- FRIENDLINESS AND FUN
- RELIGION PRACTICES AT WORK
Current Global Changes
European Economic Community
North American Free Trade
Agreement
The Growth of Asia
– Japan, China, Singapore, Hong
Kong, and Malaysia are significant
economic forces.
General Agreement on Tariffs and
Trade (GATT)
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
TRENDS TOWARD INTERNATIONAL AND
GLOBAL ENTERPRISE
GROWTH IN INTERNATIONAL INVESTMENT AND
TRADE
GROWTH OF MULTINATIONAL ENTERPRISES
(MNEs), DIVERSE NATIONAL CONTEXT OF
OPERATIONS
INTERNATIONAL, MULTINATIONAL WORK FORCE
CROSS-NATIONAL TRANSFER OF MANAGEMENT
AND MANAGEMENT PRACTICES
NEW ORGANIZATION FEATURES
DYNAMIC GLOBAL ECONOMY
BE CUSTOMER RESPONSIVE
PROFITABILITY THROUGH COST AND GROWTH
REDEFINITION OF ORGANIZATION CAPABILITIES
AS THE DNA OF COMPETITIVENESS
LEARNING TO CHANGE: ADAPTATION AND
TRANSFORMATION
MANAGERIAL INNOVATION
KEEPING UP TO TECHNOLOGY INNOVATION
ATTRACTING, RETAINING, AND MEASURING
COMPETENCE AND INTELLECTUAL CAPITAL
CHANGING EMPLOYEE DEMOGRAPHICS, E.G.
MORE WOMEN IN THE WORKFORCE
THEMES IN CHANGING AND
DEVELOPING ORGANIZATION
SPEED
FLEXIBILITY
INTEGRATION
INNOVATION
MINDSET: ALLOW IDEAS, COMPETENCIES EMERGE AT ALL
LEVELS THROUGH:
- LEARNING
- SHARING KNOWLEDGE
- GROUPING PHYSICAL AND INTELLECTUAL ASSETS
Ratio of Market Value to Book Value for Selected
Companies
Company
eBay
Annual
Market
Book
Ratio of
Sales
Value
Value
Market to
($ billions) ($ billions) ($ billions) Book Value
1.2
30.8
3.9
7.9
Microsoft
28.4
254.1
58.3
4.4
Intel
26.8
142.1
35.4
4.0
182.1
20.0
9.4
2.1
Nucor (Steel)
4.8
3.9
2.3
1.7
J. C. Penney
32.3
5.0
6.4
General Motors Corp.
.78
Note: The data on market valuations are as of June 16, 2003. All other financial
data is based on the most recently available balance sheets and income
statements.
CEO Remuneration in U.S. Dollars
CEO/MANUFACTURING
CEO TOTAL
EMPLOYEE TOTAL
REMUNERATION REMUNERATION MULTIPLE
COUNTRY
United States $ 1,404,000
597,000
Brazil
540,000
France
861,000
Argentina
422,000
Germany
546,000
Japan
649,000
Mexico
31
60
15
48
11
11
46
INDONESIAN WAGE SURVEY 2007
CEO
DIRECTOR
SR. MANAGER
JR.
MANAGER
ENTRY
LEVEL
OIL& GAS
35+
30 – 35
25 – 30
20 – 25
2.5 – 5
TELECOM
35+
30 – 35
20 – 25
15 – 20
2.5 – 3
PHARMACY
30+
25 – 30
15 – 20
5–8
2 – 2.5
MANUFACTURE
25+
20 – 25
10 – 15
5-6
1.5 – 2
SERVICES
20+
15 – 20
7–8
5-6
1.5 – 2
AUTOMOTIVE
20+
15 – 20
7–8
5-6
1.5 – 2
ELECTRONICS
20+
15 – 20
7–8
5-6
1.5 – 2
GARMENT
15+
10 - 15
4–6
<4
UMR
FORWARDING
15+
10 - 15
4-6
<4
UMR
AREAS
Points to Ponder
1.
2.
3.
4.
5.
6.
How do we know if an organization is successful?
What are the components of an effective
organization?
What determines the effectiveness of an
organization?
How is an effective organization designed?
What theory can be used to solve organization
problems, i.e. ineffective organization?
How does culture work?
ORGANIZATIONAL EFFECTIVENESS
What is effectiveness? Is it different from
efficiency?
What does it mean “effectiveness is a necessary
condition for survival”? Can an organization die?
What are the parameters used to explain
organization effectiveness?
FOUR APPROACHES TO ORGANIZATION
EFFECTIVENESS
APPROACH
DEFINITION
An organization is effective to the extent
that it ….
WHEN USEFUL
The approach is preferred
when ….
GOAL ATTAINMENT
Accomplishes its stated goals
Goals are clear, time bound, and
measurable
SYSTEM
It acquires needed resources
A clear connection exists
between inputs and outputs
STRATEGIC
CONSTITUENCIES
All strategic constituencies are at least
minimally satisfied
Constituencies have powerful
influence on the organization, and
the organization must repond to
their demands
COMPETING
VALUES
The emphasis of the organization in the four
major areas (i.e. return on investment, market
share, new-product innovation, job security)
matches constituent preferences
The organization is unclear about
its own emphases, or changes in
criteria over time are of interest
A THREE-DIMENSIONAL MODEL OF
ORGANIZATIONAL EFFECTIVENESS
FLEXIBILITY
MEANS
PEOPLE
ORGANIZATION
ENDS
CONTROL
A FOUR MODEL OF EFFECTIVENESS VALUES
HUMANRELATIONS
MODEL
Ends: Skilled
Work force
Means:
Cohesive
Work force
OPEN SYSTEM
MODEL
Means:
Flexibility
FLEXIBILITY
PEOPLE
Ends: acquisition
Of resources
ORGANIZATION
Ends: Productivity
and efficiency
Means: Availability
Of information
Ends:
Stability
INTERNALPROCESS MODEL
CONTROL
Means:
Planning
RATIONALGOAL
MODEL
CRITERIA OF ORGANIZATION EFFECTIVENESS
CRITERIA
FLEXIBILITY
ACQUISITION OF
RESOURCES
PLANNING
PRODUCTIVITY AND
EFFICIENCY
AVAILABILITY OF
INFORMATION
STABILITY
COHESIVE WORK FORCE
SKILLED WORK FORCE
DEFINITION
ABLE TO ADJUST WELL TO SHIFTS IN EXTERNAL CONDITIONS
AND DEMANDS
ABLE TO INCREASE EXTERNAL SUPPORT AND EXPAND SIZE OF
WORK FORCE
GOALS ARE CLEAR AND WELL UNDERSTOOD
VOLUME OF OUTPUT IS HIGH, RATIO OF OUTPUT TO INPUT IS
HIGH
CHANNELS OF COMMUNICATION FACILITATE INFORMING
PEOPLE ABOUT THINGS THAT AFFECT THEIR WORK
SENSE OF ORDER, CONTINUITY, AND SMOOTH FUNCTIONING OF
OPERATIONS
EMPLOYEES TRUST, RESPECT, AND WORK WELL WITH EACH
OTHER
EMPLOYEES HAVE THE TRAINING, SKILLS, AND CAPACITY TO DO
THEIR WORK PROPERLY
Effectiveness Criteria
(Gross; in GIBSON, ET. AL., 1973)
Acquiring resources
Being efficient or cost-effective
Producing outputs
Developing administrative and technical
functions
Investment
Behave according to ethical code of conduct
Satisfying the needs of organization members
Effectiveness Criteria
Expert
Effectiveness Criteria
Gross
Acquiring
resources
Price
Productivity Productiv Producti Adaptati
Institutionali ity
vity
on
zation
-moral
Institu
conformity tionali
adaptation zation
Institutiona
lization
Moral
Adaptation
Institutiona
lization
Mott
Productvity
Adaptation -Adap
tation
-Fleksi
bility
Adaptation
Efficient
Producti Adminis
on
rative &
technical
functions
Productvi Product
ty
vity
Adapta
tion
Fleksibili
ty
Ethical
code
Investment
Satisfying
members’
interests
THE ESSENCE OF AN ORGANIZATION
ALWAYS HAS A PURPOSE:
EFFECTIVE PERFORMANCE
EFFICIENT PERFORMANCE
DEPENDS ON HUMAN EFFORTS
PARADOX BETWEEN DIVISION OF
LABOR AND THE SYNERGY OF ALL
EFFORTS
CRITERIA OF SUCCESS
SURVIVAL
COMPETITIVE
SATISFACTION
COMMITMENT
ORGANIZATIONAL CITIZENSHIP BEHAVIOR
EFFECTIVENESS VS. EFFICIENCY
GOOD
SOME RESOURCES
WASTED
GOALS ACHIEVED,
RESOURCES WELL
UTILIZED
PERFORMANCE EFFECTIVENESS
HOW WELL ARE GOALS
BEING ATTAINED
GOALS NOT ACHIEVED, NO WASTED RESOURCES,
RESOURCES WASTED
BUT GOALS NOT
IN THE PROCESS
ACHIEVED
POOR
POOR
GOOD
PERFORMANCE EFFICIENCY
HOW WELL ARE RESOURCES
BEING UTILIZED
Integrative Concepts in Understanding
Organizational Effectiveness
Strategies
Organizational
Maintenance
-Affirmation of the mission
-Operational adjustment
-Commitment of people
Adaptiveness
-Continuous
experimentation and
learning
-Facilitative leadership
-Movement into new
markets
-Innovative alliance
Parameters
-Efficiency
-Effectiveness
EFFECTIVENESS CRITERIA VS. TIME
Short term
Middle term
Long term
Maintenance:
- Production
- Efficiency
- Satisfaction
Adaptation:
- Investment
- Development
Survival
The Process of Developing Organizational Effectiveness
TIME
SHORT-RUN
INTERMEDIATERUN
LONG-RUN
ADAPTATION PROCESS
Maintenance
Adaptiveness
INVENTING
Organization
THE FUTURE
Maintenance
Adaptiveness
CHANGING SITUATION
PARAMETER OF THE PROCESS
Effectiveness
Efficiency
ENVIRONMENT
