Organizational Effectiveness - Essay Example

Name Tutor Title: Organizational Effectiveness Institution Date Table of Contents Table of Contents 2 Organizational Effectiveness 3 Introduction 3 Measuring organizational effectiveness 4 Impacts of organizational effectiveness 4 Productivity 4 Job-satisfaction 6 Absenteeism 8 Balance of life 10 Health 10 Conclusion 12 Bibliography 12 Organizational Effectiveness Introduction Business needs are changing faster than the mechanical skills of people. In this was came the emergence of Organizational effectiveness which firms use to rate how they get things done. Hence according to Mesbah (2010), firms tend to obviously optimize their execution, its targeted effectiveness. With this in mind organizational effectiveness is a function of productivity. There are various approaches used in measuring effectiveness such as goal approach, system resource and internal process approach. It is therefore a concept that is used in organizations to determine the end results of the firm. Organizational effectiveness comes into play especially on non profit making organizations. Donors would try and access if really the firm is working or rather efficient in their purpose as it stands. It mainly affects a lot of areas that is production, performance, job satisfaction of employees, absenteeism of employees, employees’ life and health. These are the factors that affect the organizations effectiveness. Organizational effectiveness is a very difficult thing to quantitatively determine thus proxy measures are the ones that come into play. This is therefore a very significant aspect to watch in an organization. Through this the firm would in obviously have increased outcome, less internal wrangles and comfortable decision making processes. Measuring organizational effectiveness According to Bowling (2007), a number of factors have been put to play but organizational effectiveness is still a hard shell to crack. Though a lot of tangible results can evidently be observed the measures are hard to put together. A number of factors considered are the performance of the organization, productivity, employee satisfaction, and the character of employee displayed. For instance in Abu Dhabi organizational effectiveness in Water and Electricity department (WEB) has formulated strategies which together with good management will achieve its goals. Through coordination of employee efforts the WEB would maintain a continuous flow of processes. The initiatives put in place so far targets at the performance, productivity, adopting a lean management and the job satisfaction of the employees. Therefore for the effectiveness of the organization observes the number of clients it attends to and offers services, the customer turn over, retention of the customers, requests issued by customers. Since the organization is a service deliveries firm its effectiveness can be determined by actual efforts which the labor sector does to produce (Bowling, 2007). Impacts of organizational effectiveness Productivity The major role of an organization is to maximize its profits and reduce high expenditures on non-profitable ventures. The firm is hence obliged to improve its effectiveness by increasing its rate of production through certain measures put in place. This is only possible when the firm has the right and necessary manpower to implement this. Using in these cases sample populations of employees were used to assess the impact of effectiveness for six production units was critically analyzed. The outcome was therefore mixed. In the beginning the introduction of more of more working hours had very minimal impact on productivity at the same time effectiveness. Basing on the previous outcomes one of the units had positive change. The results of the remaining units relayed neither negative nor positive change as a result of introducing new policies for effectiveness. In another instance workers were randomly assigned to both chores. After some period of time say five months the completed the job satisfaction index. They were rated with a performance of 9-point scale. The effectiveness of the chores so far done was minimal and caused minimal output (Richard, 2009). It is to this extent evident that organizational effectiveness does not cause any change on the production of an organization. The outcome of the effects of effectiveness is inconclusive since because of very small effects recorded. With the employment of alternative and random and fixed effects patterns to measure the production functions, in the inclusion of controls, time effects, and capital and correction specifications production still recorded less inclination or declination. Organizations are therefore encouraged not to rely on effectiveness working time as a technique to improve its production. Production can only be affected by the input which includes the necessary manpower and availability of elements of production. Apart from that productivity can be increased through workflow management mechanisms which will decrease skewed workloads. It is however applicable in large firms with clearly defined roles and to a healthy interactions (Maxwell, 2007). For example if the management board are effective and apply good organizational ethics such as ABC company in Abu Dhabi. The company which is best known for oil and gas supply issued tenders to various firms, that is, AZA which in turn fleeced its accounts. Though the management board was effective the tender offered proved otherwise through the commercial department. Engineering works done to the company was budgeted to be $270 million. More issues were rooted out such as projects were budgeted for about $200,000,000 annually. Under normal circumstances projects consumed about $170,000,000 and $30,000,000 was hence unaccounted for. The accounted money ran to a span of three years summing up to $60,000,000. Thus the effectiveness of an organization does not necessarily relay its outcome (Herman, 2009). Organizational effectiveness should be engineered towards making production mechanisms to be promoted. By releasing one of its work-force the firm should employ methods designed to fix the gap left. Through implementation of proper policies the firm can realize an increase in production because of the integration of other forces. Job-satisfaction When an employee is content with his job it shows that he is satisfied. There are various techniques that are used to motivate one in the long run be satisfied with his job. This highly depends on job design, management technique, employee involvement and job enlargement. The desire to motivate employees in a firm is very essential and is the goal of most organizations. Introduction of flexible working hours has improved the employee’s desire to work more satisfactorily. Flexible working hours has had a positive effect especially on retention and quality performance. In the long run these ensure the effectiveness of the organization (Orpen, 2001). For instance randomly selected employees in an organization were assigned to flexible working hours. After a period of time they completed the index of job satisfaction. In a scale of one to five on performance they were rated 4. The outcome thus relays that there is significant rise in employee satisfaction but had no impact on performance. This shows that even though the employee was completely satisfied with his job his performance was not subject to improvement (Bowling, 2007). Recent surveys carried out by Skopos consulting in firms in the UAE region revealed that for effectiveness in the organization necessary measures have to be put in place. Employee satisfaction has to be one of the priorities towards the effectiveness of the firm. This will therefore have significant impact on performance. Therefore Skopos consultant used organizational development as an approach to alter the effectiveness of the firm. This concept boosted the effectiveness of Gulf cooperation council. This was meant to raise the firms back from the set back of the recent financial crunch (Rana, 2010). Job satisfaction is an indirect impact on performance in a firm. Surveys carried out show that this factor affects people’s choice of jobs and also flexibility of working time. Flexibility fosters a positive attitude towards work and thereby making an impact on performance and production which are directly proportional. Apart from motivation through flexibility the job pay could also mark a big change on satisfaction. Recent surveys carried out show that job satisfaction was to a large percentage depicted by those who work flexibly. Very few respondents reported negatively because of decreased opportunity. The organization recorded high loyalty and commitment within the employees. Positive flexibility on working improves workers likes for his career. Surveys carried out in the recent past have shown that dissatisfied employees cannot be maintained in their workplaces even if working arrangement are made better (Weiss, 2001). Job satisfaction is a very important indication of the employee’s feeling about the job so far he is partaking. That is hence the displayer of the employee’s behavior while at work. Therefore job satisfaction goes hand in hand with performance and the effectiveness of the organization. When one is not satisfied at work he usually performs weakly and inadequately. Therefore for an employee to quit he must have been dissatisfied with what he so far has. Motivators in the workplace are highly emphasized to boost the satisfaction of the worker. With this in mind the employer would increase his production. The firm should maintain an environment which soothes the employee to facilitate his working relations for effectiveness (Hackman, 1976). Absenteeism This is a pattern or trend prevents one from pursuing his normal duties i.e. at the workplace. The behavior if harbored becomes a habit. In the past the behavior was characterized by diminished performance and numerous breaching of contracts between the parties involved. Absenteeism is viewed as a setback in many organizations and moves to mitigate its effects are highly required. There are measures that have so far been taken to reduce this through policies employed. “Bradford factor” relays the frequency of absence from work (Hanebuth, 2008). Absenteeism is mainly caused by certain factors such as illness, poor working environment, transportation problems, stress, disability, inadequate job satisfaction and boredom. However, the causes can be reduced by positive thinking. By motivating the employees through taking necessary measures at the work place may reduce such. Most employees care less of their absenteeism because it usually costs nothing. Very many firms are paying the cost of this effect which results to great losses. Therefore as an employer one needs to focus on what causes it i.e. organizational or individual factors. Correct analysis may lead to eradication of the problems which lead to absenteeism. Through job satisfaction it is observed to reduce this hence the employee should be the most vital asset of the employer. Therefore the employer is responsible for keeping a positive environment which will always keep the employer at utter satisfaction (Gary, 2007). Absenteeism is very costly to a company whereby in the UAE region has marked frequents instances. In building firms such as Audex Fujairah LL FZE has experienced this. The recent global crunch made the firm to operate loans and therefore it led to relinquishing of some of its employees. Though it was a search for a leaner working force the employees wages were still due. Absenteeism was thus witnessed due to employees seeking for other occupations albeit to keep them afloat (Richard, 2008). Balance of life Working without balancing it with other responsibilities makes work prone to disabled performance. One has to prioritize work and life. It is thus significant to make choices making strategizing time to work, play, and other things. Balance is then achieved through planning and using the right framework in order to avoid negative eventualities. For instance one can pursue a degree course at the same time work. With no legal restrictions flexible working hours can make this concept possible with only good planning. The need is to ensure balance of academic and the workload. Working while learning has more merits than demerits that is one has lessened financial worries making life worth living. Working also helps the individual develop skills which are transferred from what he learns, good experience is obtained. It also adds pressure to your output as you have to meet deadlines which assuming them may increase stress levels. In this event it will also promote healthy planning of activities and effectiveness at work. Most students for instance do this simultaneously. Thus some countries have associations which look into student affairs i.e. National Association of Student Employment Services. Therefore part-time working seems better for graduates (Matuska, 2009). Health The metabolic fitness of an individual is supposed to be depicting the general condition of someone. When someone is healthy it means he is free from an illness or disabled health issues. Maintaining of perfect health is as a result of good conditioning of the physical and mental well-being. Health is life’s objective as it determines the effectiveness of an individual. In this respect healthy people lead a productive life and high performance. Therefore a firm with healthy individuals realizes much income as the production rate will be highly synthesized. Performance in the work-place is affected by health in which high performance come with respect to good health. Hence employees’ health is a fundamental entity in a firm (Matuska, 2009). Flexible working hours is therefore good for one’s health. Most workers who have full control over their working hours preferably are healthier and more effective than the converse. Research carried out found out that people who had good mental health, sleep and blood pressure was mostly people who could determine their effectiveness. In the research police officers in the UAE region who alternated their starting time of work displayed significant results. They were fit psychologically than other officers who had fixed working hours. Recent reports show that fixed working hours have to a great extent a negative impact on health. However, the employer is not interested on health hence not of benefit to him. In the UAE region their policies which ensure that cater for the employers. The first thing is to care for their health for a productive firm to be at and. (Matuska, 2009). An employer therefore needs to create and implement policies that facilitate balance and fairness of labor within the firm. Decreasing struggles and wrangles, employees merry for healthy lives as effectiveness in turn increases. With the changing conditions employers need to have new ideas to model flexible working hours to create a balance in the employee’s life which will facilitate confidence. There employees should be provided with adaptive time for launched conditions, promote the morale of the employees and set the firm and employees as two inseparable entities. Conclusion In conclusion, it is important to note that dominating firms therefore represent a sustainable competitive advantage and align business strategies. Hence through organizational effectiveness the clients’ value is established. This necessitates the integration and structuring of business plans. Putting all tools together through alteration of the executive group, alignment of the labor force and implementation of policies will impact firm effectiveness. Bibliography Bowling, N. 2007, Is the Job Satisfaction-Job Performance Relationship Spurious: A Meta-Analytic Examination. Journal of Vocational Behavior, 71, 167-185. Gründemann, R. 1997, Preventing absenteeism at the. Dublin: European Foundation for the Improvement. Weiss, H. 2001, Organizational behavior: affect in the workplace. Annual Review of Psychology , 53, 279-307, p. 282. Hackman, R. 1976, Motivation through design of work. Organizational behaviour and human performance , 250–279. Hanebuth, D. 2008, Background of absenteeism. Frankfurt: Peter Lang. Johns, G. 2007, The Blackwell Encyclopedia of Sociology. New York: Blackwell Publishing. Matuska, K. 2009, Life Balance: Multidisciplinary Theories and Research. Bethesda: Slack Publishers. Maxwell, G. 2007, Impact and Incidence of Flexible Working Arrangements in Smaller Businesses. Glahscow: Glasgow Caledonian University. Orpen, C. 2001, Effect of flexible working hours on employee satisfaction and performance: A field experiment. Journal of Applied Psychology , 113-115. Richard. e. 2009, Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management. Mesbah, R. 2010, Soft skills boost organisational effectiveness and performance. Skopos Consulting Group . Nyrop, R. 2008. Area Handbook for the Persian Gulf States. New York: Wildside Press LLC. Read More