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How Managers Measure Organizational Effectiveness - Research Paper Example

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The growth of a new organization depends on the ability of the management and leaders to evaluate its effectiveness and determine how this affects its profitability. Organizational effectiveness is defined as the measure of how an organization is working towards achieving the…
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How Managers Measure Organizational Effectiveness
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Download file to see previous pages own to cover the facets of organizational performance combined with the internal performance outcomes, which are directly influenced by the results of the effort (Zhou, Hong & Liu, 2013).
The determination of the organizational effectiveness is thus an essential role of every organization in the 21st century that is driven by the desire to succeed and achieve the internal goals of the business. At the time an organization is formed, the managers must secure a continuing supply of resources from the organization’s environment. This will enable the business to operate continuously and achieve long and short-term goals. In this paper, a discussion of the important approaches that managers use to determine the initial mix of resources to adopt during the creation of the business will be discussed.
The measure of organizational effectiveness is an essential process for any startup organization that desire to grow and enter new markets. As a result, either a number of tools have been developed for the measurement of effectiveness theoretically or empirically which make up part of the entire process of effectiveness determination. The judgment of performance in an organization is influenced by the group willing to determine the effectiveness, performance and the ability of the organization to achieve its objectives. Three approaches have been developed for the determination of effectiveness of an organization and can be utilized in the measure of new businesses whose operation parameters are still limited (Guest & Conway, 2011).
In measuring the organizational effectiveness through the determination of the external resource approach, the ability of a business to secure, manage and control the valuable resources and skills from the external environment is measured. In resource based view, the firm’s ability to effectively utilize the available resources is measured to determine the likelihood of profitable performance in the future. In this approach, two assumptions ...Download file to see next pagesRead More
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