Concept of Organizational Effectiveness:
The organization is the most vitally important part of the administration. In fact, it would not be wrong to observe that organization is prior to administration. There can be no administration unless there is an organization to run it. An organization has to manage and undertake the accomplishment of the purpose/purposes for which it comes into existence. It has the supreme responsibility to achieve its objectives, goals, and targets effectively and efficiently. The degree to which an organization is in a position to achieve this is referred to as organizational effectiveness.
For examining the concept of organizational effectiveness it is essential to get a clear view of the concept of organization.
What is an Organization?
Organization, observes Prof. Gaus, “is relating the efforts and capacities of individuals and groups engaged upon a common task in such a way as to secure the described objectives with the least friction and the most satisfaction to those for whom the task is done and those engaged in the enterprise.” In the words of Mooney, “Organization is the form of very human association for the attainment of a common purpose.”
In simple words, an organization can be conceptualized as the arrangement of personnel for facilitating the accomplishment of some agreed purpose through the allocation of functions and responsibilities. It is “the systematic bringing together of inter-dependent parts to form a unified whole through such authority, coordination, and control as may be exercised to achieve a given purpose. Because the interdependent parts are made up also of people who must be directed and whose work must be coordinated in order to achieve the objectives of the enterprise, an organization is both a structure and human beings.” (Dimock and Dimock).
Thus, an organization is a social unit with a purpose. It comes into existence for serving a specific purpose. There are a large number of organizations in every society such as governments, corporations, business organizations, universities, associations, trade unions, hospitals, schools, theatres, etc. How well an organization achieves its purpose or purposes is termed organizational effectiveness.
Criticism: However, some scholars raise several objections against the concept of organizational effectiveness. Most of them criticize this concept from two angles:
(1) Organizational effectiveness is a part of the larger system such as a nation and hence cannot be treated in isolation.
(2) Lack of agreement among social scientists over the issue of definition and measurement of organizational effectiveness.
Because of these two limitations, some scholars advocate the view that the study of organizational effectiveness cannot be effectively operationalized. They call upon the researcher to get engaged in other areas of study which are more promising. As Rosabeth Moss Kanter observes, “Some leading scholars have expressed impatience with the very concept of organizational effectiveness and they urge the researchers to turn their attention to more fruitful fields.”
However, the fore mentioned two main points of criticism against the concept of organizational effectiveness are more methodological and less substantive. Effectiveness has to be accepted as an essential and vitally important quality of an organization. An organization has to be an effective organization; only then can it be expected to deliver the goods. Every attempt must be made for increasing organizational effectiveness. It should also be accepted that organizational development can be one of the best means for improving organizational effectiveness.