Chapter 3: Organisatinaa efeetteness
Importance of organisatonaa eeectieness
o Eiery department aids managers to make the organisaton more eeectiee Eege accountng
principaes assist managers by enhancing the quaaity of decisions
o Organisatonaa structure is one of the key determinants to eeectieness
In seareh if a defnitin
o 1950: if an organisaton achieied its goaas
o Many questons: whose goaas, LT,, T,, stated goaas, managers’ goaas?
o Timpae approach: suriiiaa
o Difficuaty: many companies merge, reorganise, seaa of parts, etce
o Can suriiie without being eeectie
o 1960/70: deieaopment of 30 dieerent criteria to identfy eeectienesse Not aaa criteria are
reaeiant to eiery organisaton
o Organisatinaa efeetteness: is the degree to which an organisaton aaains its shortr and aongr
term goaas, the seaecton of which refects strategic consttuencies, the seafrinterest of the
eiaauator and the aife stage of the organisatone
,he goaaraaainment approach
o ,his approach states that an organisaton’s eeectieness shouad be judged by whether it has
achieied what it sets out to achieie
o Popuaar criteria incaude achieiing proft objecties or meetng budgets
Assumptins
o Assumes that organisatons are deaiberate, ratonaa, goaarseeking enttese
o Organisatons must haie goaas
o ,he goaas must be expaicit, caear to understand and wideay known
o Thouad be of a manageabae number and refect important areas to the organisaton
o ,here must be generaa consensus or agreement on the goaas
o Progress must be measurabae (tmeraimit)
o Defne goaas and deieaop measures to determine accompaishment
Pribaems
o Whose goaas do you appay? ,hat of sharehoaders, directors, top management, etce Aaso conficts
of which goaas are most important
o Dieerence between what the organisaton states to be its goaas and its actuaa goaase Pubaic goaas
are adapted to pressure groups, whereas other goaas are not made pubaic
o T, goaas are dieerent from LT, goaas – which shouad be used?
o Muatpae goaas creates difficuatese Tome goaas may contradict each othere Most goaas are iery
broad and intangibae to satsfy aaa interest groups
o Assessment of goaa achieiement is difficuate Difficuaty in anaaysing actuaa meaning of the goaa
Importance of organisatonaa eeectieness
o Eiery department aids managers to make the organisaton more eeectiee Eege accountng
principaes assist managers by enhancing the quaaity of decisions
o Organisatonaa structure is one of the key determinants to eeectieness
In seareh if a defnitin
o 1950: if an organisaton achieied its goaas
o Many questons: whose goaas, LT,, T,, stated goaas, managers’ goaas?
o Timpae approach: suriiiaa
o Difficuaty: many companies merge, reorganise, seaa of parts, etce
o Can suriiie without being eeectie
o 1960/70: deieaopment of 30 dieerent criteria to identfy eeectienesse Not aaa criteria are
reaeiant to eiery organisaton
o Organisatinaa efeetteness: is the degree to which an organisaton aaains its shortr and aongr
term goaas, the seaecton of which refects strategic consttuencies, the seafrinterest of the
eiaauator and the aife stage of the organisatone
,he goaaraaainment approach
o ,his approach states that an organisaton’s eeectieness shouad be judged by whether it has
achieied what it sets out to achieie
o Popuaar criteria incaude achieiing proft objecties or meetng budgets
Assumptins
o Assumes that organisatons are deaiberate, ratonaa, goaarseeking enttese
o Organisatons must haie goaas
o ,he goaas must be expaicit, caear to understand and wideay known
o Thouad be of a manageabae number and refect important areas to the organisaton
o ,here must be generaa consensus or agreement on the goaas
o Progress must be measurabae (tmeraimit)
o Defne goaas and deieaop measures to determine accompaishment
Pribaems
o Whose goaas do you appay? ,hat of sharehoaders, directors, top management, etce Aaso conficts
of which goaas are most important
o Dieerence between what the organisaton states to be its goaas and its actuaa goaase Pubaic goaas
are adapted to pressure groups, whereas other goaas are not made pubaic
o T, goaas are dieerent from LT, goaas – which shouad be used?
o Muatpae goaas creates difficuatese Tome goaas may contradict each othere Most goaas are iery
broad and intangibae to satsfy aaa interest groups
o Assessment of goaa achieiement is difficuate Difficuaty in anaaysing actuaa meaning of the goaa
