Organizational Effectiveness

Introduction

Organizational effectiveness can be defined as the way an organization can use its resources to achieve its set goals and objectives as per the plans of that organization . An example can be seen in non- profit organization whereby those who invest their money in those organizations would actually want to know whether these organizations are effective by their progress in terms of the profit the organization is making . In case the organization is incurring loses , then it 's termed as ineffective . When an organization is effective in its activities , it

means that this organization depends on its ethics and communicative competence . An organizational ethics can be seen in how the organization communicates with its workers , respect , integrity and honest . In any organization , the real challenge is about the organizational growth and innovation . If an organization is in a position to grow by using innovation as a tool of its growth , then this organization can be termed as effective . It 's through the organizational effective strategies which help these companies to know their competitive advantage . When a firm sustains more profits that exceed the average for its industry , this firm is said to possess a competitive advantage when compared to its competitors . In most of the organizations , one of the biggest goals is to achieve competitive advantage . When this organization has the benefits just like its competitors but at a lower cost , then the organization is said to have competitive advantage and this shows that this organization is effective . An organization is effective to the extend that it can achieve its set goals . An organization undergoes several stages before it realizes its effectiveness some of which include the changes in the organizational structure , changes in the organizations growth , organizational processes , culture and control (Stone , Bigelow , and Crittenden , 1999

Organizational structure

When starting a new business , the new venture needs to make a decision on the type of business to venture in , one also makes a plan and this plan should be based on the organizational goals and objectives which are to be achieved in a certain period of time say , one year , decide on the type of work which is to be done by the organization , and how this work is to be done . The structure of these organizations depends much on the size of the business for instance a shoe maker will have a small organizational structure compared to a manufacturing company like the New Hike . When this simple business grows , then it will require more employees to work in this organization and hence the structure of the organization increases as it requires more departments . It creates more departments for the new workers . There is still differentiation of work according to the workers skills and abilities . As a result , division of labour in this organization becomes an issue . Structure will allow the responsibilities for the different functions and processes for the organization to be clearly defined in the different department in this business

The organizational structure defines the organizational...