What is Effectiveness?
Effectiveness is often thought of as part of the all good things that successful organisation desired to possess. Just like an individual wants to be healthy, wealthy and wise, an organisation is effective when it meets its goals as defined by those that it serves.
According to Wikipedia, organisation effectiveness is defined as the concept of how effective an organisation is achieving the outcomes the organisation intends to produce.
Business effectiveness
Business dictionary defined it as the efficiency with which an association is able to meet its objective. The main measure of organisation effectiveness for business will generally be expressed in terms of how well its net profitability compares with target profitability. Several consultancies defined it as the intersection of business strategy, human resources and operational management.
In Richard et-al (2009), organisation effectiveness captures organisational performance plus myriad internal performances outcomes normally associated with more efficient or effective operations and other externals measures that relate to considerations that are broader than those simply associated with economics valuation.
Organisation effectiveness is critical to success in any economy. In order to achieve increased and sustainable business results, organisations need to execute strategy and engage employees. However, in one of the researches carried out it was indicated that many organisations are struggling to get it right.
How to create organizational effectiveness through alignment and engagement
To create organizational effectiveness, business leaders need to focus on aligning and engaging their people; the people management systems and the structure and capabilities (including organisation culture) to the strategy.
While this engagement is critical – as it results in higher financial performance, higher customer satisfaction and higher employee retention, the alignment will achieve increased business results.
Six forces that make organisation effective
Below are six powerful forces that make organisation to be effective:
- Force of direction: organisation must have a sense of direction as this gives a sense of where it is going as an integrated entity.
- Force of efficiency: organisation becomes more effective when it attempts to ensures a viable ratio of benefits gained to costs incurred.
- Force of proficiency: when an organisation is able to carry out certain tasks with high levels of knowledge and skill, it will be highly productive which result in effectiveness.
- Force of concentration: an organisation tend to more effective when it tends to concentrate its efforts on serving a particular market.
- Force of innovation: when an organisation is discovering new things for their customers and themselves such organisation will be highly effective.
- Force of talented people: when right people are carefully selected as employees it becomes strength to an organisation. Talented people are asset which have positive impact to organisational effectiveness.
The effectiveness of business constitutes its ability to perform a function with optimal levels of input and output.
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