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Internal Process Approach
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- 7.2.3 Goal Approach
- 7.2.4 Strategic Constituencies Approach
| 7.2.3 Internal Process Approach The internal process approach looks at internal activities and assesses effectiveness by indicators of internal health and efficiency. The internal process approach is important because the efficient use of resources and harmonious internal functioning are ways to measure effectiveness. A significant recent trend in management is the empowerment of human resources as a source of competitive advantage. Most managers believe participative management approaches and positive corporate culture are important components of effectiveness. The internal process approach does have shortcomings. Total output and the organization’s relationship with the external environment are not evaluated. Also, evaluations of internal health and functioning are often subjective, because many aspects of inputs and internal processes are not quantifiable. Managers should be aware that efficiency alone represents a limited view of organizational effectiveness 7.2.3 Goal Approach The goal approach to organizational effectiveness is concerned with the output side and whether the organization achieves its goals in terms of desired levels of output. The goal approach is mostly used in business organizations because output goals can be readily measured. Business firms typically evaluate performance in terms of profitability, growth, market share, and return on investment. However, identifying operative goals and measuring performance of an organization are not always easy. Two problems that must be resolved are the issues of multiple goals and subjective indicators of goal attainment. 334 7.2.4 Strategic Constituencies Approach The strategic constituency approach of OE proposes that an effective organization is one that satisfies the demands of those constituencies in its environment from whom it requires support for its continued existence. Under this approach, the organization is assumed to bean association of political arenas, where vested interests compete for control over resources. It is assumed that the organization has a number of constituencies, with different degrees of power, each trying to satisfy its demands. The approach seeks to satisfy only those in the environment who can threaten the organisation's survival. Therefore, effectiveness is defined in terms of the degree to which the needs and expectations of the strategic constituencies are met by the organization Download 3.37 Mb. Share with your friends:
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