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Criteria for Organizational Effectiveness

Updated on June 27, 2012

Organizational effectiveness is the capacity of a company to increase employee satisfaction, reduce turnovers, and maximizing productivity through providing outstanding customer service. These activities can increase the longevity of the organization in tough economic times.


The absence of organizational effectiveness will send a company or business into a downward spiral. Weak customer, market and human resource focus will allow the competition to grow stronger with more satisfied customers, greater market share, and highly motivated employees.


Several criteria exist for determining an organization’s effectiveness, including leadership, strategic planning, human resource development, process focus, information and analysis, and business results. The practice of these elements varies form organization to organization. Nevertheless, the results would most likely lead to some measure organizational effectiveness. (1)


Measuring organizational effectiveness depends on the level of customer satisfaction, productivity, employee motivation and technological efficiency. The absence of these factors makes it difficult for an organizational to succeed. Unsatisfied customers and unmotivated employees cannot co-exist if a company wants to increase customers and exceed the competition.


An effective organization possesses many benefits, including loyalty, excellent customer response, increased productivity, honor and recognition as well as many other benefits. These benefits indicate that an organization is headed in the right direction. Employees often remain loyal to organizations that provide an overwhelming vision.


According to Dr. Marilyn Helms, a professor of management at Dallas State College, organizational effectiveness requires communication at all levels, including information sharing, appraisals, training, feedback, and recommendations. These forms of communication cannot be stressed enough. The success of an organization depends on them to survive.

1. Concepts Underlying Organizational Effectiveness: trends in the organizational and management science literature


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