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This article’s tone or style may not reflect the encyclopedic tone used on Wikipedia. See Wikipedia’s guide to writing better articles for suggestions. Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. Organizational Effectiveness groups in organizations directly concern themselves with several key areas.
They are talent management, leadership development, organization design and structure, design of measurements and scorecards, implementation of change and transformation, deploying smart processes and smart technology to manage the firms’ human capital and the formulation of the broader Human Resources agenda. Rapid advances in social sciences and technology aided by clever experimentation and observation is bringing several truths to the light of society.
There are several disciplines of social sciences that help the OE Practitioner be successful. The broader idea of organizational effectiveness is applied for non-profit organizations towards making funding decisions. Foundations and other sources of grants and other types of funds are interested in organizational effectiveness of those people who seek funds from the foundations. Foundations always have more requests for funds or funding proposals and treat funding as an investment using the same care as a venture capitalist would in picking a company in which to invest.
According to Richard et al. For example, while most nonprofit leaders define organizational effectiveness as ‘outcome accountability,’ or the extent to which an organization achieves specified levels of progress toward its own goals, a minority of nonprofit leaders define effectiveness as ‘overhead minimization,’ or the minimization of fundraising and administrative costs. Hence,Organizational effectiveness is typically evaluated within nonprofit organizations using logic models. Logic models are a management tool widely used in the nonprofit sector in program evaluation.
Logic models are created for specific programs to link specific, measurable inputs to specific, measurable impacts. Typically, logic models specify how program inputs, such as money and staff time, produce activities and outputs, such as services delivered, which in turn lead to impacts, such as improved beneficiary health. Measuring Organizational Performance: Towards Methodological Best Practice.
Advancing Nonprofit Organizational Effectiveness Research and Theory: Nine Theses. The Construct of Organizational Effectiveness: Perspectives from Leaders of International Nonprofits in the United States. Nonprofit and Voluntary Sector Quarterly.