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Factors Affecting Organizational Effectiveness

December 01, 2023

To ensure that the existing organization is more effective, we must know the factors that affect the organization from organizational characteristics, environmental characteristics, worker characteristics, management characteristics. There are four factors that affect effectiveness (Steers, 1985: 8):

Factors Affecting Effectiveness

  1. Organizational characteristics are relationships that are relatively fixed in nature such as the composition of human resources contained in the organization. Structure is a unique way of placing people in order to create an organization. In structure, humans are placed as part of a relatively fixed relationship that will determine patterns of interaction and task-oriented behavior.
  2. Environmental characteristics, include two aspects. The first aspect is the external environment, which is an environment that is outside the boundaries of the organization and is very influential on the organization, especially in decision making and action making. The second aspect is the internal environment known as the organizational climate, which is the environment as a whole in the organizational environment.
  3. Worker characteristics are the most influential factor on effectiveness. In each individual will be found many differences, but individual awareness of those differences is very important in achieving organizational goals. So, if an organization wants to succeed, it must be able to integrate individual goals with organizational goals.
  4. Management characteristics are strategies and work mechanisms designed to condition everything within the organization so that effectiveness is achieved. Management policies and practices are tools for leaders to direct every activity to achieve organizational goals. In implementing policies and practices, management must pay attention to humans, not only concerned with strategies and work mechanisms. This mechanism includes the preparation of strategic objectives, the search and utilization of resources, the creation of an environment of achievement, communication processes, leadership and decision making, and adaptation to changes in the organization's innovation environment.

Knowing the proper approach is essential to achieving the organization's goals, including customer satisfaction, compliance with laws and regulations, accident and illness prevention, and increasing efficiency and effectiveness. There are four approaches to organizational effectiveness (Robbins, 1994: 54).

Four Approaches to Organizational Effectiveness

  • Goal Attainment Approach: This approach views that organizational effectiveness can be seen from the achievement of its goals (ends) rather than his way (means). The criteria of the approach that are popularly used are maximizing profits, winning the competition and so on. The management methods associated with this approach are familiar with Management by Objectives (MBO) is a management philosophy that assesses the effectiveness of an organization and its members by assessing how far they have achieved the goals that have been set.
  • Systems Approach: This approach emphasizes that to improve the survival of an organization, it is necessary to pay attention to its human resources, maintaining itself internally and improving the organizational structure and the use of technology in order to integrate with the environment from which the organization needs continuous support for its survival.
  • Constituency-Strategic Approach: This approach emphasizes meeting the demands of that constituency within an environment from which the person needs ongoing support for his or her survival.
  • Competitive values approach: This approach tries to unite the three approaches above, each based on a group of values. Each is based on a group of values. Each of the subsequent values is preferred based on the life cycle in which the organization is located.

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