HR Guide to Organizational Effectiveness and Resiliency

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!ref:: HR Guide to Organizational Effectiveness and Resiliency
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Book cover of "HR Guide to Organizational Effectiveness and Resiliency"

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(highlight:: But at its core, organizational effectiveness is about reaching goals.
Put simply, it refers to how thoroughly and successfully an organization achieves its internal or external goals, and how well the necessary resources to achieve those goals are managed.)
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(highlight:: Other pillars and indicators of organizational effectiveness include:
Adaptability: How well the organization is able to adapt to external or internal changes without major disruptions
Organizational values: How well organizational goals and desired results are tied back to the organization’s overall mission
Innovation: How well the organization is able to innovate on existing offerings and stand out from competitors
Financial health: How well the organization is performing financially, such as financial stability and profitability
Employee and customer loyalty: How satisfied customers and employees are with the organization – both from a product perspective and as a wider organization)
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(highlight:: Although very similar, organizational effectiveness and organizational efficiency are separate concepts with different end goals and influences.
Organizational effectiveness refers to how well organizations can reach their goals and deliver results that are tied to the organization’s mission with the resources available.
Organizational efficiency is about the optimization and management of resources to reach desired goals and keep organizations productive without wasting excess effort, money, or time.)
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- [note::Effectiveness = Achieving goals with resources available
Efficiency = Optimizing/managing resources to achieve goals]

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(highlight:: Goal Approach
The goal approach, or goal-attainment approach, is a goal-based model to organizational effectiveness that focuses on achieving all of the organization’s defined goals. The goal approach is measured based on how successfully the organization has accomplished stated goals, taking into account the timeframe goals were completed in and resources that were used.)
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(highlight:: Resource-based Approach
In this organizational effectiveness model, effectiveness is assessed based on input.
It emphasizes how efficiently and effectively resources are used to achieve goals and desired outcomes. It’s closely tied to organizational efficiency and focuses on how resources are managed, allocated, and optimized.)
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(highlight:: Internal Process Approach
An internal process approach is more focused on what is happening inside the organization than what is happening outside of it. It considers how well the organization is functioning, including procedures and processes.)
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(highlight:: Strategic Constituency Approach
The strategic constituency approach measures effectiveness through the satisfactgion of stakeholders. In this context, stakeholders can include employees, shareholders, or customers.
In this approach, an organization’s effectiveness is assessed based on the needs of stakeholders and how well the organization can meet these needs.)
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Other approaches to organizational effectiveness include the balanced scorecard approach and organizational life cycle approach.
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(highlight:: According to a study from Bain & Company, there are five critical areas that can help improve organizational efficiency and effectiveness:
Strategy: Adopting effectiveness and efficiency as core values
Metrics: Not just measuring results, but being mindful about what is being measured and how it is being measured (i.e., data analytics vs. human judgment)
Commitment: Clearly and authentically committing to effectiveness efforts
Behaviors: Reinforcing positive behavior and helping reduce negative behavior to foster a positive, thriving environment
Culture: Focusing on company culture to keep employees engaged and motivated to sustain organizational effectiveness)
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