I would say the following in this regard:

--Communication of vision to employees & their buy-in of the vision

--Employee commitment

--Leadership effectiveness

--Communication effectiveness

--Employee care

--Sense of accountability for results

--Customer centricity

--Customer satisfaction

--Growth and survival

--Organizational learning & innovation

Hello Krishna

I can think of few variables.

1. Time dimension: How much time it takes to communicate one issue to different layers across organization. 

2. Does the communication reach without much distortion as intended.

3. structures of decision making, how many steps a decision takes to finalize

4. Conflict management process and structure, is it effective

5. Quality of decision making process, how is it ensured

6. Established standards and procedures for different works, does it exist, if so to what degree etc

there are also organization type specific variables, for example IT organization effectiveness and a manufacturing type organization effectiveness can have different variable.

Organisation effectiveness has been a topic of study for a long time with its attendant measurement issues. for example you may refer to Quinn and Cameron on Organisational effectiveness. if we look at effectiveness as achieving planned targets or missions, then

typically the following measures help:

whether the organisation is in the planning mode or not is itself an indication of effectiveness.

Thank you Durga Prasad Duvvuri  and Brajaballav Kar, the Quinn and Cameron's Organisational Effectiveness helped me to understand the basics of Organisational effectiveness. In my research "Impact of HRD interventions on Organisational effectiveness: An empirical Study" I want to find the attributes of Organisational Effectiveness to measure and find out the impact of HRD interventions on organisational effectiveness. I have added a article "APPROACHES TO ORGANISATIONAL EFFECTIVENESS AND THEIR

APPLICATION TO CONSTRUCTION ORGANISATIONS" in which  article has given different attributes or variables used for organisational effectiveness. Please share your opinions and thoughts.  

Different variables can measure organizational efficiency. On the one hand, there are hard indicators directly related to the output/result (for instance, sales increase, profitability, market share, value of the company, KPIs); but on the other hand, there are also soft indicators such as customer satisfaction or employees satisfaction

Indicators of effectiveness or sustainability are different from traditional indicators of economic, social, and environmental progress. Traditional indicators -- such as stockholder profits, performance, and market share -- measure changes in one part of an organization as if they were entirely independent of the other parts. effectiveness indicators reflect the reality that the three different segments are very tightly interconnected. effectiveness Indicators should be based on how well they:

• Address the issue of the organization's carrying capacity relative to the four types of organization capital: natural, human, social, and built;

• Highlight the links between the organization's economic, social, and environmental well-being;

• Focus on a long range view;

• Are understandable to the community; and

• Measure local sustainability that is not at the expense of global sustainability.

I would strongly recommend the Williams & Anderson (1991, JOM) scale that includes in role and extra role performance.

My dear

There are many theories attempted to explain the indicators of organizational effectiveness. Paradox theory is one from these theories. According to this theory an organization that can focus on the contradictory things simultaneously is an effective organization. For example, the effective organization can focus simultaneously on customer satisfaction and employee satisfaction, profit aspect and social aspect, short term and long term and collectivism values and individualism values. 

An important indicator is survival of the organization.

Built to Last & Good to Great  books ^ summary review  can be good pointers! 

In my humble opinion, an organisation (both for profit and non-profit) was once set up with a certain goal formulated by its founders, which should always be seen as the sole reason for this particular organisation's existence. Assuming this goal has always been kept up to date and its formulation in the mission/vision statements has always been updated, then one could simply determine an organisation's effectiveness by looking at the extent to which this organisation has fulfilled or is fulfilling these statements. In theory, a score could be derived by counting the number of times/situations/locations/projects, which further at least one of these statements compared to the number of times/situations/locations/projects, which have counter-productive effects on these statements.

Yes, dear Krishna, I completely agree your definition to Organizational Effectiveness as the degree to which predetermined goals are achieved.

I would say the following in this regard:

--Communication of vision to employees & their buy-in of the vision

--Employee commitment

--Leadership effectiveness

--Communication effectiveness

--Employee care

--Sense of accountability for results

--Customer centricity

--Customer satisfaction

--Growth and survival

--Organizational learning & innovation

THE BEST INDICATOR OF EFFECTIVENESS IS HOW WELL MANAGEMENT PERFORMS ITS INSTITUTIONAL FUNCTION

In addition to above mentioned variables, the timely target achievement, timely implementation of career protocols, employee satisfaction and career growth opportunities can also be considered to measure the organisational effectiveness.

For me, organizational effectiveness can only be measured as a ratio objectives/ outcomes within the certain time framework. When we add resources planned/ resources used to achieve these objectives it becomes efficiency then.  As we have to know the goals first, we cannot say upfront that it should be such and such list of factors to be measured, since organizations do not have to have any objectives and plans regarding a whole sophisticated list of issues thay want to achieve; eg. employment commitment or customer satisfaction measurement (although advisable ;)). We have to bear in mind that we measure sth relative, this is not competitive position, this is just to measure if the organization has achieved its goals, whatever they were...

regards 

Beata 

An obvious reflection of organisation effectiveness is "repeat customers" as an outcome

Hello Krishna,

I think that there are so many models that can make sense . The best idea that I have to offer is that each organization build a model of effectiveness based upon strategy and operational variables that uniquely defines the organization.

If you are looking for a more generic model, I can recommend to you one that master's and doctoral students around the world have been using for over 30 years. Please do a search of Organization Diagnosis Questionnaire by Robert C. Preziosi. It is based on Weisbord's six-box model.

measuring organisational effectiveness in my view Is largely a function of specific goals the organisation in question has ab initio set out to seek or what the core business of the industry Is. Generic models May not be as fitting as specific models.

I don’t think that there is a good consensus definition of organizational effectiveness in the literature. This means that you will need to develop your own definition for your research.

I would suggest that an effective organization is one that if fulfilling its purpose and is likely to continue fulfilling its purpose in the foreseeable future.

This seems quite simple and perhaps is simple for a new organization, but over time there is usually divergence between different stakeholders perception of the purpose of the organization. For example, many universities see their purpose to be research, but many undergraduates see the purpose of the university as providing them with a “good degree”; while employees see its purpose to be to provide safe high status employment.

If stakeholders are defined as “those groups and individuals whose support is necessary for organizational survival”, then a necessary condition for organizational effectiveness is that all stakeholders are satisfied. Generally, if all stakeholders feel that they obtain a surplus from their engagement with the organization then the organization has a high survival potential. For many purposes equating the organization’s survival potential with effectiveness would be quite a useful framework for research.

However, if the researcher has some other perception of effectiveness, then the stakeholder view could be treated as necessary condition for effectiveness and the other measure of purpose could be added. For example, one might wish to determine how effective pharmaceutical companies were/are are developing life saving compounds. In which case, it would be necessary to develop a means of measuring what one means by life saving and use that as the test of effectiveness. Others research might wish to focus profit as a measure of purpose. I don’t think it would be wise to treat profit generation or indeed, the launch of a success product as a compete measure of effectiveness. For example Rolls Royce developed a very successful new jet engine but bankrupted the company! I think an effective organization must not only fulfil its purpose it must do so without destroying itself.

I hope this is helpful

Richard

Look at the internal customers (employees) and external customers (clients). If they are satisifed, we can generally say that the organization is effective. And then, look thoroughly at the system level to see whether the organization has a good work system and effective implementation.

For any organization, organizational effectiveness is the key to success. "In order to achieve increased and sustainable business results, organizations need to execute strategy and engage employees. However, our research indicates that most organizations are struggling to get it righ"t.

Please check the following link.

http://www.right.com/thought-leadership/research/organizational-effectiveness-discovering-how-to-make-it-happen.pdf

Link is informative but case studies if added would have been more beneficial.

Thank you to all who shared their valuable opinions and thoughts about the attributes of Organisational effectiveness. I personally thanking Debi S Saini, Beata Stepien, Rahmana Shamsad, Robert C Preziosi, Richard Morland, Amer A AlAtwi and Bastijan Pauly who had shared valuable information for me to understand and get different definitions of Organisational effectiveness. I am adding some of research papers work done on organisational effectiveness. These may help all of us to understand and make our research more effective. Most of the research papers I have collected from new Journal started last year in Emerald Insights titled "Journal of Organisational Effectiveness: People and Performance"

While many oftentimes focus on outcomes, it important to be cognizant of the importance of processes.  Key Performance Indicators (KPI) provide the benefit of quantifying outcomes as well as  examining critical process and the productivity. KPIs can be customized with specificity to the organization's goals and business environment. 

Thank you Rama, I wasn't aware of "Journal of Organisational Effectiveness: People and Performance"

La efectividad de la organización es producto de la eficiencia y la eficacia. Esto se se puede lograr bajo tres indicadores: una organización real y transparente, una dirección que impulsa y, una estructura que facilita. A partir de estos tres elementos se puede construir un instrumento que mida la efectividad  desde la percepción del cliente. Nadie puede decir que su organización es la mejor o efectiva en tanto no satisfaga las expectativas del cliente. 

Alejandro Loli

An English version

^The  effectiveness of the organization is the product of efficiency and effectiveness. This can be accomplished in three indicators: a real and transparent organization, a driving direction and a structure that facilitates. From these three elements one can build an instrument that measures the effectiveness from the customer perception. Nobody can say that your organization is the best or effective while not meeting customer expectations.^

In laymen term- effectiveness is about "doing the right things", whereas efficiency is about "doing things right".  Therefore organization effectiveness can best be evaluated from its' performance in terms of fulfilling the organization's purpose/objectives - if the organization's  purpose/objective is "for-profit", financial indicators such as ROI, ROA and P/E can be use as effectiveness indicators.  The reason is because such indicators represent the ultimate output that derived from doing the right things for the organaizition.  As in the non-profit organization (NPO) the indicators would be different- such as numbers of students produced, patients treated and etc., referring back to the main objectives of the particular organization.

There are many approaches used to measure organizational effectiveness, for example: goals approach, adaption approach, system approach, and paradox approach.