Organizational effectiveness can be defined as the efficiency with which an association is able to meet its objectives. This means an organization that produces a desired effect or an organization that is productive without waste. Organizational effectiveness is about each individual doing everything they know how to do and doing it well; in other words organizational efficiency is the capacity of an organization to produce the desired results with a minimum expenditure of energy, time, money, and human and material resources. The desired effect will depend on the goals of the organization, which could be, for example, making a profit by producing and selling a product. An organization, if it operates efficiently, will produce a product without waste. If the organization has both organizational effectiveness and efficiency, it will achieve its goal of making a profit by producing and selling a product without waste. In economics and the business world, this may be referred to as maximizing profits.

The main measure of organizational effectiveness for a business will generally be expressed in terms of how well its net profitability compares with its target profitability. Additional measures might include growth data and the results of customer satisfaction surveys.

Highly effective organizations exhibit strengths across five areas: leadership, decision making and structure, people, work processes and systems, and culture. For an organization to achieve and sustain success, it needs to adapt to its dynamic environment. Evaluating and improving organizational effectiveness and efficiency is one strategy used to help insure the continued growth and development of an organization.

Measuring organizational effectiveness can be an inexact science, since each individual entity will have a different list of criteria and priorities to weight and consider through self-assessment. Understanding a company's level of organizational effectiveness is important for several reasons: it serves as a check-in to see how well internal procedures are meeting an initial vision, it provides investors, donors, or employees with an idea of the company's strengths, and it highlights areas of ineffectiveness that can be the focus of improvements.

In many cases, a business' success or failure cannot be measured by financial performance as well. Even a company that is currently making a profit may be ineffective if it is failing to meet the core values of its mission statement, attract and retain talented workers, and plan for the next generation of projects.

Organizational effectiveness measures the big-picture performance of a business, across a broad range of criteria. Financial performance, long-term planning, internal structure, and adherence to core values may all be critical components in understanding organizational effectiveness.

To get a clear idea of an organization's effectiveness, it is important to create a clear list of criteria to assess. No two organizations will have the same list of criteria, which is why many for-profit and non-profit groups measure effectiveness through self-assessment. Employees and company personnel are often in the best position to intimately understand the needs, goals, and performance of their company. Self-assessment of effectiveness can also help company personnel reconnect with the initial mission of an organization. By working creatively to invent new business strategies for areas of ineffectiveness, workers may develop a stronger sense of loyalty, purpose, and dedication to the job.

Since organizational effectiveness is difficult to express in a concrete formula, a company may choose to state the results of an assessment through specific goals achieved or desired. Turning up areas of ineffectiveness can also be tremendously beneficial to an organization. Areas that need improvement give a company a concrete strategy for the future, and allow workers, shareholders, donors, or customers to get excited about the improvements coming down the pipeline. Treating current weaknesses as a road map for future changes is a great way to increase effectiveness.

The organizational effectiveness points towards effective , prudent and strategic use of all the organizational resources, namely , Human, Financial and Technological resources for creating competitive advantage. The organizational effectiveness also calls for creating sustainable growth and development by taking care of not only the share holders' expectations but also the expectations of other stake holders. It also means that management takes the right  ethical decisions in the interest of all the stake holders.

Those are great answers! I just want to add that, according to the literature, there is actually a great of continuing debate about what the concept actually means. However, there is consensus on what has already been discussed by Jorge and Jaharkanti. I have added a peer-reviewed article by Yukl for your consideration.

Organisational effectiveness is basically about the ability of the organisation to meet its set goals and objectives given the resources at its disposal. every organisation has certain predetermined goals and objectives that it looks upto, each time any of these goals is met, the organisation is considered effective in that regard. measuring it is a function of what the organisation's core business is. 

The efficiency with which an association is able to meet its objectives. The main measure of organizational effectiveness for a business will generally be expressed in terms of how well its net profitability compares with its target profitability.

Great responses indeed. I'm wondering though that how can we use Organisational (or institutional - we all may be aware of the continuing conceptual debate about the two terms) theory to explain and understand organisational effectiveness/efficiency.

Dear colleague

The efficiency with which an association is able to meet its objectives. The main measure of organizational effectiveness for a business will generally be expressed in terms of how well its net profitability compares with its target profitability. Additional measures might include growth data and the results of customer satisfaction surveys.

Regards 

Well actually, I think organizational effectiveness refers to the degree of congruence between organizational goals and some observed outcome.  Every employee in a company contributes to organizational effectiveness. Taking into account skills, experience, motivation and rank, some employees play a bigger role than others. These are the people who contribute to the development of organization mainly with their knowledge. There are 4 effectiveness aproaches measuring effectiveness look at diferent parts of the organization and measure indicatiors connect with outputs, inputs, internal activities, or key of stakeholders. It include Goal Approach, Resourced-based approach, internal process approach and strategic constituent approach. So different kinda biz coorperation use different ways by the stated criteria above.

How well the organization is able to use its resources to achieve its goal shows how effective it is.

Hi

This last semester I taught a course titles "Organizational Effectiveness". Find here some resources I distributed in class.

Is the researchgate organization a legitimate organization? I believe so, because it is not a profit seeking organization

How then do you measure it? Especially in an educational institution?

Effectiveness and efficiency are core concepts in organization management theory. Effectiveness or “doing the right things” is different from efficiency or “doing things right.”

I like the Service Efforts and Accomplishment (SEA) model because it links organizational inputs to efforts and accomplishments. Basically, an organization exists to transform inputs into accomplishments that are meant to contribute to some long-term envisioned end for the organization’s stakeholders, in other words, organizations are tools (Perrow, 1976 Complex Organization).

Efficiency is best measured by relating inputs to outputs as an intermediate stage in the transformation process. The outputs are consumed internally or externally to ultimately generate the desired outcomes that ultimately lead to vision attainment. I would think that organizational effectiveness is best measured by relating outcomes to benchmarks or standards.

Performance effectiveness relates to achieving objectives. It is expressed by financial and customer perspectives of the balanced scorecard.

Performance efficiency relates to doing things right. It is expressed by process and learning and growth perspectives of the balanced scorecard.

A football team can be efficient in playing a match, but it will not be effective till it wins the match.

The audience here is the judge on that team's performance efficiency and effectiveness.

I think it in that way.

My paper " THE BALANCED ROCKET MODEL FOR MEASURING AND MANAGING ORGANIZATIONAL PERFORMANCE " offers more clarifications around this mater.

Organizational effectiveness in my view measures how efficient an organization is in its conversion process to achieve some pre-determined objectives both in the short run and in the long run.

Every organization exists to make profit and this can be achieved depending on how well it manages all its aspects ranging from people, business processes, external environments and its core competencies to work together in a congruent , lean and efficient manner in order to achieve a common goal.The extend to which all these aspects are mobilized and organized depicts how well an organization is effective at moving in a particular direction to meet its goals.

It goes without saying that to achieve effectiveness,an organization must carefully and constantly assess its people, its core competencies, weaknesses and its external environment and develop sustainable and manageable policies to pull its resources together , keeping in mind the analysis of the foregoing aspects and developing an efficient and reliable monitoring and evaluation strategy to constantly track its performance with regards to the set organizational goals and mitigate easily where the performance measures appear to be going amiss.

How fast an organization is able to analyse itself ,quickly respond and adapt to negative variances between its strategy and the business environment it operates in and the goals it aims to achieve can set it aside from failing to achieve its effectiveness.

Organizational effectiveness is the organization's ability to achieve its goals, and organizations compete to achieve their goals in order to achieve customer satisfaction

Organisational effectiveness is simply the attainment of some specific objectives of the organisation. It is facilitated by the full commitment of employees and all other stakeholders of an organisation

Organizational effectiveness is putting into full utilization the organization's resources to attain all their defined goals and objectives within a specified period of time. This can be attained through committed individuals working together as teams or groups to achieve the organization's set goal.

Organizational effectiveness can be associated with the achievement of goals. Strategies for organizational effectiveness vary from industry to industry. However, there are some important factors relevant to success of every organization such as human capital, customers, quality of products and services, and effective use of technology.

Organizational effectiveness is the ability that a firm has to mobilize resources towards accomplishing its set goals

Organizational effectiveness is the ability of an organization to achieve its goals and can be achieved by integrating available resources together and ensure each unit in such organization is effective and efficient.

Effective means achieving set goals while efficient means maximizing resources.

For organization to be effective, each unit/department must be effective and efficient.

this article could be relevant

Yukl, G. (2008). How leaders influence organizational effectiveness. The leadership quarterly, 19(6), 708-722.

Plan and execute through right people at the right time and at the right place. First determine analytically with unbiased opinion " what is right in each of the above case".

The organization is effective when it reaches its final objective, and this objective may not be clear to others, but the management in the organization has its own indicators and criteria to measure its effectiveness.