Approaches of Organisational Effectiveness: Goal Approach, System Resource Approach, Strategic Constituency Approach, Internal Process Approach

Goal approach:

The goal approach refers to optimal profit by offering the best service that will lead to high productivity. The limitation of the goal approach is that it is a bit difficult to identify the real goal and not the ideal goal

System-resource approach:

The system resource approach puts its onus on the interdependency of processes that align the organization with its environment. It takes the form of input-output transactions and includes human, economic and physical resources. The limitation of this approach is that acquisition of resources from the environment becomes aligned with the goal of the organization and thus it becomes quite similar to the goal-oriented approach.

Strategic Constituency Approach:

The strategic constituency model assesses effectiveness by measuring the degree to which it satisfies those in the environment who can threaten the organization’s survival; i.e., its strategic constituencies or interest groups. Each constituency has a degree of power and pursues different goals.

Constituencies can include owners, management, employees, customers, suppliers, government, and customer groups. Here, it is key to identify the relevant strategic constituencies, identify their expectations, and the way to meet these expectations.

Internal Process Approach:

The internal process model looks not at the outcome but at what happens inside of the organization. This approach assesses effectiveness through the smooth functioning of organizational operations. This is achieved through information management, documentation, and continuous consolidation.

The best-known example is the lean process approach, focused on continuous improvement and efficiency. The drawback is that the focus is often more on efficiency than on effectiveness and that the focus is more on inward processes than on outward opportunities.

Functional approach:

The functional approach assumes that the organization has already identified its goals, and now the focus should be upon attainment of these goals and how to serve society. The limitation of this approach is that the organization has the autonomy to take independent action for attaining its goals and so why will it accept serving society as its ultimate goal.

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