Örgütsel Veri̇mli̇li̇k Ve Etkenlik

Date

1975

Author

Dicle, İ. Atilla

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Efficiency and effectiveness are the two concepts which have been widely used in the past to determine the level of organizational health and success and the degree to which organizations achieve their goals. In spite of the existence of an extensive literature on the subject, the social and behavioral scientists have not been able to come to an agreement on the meanings of these terms yet. This paper is an attempt to clarify the meanings of organi zational efficiency and effectiveness and examine the different approaches so far developed to measure them. A large number of both theoretical and empirical research findings related to organi zational effectiveness are summarized and determinants of effec tiveness are detected. The study reveals that efficiency, as the ratio of organizational outputs to organizational inputs, is an economic, technological and quantitative term which is closely related to the internal processes of an organization. In the past, usually the rate of profit has been utilized in measuring the efficiency of an organization. The term efficiency has even been given the same meaning as profit making. Nevertheless, the large complex business organizations of today have undertaken some new objectives and responsibilities which are of a social nature. Thus, profit alone is not any more considered to be adequate in measuring the success of a business organization. Moreover, the concept of profit either does not exist or is not emphasized m many public and professional organizations. There fore, the concepts of efficiency and profit making have recently been replaced by the broader term organizational effectiveness. Organi zational effectiveness has proven itself over time to become a more reliable indicator of organizational success than organizational efficiency. Organizational effectiveness is usually defined as the degree of goal-achievement. The goals, however, are not only those of pro duction and profit making and goal-achievement is not only related to the internal processes of organizations. The environment and the nature of the relationships with that environment are as impor tant in determining the effectiveness of an organization as the in ternal process. The research studies reviewed in the paper have indicated that such variables as environment, ability to change and innovate, adaptation, survival, growth, job satisfaction and efficiency are some of the most important determinants of organizational effectiveness. However, a single measure of organizational effecti veness has not been found yet. Instead, depending upon the charac teristics of organization and environment, the most relevant variables of organizational effectiveness are usually specified within the conceptual framework of the researchers. The problem of «how to increase the effectiveness of an organi zation» is not treated in this paper because it covers the extensive discussions on the various aspects of organization and manage ment. It may suffice, however, to say that it is the contemporary theories of organization and management, mostly formulated around the «systems» concepts, which have helped to clarify the meaning and facilitated the measurement of organizational effectiveness and it seems that it is the systems approach which will eventually cont ribute organizations to discover the most appropriate processes, techniques and relationships in which they can further increase their effectiveness in the future.

URI

https://hdl.handle.net/11511/112322

Collections

Department of Business Administration, Article