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Organizational
Effectiveness and
Excellence
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Agenda
Organizational Effectiveness
Measurement Criteria
Diamond
In search of Excellence
Good to Great
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Organisational Effectiveness
Effectiveness: Realization of goals Efficiency: If the organization is able to marshal
all the resources
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Organisational Effectiveness
VISION: Core Ideology + Envisionedfuture
MISSION: Strategic business objectives
VALUES: Organisations guiding
principles What we ought to be doing and what we
ought not to be doing
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Organizational Effectiveness
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ORGANIZATIONAL
EFFECTIVENESS
OE was defined as the degree to which
organization achieved its goals
Organizational effectiveness is
conceptually complex
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ORGANIZATIONAL
EFFECTIVENESS CRIETERIA
Productivity Efficiency
Profit Quality
Accidents GrowthAbsenteeism Turnover
Job satisfaction Motivation
Moral Control
Flexibility/Adaption Planning
Managerial task skills Stability
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ORGANIZATIONAL
EFFECTIVENESS CRIETERIA
Managerial interpersonal skills
Value of human resources
Participation & shared influence
Training & developments
Achievement emphasis
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Conclusion
OE can be defined as degree to which
organization achieves its long term and
short term goals and it reflects selfinterest of evaluator and the life stage of
the organization
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Organizational
Excellence
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In search of Excellence
Lessons from Americas Best-Run
Companies
Thomas J. Peters and Robert H.
Waterman Jr.
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Eight Basics of Excellence
1. Bias forAction
Action orientation
Bias for getting things done
Rich informal communication-more ideas,
more experiments, more action
Do it, Fix it, Try it
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2. Close to Customer
Customer Obsession Service Obsession
Quality Obsession
5 Fundamental attributes:
1. Astute technology manipulation2. Pricing skills
3. Better segmenting
4. A problem solving orientation
5. A willingness to spend in order to
discriminate
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3. Autonomy and Entrepreneurship
Communication Ideas
Innovation
Attributes of Communication
1) Communication systems are informal
2) Communication intensity is extraordinary
3) Communication is given physical support4) Forcing devices
5) Communication system acts as a remarkably
tight control system.
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4. Productivity through people
People orientation
Full Employment in the times of Recession
Extensive training when there was no norm
Caring by the managers
Absence of rigidly followed chain of
commands
5. Hands-on, Value driven
Hands-on Real, tangible
Explicit attention to values Values and beliefs are the unchanging base
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6. Stick to the Knitting
Branching out but sticking to the core
competence
entering only those businesses that build
on, draw strength from, and enlarge
some central strength or competence
7. Simple Form, Lean Staff
simplicity of form having stable and
unchanging nature Fewer staff at corporate level
Fewer administrators, more operators
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8. Simultaneous loose-tight properties
Co-existence of firm central direction and
maximum individual autonomy
Rigidly controlled insist on autonomy,entrepreneurship and innovation
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Good to GreatGood to Great
Why Some CompaniesWhy Some Companies
Make the Leap... andMake the Leap... andOthers Don'tOthers Don't
Jim Collins
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Great Companies
Collins finds eleven examples of "great companies":
Abbott Laboratories
Circuit City
Fannie Mae Gillette
Kimberly-Clark
Kroger
Nucor
Philip Morris
Pitney Bowes
Walgreens
Wells Fargo
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Level5 Leadership
paradoxical blend of personal humility
and professional will
Quiet, Reserved, Shy
more like Lincoln and Socrates thanPatton or Caesar
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First Who. ..Then What
The right people in the right seats-and
then figured out where to drive it.
The old adage "People are your most
important asset" turns out to be wrong.
People are not your most important
asset. The right people are.
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Confront the BrutalFacts
Maintain faith that you can and will
prevail in the end, regardless of the
difficulties Have the discipline to confront the most
brutal facts of your current reality,
whatever they might be
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The Hedgehog Concept
Just because something is your corebusiness & you've been doing it for years
does not necessarily mean you can bethe best in the world at it.
And if you cannot be the best in the
world at your core business, then yourcore business absolutely cannot form thebasis of a great company.
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A Culture of Discipline
When you have disciplined people, you
don't need hierarchy.
When you combine a culture of discipline
with an ethic of entrepreneurship, you
get the magical alchemy of great
performance.
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TechnologyAccelerators
They never use technology as the
primary means of igniting a
transformation.
Yet, paradoxically, they are pioneers in
the application of carefully selected
technologies.
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The Flywheel and the Doom
Loop
The good-to-great transformations never
happened in one fell swoop.
The process resembled relentlessly
pushing a giant heavy flywheel in one
direction, turn upon turn, building
momentum until a point of breakthrough,
and beyond.
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Thank You