Page 210 - Managing Change in Organizations

CarnCh12v3.qxd 3/30/07 4:29 PM Page 193

Efficiency and effectiveness
are our competitors doing? Where can we improve? Is there any evidence of inef-
fectiveness? Also, we need to avoid the tendency to concentrate only on that
which we can readily monitor, such as the weight of nails produced. In a rapidly
changing world we must work harder than that. Quantitative measures are impor-
tant and measuring quantitatively creates an analytical discipline. But experience
and intuition are also important. Thus we need to make qualitative judgements of
employee satisfaction and attitudes, of management style, of adaptability and of
management development. We need to monitor a balanced set of indicators over
all four quadrants of the effectiveness matrix (see Figure 12.1).
Looking at the matrix allows us to consider an appropriate set of factors with
which to assess organizational effectiveness. We need to monitor a balanced set
of factors for the reasons stated above. Yet we must recognize that assessment
itself costs money. We cannot assess everything. What we choose to assess will
vary from organization to organization. The most important point is to recognize
that to monitor effectiveness we must look at factors in all four quadrants in a
systematic way, and that we must look at both objectives and resources. The use

Quantitative measures
Resources Resources
costs staff flexibility
waste training and
employee turnover development

Objectives
profit Objectives
market share growth
volume new products/services
delivery

Efficiency Effectiveness

Objectives Objectives
competitive corporate image
position excellence
utilization of new adaptability
technology

Resources
management style
Resources management development
satisfaction corporate culture
commitment

Qualitative measures
Figure 12.1 The effectiveness matrix

193