DETERMINING EFFECTIVENESS

Efficiency implies doing things right.

Effectiveness is doing the right things.

Management Effectiveness Vs. Leadership Effectiveness Management is thought of as a

special kind of leadership in which the accomplishment of organizational goals is paramount.

Leadership is an attempt to influence people, individually and in groups, for whatever reason.

“Leadership is not magnetic personality- that can just as well be a glib tongue. It is not ‘making friends and influencing people’ – that is flattery. Leadership is lifting a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.”

Successful leadership vs. effective leadership An attempt by an individual to have

some effect on the behaviour of another is called attempted leadership, which can be successful or unsuccessful in producing the desired response.

Bass’s successful leadership continuum

A B Resultant Behavior

Attempted Leadership

Successful

Unsuccessful

A’s success could be depicted on a continuum ranging from very successful to very unsuccessful.

If A’s leadership style is not compatible with the expectations of B, and if B is antagonized and does the job only because of A’s position of authority, then we can say that A has been successful but not effective.

Success has to do with how the individual or the group behaves, performs or reacts. On the other hand, effectiveness describes the internal state, or predisposition of an individual or a group.

There are two types of power that contribute to a leader’s success and effectiveness. They are: Position power and Personal power.

Bass’s successful and effective leadership continuum

A BResultant Behaviou

r

Attempted Leadership

Successful

Unsuccessful

Effective

Ineffective

Fred Luthan’s study Activities of Real Managers

Descriptive Categories derived from free observation

Real Managers’ Activities

Exchanging InformationPaperwork

PlanningDecision makingControlling

Interacting with outsidersSocializing/Politicking

Motivating/ ReinforcingDisciplining/ PunishingManaging ConflictStaffingTraining/Developing

Communication

Traditional Management

Networking

Human Resource

Management

A balanced approach is needed

The study concluded that more attention needs to be paid to designing systems to reward & support effective managers , not those with the most successful political & social skills.By rewarding effectiveness, organizations will increase their abilities to compete and excel in rapidly changing market and environmental conditions.

What determines Organizational effectiveness Rensis Likert identified 3 variables

that are useful in discussing effectiveness over time. They are:

Causal Variables Intervening Variables End result variables

Causal Variables

They are those factors that influence the course of developments within an organization and its results or accomplishments. They can be altered by the organization and its management.

Intervening Variables

Intervening variables represent the current condition of the internal state of the organization. They are reflected in the commitment to objectives, motivation and morale of members and their skills in leadership, communications, conflict resolution, decision making and problem solving.

End result variables

These dependent variables reflect the achievements of the organization. In evaluating effectiveness, more than 90 % of managers in organizations look at measures of output alone.

The relationship between the 3 variables can be visualized as stimuli (causal variables) acting on the organism (intervening variables) and creating certain responses (output variables).

The causal variables largely produce the level of condition of the intervening variables, which in turn influence the end result variables.

The end result variables directly will usually be much less effective than will attempts to improve them by changing the causal variables.

Business consultant David P. Norton suggested that businesses should concentrate on 4 perspectives in setting performance measures.

a) The customers’ perspectiveb) The internal operations perspectivec) The change perspectived) The financial perspective

Relationship among Likert’s Causal, Intervening and Output variables

Causal Variables

Leadership Strategies, skills and styles

Management’s Decision

Organizational philosophy, objectives, policies and structure

Technology

Intervening Variables

Commitment to variables, motivation, and morale of members

Skills in Leadership, Communications, Conflict resolution, decision making, problem solving

Output Variables

Production (Output)

Costs

Sales

Earnings

Management-Union relations

Turnover

Long Term Goals vs. Short Term Goals Intervening variables are concerned with

building and developing the organization and they tend to be long term, goals.

This is the part of effectiveness that many managers overlook because it emphasizes long term potential as well as short term performance.

Most managers tend to be promoted on the basis of short term output variables such as increased production and earnings without concern for long run potential and organizational development.

LEADERS GROW; THEY ARE NOT MADE

Peter Drucker

Organizational Dilemma The basis of promotion is short run output so

managers achieve high levels of productivity & overemphasize tasks , placing extreme pressure on every one. The immediate or short run effect is probably increased activity.

Some indications of deterioration of these intervening variables at work may be turnover, absenteeism, increased accidents, loss of resources, and the number and nature of grievances.

The manager is promoted, or “rewarded”, for the disruptive or ineffective behavior and the next manager has to clean up the problems or deal with the end result variables, which the leader did not cause.

No matter how effective this manager may be in the long run, reviewing a productivity drop may cause senior management to give the manager only a few months to improve performance.

Likert’s studies indicate that rebuliding a group’s intervening variables in a small organization may take 1 to 3 years, and in a large organization, it may take up to 7 years

The art of achieving a balance is essential to effective leadership.

In summary, effectiveness is a function of the following four items:

Output variables (productivity/ performance)

Intervening variables (the condition of the human resources)

Short range goals Long range goals

Integration of goals and effectiveness

Goals of

Manageme

nt

Goals of Orgn.

Goals of

Employees

Degree of Attainmen

t

Directions of goals of management, employees and organization—moderate

organizational accomplishment

Little Organizational Accomplishment

Goals of

Manageme

nt

Goals of Orgn.

Goals of

Employees

Degree of Attainmen

t

No positive organizational effectiveness

Goa

ls o

f

Man

agem

ent

Goals of Orgn.

Goals of

Employees

Degree of

Attainment

Losses

High Organizational accomplishments

Goals of

Manageme

nt

Goals of Orgn.

Goals of Employees

Degree of Attainmen

t

One of the ways in which effective leaders bridge the gap between the individual’s and the organization’s goals is by creating a loyalty to themselves among their followers.

They do this by being an influential spokesperson for their followers with higher management.

These leaders have little difficulty communicating organizational goals to followers, and these followers find it easy to associate the acceptance of these goals with accomplishment of their own need satisfaction.

Participation and effectiveness

criteria for an individual’s or a group’s performance should be decided mutually in advance.

In making these decisions, managers and their employees should consider output and intervening variables, short range and long range goals.

This has two advantages. • First, it will permit employees to participate in

determining the basis on which their efforts will be judged.

• Second, involving employees in the planning process will increase their commitment to the goals and objectives established.