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Tuesday, August 7, 2012

Control | Organizational Effectiveness is a Better Measure of Organizational Performance Than Organizational Productivity


Organizational effectiveness is a better measure of organizational performance than organizational productivity. Do you agree with this statement? Why or why not? 


Answer: 
Organizational effectiveness is a measure of how appropriate organizational goals are and how well those goals are being met. So an effective organization is certain to meet its goals. High organizational productivity does not necessarily indicate that organizational goals have been achieved. Hence organizational effectiveness, as a measure of organizational performance, can be considered a more accurate tool of measurement.
Productivity is the amount of goods or services produced divided by the inputs needed to generate that output. So it could be easier to calculate productivity. Students could disagree stating these reasons.

Source: Management, 11e (Robbins/Coulter)

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