ORGANIZATIONAL EFFECTIVENESS

INTRODUCTION

HISTORICAL OPINIONS
1. FREDERICK TAYLOR 2. HENRI FAYOL
3. ELTON MAYO

FREDERICK TAYLOR
EFFECTIVENESS IS DETERMINED BY FACTORS SUCH AS PRODUCTION MAXIMIZATION, COST MINIMALIZATION, TECHNOLOGICAL EXCELLENCE, Etc.

HENRI FAYOL
EFFECTIVENESS IS A FUNCTION OF CLEAR AUTHORITY AND DISCIPLINE WITHIN AN ORGANIZATION

ELTON MAYO
EFFECTIVENESS IS A FUNCTION OF PRODUCTIVITY RESULTING FROM EMPLOYEE SATISFACTION

 Efficiency focuses on activities Effectiveness focuses on

results

 Skilled Craftsmen/Artisans supervised by masters of the trade

Small volume: Parts fitted by eye

1798- Eli Whitney

Designed and manufactured guns with interchangeable parts (quality control)

1911 - Frederick Taylor

Principles of scientific management defines role of inspector

1914 - Henry Ford

Creates the assembly line on a big scale (Quality = Inspection)

1924- Juran, Dodge, Romig, Edwards

Bell system of acceptance sampling, inspection plans, and control charts

 1931- Shewhart
publishes control chart concepts

1950-1980s- Wake-up call for U.S. manufacturing 1980s-1990s Total Quality Management including ISO 1987 Malcolm Baldrige National Quality Award created

1990s to today
Six Sigma and its variations

Why do we care?
Historic
Short term/Quick Fix focus Fire fighting Weve always done it this way Random improvement efforts Inspect for errors Reactive Opinions not facts Motivated by profit

Now
Long term focus
Structured problem solving Innovation and change Structured improvement Error identification and prevention Proactive Facts not opinions Motivated by customers

Why do we care?
Historic
Rely on programs Localized competition Reasonable cost Large budgets Resources available Compete Individual efforts Strong management

Now
New way of life Intense global competition Lowest possible cost Small budgets Limited resources Cooperate Team efforts Strong leadership