Organizational effectiveness is the concept of how effective an organization is in achieving the organization intends to produce. The idea of organizational effectiveness is very important for non-profit organizations as most of people who donate money to nonprofit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals. An organization's effectiveness is also dependent on its communicative competence and ethics. The relationships between these three are simultaneous. Ethics is a foundation found within organizational effectiveness. An organization must exemplify respect, honesty, integrity and equity to allow communicative competence with the participating members. Along with ethics and communicative competence, members in that particular group can finally achieve their intended goals. Foundations and other sources of grants and other types of funds are interested in organizational effectiveness of those people who seek funds from the foundations. Foundations always have more requests for funds or funding proposals and treat funding as an investment using the same care as a venture capitalist would in picking a company in which to invest. Organizational effectiveness is an abstract concept and is difficult for many organizations to directly measure. Instead of measuring organizational effectiveness directly, the organization selects proxy measures to represent effectiveness. Proxy measures may include such things as number of people served, types and sizes of population segments served, and the demand within those segments for the services the organization supplies. Activities such as administration, volunteer training are important inputs into organizational effectiveness because although they do not directly result in programmatic results, they provide the essential support functions needed for the organization to successfully finance and administer its programs. These other activities are overhead activities that indirectly assist the organization in achieving its desired outcomes. As the world is becoming more competitive and unstable than ever before manufacturing based industries are seeking to gain competitive advantage at all cost and are turning to more source through hrm practice. They have defined several accept: Schuler and Jackson defined hrm practice as a system that attracts, develops, motivates and retains employees to ensure the effective implementation and the survival of the organization and its member. It is also conceptualized as a set of internally consistent policies and practice designed and implemented to ensure that firms of human capital contribute to achievement of its business objective. As we conclude that hrm practice relate to specific practice, formal policies and philosophies that are designed to attract, develop and retain employee who ensure the effective functioning and survival of the organization. According to effectiveness of firm treat HRM practices as the organization’s strategy to encourage team responsibilities, enhance organization culture as build up customer relationship through participation and empowerment. For instance, performance appraisal increase employee commitment and satisfaction since employee is given chance to discuss about their work performance. This in turn will lead them to perform greater in effective activities... training help the employee to gain knowledge, skill and ability which would be contribute effective in term of products, production processes and management practice in daily operation. Hence training develop the knowledge, skill and ability of employee to perform effectively in their job will leads to higher organization effectiveness. Reward system provides financial award, promotion and other recognisation in order to motivate the employee to take the risk, develop successful new products and generate ideas. It encourage employee to become motivate thereby increase...
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