Organizational Effectiveness Essay

1888 Words Jul 25th, 2010 8 Pages
An organization’s effectiveness is dependent on its communicative competence and ethics. The term “Organizational Effectiveness” can be used interchangeably with the concept of “Organizational Development”, especially when used as the name of a department or part of an organization’s Human Resources. Organizational development is an ongoing, systematic process to implement effective change in an organization and is known as a field of applied behavioral science focused on understanding and managing organizational change, as well as, a field of scientific study and inquiry . While organizational development is considered to be interdisciplinary in nature because it draws on sociology, psychology, and theories of motivation, learning, and …show more content…
A successful company would implement controls strategically, tactically, and operationally. By means of monitoring performance a corporation would be ensuring the implementation of: strategic plans and possibly taking corrective action, as needed; tactical plans, at the divisional or departmental level; and the operational plans of day-to-day physical, human resources, informational, financial, structural, and cultural goals.

When speculating about the preferred financial tools, an effective organizational strategy would be to: form a financial projection; allocate increased or decreased funds to a department by using the last budget period as a reference point; force each department to start from zero in projecting it’s funding for the coming budget period; allocate resources on a single estimate of costs; and vary resources in proportion with various levels of activity. In using a balance sheet to summarize overall financial worth at a specific point in time, this tool can be applied to the income statement which summarizes an organization’s financial results over specified period of time. In addition, liquidity ratios indicate how easily a firm’s assets can be converted to cash, debt management ratios determine the degree to which a firm can meet its long-term financial obligations, and return ratios calculate how effective management is generating profits. The last sets of financial tools involve audits which are formal verification of an

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