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Organizational Effectiveness Model

Office of State Personnel, North Carolina

March 05, 2008

An organization is composed of many parts. In order for the organization to be effective it is essential that each part be in good working order. Each part must fit and work conjointly with other parts in order for the total organization to perform optimally. In an organization recognized for excellence those parts are aligned so that the whole is actually more effective than the sum of the parts.

The model presented here identifies the key parts of an effective organization. It provides a simple framework to view and assess any part or the entirety of an organization. This model is a tool that can help any organization, regardless of its size, to move toward organizational excellence. The model can help you align resources; improve communication, productivity and effectiveness; and achieve strategic goals.

organizational effectiveness model

1. Customer Service and Performance Results.

Attending to the customer’s needs and a focus on maximizing performance results are at the heart of any effective organization. Serving customers and producing a quality product occupies the place of central importance because without this target the organization is aimless.

Highly effective organizations place great emphasis on customer relations and customer satisfaction. These organizations know who their customers and stakeholders are. They make a concerted effort to determine and exceed the customers’ and stakeholders’ expectations. Highly effective organizations respond quickly to the changing needs of their customers and stakeholders. Serious attention is given to the degree of customer and stakeholder satisfaction.

Performance results direct attention to individual and corporate productivity and efficiency. Highly effective organizations have a clearly defined bottom line and every employee knows how they contribute to the success of the organization. Employees are routinely informed about the organization’s progress toward established goals and objectives. Results are identified and measured in key business areas—customer satisfaction, product and service performance, financial performance, human resource results, and operational performance.

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