1	Organizational Effectiveness Presented by: Donna DiMatteo-Gibson, Ph.D.
2	Agenda
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5	What is organizational effectiveness? Organizations differ on how they define effectiveness. It is a complex multi-dimensional construct Many see it as the ability of an organization to achieve its goals Key: To determine the impact on organizational performance by using diagnostic models for planned change.
6	Different stakeholders.. Organizations have a variety of different stakeholders that define org effectiveness differently: Investors: return on investment, growth, stability Customers: quality of service, customer satisfaction, value for money Suppliers: want dependability Employees: Job satisfaction, development, good rewards, career opportunities
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8	"This presentation will focus on..." This presentation will focus on gaining the employees’ input on improving organizational effectiveness through survey research!
9	Diagnostic Model for Change Burke-Litwin model: Based on research that enhances assessment and guides action planning Used to survey organizations and determine organizational effectiveness Survey can be tailored to different organizations Core set of questions based on critical dimensions of performance and change Transactional: Everyday interactions that affect performance Transformational: Significant changes Open-systems is underlying theory
10	Burke-Litwin Model Organizational Performance and Change
11	Transformational Factors
12	Transactional Factors Transactional: Improving behavior Important for survey to probe structure, management practices, climate, individual needs and performance. Focus on both factors for planned organizational change
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14	Organizational Assessment Organizational assessment: Used to gather information about the organization Can use a variety of tools to identify organizational effectiveness Human Capital Measurement Focus Groups Individual 360 degree feedback Customer Satisfaction Surveys Individual assessments Team assessments Organizational Effectiveness Surveys
15	Organizational Assessment Goals of assessment: To create a clear and shared view of the organization as to "where we are now“ Use as critical input for determining how to reach a desired future state. An organizational assessment is meant to focus on the overall condition of the organization Identifies whether it is in a position to fulfill its mission, its goals, and its planned strategies
16	Can be accomplished through… How to diagnose an organization through Employee Effectiveness Survey (EES): Focus on effectiveness of organizations Important to begin by identifying the mission and goals of organization/department Gather anonymous information by understanding employees’ experiences to improve organizational effectiveness and enhance client value All staff in an organization answer questions about their feelings toward the organization. Key is Employee Involvement! The results of the survey can be the basis for organization/department strategies and chance to make real changes Can be a benchmark against which future progress is measured
17	Employee Effectiveness Survey Communicate purpose of survey so that everyone has reasonable expectations Provide the tools and resources that managers need to put data into action for both feedback and action-planning meetings Recognize and reward role models for action taken after surveys Communicate how the survey has caused meaningful actions
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19	Survey Steps
20	Best Practices of Survey Research
21	Typical Survey Construction Most forced choice questions with a few open-ended items About 80 items (15 minutes to complete) All responses kept confidential
22	Online Surveys Ease in administration and analysis steps Branching of data is not apparent to participants Allows ease in administering and providing reminders to increase response rate
23	Components of Survey Provides info on 13 indicators of organizational effectiveness! Organizational Direction and Structure Focus on Client Work process Focus on Quality Teamwork Rewards & Benefits Retaining Talent/Selection Workload Overall Satisfaction Communication Growth and Development Opportunities Management (Different levels) Performance Evaluation
24	Reporting of Results Give overall Department/Organization’s Results (favorable/unfavorable) If replicated, can show improvements or declines Can also compare department to overall organization’s performance Key to identify strengths and areas of improvement Must not develop report with responses smaller than 5 participants/group
25	Burke-Litwin Model *can list strengths and areas of improvement under each factors
26	Research Link between effectiveness data and performance outcomes Tornow(1991) found that there are positive relationships between customer satisfaction, employee perceptions/attitudes and organizational performance.
27	Research Koys (2001) studied the impact of employee attitudes influence business outcomes. Is there a relationship between job satisfaction and organizational effectiveness? Found employee satisfaction impacted customer satisfaction.
28	Research Heskett, Sasser, & Schlesinger (1997) found that positive employee attitude would lead to positive employee behavior towards customers Schneider & Bowen (1985) employee retention can influence organizational effectiveness due to clear understanding of goals.
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30	Action Planning Large scale meetings to discuss results and put data into action Occurs at all levels in organization Key is to continue employee involvement in action planning phase Opens communication and identifies alternative methods to meet goals
31	Goals of Facilitation Goals at end of facilitation meetings: Communicate results and ask for input on views/information Identification of strengths and areas of improvement Prioritize key issues Action plans outlined to address top issues by generating solutions What should be improved, who is responsible and follow through dates identified Employee Involvement in implementation of action plans (can involve forming improvement teams)
32	Roll-out Like cascading process: Senior leadership begins process followed by teams underneath them until all have gone through process Teams/Departments can identify their own goals or identify ways to support organizational goals
33	Action Planning Ground Rules Open participation and promotion of the exchange of ideas. All opinions are valued. Everyone free to ask questions, discuss issues, and propose ideas!
34	Action Planning Recommendations Action planning information must be communicated and followed through Make sure goals can be measured Can divide action items into these categories: Can be immediately implemented Action needs approval Action needs involvement of other groups
35	Analysis Can use statistical analysis to identify the drivers of organizational success and employee satisfaction as well as factors that impact performance I like the action planning session to collaboratively review the results and identify main issues that must be addressed
36	Questions to Ask What are the key strengths that should be acknowledged? What are we doing well at? What are the key issues we should address? What are some possible solutions? What patterns do you see within the data? What do the results mean to you? What do you think kept people from responding more favorably?
37	Action Planning Form Choose 3 to 5 key issues for resolution!
38	"As a facilitator," As a facilitator, my goals are: Help the group define their goals and opportunities for improvement Develop plans on how to make improvements Assist group to understand their own processes and work more effectively
39	Survey Results Example
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41	"An intervention is designed to..." An intervention is designed to …… solve a problem change behavior improve performance Increase outputs
42	Public Organizations Can planned organizational change efforts in public sector organizations be as successful as those in private organizations? Yes! Organizational change interventions are just as successful in both sectors.
43	Public Organizations Features of public organizations can cause problems in implementation of OD: Existence of multiple and conflicting goals More rules, regulations and constraints Many constituent groups want to impact organizational activity Robertson & Seneviratne (1995) conducted a meta-analysis of organizational change and found that OD interventions can improve the functioning of public organizations
44	Reasons for Resistance to Change Fears of uncertainty Poor communication of purpose or plan for change Incomplete follow-through in change implementation Social disruption Inconvenience Organizational Incompatibility Lack of top-level support or management agreement
45	Ways to Implement Successful Change Must be effectively communicated and part of culture Important that persons in organization are motivated by change (reward behaviors in change process) Cooperation from all levels in organization Leadership Support Management assesses new system and whether it is aligned with goals/objectives People affected by change are involved in process Open sharing of plans and barriers to change Involve partnership with stakeholders (employees) Accountability process supports new change/program
46	How to maximize change…..
47	Effectiveness at Three Levels Can improve effectiveness at three different levels within the organization: Individual Coaching Leadership Development Team Team Development Organizational Selection Systems Performance Management
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50	Evaluation Use organizational indicators already in place Important to replicate effectiveness survey to assess progress or new issues Can also then develop internal benchmarks Also, important to evaluate interventions to determine success ROI calculations Customer Feedback Determine key success factors Utilize different forms of measurement and at different levels within organization
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52	Q & A Open Discussion Contact: Donna DiMatteo-Gibson, Ph.D. Lycurgus Group 310-318-2198 ddimatteo@lycurgusgroup.com
53	References Bens, I. (2005). Facilitating with ease! San Francisco, CA:Jossey-Bass Publishers. Burke, W. (1992). Organization Development: A process of learning and changing. (2^nd ed.). 24 February 2005. http://www.odnetwork.org/toolkit/ Cameron, K. S. (1984). "The effectiveness of ineffectiveness." Research in Organizational behavior 6: 235-285. Carter, L., Ulrich, D., & Goldsmith, M. (2005).Best practices in leadership development and organization change. San Francisco, CA: Pfeiffer. Denison, D. R. (1997). Corporate culture and organizational effectiveness. New York: John Wiley & Sons, Inc. Frame, R. M., Hess, R.K., & Nielsen, W. R. (1982). The OD source book: A practitioner’s guide. San Francisco, CA:Jossey-Bass Publishers.
54	References Goodman, P. S., J. M. Pennings and Associates (1977). New perspectives on organizational effectiveness. San Francisco, CA:Jossey-Bass Publishers. Hale, J. (1998). The performance consultant’s fieldbook. San Francisco, CA:Jossey-Bass Publishers. Hedge, J. W. & Pulakos, E.D. (2002). Implementing Organizational Interventions. San Francisco, CA:Jossey-Bass Publishers. Heskett, L. Sasser, We. Schlesinger, L. (1997). The service profit chain: How leading companies link profit and growth to loyalty, satisfaction, and value. New Your: Free Press. Hundley, S. P., (2000). Organizational assessment: The role of the HR department. CUPA-HR Journal, 51(2), 21-25. Koys (2001). The effects of employee satisfaction, organizational citizenship behavior, and turnover on organizational effectiveness: A unit-level, longitudinal study. Personnel Psychology, 54, 101-114.
55	References Robbins, S.P. (2005). Organizational Behavior, 11 edition, Prentice Hall. Robertson, I.T., Callinan, M., & Bartram, D. (2002). Organizational effectiveness. New York: John Wiley & Sons, Inc. Schneider, B., Bowen, D. (1985). Employee and customer perceptions of service in banks: Replication and extension. Journal of Applied Psychology, 70, 423-433. Tornow, W. (1991). Service quality and management practices: A look at employee attitudes, customer satisfaction and bottom-line consequences. Human Resource Planning, 14, 105-115. Van Aken, E. M., Groesbeck, R. L., & Coleman, G. D. (2001). Integrated organizational assessment process and tools: Application in an engineering to order company. Engineering Management Journal, 13(4), 17-28.