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In this episode, I discuss the benefits of organizational effectiveness, and in particular, examples of benefit exchanges at the supply/demand interface (i.e., between the organization and its environment).

Charles G. Chandler, Ph.D.
[email protected]

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In this episode I discuss the widespread prevalence (but low recognition) of ‘efficiencyism’ in organizations, that is, a belief in the tenets of efficiency without questioning its assumptions and consequences in specific circumstances. ‘Efficiencyism’ often holds organizations back from realizing their true potential for three reasons: 1) systems theory tells us that an efficiency improvement in one part of an organization does not necessarily provide an improvement in the performance of the organization as a whole; 2) elevating efficiency to a sacred value (to be pursued at all costs) often leads to counterproductive actions at the first sign of financial trouble, such as layoffs, downsizing, and general efforts to do “more with less”; and 3) ‘efficiencyism’ seldom works, because organizations are complex human systems that can react in unpredictable ways when disturbed.

The stories offered by this episode illustrate that organizational dysfunction may be a common emergent phenomenon under ‘efficiencyism’. To overcome ‘efficiencyism’, organizations need to understand and monitor their effectiveness in real time before undertaking efficiency improvement efforts.  See episode 009 for an introduction to the concept of effectiveness.

Charles G. Chandler, Ph.D.
[email protected]

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In this episode I discuss a question that is central to this podcast, “What is organizational effectiveness?”  It is an interesting story, and you will want to tune in.

Models of organizational effectiveness that are discussed:

1. The goal model
2. The system resource model
3. The internal congruence or efficiency model
4. The human relations model
5. The multiple constituencies model
6. The outcome-focused model

Charles G. Chandler, Ph.D.
[email protected]

Reference:  Chandler, Charles G. 2015.  “Organizational Effectiveness:  Replacing a Vague Construct with a Defined Concept”.  Academy of Management Proceedings.  2015: 11023.

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In this episode I discuss how the visible hand of management (described by Alfred D. Chandler, Jr.) may have replaced the invisible hand of the free market (first mentioned by Adam Smith), so that our economy can now be characterized as one dominated by managerial capitalism rather than free market capitalism. This has implications for how managers think about management.

Charles G. Chandler, Ph.D.
[email protected]

References:
1. Smith, Adam 1776. An inquiry into the nature and causes of the Wealth of Nations. 785 pages. An Electronic Classics Series Publication (2005).

2. Chandler, Alfred D, Jr. 1977. The Visible Hand: The Managerial Revolution in American Business. 608 pages. The Belknap Press of Harvard University Press. Cambridge, MA.

3. Coase, Ronald 1937. “The Nature of the Firm”. Economica, 4 (16): 386–405. Blackwell Publishing.

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