Organizational Effectiveness Indicators To Support Service Quality
The success of an organization depends on how effectively organizational structures are managed. Kraft (2004) claims all the roles of management should focus on creating organizational effectiveness. The re various criteria for measuring the organization effectiveness which revolve around stakeholders’ interests, time to achieve results and the whether the criteria are means or ends. Organization effectiveness may be measured through the effectiveness of the production cycle, where there must be efficiency and accountability on the amount of inputs used and the processes employed to achieve a given amount of output. In addition, effectiveness in an organization may be measured by organization’s response to the environment, where the organization is capable of fitting well in the environment it operates in as well as being flexible enough to match the volatile market competition. Another criterion for measuring the organization effectiveness is the time frame that the organization takes to achieve results/profits Vis a Vis how long such profitability will last over the life of the organization. Lastly, the effectiveness of the organization will be measured through agency theory, where the fulfillment of the interests and demands of the various stakeholders in the organization are put into focus.
Heavy Spare Parts Supplying Company has been operating in a very competitive market and various criteria have been used to measure its effectiveness. Customer satisfaction has been rated highly as the company has been able to meet the demand and managed to supply some of the latest and efficient equipments to the customers. In terms of human resources, employees in the company are among the most satisfied and motivated in the industry rated highly; Gilbert and Parhizgari (2000) views a well managed staff as a source of customer satisfaction. This is due to good compensation and conducive working environment. Another criterion is the social impact to the society rated highly, where the company has aggressively participated in initiating and funding community projects as well as social activities like sports. The company has also been highly rated on environmental conservation as it has ensured that waste from its servicing plant does not interfere with the environment. The company has been making high profits with a high return to equity rated highly due to the efficiency in its processes. Lastly, the company effectiveness is measured through its sound organization structure that enhances horizontal communication and an effective, competent and skillful staff and Board of Directors rated highly. According to Helms (2009), organization structure is very important in measuring company effectiveness.
The company is sensitive to its economic value, taking responsibility for the environment conservation and giving back to the society as well as ensuring that it adheres to the social needs such as human rights and sound human resource practices.
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