Performance evaluation and organizational effectiveness - OB

One essential component of a successful appraisal system is the existence of clear and well communicated goals. Without an understood standard, the evaluation has little meaning. There is a great deal of evidence stating that particiation is an important part of implementing an appraisal system. When people feel that they have participated in setting goals and establishing guidelines, they appear less resistant to the changes such systems inevitably produce.

Orgnisational effectiveness is generally associated with goal accomplishment. Although this is an accurate method of examining effectiveness, problems arise when we rely completely on the goal approach. Reality is, in most cases, too complex to expect an organisation to proceed directly from the accomplishment of one goal to another.

A more realistic approach is the systems model which considers numerous subsystems and elements. The chapter attempts to look at selected organizational outputs. The first is effective performance and second is organisational effectiveness defined in a specific manner.