What does organizational effectiveness measure?

Organizational effectiveness is primarily concerned with how well an organization meets its goals and objectives. It assesses the degree to which an organization achieves its intended outcomes, which can include factors like market share, customer satisfaction, and overall mission fulfillment. Effectiveness goes beyond just financial metrics or operational efficiency; it encompasses a broader view of success that aligns with the organization's strategic vision and objectives.

While profitability, employee performance efficiency, and employee satisfaction are important aspects of organizational management, they represent specific indicators that can contribute to or reflect effectiveness. However, they do not fully encompass the definition of organizational effectiveness, which is ultimately about achieving the overarching goals that an organization sets out to accomplish. Thus, measuring effectiveness involves evaluating whether the organization is effectively moving toward its mission and realizing its vision.