Purpose and scope
The extent to which an organization is able to achieve its objectives and solve the target problems is known as effectiveness. It is also a central term used in the measurement of the performance of an organization, this also including the inter-organizations agreements which are, sourcing and outsourcing, joint ventures and strategic alliances. (Mouzas, S.2006)
To provide deeper insight into organizational effectiveness we shall have a look at the Commonwealth Bank of Australia. This is a multinational bank with businesses set across various parts of the world such as united states, United Kingdom, New Zealand and Asia.
The purpose is a statement which describes the reason for which the organization exists. It explains in crystal clear the mission vision and the values that an organization upholds. The vision statement usually answers the question of why an organization exists also what it wants to be in the future. The mission statement answers the question, what are we. The values of an organization give both the mission and vision statements meanings. The values give an enforcement to the behaviors of the employees. (Baldoni, J. (2012). The mission of the Common Wealth Bank of Australia is to be among the leading providers of integrated financial services which include retail banking, business banking, premium banking, institutional banking, insurance, funds management, share booking of products and services. The vision statement is to excel in securing and enhancement of the financial wellbeing of the people, businesses, and communities. The values include; integrity, accountability, collaboration, excellence, and service.
The scope of an organization gives an in-depth description of the objectives. The key objective of the Commonwealth Bank of Australia is to recognize a unique lifetime need of its customers, which would lead to the creation of a unique customer identifier as well as a direct linkage to customer holdings across all their services.
When evaluating the effectiveness of the Commonwealth Bank of Australia, I would use a cost-benefit analysis. This criteria of effective evaluation are the best for this bank since it determines the net worth of a particular programme, project or even a policy. It is also a quantitative analytical tool which gives great assistance to decision makers for efficiency in resource allocation. It as well quantifies the costs, as well as the benefits of a certain programme, therefore, converting data into valuable information fit for management. The cost-benefit analysis will as well provide a framework whereby data can be analyzed in a logical manner. Through the cost-benefit analysis the management of Commonwealth Bank in Australia will be able to answer questions as to whether the proposal can provide a net benefit to the community, whether it is advisable for the programme policy or project to be undertaken and if yes whether it should be continued, it would also help them analyze other possible alternatives.
Criteria for evaluation of effectiveness
The cost-benefit analysis assesses the net benefits which occur to the society as a result of a project policy or a programme. Therefore, this analysis is usually conducted based on the views of the locals, this is to say can be conducted at the state level, regional or even at the local community level. This criterion of evaluating effectiveness work for me because it tries to give a measurement of the value of all the costs as well as the benefits which are anticipated to arise from the activity. The reason as to why I would undertake a cost-benefit analysis of Commonwealth Bank of Australia would be to give a clear determination as to whether a programme, project or even a policy can bring a positive or negative impact to the wider community. (Holland, P. 2012).
One of the criteria for effective evaluation by the owners of Commonwealth Bank of Australia can use is; financial evaluation it is also known as investment evaluation. This particular criteria of evaluation would greatly work for the owners since it is conducted from a view of the firm and not from a view of the community. Financial evaluation will help the owners to assess the impact of a particular policy programme or project concerning the organization’s finances. It as well addresses the issue of whether a proposal is an able offer a capable return from an organization’s point of view. The advantage associated with this criterion is that it is only cash which flows in and out of the firm is considered. This means that or cash flows involving other parties other than the organization are not included. ( Fakudze, B. D. (2015).
The government can use the cost-effective analysis as a method or criteria for evaluating the effectiveness of the Commonwealth Bank of Australia. This analysis aims at figuring out the cost incurred in the achievement of a specific target, the target must be physical. This analysis can be conducted from a local or a national point of view, therefore, making it the perfect criteria for the government to use in the evaluation of the effectiveness of Commonwealth Bank of Australia. (Yoon, Y., Hastak, M., & Cho, K. (2017).
My Conclusion from the analysis of effectiveness from the perspective of the owners and the government.
The criteria for evaluation used by the government and the owners of Commonwealth Bank of Australia are fit for the determination of the effectiveness of the organization. For financial evaluation, it is important to note that it determines the net financial benefit to the firm and not the economy. It is, therefore, true to say that financial evaluations are majorly concerned with the flow of cash in and out of the firm. For cost-effective analysis, it should be clearly noted that it only measures benefits physically and not in terms of money. The good thing about cost-effective analysis is that it provides an opportunity ranking of activities according to their priorities on a basis of comparative cost per unit of effectiveness. This analysis is of great importance in areas where it is hard for the benefits to be quantified in monetary terms. In conclusion, however different these two evaluation criteria are, they work hand in hand to enhance the effectiveness of the organization.
Owners and Government choice of criteria for effective evaluation
Through the goal model the vision of the organization is relied as the reasonable set of arrangements driven towards the attainment of goals, therefore the measurement of effectiveness is based on the accomplishment of the outcomes.
The system model stresses on the ways and methods needed so as to achieve the specific ends. This achievement is basically in terms the inputs, procurement and the processes that have been put in place. These three terms are considered as part of the whole, therefore they are not considered as independent.
Other models such as the competing values views the assessment of organizational effectiveness as an activity whose ground are on values. For this model of effectiveness the organizations values are the starting points. There are also three sets of values used in encompassing the whole aspect of effectiveness, they include; (i) the dilemma of means-ends which usually refers to the model of system and goal, (ii) the dilemma of internal external focus, this refers to the needs of different stakeholders, (iii) the dilemma of control flexibility which is normally an open debate in the literature of organizations (Henri, J. F. 2004).
References
Baldoni, J. (2012). Lead with purpose : giving your organization a reason to believe in itself. New York: American Management Association.
Fakudze, B. D. (2015). An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province, South Aftrica (No. 265579). Collaborative Masters Program in Agricultural and Applied Economics.
Henri, J. F. (2004). Performance measurement and organizational effectiveness: Bridging the gap. Managerial Finance, 30(6), 93-123.
Holland, P. (2012). Simple introduction to cost-benefit analysis. SPC SOPAC Division Published Report, 84.
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Mouzas, S. (2006). Efficiency versus Effectiveness. London, UK: University of Bath. Retrieved from S. [email protected] bath. ac. uk.
Nanus, B. (1992). Visionary Leadership: Creating a Compelling Sense of Direction for Your Organization. Jossey-Bass Inc., 350 Sansome Street, San Francisco, CA 94104-1310.
Yoon, Y., Hastak, M., & Cho, K. (2017). Preference clustering-based mediating group decision-making (PCM-GDM) method for infrastructure asset management. Expert Systems with Applications, 83, 206-214.
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