What does "organizational effectiveness" signify?

"Organizational effectiveness" signifies the degree to which an organization successfully meets its objectives and fulfills its mission. This concept encompasses a variety of factors, including efficiency, productivity, adaptability, and overall performance in relation to the goals set by the organization. By achieving objectives in a timely and resource-efficient manner, an organization is deemed effective.

The emphasis on efficiently achieving goals indicated in the correct choice reflects the broader understanding that an organization must not only establish its mission but also execute it in a way that maximizes outputs while minimizing inputs. This means that organizational effectiveness often requires continual assessment and adjustment of strategies to ensure alignment with long-term goals.

Other interpretations, such as measuring employee satisfaction or focusing solely on profit, do not capture the comprehensive nature of organizational effectiveness. While employee satisfaction is a component that can influence effectiveness, it is not the sole indicator. Similarly, limiting the focus to profit margins fails to acknowledge the importance of stakeholder relationships and ethical practices in maintaining long-term viability. A temporary assessment of project success, on the other hand, addresses only short-term outcomes, neglecting the broader, ongoing processes that define cumulative organizational effectiveness.