Definitions of effectiveness for performance management

Definitions of effectiveness range from the inclusion of very specific concepts such as output quality, client satisfaction, and goal attainment to the inclusion of very broad concepts such as systems maintenance or the ability of the organization to survive.

An excellent illustration of the confusion is provided by Steers, who reviewed the criteria used in 17 multi-variate models of organizational effectiveness.

After demonstrating the considerable variation in the criteria used to measure effectiveness, Steers questioned the very existence of the construct:

From the findings to date, it appears that either the effectiveness construct is invalid or that there may indeed be such a valid construct for which the relevant observable criteria have not yet been discovered. Therefore, to call the managerial definition of productivity organizational effectiveness does not appear to be an immediate solution to our definition and communication problems.

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Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period.