Effectiveness as Paradox: Consensus and Conflict in Conceptions of Organizational Effectiveness

TLDR

Organizational effectiveness has attracted growing attention amid concerns over job losses, competitiveness, and accountability, yet the literature remains confused about its definition, scope, and assessment criteria. This paper reviews consensual and conflicting views on effectiveness, emphasizes its paradoxical nature, and proposes future research directions on paradoxes. The authors identify five consensual characteristics and three conflicting areas, revealing that consensus is essentially an agreement to disagree, that conflicts stem from incompatible criteria, and that paradoxical traits characterize highly effective organizations, thereby generating new research questions.

Abstract

Attention to the subject of organizational effectiveness has been increasing in the last several years as popular management books have extolled management excellence, almost two million jobs have been lost due to poor U.S. competitiveness, and economic conditions have put pressure on organizations to become more accountable with their resources. However, despite its popularity, much confusion continues in the organizational literature regarding the definition, circumscription, and appropriate criteria for assessing effectiveness. In this paper, I summarize what areas are becoming consensual among most writers on effectiveness, and I point out continuing areas of disagreement and conflict. The five statements summarizing consensual characteristics of effectiveness and the three statements summarizing areas of continuing conflict point out that agreement about effectiveness is mainly an agreement to disagree. Conflicts center mainly on the incompatibility and inappropriateness of commonly selected criteria. The main theme of the paper, however, is a discussion of an inherent, but largely ignored, characteristic of effectiveness in organizations—the paradoxical nature of effectiveness criteria. This discussion illustrates that the most effective organizations are also those characterized by paradoxes—i.e., contradictions, simultaneous opposites, and incompatibilities. Taking account of this characteristic helps explain one reason why so much confusion and disagreement continues to surround effectiveness, and it uncovers a new set of research questions that can guide future investigations. Some suggestions are provided for how research on paradoxes in effectiveness might be pursued in the future.