Organizational Effectiveness Essay Example | Topics and Well Written Essays - 500 words

Organizational Effectiveness - Essay Example e employees of a Company are motivated and through their efforts, succeed in transforming the prospective client who enters into a business transaction with an organization into an active and loyal customer.(Dufour and Maisonnas, 1997). Customer loyalty is vital because retaining the existing customer is less expensive as compared to wooing new customers. Traditional hierarchical systems of leadership are yielding way to transformational leadership. The older systems were stiff and bureaucractic, often impacting negatively upon the organization by bogging down the timely delivery of efficient service and implementation of policy decisions. But transformational leaders operate along a more diffused style of networking within the organization. They have vision, realize the need for change and inspire others to work cooperatively towards a common goal. (McCollum 2005). Therefore, organizational structure needs to be changed to introduce more networking rather than a hierarchical framewo rk. Customer loyalty is conditioned to a great extent by (a) the level of service received as a function of the expectations of the customer and his perception of the service given to him (Parasuram et al, 1994). Understanding and anticipating present and future customer expectations must be a vital part of organizational strategy in order to ensure maximum efficiency in the provision of service.(Szeinbach et al,1997). Therefore, to improve organizational effectiveness, the model must also incorporate measures to assess customer expectations through a detailed analysis of customer preferences and knowledge of market trends. Furthermore, the model may also incorporate additional measures such as bonuses and incentives to encourage existing customers to stay loyal to the Company. Regular customers provide free. Word of mouth publicity for a business, they are less expensive to service because they are already familiar with existing company procedures and satisfied with the Company’ s