The Concept of Organizational Development

The Concept of Organizational Development

[pic]Organizational effectivenesOrganizational effectiveness is the concept of how effective an organization is in achieving the outcomes/goals the organization intends to.
An organization's effectiveness is also dependent on its communicative competence and ethics. The relationship between these three is simultaneous. Ethics is a foundation found within organizational effectiveness. An organization must exemplify respect, honesty, integrity and equity to allow communicative competence with the participating members. Along with ethics and communicative competence, members in that particular group can finally achieve their intended goals.
Organizational effectiveness is an abstract concept and is basically impossible to measure. Instead of measuring organizational effectiveness, the organization determines proxy measures which will be used to represent effectiveness. Proxy measures used may include such things as number of people served, types and sizes of population segments served, and the demand within those segments for the services the organization supplies.
For instance, The Co-operative Insurance Company of Kenya (CIC) was founded in 1978 and is wholly owned by over 1,350 co-operative societies and about 2,500 individual co-operative members. CIC is a composite Insurance company, transacting both long term and general business, and is the only Co-operative insurance company in Africa.

In the last 10 years CIC has undergone major transformations and growth to become the third largest life business underwriter in Kenya, and seventh largest insurance company out of 43 Insurance companies in Kenya. CIC is currently the market leader in co-operative & microfinance sectors with an average growth of 27% over the last 5 years.

CIC effectiveness can be demonstrated by adhering to its core values which includes among many the following;

CIC has strived to be effective in utilization of its available resources to produce maximum output. The...

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