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What are issues with the stakeholder (network effectiveness) approach for evaluating organizational effectiveness?

a) Neglecting the impact of external factors.
b) Overemphasizing the importance of external relationships.
c) Ignoring the organization's internal processes.
d) Focusing too much on employee satisfaction.

User Dstarh
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1 Answer

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Final answer:

The stakeholder (network effectiveness) approach may ignore internal processes, neglect external factors' impact, and overemphasize external relationships. Insights from several case studies highlight these limitations, emphasizing the need for a balanced evaluation strategy that considers both internal and external factors of organizational effectiveness.

Step-by-step explanation:

The stakeholder (network effectiveness) approach for evaluating organizational effectiveness does have its limitations. One prominent issue is c) Ignoring the organization's internal processes. This evaluation method tends to overlook the day-to-day operations and internal workings of an organization, focusing instead on the perceptions and feedback of external stakeholders. However, without understanding the internal mechanisms, evaluations may miss important aspects of what makes an organization effective.

Another issue with this approach is a) Neglecting the impact of external factors. The assumption that stakeholders outside the organization fully understand and are committed to the organization's goals is often mistaken. As shown in Mini-Case Study Four, stakeholders may not view themselves as such or may not be sufficiently knowledgeable, which can result in inadequate feedback and a less effective evaluation.

Finally, there is a problem of b) Overemphasizing the importance of external relationships. By focusing too heavily on external stakeholder perceptions, the approach can give too much weight to these relationships at the expense of other critical factors that lead to organizational success. This is exemplified in Mini-Case Study Twelve, where a strong external focus led to relational challenges when feedback wasn't entirely positive, showing the need for a more balanced evaluation that incorporates internal perspectives.

User Papr
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