Final answer:
An issue with the resource approach in evaluating organizational effectiveness is the overemphasis on financial metrics, which can overlook other crucial factors like organizational structure, management, and human resources that affect performance.
Step-by-step explanation:
An example of issues with the resource approach for evaluating organizational effectiveness is overemphasis on financial metrics. This approach often leads to the notion that increased financial resources will automatically lead to improvements in organizational performance. However, research and case studies have shown that a simple increase in resources does not always translate to better performance. For instance, in the educational sector, despite higher spending per student, student performance as measured by test scores has not seen a corresponding increase, suggesting that factors other than resources, such as organizational structure and management, play a crucial role in effectiveness.
Furthermore, the strengths-based management style proposed by Donald Clifton, emphasizes the importance of leveraging individual strengths within an organization. It cautions against the pitfalls of neglecting weaknesses and overusing strengths, which can interfere with overall performance, contrary to assumptions made under a resource-focused approach.
Lastly, effective use of resources extends beyond financial aspects and includes human resources, employee well-being, and customer feedback. Solely relying on financial metrics can lead to a disregard for the unique culture and dynamics within an organization that can affect performance, thereby highlighting the limitations of the resource approach in evaluating organizational effectiveness.