Final answer:
The stakeholder (network effectiveness) approach for evaluating organizational effectiveness involves assessing relationships with external stakeholders to ensure successful outcomes and legitimacy of evaluations among internal and external audiences.
Step-by-step explanation:
The stakeholder (network effectiveness) approach for evaluating organizational effectiveness emphasizes assessing an organization's relationships with external stakeholders. This approach recognizes that organizations must engage with various groups and individuals that have a vested interest in the organization's outcomes, such as customers, government agencies, and local communities. As illustrated in the Mini-Case Study, the success of a program, project, or organization oftentimes depends on the effective participation and input of external stakeholders. Failure to properly engage these parties can result in insufficient feedback and suboptimal outcomes. This is contrary to focusing solely on internal processes, ignoring external factors, or just emphasizing employee satisfaction.
Engaging in the evaluation of one's own program is crucial for establishing legitimacy among both internal and external audiences, which includes the stakeholders. Furthermore, exploring competing values and fostering mutual understanding among stakeholders can lead to a consensus on appropriate policies and decisions.