Correct option is C
Organizational effectiveness refers to the degree to which an organization’s goals are appropriate for its environment and the extent to which those goals are achieved. It combines two elements: goal appropriateness (are we pursuing the right objectives?) and goal attainment (are we actually accomplishing them?). Effectiveness thus evaluates both the “rightness” of the chosen goals and the organization’s success in meeting them.
Appropriateness of goals: An effective organization first must ensure that the goals it sets align with its mission, stakeholders’ expectations, and external environment. For example, a non‐profit aiming to serve underprivileged communities must set clear objectives that truly address community needs.
Achievement of goals: Next, effectiveness assesses whether those suitable objectives have been realized. This might involve measuring outcomes such as market share, customer satisfaction, or impact metrics directly tied to strategic aims.
Information Booster:
Organizational effectiveness is the true measure of how well an organization has:
- selected goals that fit its purpose and environment and
- succeeded in achieving those goals.
It captures both strategic alignment and actual performance against objectives.
Additional Knowledge:
(a) Organizational transparency: This refers to open sharing of information, decision processes, and rationale within an organization. While important for trust and accountability, it does not measure goal selection or achievement.
(b) Organizational citizenship: These are voluntary, extra‐role behaviors by employees—such as helping colleagues or proactively improving work processes. Though beneficial to culture and performance, citizenship behaviors do not evaluate whether the right goals were set or met.
(d) Organizational efficiency: This concept measures how well an organization converts inputs (resources) into outputs (products/services) with minimal waste. Efficiency tells us “how economically resources are used,” but not whether the objectives themselves were appropriate or achieved.


