Chapter 6
Determining Effectiveness
Chapter Overview
In this chapter we differentiate between effectiveness and efficiency, as well as
successful leadership and effective leadership. It is crucial to understand that success and
Chapter Learning Objectives
After studying this chapter, each student should be able to:
1. Describe the difference between leadership successfulness and leadership
effectiveness
2. Describe Bass’ successful leadership continuum
Key Terms and Concepts
Effectiveness versus Efficiency
Effectiveness is the attainment of goals, while efficiency is the resource costs, including
those human resource costs affecting quality of life.
Attempted Leadership
Attempted leadership is an attempt by an individual to have some effect on the behavior
Bass’ Successful Leadership Continuum
One basic responsibility of a manager in any organization is to get work done, with and
the worker accomplishes the job. This is not an either/or situation. The manager’s success
can be depicted on a continuum ranging from very successful to very unsuccessful.
What’s important to note is that this picture of degrees of success tells only half the story.
It does not address effectiveness.
Effective leadership can also be described as a continuum from very ineffective to very
Personal Power and Position Power
Two types of power contribute to a leader’s success and effectiveness: position power
and personal power.
• Position power tends to be delegated down through the organization and is
Determining Organizational Effectiveness
Causal Variables
Causal variables are those factors that influence the course of developments within an
Intervening Variables
Intervening variables represent the current condition of the internal state of the
organization. They are reflected in the commitment to objectives, motivation, and morale
Output, or End Result Variables
Output, or end result variables, are the dependent variables that reflect the achievements
of the organization. In evaluating effectiveness, perhaps more than 90 percent of
managers in organizations look at measures of output alone. There is, however, a current
In regards to Likert’s model, the relationship between the three classes of variables can
be visualized as stimuli (causal variables) acting upon the organism (intervening
variables) and creating certain responses (output variables). The causal variables largely
produce the level or condition of the intervening variables, which in turn influence the
end result variables. Attempts to improve the intervening variables directly will usually
be much less effective than will attempts to improve them by changing the causal
variables. The end result variables can also be improved most effectively by modifying
the causal variables rather than the intervening variables.
Intervening variables are concerned with building and developing the organization, and
they tend to be long-term goals. This is the part of effectiveness that many managers
Participation and Effectiveness
In an organizational setting, it is urged that the criteria for an individual’s or a group’s
performance should be decided mutually in advance. In making these decisions,
managers and their employees should consider output and intervening variables as well as
Management By Objectives
Management by Objectives (MBO) is one approach to integrating the goals and
objectives of individuals with the organization’s goals. The MBO process as originally
presented had senior and junior level managers identify common goals and define each
Style and Effectiveness
Leader behavior styles can be effective or ineffective depending on the situation.
Abraham Korman reviewed a number of studies examining the Ohio State behavior
dimensions of initiating structure (task) and consideration (relationship) with numerous
Suggested Teaching Approaches
In-Class Activity
1. Have the students break into groups to discuss the differences between effective
and successful leadership. How do the differences between the two affect
different levels of the organization (individual, group, and organizational)?
3. Pick a topic that the students will likely feel similar about, like poverty in racial
groups or illiteracy. Ask them what they would do about it and make note of the
4. Have students read and answer the questions to the case study for Chapter 6. The
case study goes further into events at Listo Systems and introduces a specific
Activities
Exam Questions
1. What are the potential outcomes of having lower level employees participate in
the MBO process?
Answer:
Involving lower level employees in the MBO process may decrease the amount of
2. How are Likert’s causal, intervening, and end result variables useful in discussing
and thinking about effectiveness?
Answer:
These variables are related to effectiveness of organizational units over a period
of time.
Causal variables are factors that influence the course of developments within an
