A paradigm is proposed that views effectiveness as the ability of an organization to account successfully for its outputs and operations lo its various infernal and external constituencies. This framework can he used to assess effectiveness by examining organizational outputs and processes in a critical and holistic way. A review of (he existing literatures on organizational effectiveness and a case example are used to develop the proposed framework.

A new system of performance appraisal based on written standards and merit-based pay for supervisors and managers in the federal government is examined in five sites. The merit-based pay aspects of these systems are not perceived as equitable, nor are they perceived to contribute to agency effectiveness. The performance appraisal and performance standards aspects appear to be contributing positively to work planning and supervisor-subordinate communications. Developmental, forward-looking appraisals are seen to have the most positive impact on attitudes toward these systems, though appraisals have become less developmental under the new system. Results are discussed as they relate to the effectiveness of government operations.

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A paradigm is proposed that views effectiveness as the ability of an organization to account successfully for its outputs and operations lo its various infernal and external constituencies. This framework can he used to assess effectiveness by examining organizational outputs and processes in a critical and holistic way. A review of (he existing literatures on organizational effectiveness and a case example are used to develop the proposed framework.