Page 110 - MS Year in Review 2020

APPENDIX A

FRAMEWORK FOR THE ASSESSMENT AND

DEVELOPMENT OF SUSTAINABLY SUCCESSFUL

ORGANIZATIONS

The framework, which has been created over the past 40 years from a combination

of empirical research and experience and using that framework, has three related
parts including:

1) an “organizational effectiveness model,”
2) a “stages of growth model,” and

95
3) a “model of organizational dysfunction (‘growing pains’). ”

Organizational Effectiveness Model.

The “organizational effectiveness model” was previously developed by Flamholtz

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(1995) and is reviewed briefly below.
The Foundation of a Business

All business or economic organizations are based upon a conceptual foundation,

which is either explicitly defined or implicitly understood. This is termed “the
business foundation.” The business foundation, in turn, consists of three related

dimensions or constructs: 1) the “business concept” or definition, 2) the “strategic
mission,” and 3) the “core strategy.”

The Business Concept. A business concept is a statement of what the
organization is in business to do. It defines an organization’s identity and gives it
strategic focus. It provides the raison d’etre of the business. For example, Coca-

95 Growing pains are caused by disequilibrium when the development of an organization’s
infrastructure does not match it stage of growth.
96 Flamholtz, E. (1995). Managing Organizational Transitions: Implications for Corporate and Human
Resource Management. European Management Journal, 13(1), 39-51.

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