The following are five of the common approaches that managers can use to measure organizational effectiveness:

• A Goal approach is to look at the degree to which an organization achieves its goals or how well it is performing.
• An external resource approach focuses on the ability of organizations to acquire inputs from their external environment.
• An internal process approach focuses on the transformation process and to what extent organizational skills and resources are used to convert into finished products or services.
• A strategic constituency approach is concerned with how successfully an organization satisfies its strategic constituency or the key stakeholder groups from which it requires support to survive and thrive.
• The balanced scorecard approach is an integrated measure of organization effectiveness that includes not only traditional financial measurements and business processes but also includes concerns for customers, employees and organizational learning.

Choice (e) is the correct answer.