Organizational Effectiveness Research Of Baijia Group

The lack of the organizational effectiveness of Baijia Group lies in the facts that the Organization can't adapt itself to the environment effectively and that its operative efficiency (technical efficiency and agency efficiency) is quite low. About the adaptability of the organization, the key reason which have caused the Groups' failure in adapting to the environment is that the highly centralized decision-making model and the internal conflicts between the departments. As to the technical efficiency, the enterprises haven't made good use of the economics of scope and the economics of scale, and this has led to the loss of the enterprises' technical efficiency. And as to the agency efficiency, the high level transaction costs in the enterprises result from three causes. First, the enterprises can't solve the agency problem low costly. Second, the operating model of "Internal Markets" has result in a bad coordination in the organization. The last, the high centralization and the extreme lack of resources have produced the high level "Affection" costs.