Negandhi Estafen provides a good model for the analysis of management effectiveness in achieving the goals and objectives. The model puts a lot of emphasis on the management philosophy and the environment factors on which the effectiveness is dependent. The environment factors provide the opportunities to survive and grow with certain constraints while the management philosophy sets the guidelines for deciding the management practices to run the enterprises.

While the environment factors are difficult to control, it is left for the management to change its philosophy towards the various players in the business, viz., the employees, the consumers, the suppliers, the government, the community and the shareholders. Basically, it is a change in attitude towards these players. IT will affect the organization structure by reducing its size and the reporting levels.

If the attitude towards the consumer is changed to fulfill the expectations giving rise to a higher satisfaction, then the management practices in the product design, manufacturing and marketing will undergo a significant change. The product life cycle will then be short, and more features and functions will be added to the product fulfilling not only the functional needs but also the service needs of the consumer.