A Study of Perceived Organizational Effectiveness and Its Predictors: The Organizational Demographic, Decision Making Approach, Organization Culture, Managerial Strategy and Organization Life Cycle Stage

Abstract

The study of Organizational Effectiveness (OE) is an interesting, important yet complex conception, due to its paradoxical nature. The topic itself is relatively challenging to inquire as owing to its broad construct domain which calls for number of different dimensions that may even contradict to each other. However, the present study constituted a cautious and systematic effort to access the OE by utilizing a number of various dimensions extracted through the extensive review of relevant literature, and scrutinized the impact of Organization Demographics (OD), Decision Making Approaches (DMA), Organizational Culture (OC), Managerial Strategies (MS) and Organization Life Cycle Stages (OLCS) on perceived OE. For the purpose, all of the 24 Higher Education Institutions (HEIs) from the province of Khyber Pakhtunkhwa (KP), Pakistan were selected to diagnose. Since the study employed subjective measures, and so the probability sampling design in terms of disproportionate random sampling procedure and a representative sample size with a narrow margin of error (0.1) imparted significance to the study. Subsequently, a non-experimental and cross sectional data were collected by a web based email as well as conventional paper and pen survey questionnaire through the senior faculty members and administrators, by a six portioned questionnaire adopted from renowned scholars in the field. All the useable returned questionnaires were keyed into SPSS. The preliminary data analyses confirmed the validity of data for final analyses. Thereon, univariate, bivariate and multivariate statistical techniques were executed to answer the research questions of the study by testing the eighteen literature derived hypotheses. Consequently, the resultant information of t test revealed a significant difference between all the organizational demographics (public vs. private, PhD awarding vs. non-awarding, different aged grouped and large vs. small institutions) with the exception of unionized and non-unionized faculties to perceived OE. Further, multiple regression analyses substantiated all remaining independent variables as statistically significant predictors of OE. However, in varying strengths and contrasting directions for example in terms of DMA collegial/rational; for OC clan and adhocracy; regarding MS active and pertaining to OLCS collectively, formalization & control and structure and elaboration stages were found positive in relation to perceived OE. Contrarily, autocratic/political DM approach; bureaucratic xivand market cultures; passive strategy and entrepreneurial stage were inversely associated to perceived OE. In addition, correlation analyses of all the continuous independent variables showed as significant relationships to each other but with low to moderate strengths and conflicting directions as well. Moreover, in comparison of public and private HEIs there was no difference indicated in dominated DMA and managerial strategy. Though, the dominated cultures and OLCS for public HEIs indicated as clan & bureaucratic, and all last three OLCS respectively, whereas adhocracy & market cultures, and entrepreneurial stage were exhibited as dominated culture types and OLCS respectively for private HEIs. Also, study empirically validated the Competing Values Model (CVM) of OE in the HEIs context of KP, Pakistan. As a whole, the study concluded that collegial/rational DMA, Clan & Adhocracy culture, active strategy and formalization & control and structure & elaboration OLCS are superlative predictors of OE and recommended for practitioners to exercise in promoting their institutions’ effectiveness. Additionally, it is recommended that public HEIs need to stress on adhocracy culture, while focus of private HEIs should be kept on clan culture to grow into higher OLCS, and consequently to elevate OE. Also, the study recommends the use of CVM as an institutions’ self-diagnostic tool.