A Study of Organizational Effectiveness and its Predictors

Published Online:https://doi.org/10.1287/mnsc.32.1.87

Some authors have argued that research on organizational effectiveness should cease. This study demonstrates why organizational effectiveness studies are crucial in certain types of organizations, and it points out how many of the weaknesses and criticisms of past investigations can be addressed. The results of this study of 29 organizations indicate that certain managerial strategies are strongly associated with high static scores and with improving effectiveness over time. Managerial strategies, in fact, were found to be more important than structure, demographics, finances, and other factors. Proactive strategies and those with an external emphasis are more successful than internal and reactive strategies. Managerial strategies that are multifaceted are more likely to lead to effectiveness than monolithic strategies.

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