Predicting the level of organizational effectiveness: a methodology for the construction firm

Abstract

Researchers have offered a variety of models for examining organizational effectiveness, yet there is little consensus as to what constitutes a valid set of criteria for measurement. In today's environment it is vital for construction firms aiming to maintain and improve performance to utilize an appropriate method to predict their organizational effectiveness. This paper illustrates a methodology for predicting the level of organizational effectiveness in the construction firm. The competing values approach towards understanding organizational effectiveness and its assessment is used to identify 14 variables. These variables are conceptualized from four general categories of organizational characteristics, relevant for examining effectiveness: structural context, organizational flexibility, rules and regulations, person-oriented processes and strategic means and ends. The methodology hypothesizes a multivariate linear model of the 14 variables as predictors and effectiveness operationalized by the level of overall performance as the response variable. Cross-sectional data were collected from 76 firms operating in institutional and commercial (IC) construction. The validated model showsthat five of the hypothesized 14 variables are highly significant in predicting the level of organizational effectiveness in the construction firms studied: organizational attitude towards change, multiple project handling ability, level of planning by management, strength of organizational culture and level of workers' participation in decision making.

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