Managerial Perceptions of Organizational Effectiveness

Perceptions and judgments of 84 managers were analyzed in the development of models of organisational effectiveness applied in managerial judgments. Managers described 283 subordinate organization units in terms of 114 variables often mentioned as indicative of organizational effectiveness. Managers also made judgments of the overall effectiveness of these organizations. Analysis of the descriptions indicated that the 114 variables reflect 24 basic dimensions of organizational effectiveness. Models predictive of managerial judgments of organizational effectiveness were developed using these 24 dimensions. A general model accounted for 56 per cent of the variance of judgments of overall effectiveness made by the 84 managers. Other models developed for more homogeneous sub-samples of managers accounted for 75 to 85 per cent of the variance in judgments of overall effectiveness. These models typically involve only seven of the 24 dimensions of organizational effectiveness with a single dimension carrying the most weight in judgments. These models of managerial judgments of organisational effectiveness identify the basic dimensions viewed by managers in judging subordinate organizations and the relative weights assigned them. As such, they provide a useful framework for the development of criteria for judging organizations for administrative and research applications.