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The IUP Journal of Management Research :
Organizational Effectiveness in Banks and Insurance Companies: A Comparative Study of Public and Private Sectors
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The present study explores organizational effectiveness in public and private sectors. An attempt has been made to explore and enumerate the factors of organizational effectiveness in public and private sectors, in banks and insurance companies focusing on front line and managerial level of employees. The objective of the study was also to investigate how public and private sectors influence organizational effectiveness in two types of organizations (banks and insurance) and at two levels of organizational hierarchy. A quantitative survey in the form of close-ended structured questionnaire was designed and used to obtain responses from 280 employees working in public and private sector banks and insurance companies. A 27-item scale was developed for data collection. The data was analyzed with the help of ANOVA and t-test in order to see the significance of difference among various groups. Organizational effectiveness was found to be better in case of private sector, although applicable to two of the five dimensions studied.

 
 

Over the years, definitions of organizational effectiveness have generated considerable debate. The available literature on organizational effectiveness reveals that there is little agreement concerning the construct. A major contributor to the controversy appears to be the fact that organizational effectiveness has come to be regarded by many as synonymous with goal attainment (Etzioni, 1964). Organizational effectiveness means different things to different people and the variable depends on who explains it (Cameron and Whetten, 1983). Quinn and Cameron (1988) found that organizational effectiveness has no objective reality of its own but depends on who defines it. An organization is formed by groups of individuals working together to achieve organizational goals, and if the goals are achieved on time with efficiency the organization becomes effective. Cameron and Whetten (1983) are of the view that organizational effectiveness is the extent to which an organization achieves its goals and objectives. It is the measure of how successful organizations achieve their goals through their core competencies and strategies. Organizational effectiveness studies are concerned with the unique capabilities that organizations develop to assure success (McCann, 2004). The success of an organization also revolves around the behavior and performance of people within the organization and can also be considered as an important part of organizational effectiveness (Chelladurai and Haggerty, 1991). Academicians, researchers and consultants are rapidly developing ways to assess and guide alignment to enhance organizational effectiveness. Many studies have been conducted to integrate human resource practices with financial performance of the firm and the notion has been that the human resources in the organizations can build competitive advantage resulting into good financial performance. Huselid (1995) analyzed business performance in terms of human resource work practices. The study provides a test of the prediction that the impact of work practices on business performance depends on the degree of best fit.

 
 

Management Research Journal, Organizational Effectiveness in Banks, Insurance Companies, A Comparative Study of Public,Private Sectors.