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Title

MEASURING ORGANIZATIONAL EFFECTIVENESS BY USING STRUCTURAL EQUATION MODELING APPROACH

Pages

 Start Page 1 | End Page 20

Keywords

STRUCTURAL EQUATION MODELING (SEM)Q1

Abstract

 The contribution of the service sector in the global economy is rising nowadays, and organizations are the key elements of this economical sector. The customer-orientation and attempting to enhance the performance are fundamental role-players in the organizations success and EFFECTIVENESS. The present study assesses the organizational EFFECTIVENESS by using the structural equation modeling (SEM) statistical approach. As the main dependent variable, the organizational EFFECTIVENESS been considered as a function of CUSTOMER SATISFACTION and OBJECTIVES ATTAINMENT scales. Data were gathered from two customers population and managers population of the public banks of Dezfoul township, using two separate questionnaires. Based on the SEM approach, the 5 and 4 sub-scales of the CUSTOMER SATISFACTION and OBJECTIVES ATTAINMENT scales were considered as observed variables. The same scales and the main dependent variable, EFFECTIVENESS, were also defined as unobserved or latent variables and their interrelationship was then analysed through constructing a second-order confirmatory factor analysis (CFA) model. The Results confirmed the fitness and validity of both measurement models for CUSTOMER SATISFACTION and OBJECTIVES ATTAINMENT scales as well as the second-order CFA for assessment of EFFECTIVENESS, based on the gathered data. The precedence of the magnitude and significance of direct and indirect effects of the CUSTOMER SATISFACTION and its sub-scales were compared to the OBJECTIVES ATTAINMENT and its sub-scales on the organizational EFFECTIVENESS was another part of the results.

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