Journal of Strategic Human Resource Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Exploring the Effects of Organisational Capabilities and Managerial Competencies on the Organisational Effectiveness


Affiliations
1 University of Economic Sciences, Iran, Islamic Republic of
2 Kharazmi University, Iran, Islamic Republic of
     

   Subscribe/Renew Journal


Nowadays, there is no need to say that organisational effectiveness is important. In today's competitive world, consultants and academics propose new bases to enhance the effectiveness and performance of organisations. In this paper, we have used two new approaches which have found significant emphasis from the part of researchers: organisational capabilities and managerial competencies.

This paper aims to evaluate the effects of managerial competencies and organisational capabilities on the organisational effectiveness. This study develops an integrated model to be tested. The survey data have been collected from 58 managers in all levels of four companies. The results show that the proposed model significantly explains the variance of organisational effectiveness. Findings reveal that both organisational capabilities and managerial competencies contribute significantly to enhancing organisational effectiveness, although the effect of organisational capabilities on organisational effectiveness is more than that of managerial competencies.


Keywords

Organisational Capabilities, Managerial Competencies, Organisational Effectiveness.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Ahiauzu, A. I. (2006). The nature and fundamental principles of competency- based public administration, a workshop paper on transformational managerial leadership incompetency-based public service administration for senior civil servants of Imo State, Nigeria.

  • Alvesson, M., & Sandberg, J., (2013). Has management studies lost its way? Ideas for more imaginative and innovative research. Journal of Management Studies, 50(1).

  • Bahner-Guhin, C., & Wilcox, A. A. (2003). Business problem solving. Axzo Press.

  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.

  • Barney, J. B., & Clark, D. N. (2007). Resource-based theory creating and sustaining competitive advantage. Oxford University Press.

  • Boyatzis, R. E. (1982). The competent manager: A model for effective performance. New York: John Wiley & Sons.

  • Boyatzis, R. E. (2008). Competencies in the 21st century. Journal of Management Development, 27(1), 5-12.

  • Bratton, D. A. (1998). Develop a framework of core competencies. Credit Union Magazine, 64(10), 17-18.

  • Bruch, H., & Ghoshal, S. (2002). Beware the busy manager. Harvard Business Review.

  • Cambridge Advanced Learner’s Dictionary. (2008). Cambridge University Press.

  • Cameron, K. S., & Whetton, D. A. (1983). Organizational effectiveness. New York: Academic Press.

  • Campbell, J. P. (1977). On the nature of organizational effectiveness. In P.S. Goodman & J.M. Pennings (Eds.), New perspectives on organizational effectiveness (pp. 13-55). San Francisco: Jossey-Bass.

  • Carter, C. J., Bishop, J., & Kravitz, S. L. (2012). Key to success: Teamwork and leadership. Prentice-Hall.

  • Chen, N. (2008). Internal/employee communication and organizational effectiveness: A study of Chinese corporations in transition. Journal of Contemporary China, 17(54), 167-189.

  • Chin, W. W. (1998). Issues and opinion on structural modeling. MIS Quarterly, 1(22), 7-16.

  • Cho, S. M. (2007). Assessing organizational effectiveness in human service Organizations. Journal of Social Service Research, 33(3), 31-45.

  • Carroll, A., & McCrackin, J. (1998). The competent use of competency based strategies for selecting and development. Performance Improvement Quarterly, 11(3), 45-63.

  • Chin, W. W., Gopal, A., & Salisbury, W. D. (1997). Advancing the theory of adaptive structuration: The development of a scale to measure faithfulness of appropriation. Information Systems Research, 8(44), 342-367.

  • Connolly, T., Conlon, E. J. & Deutsch, S. J. (1980). Organisational effectiveness: A multiple constituency approach. Academy of Management Review, (5), 211-217.

  • Daft, R. L. (2010). Organization Theory and Design (10th ed.). South-Western.

  • Dosi, G., Nelson, R. R., & Winter, S. G. (2002). The nature and dynamics of organizational capabilities. Oxford University Press.

  • Eerde, W. V., Tang, K. C. S., & Talbot, G. (2008). The mediating role of training utility in the relationship between training needs assessment and organizational effectiveness. International Journal of Human Resource Management, 19(1), 63-73.

  • Eisenstat, R. A., Beer, M., Foote, N., Fredberg, T., & Norrgren, F. (2008). The uncompromising leader. Harvard Business Review.

  • Critical Leadership Skills Key Traits That Can Make or Break Today’s Leaders. (2006). The Ken Blanchard Companies.

  • Elmuti, D. (1996). The perceived impact of team-based management systems on organizational effectiveness. International Journal of Manpower, 17(8), 4-17.

  • Gelade, G., & Gilbert, P. (2003). Work climate and organizational effectiveness: The application of data envelopment analysis in organizational research. Organizational Research Methods, 6(4), 482-501.

  • Grafton, J., Lillis, A. M., & Widener, S. K. (2010). The role of performance measurement and evaluation in building organizational capabilities and performance. Accounting, Organizations and Society, 35, 689-706.

  • Grant, R. M. (1996). Prospering in dynamically-competitive environments: Organizational capability as knowledge integration. Organization Science, 7, 375-387.

  • Haery, F. A., Aghajani, M., & Bahrami, M. (2013). Studying the effect of managerial executive competencies on marketing effectiveness in fi rms. International Journal of Academic Research in Business and Social Sciences, 3(11), 433-441.

  • Hall, R. H. (1980). Effectiveness theory and organizational effectiveness. Journal of Applied Behavioral Science, 16, 536. DOI: 10.1177/002188638001600408.

  • Hamilton, C. (2011). Communications for results: A guide for business and the professions (9th ed.). WADSWORTH.

  • Handa, V., & Adas, A. (1996). Predicting the level of organizational effectiveness: A methodology for the construction firm. Construction Management & Economics, 14(4), 341-352.

  • HassabElnaby, H. R., Hwang, W., & Vonderembse, M. A. (2012). The impact of ERP implementation on organizational capabilities and firm performance. Benchmarking: An International Journal, 19(4/5), 618-633.

  • Helfat, C. E., & Peteraf, M. A. (2003). The dynamic resourcebased view: Capability lifecycles. Strategic Management Journal, 24, 997-1010.

  • Herman, R. D., & Renz, D. O. (2004). Doing things right: Effectiveness in local nonprofi t organizations, apanel study. Public Administration Review, 64(6), 694-704.

  • Hsieh, S. C., Lin, J. S., & Lee, H. C. (2012). Analysis on literature review of competency. International Review of Business and Economics, 2, 25-50.

  • Jeong, S. H., Lee, T., Kim, I. S., Lee, M. H., & Kim, M. J. (2007). The effect of nurses’ use of the principles of learning organization on organizational effectiveness. Journal of Advanced Nursing, 58(1), 53-62.

  • Julnes,P. L., Berry, F. S., Aristigueta, M. P., & Yang, K. (2008). International handbook of practice-based performance management, Sage Publications.

  • Kadan, O., Madureira, L., Wang, R., & Zach, T. (2012). Analysts’ industry expertise. Journal of Accounting and Economics, 54(2-3), 95-120.

  • Lee, D., & Brower, R. (2006). Pushing the envelope on organizational effectiveness: Combining an old framework and a sharp tool. Public Performance & Management Review, 30(2), 155-178.

  • Levenson, A. R., Van der Stede, W. A., & Cohen, S. G. (2006). Measuring the relationship between managerial competencies and performance. Journal of Management, 32(3), 360-380.

  • Long, C. S., & Ismail, W. K. (2011). An analysis of the relationship between HR professionals’competencies and fi rms’ performance in Malaysia. International Journal of Human Resource Management, 22(5), 1054-1068.

  • Lopez-Cabralez, A., Valle, R., &. Herrero, I. (2006). The contribution of core employees to organizational capabilities and effi ciency. Human Resource Management, 45(1), 81-109.

  • Marcoulides, G. A., Chin, W., & Saunders, C. (2009). Foreward: A critical look at partial least squares modeling. MIS Quarterly, 33(1), 171-175.

  • Mathis, R. L., & Jackson, J. H. (2011). Human resource management (13thed.). South-Western.

  • McLagan, P. (1997). Competencies: The next generation. Training & Development, 51(4), 40-47.

  • Munir, Y., Rehman, S., & Nazir, T. (2013). Mediating effect of knowledge sharing between knowledge capabilities and organizational effectiveness of higher education institutes of Pakistan. Middle-East Journal of Scientifi c Research, 18(6), 810-814.

  • Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge, MA: Harvard University Press.

  • Ngo, H., Jiang, C., & Loi, R. (2013). Linking HRM competency tofi rm performance: An empirical investigation of Chinese fi rms. Personnel Review, 43(6), 898-914.

  • Olmstead, J. W. (2010). Effective time management: Skills and practices, Olmstead & Associates.

  • Ohio Department of Education. (2010). Ohio English Language Profi ciency Standards.

  • Penrose, E. T. (1959). The theory of the growth of the firm. New York: Wiley.

  • Perry, L. (2003). Business Problem Solving, Axzo press.

  • Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 8(3), 79-91.

  • Prenkert, F., & Ehnfors, M. (1997). A measure of organizational effectiveness in nursing management. Journal of Nursing Management, 5(5), 279-287.

  • Quinn, R. E., & Rohrbaugh, J. (1983). A spatial model of effectiveness: criteria towards a competing values approach to organizational analysis. Journal of Management Science, 29, 363-377.

  • Reid, R. D., & Sanders, N. R. (2013). Operations management: An integrated approach (5thed.). John Wiley and sons.

  • Redshaw, B. (2000). Evaluating organizational effectiveness, industrial and commercial training, 32(7), 245-248.

  • Risk Taking: A Corporate Governance Perspective. (2012). International Finance Corporation, World Bank Group.

  • Riordan, C. M., Vandenberg, R. J., & Richardson, H. A. (2005). Employee involvement climate and organizational effectiveness. Human Resource Management, 44(4), 471-488.

  • Robbins, S. P. (1987). Organization theory: Structure, design and applications. Prentice Hall.

  • Robbins, S. P., & Coulter, M. (2012). Management (11th ed.). Prentice Hall.

  • Rothwell, W. J., & Lindholm, J. E. (1999). Competency identifi cation modelling and assessment in the USA. International Journal of Training and Development, 3(2), 90-105.

  • Russell, C. J. (2001). A longitudinal study of top-level executive performance. Journal of Applied Psychology, 86, 560-573.

  • Salaman, G., & Asch, D. (2003). Strategy and capability sustaining organizational change. Blackwell Publishing.

  • Santra, T., & Giri, V. (2009). Analyzing computer-mediated communication and organizational effectiveness. Review of Communication, 9(1), 100-109.

  • Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (5th ed.). London: Prentice Hall.

  • Schroder, H. M. (1989). Managerial competence: The key to excellence: A new strategy for management development in the information Age. London: Kendall & Kent Publications.

  • Shilbury, D., & Moore, K. A. (2006). A Study of organizational effectiveness for national olympic sporting organizations. Non profit and Voluntary Sector Quarterly, 35(1), 5-38.

  • Smith, E. H., (2003). Customer focus and marketing in archive service delivery: Theory and practice. Journal of Society of Archivists, 24(1), 35-53.

  • Stewart, G. L., & Brown, K. G. (2011). Human resource management: Linking strategy to practice (2nded.). John Wiley and Sons.

  • Tenenhaus, M., Amato, S., & Esposito Vinzi, V. (2004). A global goodness-of-fi t index for PLS structural equation modeling. In Proceedings of the XLII SIS scientifi c meeting, 739-742.

  • Thibodeaux, M. S., & Favilla, E. (1996). Organizational effectiveness and commitment through strategic management. Industrial Management & Data Systems, 96(5), 21–25.

  • Tsui, A. S. (1990). A multiple constituency model of effectiveness: An empirical examination at the Human Resource subunit level. Administrative Science Quarterly, 35, 458-483

  • Ulrich, D., & Lake, D. (1990). Organizational capacity: Competing From the Inside Out. John Wiley & Sons, New York.

  • Ulrich, D., & Lake, D. (1991). Organizational capability: Creating competitive advantage. Academy of Management Executive, 5(1), 77-92.

  • Walton, E. J., & Dawson, S. (2001). Managers’ Perceptions of criteria of organizational effectiveness. Journal of Management Studies, 38(2), 173-200.

  • Weerawardena, J., & Mavondo, F.T. (2011). Capabilities, innovation and competitive advantage. Industrial Marketing Management, 40(8), 1220-1223.

  • Wheelen, T. L., & Hunger, J. D. (2012). Strategic management and business policy (13th ed.). Pearson.

  • Whetten, D. A., & Cameron, K. S. (1994). Organizational effectiveness: Old models and new constructs. In J. Greenberg (Ed.), Organizational behavior: The state of the science (pp. 135-153). Hillsdale, NJ: Lawrence Erlbaum Associates.

  • Wickramasinghe, V., & Zoyza, N. (2007).A comparative analysis of managerial competency needs across areas of functional specialization. Journal of Management Development, 28(4), 344-360.

  • Winter S.G. (2003). Understanding dynamic capabilities. Strategic Management Journal October Special Issue, 24, 991–995.

  • Quinn, E. R., Faerman, R. S., Thompson, P. M., & McGrath, R. M. (1990). Becoming a master manager: A competency framework, New York: John Wiley & Sons.

  • Zaim, H., Yasar, M. F., & Ünal, O. F. (2013). Analyzing the Effects of Individual Competencies on Performance: A FieldStudy in Services Industries in Turkey. Journal of Global Strategic Management, 14, 67-77.

  • Zairi, M., & Jarrar, Y. F. (2001). Measuring organizational effectiveness in the NHS: Management style and structure best practices. Total Quality Management and Business Excellence, 12(7-8), 882-889.

  • Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research, 63(7), 763-771.


Abstract Views: 540

PDF Views: 0




  • Exploring the Effects of Organisational Capabilities and Managerial Competencies on the Organisational Effectiveness

Abstract Views: 540  |  PDF Views: 0

Authors

Hassan Rangriz
University of Economic Sciences, Iran, Islamic Republic of
Farzad Soltanieh
Kharazmi University, Iran, Islamic Republic of

Abstract


Nowadays, there is no need to say that organisational effectiveness is important. In today's competitive world, consultants and academics propose new bases to enhance the effectiveness and performance of organisations. In this paper, we have used two new approaches which have found significant emphasis from the part of researchers: organisational capabilities and managerial competencies.

This paper aims to evaluate the effects of managerial competencies and organisational capabilities on the organisational effectiveness. This study develops an integrated model to be tested. The survey data have been collected from 58 managers in all levels of four companies. The results show that the proposed model significantly explains the variance of organisational effectiveness. Findings reveal that both organisational capabilities and managerial competencies contribute significantly to enhancing organisational effectiveness, although the effect of organisational capabilities on organisational effectiveness is more than that of managerial competencies.


Keywords


Organisational Capabilities, Managerial Competencies, Organisational Effectiveness.

References