The study tested “Effects of Privatization on Organizational Effectiveness”, using 7 null hypotheses at P<.05. Cluster sampling of 372 participants from the Utility industry of 73,526 population were used. Fully privately-owned, commercialized, and fully State-owned organizations were studied, using “Organizational Effectiveness Inventory”, and “Organizational Effectiveness Model Inventory” that measured organizational effectiveness, and efficiency of the models of pursuing organizational effectiveness respectively. They attained interval scale on 5-points rating. The “Organizational Effectiveness Inventory” validations were concurrent Cosine Absolute Proximity .96; convergent Rescale Cosine Proximity .63; Image Factoring Extraction 1.137 of Oblimin with Kaiser Normalization Rotation Method .482. The Parallel Model Reliability for Reliability of Scale was .97, and Unbiased Reliability of Scale was .97. The Guttman-Lambda Model Reliability had strongly agree .96, agree .99, may be .97, disagree .98, and strongly disagree .96. The “Organizational Effectiveness Model Inventory” had convergent .89, and discriminant .31 validations; with test-retest .73, alternate-form .94, Cronbach Alpha .96, and split-half .78 reliabilities. There were randomization, quality control, and statistical control measures; as well as 3x4-control-group survey design, and multivariate analyses. Privatization affects organizational effectiveness, and models of organizational effectiveness. Sensitivity to organizations’ environment could have caused the outcomes. More psychological studies are needed on organizational effectiveness paradigms of privatization.
Table of Contents
CHAPTER ONE
INTRODUCTION
STATEMENT OF THE PROBLEM
RESEARCH QUESTIONS
PURPOSE/AIMS OF THE STUDY
SCOPE OF THE STUDY
SIGNIFICANCE/RELEVANCE OF THE STUDY
CHAPTER TWO
THEORITICAL REVIEW
BACKGROUND PSYCHOLOGICAL THEORIES OF THE CONCEPTS OF PRIVATIZATION, AND ORGANIZATIONAL EFFECTIVENESS
Katz And Kahn's Open Systems Theory Supporting Privatization
Classic Theory Of Organizational Effectiveness
Equity/Exchange Theory Supporting Public Organizations
LITERATURE (EMPIRICAL) REVIEW
ATTRIBUTES OF PRIVATIZATION
Economic Attributes Of Privatization
Organizational Attributes Of Privatization
Socio-Political Attributes Of Privatization
STUDIES SUPPORTING ORGANIZATIONAL EFFECTIVENESS OF PRIVATIZATION
STUDIES AGAINST ORGANIZATIONAL EFFECTIVENESS OF PRIVATIZATION
ORGANIZATIONAL EFFECTIVENESS GOAL PARADIGMS VIS-AVIS PRIVATIZATION
HYPOTHESES
VARIABLES AND THEIR DEFINITIONS
CHAPTER THREE
METHODOLOGY
POPULATION
SAMPLE AND SAMPLING METHODS
INSTRUMENT
VALIDATION
Concurrent Validity
Convergent Validity
Exploratory Factor Analysis
RELIABILITY
Parallel Model Reliability
Guttman-Lambda Reliability
DESIGN
STATISTICS
CONTROL OF EXTRANEOUS VARIABLES
PROCEDURE
CHAPTER FOUR
RESULTS/FINDINGS
Hypothesis One
Hypothesis Two
Hypothesis Three
Hypothesis Four
Hypothesis Five
Hypothesis Six
Hypothesis Seven
CHAPTER FIVE
DISCUSSION
Hypothesis One
Hypothesis Two
Hypothesis Three
Hypothesis Four
Hypothesis Five
Hypothesis Six
Hypothesis Seven
CONCLUSION
RECOMMENDATIONS
Research Objectives and Themes
The primary objective of this study is to investigate the effects of privatization on organizational effectiveness within the Nigerian utility industry. By analyzing fully private, commercialized, and state-owned organizations, the research seeks to determine how different privatization statuses impact organizational performance, efficiency, and the application of management models, ultimately addressing the research question of whether privatization serves as an effective lever for change in Nigeria.
- Impact of privatization status on overall organizational effectiveness.
- Influence of privatization on specific macro-areas such as coordination, adaptability, and service quality.
- The effectiveness of privatization in overcoming negative employee outcomes and fostering positive performance facilitators.
- Evaluation of various organizational effectiveness models (Goal Attainment, System Resources, Internal Process, Strategic Constituency) in the context of privatization.
- Comparative performance analysis between private, commercialized, and state-owned enterprises.
Excerpt from the Book
Katz And Kahn's Open Systems Theory Supporting Privatization
Generally, the open system theory of organizations emphasizes that enterprises are carried out in a dynamic environment (Katz, and Kahn, 1978). By implications, organizations should exhibit pragmatic, flexible, and adaptive personality qualities, so as to make the requisite adjustments and cope with the inevitable changes that can occur in the business or operating environment. (Obi 2008).
Privatization is undoubtedly a socio-organizational change. The privatization programme is synonymous with the business operating environment notion of the Katz and Kahn's Open Systems Theory (Katz, and Kahn, 1978). Elements of privatized socio-business environment like competition, risk management, cost management, profit motive, customers' care, effectiveness, strive for success, and exploitation are also elements of an open system. These elements are natural inclinations of any system that is a going concern (continues to be in existence). Strive for private ventures and self-fulfillment are also natural inclinations. The open system encourages venturesome which is the hallmark of privatization.
Huge resources are invested into the public ventures as inputs (Onwuemenyi, 2010). Ironically, the public sector is not efficient in utilizing these resources to achieve effective performance. Even the Government contributes towards making business difficult (Mike, 2010). It is therefore the belief that large private sector should be promoted, since privatization which promotes large private enterprises is responsible for countries' organizational success and development (Hughes, 1982).
Comparisons between the public and the private sectors show that the private sector is more sensitive to business dynamics. Public organizations enjoy too much protectionism form the Government. That is why there is a serious structural adjustment difficulty in the public organizations (World Bank, 1981). The protectionism inhibits the public organizations from experiencing competition and business experimentations that help in growth.
Summary of Chapters
CHAPTER ONE: This chapter introduces the study, outlines the problem of inefficiency in public enterprises in Nigeria, and provides the guiding research questions and the significance of the study.
CHAPTER TWO: This chapter provides a theoretical and empirical review, examining psychological theories and various attributes of privatization along with existing studies on organizational effectiveness.
CHAPTER THREE: This chapter details the research methodology, including the population, sampling techniques, the instruments used for data collection, validation procedures, and statistical methods employed.
CHAPTER FOUR: This chapter presents the empirical results and findings of the study based on the testing of seven null hypotheses regarding privatization and organizational effectiveness.
CHAPTER FIVE: This chapter discusses the findings of the study, provides a conclusion, and offers recommendations for policy implementation and future research.
Keywords
Privatization, Organizational Effectiveness, Public Enterprises, Commercialization, Nigeria, Utility Industry, Open Systems Theory, Goal Attainment Model, System Resources Model, Internal Process Model, Strategic Constituency Model, Performance Efficiency, Human Resource Management, Corporate Governance, Organizational Change.
Frequently Asked Questions
What is the core focus of this research?
The research fundamentally examines how different levels of privatization—fully private, commercialized, and state-owned—impact the organizational effectiveness of enterprises within the Nigerian utility sector.
What are the central themes explored?
The study centers on themes of organizational change, the influence of privatization on service quality, the management of employee outcomes, and the structural adaptability of public vs. private enterprises.
What is the primary research goal?
The primary goal is to determine if privatization status significantly correlates with improved organizational effectiveness and to identify which specific models of organizational performance are most effectively implemented under different ownership structures.
Which scientific methodology is employed?
The study utilizes a control-group survey design with multivariate analyses, including MANOVA, to assess data collected from 372 participants using standardized inventories like the "Organizational Effectiveness Inventory."
What does the main body of the work cover?
The main body covers the theoretical frameworks (such as Katz and Kahn's Open Systems Theory), an extensive empirical review of privatization attributes, and a detailed analysis of findings regarding seven null hypotheses related to organizational effectiveness factors.
What characteristics define the keywords of this work?
The keywords are characterized by a focus on economic reform strategies, organizational psychology paradigms, performance metrics, and the socio-political context of the Nigerian business environment.
How does privatization affect the "Quality of Service" in the context of this study?
The study found that while there are variations, privatization status had no significant influence on the achieved organizational effectiveness elements of "Quality of Service," suggesting that service quality challenges are complex and not solely solved by ownership changes.
What is the conclusion regarding the "Goal Attainment Model"?
The results indicated that the efficient application of the "Goal Attainment Model" in pursuing organizational effectiveness does not depend on the privatization status of an organization, as all organizations are inherently goal-driven.
- Quote paper
- Okechukwu Dominic Nwankwo (Author), 2016, Effects of privatization on organizational effectiveness, Munich, GRIN Verlag, https://www.grin.com/document/343449
