Funding, Management, and Individual-Level Factors: What Factors Matter in Predicting Perceived Organizational Effectiveness?

Abstract

Scholars have examined organizational effectiveness in state and federal government agencies to determine which factors matter. Their findings revealed that public organizational effectiveness is affected by environmental, human resource management, organizational, and individual-level factors. However, what is conspicuously absent is the impact funding has on organizational effectiveness. To further previous literature, this article examined agency funding levels as well as management and individual-level factors to determine the relationship these factors had on organizational effectiveness. In doing so, a model was developed to predict perceived organizational effectiveness, and it was tested on 330 United States government workers in the state of New York. The findings from the analysis were clear: perceived organizational effectiveness was impacted by employee perceptions regarding the level of funding the agencies were allocated. Additionally, the level of role ambiguity and employee participation in decision-making as well as employee job performance and public service motivation levels were also found to matter. The implications and limitations of these findings are discussed in the article.