Reexamining Causes and Consequences: Does Administrative Intensity Matter for Organizational Performance?

Abstract

ABSTRACTThis study examines the relationship between organizational structure (size and complexity) and administrative intensity and, subsequently, the effect of administrative intensity on organizational performance in the context of four-year institutions of higher education in the United States between 2003 and 2009. Organizational size has a negative effect on administrative intensity and supports the notion of economies of scale. Size and complexity also interact such that complexity has a greater effect on total administrative intensity in larger organizations. While administrative intensity has a nonlinear relationship with degree productivity, suggesting a tipping point of 30% total administration, it has little direct effect on graduation rates.