The development of an organisational effectiveness model

Abstract

Orientation: Perceived leadership attributes as seen from a multiple stakeholder perspective have an effect on the quality of relationships (social capital) which in return effects organisational effectiveness.

Research purpose: The research aims to build and validate a conceptual model of relationships between perceived leadership attributes (PLAs), social capital (SC) and organisational effectiveness (OE).

Motivation for the study: State-owned companies (SOCs) in South Africa are under enormous pressure and plagued by issues such as mismanagement, poor leadership and poor service delivery. Central to these issues is the relationship between leadership and its stakeholders, and how it affects OE. There is lack of theory about the relationships between the concepts PLAs, SC and OE from a multiple stakeholder perspective.

Research approach/design and method: Adapted grounded theory, using a two-phased exploratory qualitative approach, with purposive sampling was implemented. Phase 1 included collecting data through focus groups and interviews. A Delphi technique was used to validate the model.

Main findings: Multiple stakeholders hold the leadership accountable for demonstrating desirable PLAs such as trust, which builds quality relationships found in SC and factors that lead to OE. Courage, trust and reputation received the highest level of consensus, and several relationships are validated.

Practical/managerial implications: Opportunities exist for the SOCs to strengthen important tangible and intangible attributes, quality relationships and factors that will create a successful turnaround.

Contribution/value-add: This is the first study to investigate the relationship between PLAs, SC and OE in an SOC by multiple stakeholders, culminating in an actionable, validated model.