A path analysis of diagnosis of organizational levels of functionality
Authors: Alemu Daniel S. , Shea Deborah 
Published: October 2019

Purpose

The purpose of this paper is to investigate the extent to which organizational level of functionality is affected by its leadership, its staff, the way task is performed in the organization (culture), and the structural and governance makeup of organizations. This study also determined the direct and indirect impacts of these variables on organizational functionality in general and drawing lessons to educational organizations in specific.

Design/methodology/approach

This is a quantitative study. Data from 185 participants were analyzed using SPSS software version 24. The data analysis procedure for this study followed various steps. First, multiple factor analysis was conducted to narrow the long list of items and to create a manageable list of construct variables for analyses. Then path analysis, using a series of multiple regression, was conducted to identify the degree of relationship between the independent and dependent variables. Finally, a path model coefficient diagram was created.

Findings

Using path analysis, a new model that depicts the level of interactions among the proposed variables and the extent and direction of influence of each variable on organizational level of functionality has been created. In addition, a path diagram that illustrates the model is provided and explained. This study also determined the direct and indirect impacts of these variables on organizational functionality. Finally, conclusions and implications of the study for educational organizations were presented.

Research limitations/implications

It should be noted that path analysis studies, by nature, are based on assumptions provided by the researchers. Hence, future studies using different variables and different assumption may not necessarily generate the same result. In addition, this study looked at a broader view of organizations rather than a specific type.

Practical implications

This study expanded the use of organizational diagnosis frameworks, beyond studying organizational performance, to study organizational level of functionality which can be used to diagnose the level of function (or dysfunction) of organizations in a holistic manner.

Social implications

The present study contributes to the body of literature in organizational diagnosis in various ways; chief of which is the creation of a new path model which shows the direct and indirect effects of specific variables in numeric terms.

Originality/value

Unlike previous studies on the topic, this study suggests that organizational level of functionality should be studied using variables internal to the organization, because any two organizations of similar purpose and capacity, located in similar environment, could function differently due to factors internal to the organizations. Investigating organizational level of functionality using variables internal to the organization is assumed to provide a deeper diagnosis and self-assessment as it minimizes the noises created by variables external to the organization. All the variables in this study are therefore carefully selected to be internal to organizations.