The Influence of Organizational Structure and Organization Culture on the Organizational Performance of Higher Educational Institutions: The Moderating Role of Strategy Communication

By Hilman, Haim; Siam, Mohammed | Asian Social Science, July 2014 | Go to article overview

The Influence of Organizational Structure and Organization Culture on the Organizational Performance of Higher Educational Institutions: The Moderating Role of Strategy Communication


Hilman, Haim, Siam, Mohammed, Asian Social Science


Abstract

This paper examined the moderating of strategy communication, focusing on the influence of organizational structure and organizational culture on the performance of the higher educational Institutions in Palestine. The study generated a quantitative questionnaire data from 255 respondents representing the top, medium and low management level of the higher educational institutions in Palestine. Data were analyzed using the partial least squares-Structural equation model PLS-SEM. Overall, the findings revealed that organizational structure and organizational culture are significantly related to the performance of higher educational institutions in Palestine. A Further result of the moderating role showed that strategy communication failed to moderate the influence of both organizational structure and organizational culture on the organizational performance. Discussions on the findings, implication and limitation of the study were also provided.

Keywords: strategy execution, organizational structure, organizational culture, Strategy Communication, performance

1. Introduction

Obviously, the execution of strategy is not as clear and understood as the formulation of strategy. Thus, much more is known about planning rather than doing, about strategy making rather than making strategy work (Hrebiniak, 2005). Today, organizations work in a dynamic and complex environment that is continually changing. This has forced the organizations, including the higher education (HE) to revisit their strategic planning. The HE sector has begun to recognize that strategic planning is necessary for the maintenance of its own responsiveness to a rapidly changing environment (Rahimian, Polychronakis & Sharp, 2009; Alashloo, Castka & Sharp, 2005; Bryson, 2004; Streib & Poister, 1990). Ostar (1989) claims that colleges and universities have experienced rapid changes associated with ageing facilities, changing technology, changing demographics, increasing competition, rising costs and funding cuts. Educational administrators are challenged to anticipate changes and formulate proactive responses that will enhance the educational processes within college and university campuses. However, there is an abundance of literature on different aspects of HE sector development (Rahemian, et al., 2009; Alashloo, et al., 2005). For instance, Hrebiniak (2005) identified four broad contextual factors that deserve special attention. These dimensions include the change of management context, the organisational culture context, the organisational power structure context and the leadership context. It was noted that these four dimensions are believed to affect each others. Even when these four factors are synchronized, the prognosis for effective strategy implementation is expected to be very positive.

Furthermore, the higher learning institutions are exceptional organizations in their structures and purposes and applying a suitable and strategic management is crucial because the management and activities held are different from those of industrial, productive or service organizations. In other words, universities are not unitary institutions. Faculties and schools have diverse tasks of preparing students for admission into specific professions, and inducting them into intellectual backgrounds and research methods according to the academic disciplines. Professions and disciplines have external reference groups, and in universities, staffloyalty can be strongly devoted to their professionalism or to the interactional disciplinary network as a whole rather than to the apparently less relevant university that employs them (Anderson, Johnson & Milligan, 1999). The environment today has become increasingly uncertain and unpredictable for public and private universities. Hence, the leaders of these institutions must learn, think and act strategically (Bryson, 2004). In order to be able to control and adapt to the environmental changes, clear approach with long-range planning techniques should be used in the strategic management (Rahimnia, Polychronakis, & Sharp, 2009). …

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