The Development and Validation of the Organizational Effectiveness Scale Using Confirmatory Factor Analysis

Abstract

The purpose of this article is to conceptualize, develop and validate a scale for measuring organizational effectiveness (OE). The methodology comprises of the extant literature review of studies conducted on scale construction of OE. In the exploratory phase, 11 baseline dimensions of OE were established which was followed by the qualitative study in order to determine the items contributing to these factors. The confirmatory factor analysis (CFA) was used to validate the scale by using the data generated from 353 bank employees. Additionally, OE has been specified as a second-order factor, measured by its 11 first-order factors. CFA model fit indicators for the proposed scale were found good according to the recommended values. The scale exhibited inclusive psychometric properties as per the results from the varied reliability and validity checks. Also, the second-order measurement model suggested OE to be most affected by ‘organization innovation’. Factors considered for OE while designing the research instrument are the guidelines for the management which cater the organization at the individual level.