Assessing An Asian University’s Organizational .
Vol. 2 · January 2012 · International Peer Reviewed JournalPrint ISSN 2094-9251 · Electronic ISSN 2244-0453doi: http://dx.doi.org/10.7828/ajobg.v2i1.110Asian Journal of Business and GovernanceBusiness Administration SectionAssessing an Asian University’sOrganizational Effectiveness Using theMalcolm Baldridge ModelFLORA V. JAVIERflorajavier47@yahoo.com.phVice President for Administration and PlanningLyceum of the Philippines UniversityBatangas, PhilippinesAbstract - The study assessed the organizational effectivenessof LPU using the Malcolm Baldridge Assessment Instrument whichdefines organizational effectiveness in terms of seven categories,namely: leadership, strategic planning, customer and market focus,measurement, analysis and knowledge management, human resourcefocus, process management and business results. The study employedthe descriptive survey method, where 37 department heads, 28admin personnel and 59 faculty members served as respondents.The study revealed that both leaders and subordinates agreed thatLPU is making progress in terms of the seven categories. The leadersand subordinates had congruent perceptions on the organizationaleffectiveness of the leaders of LPU. When tested by individual criteria,the leaders were found to have higher perceptions in the areas ofemployees’ knowledge of the school’s mission and vision and whotheir important customers are and in soliciting subordinates whenplanning. Enhancement measures were proposed in the area of processmanagement, measurement, analysis and knowledge management.Keywords - organizational effectiveness Malcolm BaldridgeAward, school mission/visionThis paper passed the plagiarism detector, spelling and grammar checker, GunningFog Index, Flesch Reading Ease, reference checker, and formula checker.37
Asian Journal of Business and GovernanceINTRODUCTIONLyceum of the Philippines University like many other universitiesin Asia faces rapid and incessant challenges brought about bytechnological advancements and global demands. As an educationalinstitution it has to deliver the products and services necessary toachieve the outcomes it intends to produce. Since organizations facea varied environment, produce different products, render differentservices, and their organizational members consist of different kindsof people with different culture and values, the effectiveness oforganization is determined in various ways using different models.In Lyceum of the Philippines University, organizationaleffectiveness is measured through various quality assurance tools suchas voluntary accreditation and certification of the school wide QualityManagement System to ISO 9001: 2000. Another comprehensive toolthat measures organizational effectiveness is the Malcolm BaldridgeModel which provides a basis for organizational self-assessment andimprovement of performance (Evans, 2008).This paper adopts the Malcolm Baldridge Model whichdefines organizational effectiveness in terms of seven categories,namely leadership, strategic planning, customer and market focus,measurement, analysis and knowledge management, human resourcefocus process management and business results (Tan, 2003). Throughthis assessment tool from the Baldridge National Quality Award,the paper attempted to determine the organizational effectivenessof Lyceum of the Philippines University through the leadershipperspective of its leaders and subordinates using the seven criteriaof Malcolm Baldrige. It also determined if there is a significantdifference in the perspective of the Lyceum leaders and subordinateson LPU’s organizational effectiveness. The study identified areas forimprovement and proposed enhancement measures towards a morefocused improvement program for organizational effectiveness ofthe Lyceum of the Philippines University. The findings of the studywill serve as basis in formulating/ reformulating policies that willincrease the effectiveness of Lyceum of the Philippines University asan organization.38
Assessing an Asian University’s Organizational EffectivenessUsing the Malcolm Baldridge ModelJavierLeadership for QualityIf there is a crucial challenge to the managers today, it is to developleaders for tomorrow’s organization, leaders who will be competentand brave to face and hurdle the radical and dramatic global challengessuch as advances in information technology and escalating globalcompetition. All of these challenges need managers and leaders whoare flexible, pro-active and focused on quality.Quality maybe defined in various ways. It is defined as the totalityof features and characteristics of a product or source that bears on itsability to satisfy given need. (American National Standard Institute,ANSI). It may also mean superiority or excellence of a product orservice; it can also mean lack of manufacturing or service defects.Today’s managers agree that the main reason to pursue quality is tosatisfy customers. However, merely satisfying customer needs will notachieve success. In the same manner quality should not be focusedsolely on the goals or services that an organization produces or provides.Organizations therefore should aim to exceed customer expectationin order to beat the competition. Quality should be embedded in theorganization as a way of life, integrated in every decision process andresult to organizational effectiveness (Evans, 2000, Evans, 2008, Brelinet.al., 1997).Leadership for quality is the responsibility of top management.Senior leadership must set directions, communicate the company’svision, create a customer orientation, with clear quality values and highexpectations that address the needs of all stakeholders and build teaminto the way the company operates. It should catalyze and transformpotential into reality. It should influence a relationship among leadersand followers who desire for real changes and outcomes that reflecttheir shared purposes ( Evans, 2008, Daft,2008, Smith 1996, ).To bring about successful change, leaders must work with otherswithin the organization and carry responsibilities that includeunderstanding the organization’s internal and external environment,including its culture, creating a vision of a desirable future and obtainbuy-in, designing a plan that moves the organization toward theenvisioned future, integrating the various units in implementationof the plan and to monitor progress and institutionalizing achieved39
Asian Journal of Business and Governancechanges and making continuous change an integral part of theorganization’s culture (Beach ,2006).Since effective leadership does not happen overnight, managersshould work hard to develop effective leaders. Effective leaders aredescribed as competent, knowledgeable, and skilled in their areaof expertise, with strong character, integrity and honesty and arewilling to accept responsibility. A culture of leadership maybe createdby employing various strategies such as mentoring and coachingthat will help people become outstanding leader-managers whowill create competitive advantage for their organizations. (Kotter2007,Bateman2007) .FRAMEWORKThe Malcolm Baldridge National Quality Award (MBNQA)aims among others to stimulate companies to improve quality andproductivity for the pride of recognition while obtaining a competitiveedge through increased profits and to recognize the achievement ofthose companies that improve the quality of their goods and servicesand provide an example to others (Evans, 2008).The Education Criteria for Performance Excellence (ECPE), themost recent document issued by the MBNQA is designed to establisha framework for integrating total quality principles and practices ineducational organization. The criteria consist of a hierarchical set ofcategories, items, and areas to address referred to as categories whichare as follows: leadership, strategic planning, customer and marketfocus, information and analysis, human resource focus, processmanagement, and business results.40
Assessing an Asian University’s Organizational EffectivenessUsing the Malcolm Baldridge ModelJavierOrganizational ProfileEnvironment, Relationships, and ChallengesFigure 1. Systems perspective of the baldridge educationcriteriafor performance excellenceThe systems operations are composed of the six Baldridge categories that define the operations of the organizations and the results itwants to achieve. Leadership, Strategic Planning, and Customer Focusrepresent the leadership triad. These three categories are placed together to emphasize the importance of leadership focus on students,stakeholders, and strategy. The next three categories, namely Workforce Focus, Process Management and Results represent the resultstriad. The organization’s workforce and key processes accomplish thework of the organization that yields the organization’s overall performance results. Measurement, Analysis and Knowledge Managementare critical to the effective management of the organization and to afact –based knowledge-driven system for improving performance andcompetitiveness. It serves as the foundation for the performance management system (PQA Criteria, 2009).A brief description of each category is in order. The leadership category examines how an organization’s senior leaders address values,direction, and performance expectations, as well as their focus on customers and other stakeholders, empowerment, innovation, and learning. The strategic planning category examines how an organization41
Asian Journal of Business and Governancedevelops strategic objectives and action plans, how chosen strategicobjectives and action plans are deployed and how progress is measured. The customer and market focus category examines how an organization determines requirements, expectations, and preferences ofcustomers and markets; it builds relationships with customers and determines the key factors that lead to customer acquisition, satisfaction,and to business expansion. The information and analysis category examines an organization’s information management and performancemeasurement systems and how the organization analyzes performance data and ensures hardware and software quality. The humanresource focus category examines how an organization motivates andenables employees to develop and utilize their full potential in alignment with the organization’s overall objectives and action plans. Theprocess management category examines the key aspects of an organization’s process management, including customer – focused design,product and service delivery, key business, and support processes.This category encompasses all key processes and all work units. Thebusiness results category examines an organization’s performance andimprovement in key business areas – customer satisfaction, productand service performance, financial and marketplace performance, human resource results, and operational performance.MATERIALS AND METHODSThe study employed the descriptive survey design. Fifty-ninefaculty respondents were chosen from stratified proportionate randomsampling from a population of 292 regular and full time teachersemployed during the SY 2008-2009 65 administrative personnel anddepartment heads of LPU.Instrument Used to Gather the DataThe instrument that was used to gather the data is an assessmenttool from the Baldridge National Quality Program downloadedfrom the Baldridge National Quality Program website at www.baldrige.nist.gov. It is designed to reveal the respondents’ leadershipperspective which will help assess how the leaders of the organization42
Assessing an Asian University’s Organizational EffectivenessUsing the Malcolm Baldridge ModelJavierare performing and what can be improved. The questionnaire iscomposed of 40 items distributed into the seven categories of theBaldridge criteria. The items were answered using the 5 point Likertscale with 5 as strongly agree and 1 – strongly disagree.To analyze the data, weighted mean and rank were used todetermine how the respondents perceived the organizationaleffectiveness of LPU; t-test was used to determine the significantdifferences between the ratings of the faculty and administrative staff(subordinates) on one hand and those of the deans and the departmentheads (leaders) on the other hand.RESULTS AND DISCUSSION1. Organizational Effectiveness of LPU in Terms of the MalcolmBaldridge CriteriaTable 1. Organizational effectiveness of LPU in termsof the baldrige criteriaLeadersSubordinatesCombined ank1. Leadership4.46A4.23A4.34A22. Strategic Planning4.25A4.01A4.13A43. Customer andMarket Focus4.46A4.25A4.36A14. Measurement,Analysis andKnowledgeManagement4.10A4.11A4.10A55. Human Resource Focus4.34A4.08A4.21A36. Process Management3.98A3.89A3.94A77. Business Results4.01A4.09A4.05A64.23A4.09A4.16AGRAND MEAN43
Asian Journal of Business and GovernanceThe data clearly reveal that both the leaders and their subordinatesagree that LPU is effective in terms of the above categories with theCustomer and Market Focus (WM 4.36) perceived highest followedby Leadership (4.34). Although interpreted also as agree, the combinedgroup perceived lowest Process Management (3.94). These resultsindicate that LPU leaders are doing well in meeting the customers’requirement, expectations and preferences.Both the leaders and their subordinates agree that employees knowwho their most important customers are and what they should do tosatisfy their customers. This obtained a composite mean of 4.46 for theleaders and 4.25 for the subordinates. Specifically, the leaders stronglyagree that the employees know who their most important customersare keeping in touch with their customers tell the employees whatthey need and want. On the whole, although relatively with lowerperception, the subordinates agree with their leaders that customer’ssatisfaction is primordial and that they should find ways to solve theproblems of the customer to satisfy them and eventually keep them inthe organization.The customer is said to be the judge of quality. Understandablycurrent and future customer needs and keeping pace with the changingmarket require effective strategies for listening to and learning fromcustomers. The importance of satisfying the customer has beenhighlighted in the operational processes of LPU by making it as oneof the wildly important goals (WIG) of the institution. Moreover, sinceLPU is certified to ISO 9001:2000 where customer satisfaction is oneof the leadership principles, LPU puts heavy emphasis on satisfyingthe customers in all its daily processes and transactions. This isdemonstrated by the institutional mandate that all work units shouldobtain a customer satisfaction rating of not lower than 4.0 using a 1 to5 Likert scale with five as the highest. LPU uses surveys to determinestudents and stakeholders’ satisfaction as well as through a complaintbox aptly termed VIEWS which means Very Important Expressionsof Wise Suggestions. Data gathered through this are processed in theappropriate bodies such as the MANCOM, Academic Council andDeans’ Council.Information on the customers’ satisfaction and dissatisfaction isimportant because by understanding this, management will come44
Assessing an Asian University’s Organizational EffectivenessUsing the Malcolm Baldridge ModelJavierup with the management improvements that can create satisfiedcustomers who reward the company with loyalty; repeat business andpositive referrals (Evans & Deans, 2003).In terms of leadership, employees agree that through the schoolleadership, there is an environment or culture created where theemployees know the mission, vision, goals and values of the institutionand which serve as guideposts in what the organization and employeesshould do to achieve its goals. There seems to be a strong agreementamong the leaders (wm 4.25) and their subordinates (4.23) that theemployees know the organization’s mission or what it is trying toaccomplish and the leadership team uses the organizational valuesto guide the organization and employees creates a work environmentthat helps the employees do their job shares information with theiremployees about the organization and encourages learning amongemployees that help them advance in their careers. The subordinates’perceptions on these leadership practices are comparatively lower.However, both subordinates and leaders agree on the role of leaders(combined mean 4.13) in influencing people to bring about changetoward a desirable future. Both perceive the leaders to create a visionand inspire others to achieve this vision.The findings on LPU’s organizational effectiveness in terms ofleadership indicate that senior management has set the directions andvalues of the school and the expectations that address the needs ofits customers and stakeholders. These findings are indicative of thesenior management’s commitment and involvement in planning,reviewing quality performance and recognizing employees for qualityachievement. These could be a result of the institutional activities thathave been instituted in the university, such as the Mission StatementAwareness Week which has drawn support and participation ofall the sectors in the community – the teachers and staff, the schoolofficials, and the students who look forward with enthusiasm toevery celebration. Competitions such as mission statement recitation,essay writing, painting and other similar activities provide studentsopportunity to participate and become aware of the school visionand mission, appreciate the school’s history and become proud of itsachievements and share in what the school wants to accomplish in thefuture.45
Asian Journal of Business and GovernanceIn terms of human resource focus, both the leaders (wm 4.34) andemployees (wm 4.08) agree that the human resources cooperate andwork as a team and that leaders encourage and enable the employees todevelop their job skills so that they can enhance their careers. It is alsoperceived by the two groups that the managers and the organizationcare about their employees, that the employees are recognized for theirwork and that they have a safe work place.The findings imply that LPU has maintained a work environmentand support climate that motivates the employees to perform withdedication and commitment. This is enhanced through recognition ofemployees for their dedicated service and for outstanding performanceduring the Annual Awards Convocation. LPU also conducts a periodictraining needs analysis the results of which become the basis of thetraining given to employees. Presently there is a Training InstituteProgram (TIP) that has been established which aims to equip employeesand teachers with the skills and competencies required of a teacher ora staff. Support is also given to an identified employee in attendingoutside seminars.Since human resource is the most important resource of theorganization, LPU invests on programs that will make its people moreeffective and efficient. Recently LPU officially announced its applicationfor certification to the Investors in People. In the IiP Diagnostic report,it was confirmed that LPU’s human resource are given access totraining and development opportunities through the provision ofscholarship and other forms of financial assistance. The said IiP reportalso revealed that the school atmosphere is friendly, family-orientedand very open to improvement ideas with regular weekly or monthlymeeting. The management of human resources is critical to the successof an organization. Their training, experience, judgment, intelligence,relationship and insights can add economic value to the organization.Thus organization should ensure that the activities and output of theemployees match the organization’s effectiveness and competitiveadvantage.In terms of strategic planning, the results show that both theleaders and their subordinates agree that the school leaders plan forthe future and the employees on the other hand are aware of
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