The purpose of this study is to analyze factors affecting organizational effectiveness based on integration of public agencies focusing on cases of the Korea Rural Community Corporation.
The author of this study investigated significant differences in number of employees, number of organizations, total expenditure, sales, and net income from the aspect of structural function before and after the integration.
The results showed that the number of employees and the number of organizations were lower in after than in before the integration, while the total expenditure and the sales were higher in after than in before the integration. The net income did not show significant difference before and after the integration, indicating that it may be caused by the characteristics of the case organization that regard public interest as more important than profitability. The total expenditure and the sales were not reduced even when the organization and the human resource were reduced maybe because of effects of organization integration.
As for the effects of the number of employees and the number of organizations on the total expenditure, the sales, and the net income, the number of employees after the integration had negative effects on the total expenditure, the sales, and the net income, indicating that reduction in number of employees is the most effective factor on integration effects.
The number of organizations did not affect the total expenditure and the sales, while having positive effects on the net income, a result that may be caused by the characteristics of public agencies that should consider profitability as well as public interest.
In this study, independent variables included organization credibility, organization expertise, leadership, and organization culture, while dependent variables included policy coordination, organization learning, organization efficiency, and organization satisfaction.
As a result of analysis, personnel management fairness, goal specificity, and collective culture were shown to be factors having positive effects on policy coordination, indicating that policy coordination may be more favorable as personnel management is fairer, organizational goals are more specified, and scope of job is more limited in collective organization culture more strongly.
Member credibility, goal specificity, reasonable culture, and hierarchical culture were shown to be factors having positive effects on organization learning, indicating that the levels of organization learning may be higher as credibility on members is higher, organizational goals are more specified, and organization culture is more reasonable and hierarchical.
Leadership was shown not to affect organization learning; it may be caused by the fact that effects of leadership were not sufficient due to frequent changes of the chief administrators, a position that is politically affected in appointment.
It was collective culture that was a factor having positive effects on organization efficiency.
Personnel management fairness, goal specificity, collective culture, and reasonable culture were shown to be factors having positive effects on organization satisfaction, Indicating that satisfaction may be higher as personnel management fairness and organizational goals are more specified and scope of job is more limited in collective and reasonable organization culture more strongly.
It is particular that expansion in job scope had negative effects on organizational effectiveness based on the results of this study. The results are worthy of notice in that, though reduction in human resource and organization is considered a byword for integration, monolithic reduction may have negative effects on organizational effectiveness.
The results of this study also suggest from a political aspect that the term of the chief administrators should be respected in order for responsibility management because the effects of leadership are hard to be realized when the chief administrators are frequently changed due to political appointment.
Previous studies of organization integration and organizational effectiveness have focused on types of cultures, but further studies are needed to expand their research scope with comprehensive approaches, including external participating factors such as the National Assembly, the government, farmers, and groups of the persons concerned.