EFFICIENCY AND EFFECTIVENESS OF THE IMPLEMENTATION OF MANAGERIAL FUNCTIONS: STRATEGIC ANALYSIS IN IMPROVING ORGANIZATIONAL PERFORMANCE
DOI:
https://doi.org/10.58174/ijqmr.v1i9.128Keywords:
managerial efficiency; effectiveness of management functions; organizational performance; strategic analysisAbstract
This study aims to analyze the influence of the efficiency and effectiveness of the implementation of managerial functions on the improvement of organizational performance strategically. In an era of increasingly intense global competition, managers' ability to execute management functions — planning, organizing, directing, and controlling — efficiently and effectively is the main determinant of competitive advantage and organizational sustainability. This study uses a quantitative approach with a survey design involving 185 managers and work unit leaders from 42 public and private sector organizations in Indonesia. Data was collected through a structured questionnaire based on the Likert scale and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS 4.0 software. The results showed that the efficiency of managerial functions had a positive and significant effect on organizational performance (β = 0.412; p < 0.001), the effectiveness of managerial functions had a positive and significant effect on organizational performance (β = 0.438; p < 0.001), and there was a strong synergistic relationship between efficiency and effectiveness (β = 0.521; p < 0.001). The research model was able to explain 67.4% of the variation in organizational performance, confirming the high relevance of both constructs as predictors of sustainable organizational performance.
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