Description
Organizational Change Indices on Organization Performance Improvement
Case Studies on Organizational Change Indices on Organization Performance Improvement
Introduction:
The organizations like any living creature in their growth and change stage encounter with limiting and accelerator factors of growth. The growth model of the living creatures indicates occurrence of the quick changes from the very beginning to maturity time. Thereafter, this evolution is retarded and gradually waned. Such model effects on the organizations. In this Paper "Study and Prioritization of Organizational Change Indices on Organization Performance Improvement (Case Study at an After-Sale Services Co.)" has been studied. The organization change is a planned and fundamental (systematic) process which increases personal and organizational effectiveness by enjoying values and behavioral-applied science principles in organizations. The main point is the organizations and they are changed in a way that their performance is improved, it means what is important is the change of the whole system.
Abstract:
In this research "Study and Prioritization of Organizational Change Indices on Organization Performance Improvement (Case Study during a 5-year period)" has been studied. Vehicle Industries and its after-sale services which are affected by the process on competitive business have been highly changed. Variety of quality and type of vehicle and their after-sale services has led to severe competition in the markets of this 20th century product and quantity of investment in this industry in different world countries expresses demand volume and determines capacity required for responding this demand. This research is done based on applied-practical goal and the research methodology is exploratory-surveying. The statistical universe for this research is the company which is responsible for after-sale services and supplying spare parts of products of a superior vehicle company. The data of this research are formed according to documentary information and statistic of the company during years, object of study. The results of research show that innovation, quality, social responsibility and profitability indices effect on organization performance improvement and among them profitability index has the most effect.
2
Theoretical Fundamentals of Research: Respecting the significance of this category, we believe that unfortunately in our country, use of change concepts in analysis and taking decisions by directors in different branches of business are not considered. Although this paper does not attempt to find causes of this non-consideration, study of it may lead make of this attitude as the model for mode of application of concepts in taking decisions of the directors in different industrial branches. There relatively many researches have been done in different fields of organizational change but research for study of effect of organizational change on performance in industry either not done or rarely done. This paper attempts to study effect of organizational change on organization performance and prioritize change indices.
A) Identification and prioritization of organizational change indices B) Study of effect of organizational change indices on organization performance
improvement
C) Prioritization of organizational change indices in organization performance improvement
In this paper under title of "Study and Prioritization of Organizational Change Indices in Organization Performance Improvement", "Organizational Change" is defined as the independent variable, "Organization Performance Improvement" as the dependent variable and "systems, rules and regulations of holding companies and ?" as the interfering variable. The concept model used includes the relationships between variables forming the object and we try to prove good establishing these relationships and good arrangement of them. In the following model, organizational change is considered as independent variable, organization performance improvement as independent variable and effectiveness, profitability, innovation, quality of working environment, social responsibility and quality as moderator variables (measurement indices).
3
Dependent Variable
Measurement Indices H1=Effectiveness
H2 & H7= Profitability
Independent Variable
Organizational Change
H3= Innovation
H4= Quality of working environment
Organization Performance Improvement
H5= Social Responsibility H6= Quality
Interferers: systems, rules and regulations of after-sale services/licensors' rules
Concept Model
4
Hypotheses and their Research Methodology: 1- There is a meaningful relationship between Effectiveness, Profitability, Innovation, Quality of working environment, Social responsibility and Quality indices in organizational change with organization performance improvement. 2- Profitability index (financial index) has the most effect on organization performance improvement among other organizational change indices. The research methodology is applied-practical in terms of type of goal and in terms of method is case study-surveying and research domain includes information, statistic, reports of Board of Directors to General Meeting, report, organizational troubleshooting and the relevant indices quantities which contain activities of the company, object of study, during years, object of study.
Key Words: Organizational Changes, Effectiveness, Profitability, Innovation, Quality of Working Environment, Social Responsibilities, Quality and Organization Performance Improvement.
Statistical Methods Used for Studying Object: A- Principal- Quantitative Statistical Data: There are quantitative reports usable from principal data in five periods object of study, reports of board of directors to the company general meeting, for three areas of profitability, effectiveness and quality of working environment of six principal areas studied in the paper and they have been normalized after extraction and then have been compared with other indices by using linear correlation coefficient. B- Principal- Descriptive Statistical Data: For three areas of innovation, quality and social responsibility which have not quantitative data, first of all, the questions related to this area, were extracted and thereafter were studied and refined and finally the questions were studied and replied by the experts. Thereafter, all questions of these three areas have been valued by "Likert Scale Method". Finally after "normalization", the results of principal-quantitative data and results of evaluation of questioners and method of "linear correlation tests" have been used for study of proving the relevant hypotheses and final conclusion.
5
Study of Paper Hypotheses: Correlation results from the evaluation of changes of a variable due to changes of other variables. Theoretically, if there is a correlation between two positive variables, number value is +1 and if it is between two negative variables, number value is -1. However, at the time of evaluation of two variables which are expected to be differed with each other, none of them may be on real basis. Correlation coefficient value (r) is between +1 and -1 i.e. -1 ? r ?1 and includes six states. AStrong Positive Relationship: if r is higher than 0 and close to 1. B- Poor or Moderate Positive Relationship:if r is higher than 0 and close to 0.5 from left and right with low interval. C- No Relationship: if r = 0 and x and y values are diffuse. D- Poor or Moderate Negative Relationship: if r is lower than 0 and close to 0.5 from left and right with low interval. E- Strong Negative Relationship: if r is lower than 0 and close to -1. F- Curvilinear Relationship: if r = 0 and x and y values have curvilinear relation with each other. When Sigma values are lower than 0.05 we find that test error is lower than %5 and for higher values we witness an error higher than %5. According to the results of correlation test (by using SPSS Software): Effectiveness correlation coefficient - 0, 156 < 0 and negative value more closes to 0 than -1, as a result, we may conclude that there is "without relationship" or "poor relationship". Profitability correlation coefficient 0.998 > 0, as a result, we find there is a "strong positive relationship". Innovation correlation coefficient 0.991 > 0, as a result, we find there is a "strong positive relationship". Quality of working environment correlation coefficient, - 0, 312 < 0, as a result, we find there is a "poor or moderate negative relationship" (even we can find the reverse effect). Social Responsibility correlation coefficient 0.808 > 0, as a result, we find there is a "strong positive relationship". Quality correlation coefficient 0.795 > 0, as a result, we find there is a "strong positive relationship".
6
0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 1 2 3 4 5
I
Innovation
Quality Social Responsibilit y Effectivenes Profitability Life`s Quality Mean Value
Comparison of indices and overall mean value, after normalization of results of years, object of study
C o r r e l a ti o n s inn ovatio n inn ovatio n P e ars on Corr elatio n S ig . (2-ail ed) t N q u a li t y P e ars on Corr elatio n S ig . (2-ail ed) t N s o c ia l P e ars on Corr elatio n S ig . (2-ail ed) t N pro duc ti vity P e ars on Corr elatio n S ig . (2-ail ed) t N pro fitibili ty P e ars on Corr elatio n S ig . (2-ail ed) t N life P e ars on Corr elatio n S ig . (2-ail ed) t N m e an P e ars on Corr elatio n S ig . (2-ail ed) t N *. Co rrelat ion is s igni fic ant at th e 0.05 level (2-tail ed). **. Co rrelat ion is s igni fic ant at th e 0.01 level (2-tail ed). 5 .889* .044 5 .865 .058 5 .017 .978 5 .967** .007 5 -.462 .433 5 .981** .003 5 5 .951* .013 5 .472 .422 5 .762 .134 5 -.814 .093 5 .795 .108 5 1 q u a l it y .889* .044 5 1 s o c ia l .865 .058 5 .951* .013 5 1 5 .394 .511 5 .792 .110 5 -.779 .121 5 .808 .098 5 -.156 .802 5 -.203 .744 5 -.882* .048 5 -.270 .660 5 .998** .000 5 -.312 .610 5 5 5 5 pro duc ti vity .017 .978 5 .472 .422 5 .394 .511 5 1 -.203 .744 5 1 5 -.270 .660 5 1 pro fitibili ty .967** .007 5 .762 .134 5 .792 .110 5 -.814 .093 5 -.779 .121 5 -.882* .048 5 -.156 .802 5 .998** .000 5 -.312 .610 5 1 l i fe -.462 .433 5 m e an .981** .003 5 .795 .108 5 .808 .098 5
Table- Comparing of correlation indices test results of years, object of study
7
Conclusion: In study of first part of the first hypothesis implying effectiveness index there is a meaningful relationship with organization performance improvement in organization change. The result of test by study of effectiveness index process during years, object of study, indicates that r = -0.156 < 0 and there is a poor relationship between this index with organization performance improvement, as a result, the relevant hypothesis is not confirmed. The results of studies show that the relevant company does not measure and evaluate its effectiveness and is not aware of it. According to the studies it was revealed that the total effectiveness during 5 year period have not been remarkable changed. In study of second part of the first hypothesis aiming the study of profitability index there is a meaningful relationship with organization performance improvement in organization change. The result of test of profitability index process during years, object of study, shows that since r = 0.998 > 0 and more closes to 1, there is "strong positive relationship" between this index and performance improvement and this hypothesis is kept by 95% confidence interval and it is revealed that there is a meaningful relationship between this index and organization performance improvement. As the tables shown, since the highest correlation coefficient relates to this index, profitability index effects on organization performance improvement and study of income growth and profitability process of the company during years, object of study, indicates a positive gradient proving this hypothesis. Third part of the first hypothesis indicating that innovation index and organization performance improvement have meaningful relationship with organizational change we continued studying the innovation index process during years, object of study and since r = 0.981 > 0 and highly closes to 1there is a "strong and positive relationship" between index discussed and performance improvement. As a result this hypothesis is kept by 95% confidence interval and it was revealed that there is a meaningful relationship between this index and organization performance improvement. Meanwhile, with regard to the results of studies, it is revealed that correlation coefficient of this index is positive and highly closes to 1; therefore there is an effective and meaningful relationship between innovation index and organization performance improvement. In study of fourth part of the first hypothesis implying quality of working environment index there is a meaningful relationship with organization performance improvement in
8
organization change. The result of tests show that quality of working environment index process during years, object of study, since it is r = -0.312 < 0 as a result, there is a poor relationship between this index with organization performance improvement, and the relevant hypothesis is not confirmed. With regard to the results of research, since correlation coefficient is negative and lower than zero, we conclude that there is no meaningful relationship between quality of working environment index and organization performance improvement. In fifth part of the first hypothesis which studies object of meaningful relationship between social responsibility index and organization performance improvement in organization change the result of test by studying social responsibility index process during years, object of study, shows that since r = 0.808 > 0 and highly closes to 1, there is a "positive and strong relationship" between index and performance improvement and as a result, this hypothesis is kept by 95% confidence interval and it was revealed that there is a meaningful relationship between this index and organization performance improvement. At the same time, with regard to the results of studies, it is revealed that correlation coefficient of this index is positive and closes to 1; therefore, there is an effective and meaningful relationship between social responsibility index and organization performance improvement. In sixth part of the first hypothesis, there is a meaningful relationship with quality index and organization performance improvement in organizational change and by studying quality index process during years, object of study, since r = 0.795 > 0 and highly closes to 1, there is a "strong and positive relationship" between index and performance improvement and therefore ,this hypothesis is kept by 95% confidence interval and it was revealed that there is a meaningful relationship between this index and organization performance improvement. Meanwhile, with regard to the results of studies, it is revealed that correlation coefficient of this index is positive and higher than zero, therefore, there is meaningful relationship between quality index and organization performance improvement. In proving second hypothesis indicating that among the organizational change indices, profitability index (financial indices) has the most impact on organization performance improvement. The result of the hypothesis examination by studying the process of changes of indices tested during years, object of study, since there different values resulted from r have spread range of + 0.998 to -0,312, as a result, it is revealed that there is high difference
9
between impact of indices on organization performance improvement, therefore mentioned hypothesis is kept by 95% confidence interval. With regard to the results of studies of sextet hypotheses and since correlation coefficient of this index is the highest value of r = 0.998 in comparison with other indices and highly closes to 1, we can conclude that profitability index has "strong and positive relationship" and effects on organization performance improve more than other indices. Prioritization of Indices: With regard to the result of study of correlation coefficient and their average, impact order of indices according to the priority of organization performance improvement is: 1- Profitability 2- Innovation 3- Social Responsibility 4- Quality Meanwhile, as it was mentioned before, there is not meaningful relationship between quality of working environment and effectiveness indices with organization performance improvement.
Other Findings of Research in Sextet Areas: By studying the reports of board of directors to the general meeting and report of organizational troubleshooting at the relevant company during years, object of study, it was revealed that:
In effectiveness area, the product effectiveness has had a low gradient descending procedure in a central process of procurement and distribution. At the same time, product effectiveness in central process of providing services in decade of 1990 has had descending procedure but it has been remarkably increased from the beginning of first decade of 21th century. Although the product effectiveness was not measurable in central process of sale, meanwhile, effectiveness of human resources during 5 years, object of study, has been fluctuated but has had a descending procedure. During 5-year period, the effectiveness of materials and parts has not been remarkably changed. Finally, capital effectiveness during past 5 years has been
10
fluctuated but it has been remarkably increased from the beginning of the first decade of 21st century and effectiveness of other inputs has been properly developed during past 5 years. Profitability Area: Despite results, the studies show that the cost price of the product has had a remarkable ascending procedure in a central process of procurement and distribution. Sale, administrative and general expenses have had an ascending procedure. The company performance at the end of decade of 1990 led to damage but it has been profitable from the beginning of the first decade of 21st century and has a low descending procedure. Instant ratio of the company has been remarkably low and the company encounters with severe liquidity problems. The inventory turnover period is high and the company operation turnover period is long. The proportion of the company operation profit is low although proportion of gross profit is 20% and proportion of net value yield has descending procedure. Meanwhile, the asset proportion indicates very low capital stock of the company in total assets. Although the company has not made the mechanism of financial and economic performance analysis separately the triple central processes and as a result, the mentioned processes are not separately under accurate financial and economic controls.
Innovation Area: With regard to the type of servicing activity of the company and quality and quantity significance of after-sale services, the most important innovation dimension is to change the technology and equipment of services centers and spare parts in a way that is called as the innovation in technology. The company in this field is moderately evaluated and since they concentrate on central garages and some selected agency as a result no comprehensive action has been taken for innovation of technology, equipment, training and supply of spare parts. The innovation should be based on good identification of the market, customer and their requirements although the company has not official and active mechanism in this field. Innovation in providing the modern services is subject to telecommunication infrastructures and E-commerce and modeling from industrial countries and if the company eagerly attempts to innovate in this field, these initiative and new services have not high priority for the customers.
11
b) English references:
1- Research Method of Business and Management - L.R.Gay - 1992 - Maxwell Macmillan International 2- Behavior research method - Lori Mark - 1994 - Cole publishing
13
3- New York: West publishing company - -3-Organization theory and design - RICHARD L,DAFT 1992 4- Organization theory- STEPHEN P. ROBBINS - N.J Prentice hall- 1978 5- Factors affecting productivity - MOHANTY, RP.P.- Perception of India manager-Industrial July-August- 1988 data system- & management
14
doc_613307540.docx
Organizational Change Indices on Organization Performance Improvement
Case Studies on Organizational Change Indices on Organization Performance Improvement
Introduction:
The organizations like any living creature in their growth and change stage encounter with limiting and accelerator factors of growth. The growth model of the living creatures indicates occurrence of the quick changes from the very beginning to maturity time. Thereafter, this evolution is retarded and gradually waned. Such model effects on the organizations. In this Paper "Study and Prioritization of Organizational Change Indices on Organization Performance Improvement (Case Study at an After-Sale Services Co.)" has been studied. The organization change is a planned and fundamental (systematic) process which increases personal and organizational effectiveness by enjoying values and behavioral-applied science principles in organizations. The main point is the organizations and they are changed in a way that their performance is improved, it means what is important is the change of the whole system.
Abstract:
In this research "Study and Prioritization of Organizational Change Indices on Organization Performance Improvement (Case Study during a 5-year period)" has been studied. Vehicle Industries and its after-sale services which are affected by the process on competitive business have been highly changed. Variety of quality and type of vehicle and their after-sale services has led to severe competition in the markets of this 20th century product and quantity of investment in this industry in different world countries expresses demand volume and determines capacity required for responding this demand. This research is done based on applied-practical goal and the research methodology is exploratory-surveying. The statistical universe for this research is the company which is responsible for after-sale services and supplying spare parts of products of a superior vehicle company. The data of this research are formed according to documentary information and statistic of the company during years, object of study. The results of research show that innovation, quality, social responsibility and profitability indices effect on organization performance improvement and among them profitability index has the most effect.
2
Theoretical Fundamentals of Research: Respecting the significance of this category, we believe that unfortunately in our country, use of change concepts in analysis and taking decisions by directors in different branches of business are not considered. Although this paper does not attempt to find causes of this non-consideration, study of it may lead make of this attitude as the model for mode of application of concepts in taking decisions of the directors in different industrial branches. There relatively many researches have been done in different fields of organizational change but research for study of effect of organizational change on performance in industry either not done or rarely done. This paper attempts to study effect of organizational change on organization performance and prioritize change indices.
A) Identification and prioritization of organizational change indices B) Study of effect of organizational change indices on organization performance
improvement
C) Prioritization of organizational change indices in organization performance improvement
In this paper under title of "Study and Prioritization of Organizational Change Indices in Organization Performance Improvement", "Organizational Change" is defined as the independent variable, "Organization Performance Improvement" as the dependent variable and "systems, rules and regulations of holding companies and ?" as the interfering variable. The concept model used includes the relationships between variables forming the object and we try to prove good establishing these relationships and good arrangement of them. In the following model, organizational change is considered as independent variable, organization performance improvement as independent variable and effectiveness, profitability, innovation, quality of working environment, social responsibility and quality as moderator variables (measurement indices).
3
Dependent Variable
Measurement Indices H1=Effectiveness
H2 & H7= Profitability
Independent Variable
Organizational Change
H3= Innovation
H4= Quality of working environment
Organization Performance Improvement
H5= Social Responsibility H6= Quality
Interferers: systems, rules and regulations of after-sale services/licensors' rules
Concept Model
4
Hypotheses and their Research Methodology: 1- There is a meaningful relationship between Effectiveness, Profitability, Innovation, Quality of working environment, Social responsibility and Quality indices in organizational change with organization performance improvement. 2- Profitability index (financial index) has the most effect on organization performance improvement among other organizational change indices. The research methodology is applied-practical in terms of type of goal and in terms of method is case study-surveying and research domain includes information, statistic, reports of Board of Directors to General Meeting, report, organizational troubleshooting and the relevant indices quantities which contain activities of the company, object of study, during years, object of study.
Key Words: Organizational Changes, Effectiveness, Profitability, Innovation, Quality of Working Environment, Social Responsibilities, Quality and Organization Performance Improvement.
Statistical Methods Used for Studying Object: A- Principal- Quantitative Statistical Data: There are quantitative reports usable from principal data in five periods object of study, reports of board of directors to the company general meeting, for three areas of profitability, effectiveness and quality of working environment of six principal areas studied in the paper and they have been normalized after extraction and then have been compared with other indices by using linear correlation coefficient. B- Principal- Descriptive Statistical Data: For three areas of innovation, quality and social responsibility which have not quantitative data, first of all, the questions related to this area, were extracted and thereafter were studied and refined and finally the questions were studied and replied by the experts. Thereafter, all questions of these three areas have been valued by "Likert Scale Method". Finally after "normalization", the results of principal-quantitative data and results of evaluation of questioners and method of "linear correlation tests" have been used for study of proving the relevant hypotheses and final conclusion.
5
Study of Paper Hypotheses: Correlation results from the evaluation of changes of a variable due to changes of other variables. Theoretically, if there is a correlation between two positive variables, number value is +1 and if it is between two negative variables, number value is -1. However, at the time of evaluation of two variables which are expected to be differed with each other, none of them may be on real basis. Correlation coefficient value (r) is between +1 and -1 i.e. -1 ? r ?1 and includes six states. AStrong Positive Relationship: if r is higher than 0 and close to 1. B- Poor or Moderate Positive Relationship:if r is higher than 0 and close to 0.5 from left and right with low interval. C- No Relationship: if r = 0 and x and y values are diffuse. D- Poor or Moderate Negative Relationship: if r is lower than 0 and close to 0.5 from left and right with low interval. E- Strong Negative Relationship: if r is lower than 0 and close to -1. F- Curvilinear Relationship: if r = 0 and x and y values have curvilinear relation with each other. When Sigma values are lower than 0.05 we find that test error is lower than %5 and for higher values we witness an error higher than %5. According to the results of correlation test (by using SPSS Software): Effectiveness correlation coefficient - 0, 156 < 0 and negative value more closes to 0 than -1, as a result, we may conclude that there is "without relationship" or "poor relationship". Profitability correlation coefficient 0.998 > 0, as a result, we find there is a "strong positive relationship". Innovation correlation coefficient 0.991 > 0, as a result, we find there is a "strong positive relationship". Quality of working environment correlation coefficient, - 0, 312 < 0, as a result, we find there is a "poor or moderate negative relationship" (even we can find the reverse effect). Social Responsibility correlation coefficient 0.808 > 0, as a result, we find there is a "strong positive relationship". Quality correlation coefficient 0.795 > 0, as a result, we find there is a "strong positive relationship".
6
0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 1 2 3 4 5
I
Innovation
Quality Social Responsibilit y Effectivenes Profitability Life`s Quality Mean Value
Comparison of indices and overall mean value, after normalization of results of years, object of study
C o r r e l a ti o n s inn ovatio n inn ovatio n P e ars on Corr elatio n S ig . (2-ail ed) t N q u a li t y P e ars on Corr elatio n S ig . (2-ail ed) t N s o c ia l P e ars on Corr elatio n S ig . (2-ail ed) t N pro duc ti vity P e ars on Corr elatio n S ig . (2-ail ed) t N pro fitibili ty P e ars on Corr elatio n S ig . (2-ail ed) t N life P e ars on Corr elatio n S ig . (2-ail ed) t N m e an P e ars on Corr elatio n S ig . (2-ail ed) t N *. Co rrelat ion is s igni fic ant at th e 0.05 level (2-tail ed). **. Co rrelat ion is s igni fic ant at th e 0.01 level (2-tail ed). 5 .889* .044 5 .865 .058 5 .017 .978 5 .967** .007 5 -.462 .433 5 .981** .003 5 5 .951* .013 5 .472 .422 5 .762 .134 5 -.814 .093 5 .795 .108 5 1 q u a l it y .889* .044 5 1 s o c ia l .865 .058 5 .951* .013 5 1 5 .394 .511 5 .792 .110 5 -.779 .121 5 .808 .098 5 -.156 .802 5 -.203 .744 5 -.882* .048 5 -.270 .660 5 .998** .000 5 -.312 .610 5 5 5 5 pro duc ti vity .017 .978 5 .472 .422 5 .394 .511 5 1 -.203 .744 5 1 5 -.270 .660 5 1 pro fitibili ty .967** .007 5 .762 .134 5 .792 .110 5 -.814 .093 5 -.779 .121 5 -.882* .048 5 -.156 .802 5 .998** .000 5 -.312 .610 5 1 l i fe -.462 .433 5 m e an .981** .003 5 .795 .108 5 .808 .098 5
Table- Comparing of correlation indices test results of years, object of study
7
Conclusion: In study of first part of the first hypothesis implying effectiveness index there is a meaningful relationship with organization performance improvement in organization change. The result of test by study of effectiveness index process during years, object of study, indicates that r = -0.156 < 0 and there is a poor relationship between this index with organization performance improvement, as a result, the relevant hypothesis is not confirmed. The results of studies show that the relevant company does not measure and evaluate its effectiveness and is not aware of it. According to the studies it was revealed that the total effectiveness during 5 year period have not been remarkable changed. In study of second part of the first hypothesis aiming the study of profitability index there is a meaningful relationship with organization performance improvement in organization change. The result of test of profitability index process during years, object of study, shows that since r = 0.998 > 0 and more closes to 1, there is "strong positive relationship" between this index and performance improvement and this hypothesis is kept by 95% confidence interval and it is revealed that there is a meaningful relationship between this index and organization performance improvement. As the tables shown, since the highest correlation coefficient relates to this index, profitability index effects on organization performance improvement and study of income growth and profitability process of the company during years, object of study, indicates a positive gradient proving this hypothesis. Third part of the first hypothesis indicating that innovation index and organization performance improvement have meaningful relationship with organizational change we continued studying the innovation index process during years, object of study and since r = 0.981 > 0 and highly closes to 1there is a "strong and positive relationship" between index discussed and performance improvement. As a result this hypothesis is kept by 95% confidence interval and it was revealed that there is a meaningful relationship between this index and organization performance improvement. Meanwhile, with regard to the results of studies, it is revealed that correlation coefficient of this index is positive and highly closes to 1; therefore there is an effective and meaningful relationship between innovation index and organization performance improvement. In study of fourth part of the first hypothesis implying quality of working environment index there is a meaningful relationship with organization performance improvement in
8
organization change. The result of tests show that quality of working environment index process during years, object of study, since it is r = -0.312 < 0 as a result, there is a poor relationship between this index with organization performance improvement, and the relevant hypothesis is not confirmed. With regard to the results of research, since correlation coefficient is negative and lower than zero, we conclude that there is no meaningful relationship between quality of working environment index and organization performance improvement. In fifth part of the first hypothesis which studies object of meaningful relationship between social responsibility index and organization performance improvement in organization change the result of test by studying social responsibility index process during years, object of study, shows that since r = 0.808 > 0 and highly closes to 1, there is a "positive and strong relationship" between index and performance improvement and as a result, this hypothesis is kept by 95% confidence interval and it was revealed that there is a meaningful relationship between this index and organization performance improvement. At the same time, with regard to the results of studies, it is revealed that correlation coefficient of this index is positive and closes to 1; therefore, there is an effective and meaningful relationship between social responsibility index and organization performance improvement. In sixth part of the first hypothesis, there is a meaningful relationship with quality index and organization performance improvement in organizational change and by studying quality index process during years, object of study, since r = 0.795 > 0 and highly closes to 1, there is a "strong and positive relationship" between index and performance improvement and therefore ,this hypothesis is kept by 95% confidence interval and it was revealed that there is a meaningful relationship between this index and organization performance improvement. Meanwhile, with regard to the results of studies, it is revealed that correlation coefficient of this index is positive and higher than zero, therefore, there is meaningful relationship between quality index and organization performance improvement. In proving second hypothesis indicating that among the organizational change indices, profitability index (financial indices) has the most impact on organization performance improvement. The result of the hypothesis examination by studying the process of changes of indices tested during years, object of study, since there different values resulted from r have spread range of + 0.998 to -0,312, as a result, it is revealed that there is high difference
9
between impact of indices on organization performance improvement, therefore mentioned hypothesis is kept by 95% confidence interval. With regard to the results of studies of sextet hypotheses and since correlation coefficient of this index is the highest value of r = 0.998 in comparison with other indices and highly closes to 1, we can conclude that profitability index has "strong and positive relationship" and effects on organization performance improve more than other indices. Prioritization of Indices: With regard to the result of study of correlation coefficient and their average, impact order of indices according to the priority of organization performance improvement is: 1- Profitability 2- Innovation 3- Social Responsibility 4- Quality Meanwhile, as it was mentioned before, there is not meaningful relationship between quality of working environment and effectiveness indices with organization performance improvement.
Other Findings of Research in Sextet Areas: By studying the reports of board of directors to the general meeting and report of organizational troubleshooting at the relevant company during years, object of study, it was revealed that:
In effectiveness area, the product effectiveness has had a low gradient descending procedure in a central process of procurement and distribution. At the same time, product effectiveness in central process of providing services in decade of 1990 has had descending procedure but it has been remarkably increased from the beginning of first decade of 21th century. Although the product effectiveness was not measurable in central process of sale, meanwhile, effectiveness of human resources during 5 years, object of study, has been fluctuated but has had a descending procedure. During 5-year period, the effectiveness of materials and parts has not been remarkably changed. Finally, capital effectiveness during past 5 years has been
10
fluctuated but it has been remarkably increased from the beginning of the first decade of 21st century and effectiveness of other inputs has been properly developed during past 5 years. Profitability Area: Despite results, the studies show that the cost price of the product has had a remarkable ascending procedure in a central process of procurement and distribution. Sale, administrative and general expenses have had an ascending procedure. The company performance at the end of decade of 1990 led to damage but it has been profitable from the beginning of the first decade of 21st century and has a low descending procedure. Instant ratio of the company has been remarkably low and the company encounters with severe liquidity problems. The inventory turnover period is high and the company operation turnover period is long. The proportion of the company operation profit is low although proportion of gross profit is 20% and proportion of net value yield has descending procedure. Meanwhile, the asset proportion indicates very low capital stock of the company in total assets. Although the company has not made the mechanism of financial and economic performance analysis separately the triple central processes and as a result, the mentioned processes are not separately under accurate financial and economic controls.
Innovation Area: With regard to the type of servicing activity of the company and quality and quantity significance of after-sale services, the most important innovation dimension is to change the technology and equipment of services centers and spare parts in a way that is called as the innovation in technology. The company in this field is moderately evaluated and since they concentrate on central garages and some selected agency as a result no comprehensive action has been taken for innovation of technology, equipment, training and supply of spare parts. The innovation should be based on good identification of the market, customer and their requirements although the company has not official and active mechanism in this field. Innovation in providing the modern services is subject to telecommunication infrastructures and E-commerce and modeling from industrial countries and if the company eagerly attempts to innovate in this field, these initiative and new services have not high priority for the customers.
11
b) English references:
1- Research Method of Business and Management - L.R.Gay - 1992 - Maxwell Macmillan International 2- Behavior research method - Lori Mark - 1994 - Cole publishing
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