Organizational Effectiveness in Banks and Insurance Companies : A Comparative Study of Public and Private Sectors

The present study explores organizational effectiveness in public and private sectors. An attempt has been made to explore and enumerate the factors of organizational effectiveness in public and private sectors, in banks and insurance companies focusing on front line and managerial level of employees. The objective of the study was also to investigate how public and private sectors influence organizational effectiveness in two types of organizations (banks and insurance) and at two levels of organizational hierarchy. A quantitative survey in the form of close-ended structured questionnaire was designed and used to obtain responses from 280 employees working in public and private sector banks and insurance companies. A 27-item scale was developed for data collection. The data was analyzed with the help of ANOVA and t-test in order to see the significance of difference among various groups. Organizational effectiveness was found to be better in case of private sector, although applicable to two of the five dimensions studied