European Business & Management

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Determinants of Organizational Design Choices in Spanish Nongovernmental Development Organizations

Received: 17 January 2017    Accepted: 22 June 2017    Published: 27 July 2017
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Abstract

This paper adds to the scant literature on the internal structure of organizations by focusing on the organizational design of nongovernmental development organizations (NGDOs). Specifically, we evaluate prominent Spanish NGDOs during 2010 to determine the balance of two key organizational design choices at the NGDO’s project department: delegation of authority to lower-level employees and the provision of incentive compensation to ensure that these employees do not misuse their discretion. We develop a simultaneous model of these two choices that treats delegation and incentive compensation as endogenous variables. The results of our empirical analysis provide evidence that delegation of decision rights and incentive compensation systems are interdependent allowing scholars and practitioners a better understanding of the determinants of organizational design choices.

DOI 10.11648/j.ebm.20170303.12
Published in European Business & Management (Volume 3, Issue 3, May 2017)
Page(s) 47-56
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Delegation, Incentive Compensation, Job Authority, NGDOs, Nonprofit Organizations

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Author Information
  • Business Department, University of Valladolid, Valladolid, Spain

  • Business Department, University of Valladolid, Valladolid, Spain

  • Business Department, University of Valladolid, Valladolid, Spain

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  • APA Style

    Victor Martín-Pérez, Natalia Martín-Cruz, Juan Hernangómez-Barahona. (2017). Determinants of Organizational Design Choices in Spanish Nongovernmental Development Organizations. European Business & Management, 3(3), 47-56. https://doi.org/10.11648/j.ebm.20170303.12

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    ACS Style

    Victor Martín-Pérez; Natalia Martín-Cruz; Juan Hernangómez-Barahona. Determinants of Organizational Design Choices in Spanish Nongovernmental Development Organizations. Eur. Bus. Manag. 2017, 3(3), 47-56. doi: 10.11648/j.ebm.20170303.12

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    AMA Style

    Victor Martín-Pérez, Natalia Martín-Cruz, Juan Hernangómez-Barahona. Determinants of Organizational Design Choices in Spanish Nongovernmental Development Organizations. Eur Bus Manag. 2017;3(3):47-56. doi: 10.11648/j.ebm.20170303.12

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  • @article{10.11648/j.ebm.20170303.12,
      author = {Victor Martín-Pérez and Natalia Martín-Cruz and Juan Hernangómez-Barahona},
      title = {Determinants of Organizational Design Choices in Spanish Nongovernmental Development Organizations},
      journal = {European Business & Management},
      volume = {3},
      number = {3},
      pages = {47-56},
      doi = {10.11648/j.ebm.20170303.12},
      url = {https://doi.org/10.11648/j.ebm.20170303.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ebm.20170303.12},
      abstract = {This paper adds to the scant literature on the internal structure of organizations by focusing on the organizational design of nongovernmental development organizations (NGDOs). Specifically, we evaluate prominent Spanish NGDOs during 2010 to determine the balance of two key organizational design choices at the NGDO’s project department: delegation of authority to lower-level employees and the provision of incentive compensation to ensure that these employees do not misuse their discretion. We develop a simultaneous model of these two choices that treats delegation and incentive compensation as endogenous variables. The results of our empirical analysis provide evidence that delegation of decision rights and incentive compensation systems are interdependent allowing scholars and practitioners a better understanding of the determinants of organizational design choices.},
     year = {2017}
    }
    

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  • TY  - JOUR
    T1  - Determinants of Organizational Design Choices in Spanish Nongovernmental Development Organizations
    AU  - Victor Martín-Pérez
    AU  - Natalia Martín-Cruz
    AU  - Juan Hernangómez-Barahona
    Y1  - 2017/07/27
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    N1  - https://doi.org/10.11648/j.ebm.20170303.12
    DO  - 10.11648/j.ebm.20170303.12
    T2  - European Business & Management
    JF  - European Business & Management
    JO  - European Business & Management
    SP  - 47
    EP  - 56
    PB  - Science Publishing Group
    SN  - 2575-5811
    UR  - https://doi.org/10.11648/j.ebm.20170303.12
    AB  - This paper adds to the scant literature on the internal structure of organizations by focusing on the organizational design of nongovernmental development organizations (NGDOs). Specifically, we evaluate prominent Spanish NGDOs during 2010 to determine the balance of two key organizational design choices at the NGDO’s project department: delegation of authority to lower-level employees and the provision of incentive compensation to ensure that these employees do not misuse their discretion. We develop a simultaneous model of these two choices that treats delegation and incentive compensation as endogenous variables. The results of our empirical analysis provide evidence that delegation of decision rights and incentive compensation systems are interdependent allowing scholars and practitioners a better understanding of the determinants of organizational design choices.
    VL  - 3
    IS  - 3
    ER  - 

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