The Impact of Organizational Characteristics in Effectiveness ( Algerian ’ s Empirical Study of Small and Medium Enterprises )

Algeria has witnessed many problems through the economic trends in the oriented economy, especially the investment. This led the responsibles for the economic affairs in the country to think about other ways and policies to push the economic development. Among those ways we account the small and medium enterprises which are considered as important economic pillars. The aim of this paper is to define the organizational characteristics of Algerian SME and measure the relation between these characteristics and organizational effectiveness through a survey presented to 41 Algerian SMEs. At the end we have found that the Algerian SME are features by several character such as high centralisation degree of organisation structure, Entrepreneurial type decision, Authoritarian leadership style and finally the Algerian entrepreneur is the person who prefer Continuity, independence, growth .Also we found that there is a big significant relation between Algerian SMEs characteristics and effectiveness as all p-value calculated was less than 5% but this relation differ from variable to another.


Introduction 1.
The small and medium enterprises play an important role in economic development, so for that has become a pillar of the countries' economies through their contributions in economic growth and increase the gross domestic product, as well as their ability to innovate and create jobs.For these reasons, the SME became as one of the most important and most powerful elements of economic development.
Under openness and globalization the philosophy of SME management has been evaluated and changed, where in the beginning the initial goal of these SME it was profit, so now it's become incumbent on them to link this goal with the priority of survive and to adapting with the environment that's are dealing with it, for this reason the strategic growth are becoming imperative for these enterprises in order to face strong competition in the market.
Algeria, like any other countries are trying to adopt a clear strategy for the development of SMEs and demonstrated this through various policies and incentive measures adopted by the government, but it is not enough, since there are other variables that can interfere in the creation and growth of these enterprises to improve their effectiveness , such as external and internal variables (organizational structure, strategy, leadership style and environment) these variables can play a major role in the development and growth of small and medium enterprises.Due to that we have put the following problematic: To which extent the organizational characteristics affecting the effectiveness of Algerian small ad medium enterprises?

Literature Review 2.
Our literature review indicates that the growth of the enterprise was one of the most topics discussed in the economic fields and there is several arguments show the crucial importance of this concept.Firstly, enterprise growth is closely linked to the survival of the enterprise.More specifically, enterprise growth is positively correlated with the probability of survival.And companies that know continue growth will have a greater probability of surviving in the market (Geroski, 1995).According to Starbuck (1965), growth is not a spontaneous, but rather is a consequence of a decision: the decision to hire and / or not to dismiss, the decision to increase output in response an increase in demand and the decision to stimulate demand.He stressed that the growth can be a goal in itself.It may be a measure of success as well as "progress".
However the majority of SME does not contain growth among the objectives (Kolvereid, 1992Davidsson, 1989;Hakim, 1989;Gibb and Scott, 1986;Chell, 1986).Beyond a certain size, sometimes called "stage of comfort" (Perry, 1987), it will be, impossible for the leader to directly control all the tasks performed within the enterprise.(Janssen, Octobre 2002) There is no single theory to analyze the impact, causes or the evolution of enterprise growth.As Correa (1999) pointed out, this may be because the definition of the enterprise is multiple and complex.This complexity has led to the emergence of researchers from different perspectives and, most importantly, with different predictions about the evolution of growth.This is clearly visible from the variables used in the literature to measure enterprise growth and its determinants.Some theories focus on the average size, other focus on the internal characteristics and on other random variables.
Growth models are increasing around the strategy, growth and reinforcement of capacity (Greiner, 1972;1998 Churchill andLewis, 1983).Greiner (1972Greiner ( , 1998) ) has identified different stages in the life cycle of the organization, the organization passes through each phase of evolution, which generates complexity in the organization because of the crisis.Organizations are required to take measures for effective management to mitigate the effect of the problems caused by the crisis.Profitability and industrial growth rate will determine the rhythm of growth in his model.Other than growth, failure or withdrawal options are presented in the growth model of Churchill and Lewis (1983).Companies do not have the ability to grow due to limited resources or lack of Managerial capabilities that can lead to failure.This Model is built on the work of Greiner (1972) while extending the scope to small enterprise.The motivations of the ownerentrepreneur are seen as an important growth factor in addition to other barriers to growth.
New theories also stipulate that the leader of the small and medium enterprises often includes values related to the surrounding culture, its origins and its education and is influenced by his family and entourage except by its employees, influences on his personality and, ultimately, the creation and development of its business.All these factors will contribute more or less to the development or growth of the small firm or will break it, especially in an environment where culture seems decisive as in many African countries (Boukar and Julien, 2009).
The literature indicates that the growth was measured by an impressive number of variables; the two indicators most widely used are illustrated in the variable of employment and that of sales.According to Birley and Westhead (1990), the heterogeneity of research on the determinants of growth is partly due to a lack of consensus on the definition of growth.Most research does not contain any discussion on the relevance of the variable used to measure growth (Westhead & Birley, 1995) and most do not justify the use of such specific criteria rather than another.According to Negro (1987), the growth of the company is the increasing of their size over time.For Verna (1994), "Growth is both the action to grow and the result of this action." Since the end of 1980s, the analysis of the determinants of SME growth and factors characterizing the young enterprises with high-growth, often called "gazelles", has been know a growing interest (Julien, 2003;Davidsson, Delmar & Wiklund, 2006).Publications have multiplied for each distinct objective and / or different approaches, sometimes related to the profile of the leader, sometimes the influence of the environment on the strategy, and other times son progress of the process (Witmeur, 2008) Growth is a complex and multidimensional phenomenon (Weinzimmer, 1993), it is obvious that is an approach purely internal type, limiting by the impact of resources, in particular, the determinants related to the leader, neglects the potential prediction variables related to enterprises, strategies developed, the environment and the interactions between these different types of variables (Janssen, Octobre 2002).
However, in the context of this paper, we have chosen to focus on the influence of the internal factors related to organization and the leader, especially the Organizational Structure, Strategies Choice, entrepreneur type, decisionmaking, Leadership style.For the growth, it will be measured through the organizational effectiveness.As stages of growth of the enterprises can be classified as effectiveness criteria, and this is just like some authors (Quinn and Cameron, 1983) who used the model of life cycle of the enterprises (growth model) to measure the effectiveness.

Factors Affecting Organizations Growth 3.
The research that has been done in order to study the growth factors associated with the enterprises highlight on the relationship between the various characteristics of the enterprises and its growth rate, and the results of this researches shows that there are many variables, affecting organization growth which can be identified as follows (Sabine, 2005): And there are others variables such as internal variables (organizational structure, strategies, leadership style decision-making, entrepreneur type) these variables can play a major role in the development and growth of small and medium enterprises.

Selection of samples
Our research was conducted among private SMEs from different industries, concentrated in the north-west of Algeria which includes the wilaya (cities): Tlemcen, Oran, Mascara, Relizane, Mostaganem, Sidi Bel Abbes and Ain Temouchent.Our sample consists of seven different samples corresponding to the seven cities mentioned above.The questionnaires were distributed to (80) SME's and we collected (41).Represent 51% of total questionnaires.Source: Prepared by the researcher

The variables of study
To determine the most important variables that characterized Algerian SMEs and their impact on organizational effectiveness, we based on 5 principles determinates and each determinant have Sub-variants As shown in the table 2 below.To measure these variables we have been using five-level Likert scale as follow: 1-Strongly disagree, 2-Disagree, 3-Neither agree nor disagree, 4-Agree, 5-Strongly agree • Determine the type of Algerian entrepreneur This variable was measured through goals axis; the objective for these questions was to identify the type of Algerian entrepreneur depending on (Julien & Marchesnay) classification And Table N°3 shows entrepreneur type items ranking, according to the arithmetic mean and standard deviat.ion.

Source: Prepared by the researcher
To measure the importance of the entrepreneur type items we used Coefficient of variation and that depending on the arithmetic mean and standard deviation.What can be seen from the table above that the item of continuity has occupied the first rank were Coefficient of variation is (0.26), and this indicates that the sample researched attaches great importance to this item compared to the other items, and we find that the item of independence has occupied the second rank were Coefficient of variation is (0.37), while the growth came in third rank were Coefficient of variation is estimated by (0.42).These indicators lead us to the classification of the Algerian entrepreneur to the first type according to the classification of (Julien & Marchesnay) that mean that the Algerian entrepreneur prefer Continuity, independence, and then the growth.
• Decision-making Through Table N° 4 we have ranked the importance of decision making styles by using the coefficient of variation ,what can be seen through these elements that Entrepreneurial style has ranked first by coefficient of variation equal (0.21) and was followed by a planning style with coefficient of variation equal (0.55 ) and in the last place we find Adaptive style.With coefficient of variation estimated by (0.58).And this fits with this type of enterprises where we find that there organizational structure characterized by its small size and therefore the decision maker will be characterize by the power of owner or manager and have big influence on his enterprise.Source: Prepared by the researcher

• Leadership Style
Through this variable we tried to study ways and the leadership styles within these enterprises and that through management conflict, manager personality and access to information, via the Managerial Grid's of (Blake & Mouton), which classifies the leadership styles into five types (Produce or Perish Leadership, Country Club Leadership, team type of leadership ,Impoverished Leadership and Middle-of-the-Road Leadership -Management Conflict This variable was measured using the arithmetic mean through testing the five leadership styles -Manager Personality In the manner of Conflict management, manager personality has been tested by five leadership styles and through the table N°6 we note that the authoritarian leadership style achieved the highest arithmetic average compared with other styles (4.07), and this consistent with leadership styles of conflict management and then comes the other leadership type : team leadership type, Middle-of-the-Road Leadership, Impoverished Leadership and Country Club Leadership with arithmetic mean equal (3.44), (2.32), (2.20), (1.88), respectively.

Variables
Arithmetic Mean Do the minimum of work, and would prefer not to get risk due to fear of failure 2,20 describes and Clearly the procedures of work, but you impose your voluntarily submit on the workers 4,07 You do The tasks that the majority of workers will be satisfied 2,32 You do The business that will be acceptable to the various department heads 1,88 You encouraging new tasks that raise productivity , achieve job satisfaction and encourages creativity 3,44 Source: Prepared by the researcher -Access to Information Through this axis we were addressed to ask a series of questions also about leadership style and that to find out a method that the manager or enterprise owner, use to obtain the information.

Variables
Arithmetic Mean Looking for full information and check it out and you will listen and discuss with employees 3,68 Trying to get as much information about the productivity and make sure that the workers doesn't make mistake to have everything under control.

4,39
Looking for only positive information because the negative information bother workers.2,07 Get information by indirect ways to make sure that your belief is right.
2,15 Do not straining yourself searching for information you will be satisfied with minimal information, even if they duplicate.

1,88
Source: Prepared by the researcher Through the above table we note that the arithmetic mean of the authoritarian style question reached (4.39) and is the highest mean compared with the rest of the other questions, which explains that the type of leadership being applied in these enterprises is a authoritarian style The second place we find team leadership style and the a mean was estimated at (3.68) and then the other leadership styles.ISSN 2039-9340 (print) Mediterranean Journal of Social Sciences For the purpose to order the importance of the strategic choice variables, we used coefficient of variation and the table N°8 illustrates the difference between strategic choice coefficient of variation.Through the above table we note that the Analyzer Strategy ranked first with coefficient of variation equal (0.36) ,and then was followed by Defender Strategy with coefficient of variation equal (0.53) and then we find Reactor Strategy ,and Prospector Strategy with coefficient of variation estimated by (0.58) and (0.60), respectively .This is commensurate with the enterprises that have been studied as we find that 82.9% of them are at slow growth stage while the rest 17.1% are characterized by rapid growth.Also, this strategy fit management style of SMEs that have been studied, through the study of (Milles & snow) this kind of enterprises is characterized by its centralization structure, and caution from its external environment due to their inability to compete, therefore, and before entering into new businesses must ensure their profitability, thus this extreme caution by the owner or manager contributed in the positive impact on organizational effectiveness.
• Organizational Structure -The Degree of Specialization We have tried through this axis to identify to what extent the small and medium enterprises of the sample studied attached to specialization of Function, and we asked questions on important functions within enterprises and to illustrate the results we calculated the frequencies of each function as are described in Figure ( 01).

Source: Prepared by the researcher
The results shown in Figure ( 01) describes clearly SMEs interesting functions, through the percentages of frequencies that have been calculated for different functions, we find that these enterprises interest in the accounting function with 95.1%, administrative processes 85.4%, and advertising function with 73.2%, moreover quality control function 68.3%, and 65.7% of sales function and in the final training and human development function with, 63.4%, and all of these functions percentage higher than frequencies average rates that was estimated by 52.9% calculated for different function.
And we find in the other side neglect of other functions such as Marketing Research function with 43.9% and this neglect can be because of the adoption of the owner or manager on his experience in this area or using its relations with various departments and government agencies, as also note many enterprises lack of interest to maintenance function and through Figure ( 01) this function ratio is estimated at 41.5%.And can be ascribed that to the small size of these enterprises and thus do not possess the huge buildings and equipment that require them to hire specialists in this function.As also noted a decrease in the proportion of research and development function with 36.6% and this is due to the fact that SMEs are considered to be belonging to large companies and a leader in the market as well as due to this function requires financing and large funds.
-Formalization Degree Through this element we tried to study the Formalization Degree in Algerian small and medium-sized enterprises and the figure below illustrated frequencies ratios and we can see that all ratios are less than 50% and this, confirm the decrease of this dimension in these enterprises.
Source: Prepared by the researcher Through Figure (02) we note that the frequencies ratios average related to formalization degree items estimated by 33.2% and this reflects the lack of formalization structure in Algerian SMEs This can be ascribed mainly to the small number of staff workers within these enterprises.However, this does not preclude the use of certain regulations and procedures, and directing to workers.Through the figure above 43.9% of the SMEs surveyed are dealing with their employees by writing a task that show the nature of the work of the staff, also we find that 41.5% of these enterprises have procedures manual of labor, as well as written instructions.
-Centralization Degree The decision-making process in Algerian small and medium enterprises dominated by the centralization and this is what has been tested through leadership style and decision-making type.Source: Prepared by the researcher Table N°09 shows the level in which is the decision-making process, so we find that all of a decision of hiring workers, determine production program, the Dismissing of workers, their means are bigger than 4 so any decisions of them are taken on a top management level (Owner or manager), while other decisions as Internal labor disputes, overtime, work methods, and the Division of labour by available workers their mean are less than 4, but still high which explains that this decisions are taken also on top management.And this is agreeing with the results of the manager personality who we found that it is characterized by authoritarian style as well as the decision-making style, which was characterized by the entrepreneurial type, these results can be interpreted to the feature that the SMEs are characterized by, Where it has family character, and we find that 56.1% of the sample studied are General Partnership therefore is dominated by patriarchal style.
-Diagnose Organizational Structure For the purpose of the order the importance of the organizational structure variables, was used an arithmetic mean and standard deviation, and that to calculate the coefficient of variation, table N° 10 shows the coefficients of variations for the three Organizational Structure degree

Source: Prepared by the researcher
From the coefficients of variation of the three dimensions we note that the centralization degree structure ranked first with coefficients of variation equal (0.34) this result mean that the enterprises that have been studied attached great importance to this dimension.And in second place came formalization structure with coefficients of variation equal (0.35), and in third place we find the degree of specialization by coefficients of variation estimated at (0.41) For conclusion of the results reached on organizational structure we can say that there is congruity between the organizational structure adopted in Algerian small and medium enterprises and the leadership style, decision making type, and these results are compatible with theoretical studies of SMEs structure.

Measuring relationship between internal variables and organizational effectiveness
In order to examine the relationship between organizational effectiveness of Algerian small and medium-sized enterprises and various internal variables(Centralization structure , Analyzer Strategy Continuity, independence, growth, Entrepreneurial style and Perish Leadership) , we have been relying on the correlation coefficient of Spearman and the following table illustrates the relationship of these variables with organizational effectiveness.285 entrepreneur type, and effectiveness, where the value of the Spearman correlation coefficients are (0.850, 0.925), respectively.This result is consistent with the Studies of (Lindblom1959, Likert1969) who mentioned that there is a positive effect of the entrepreneur type on organizational effectiveness On the other hand we also note that there is a strong correlation between leadership styles (authoritarian style) represented in its dimensions (conflict management, personality, and access to information) and organizational effectiveness, with correlation coefficients reaching (0.828-, 0.883-,0.818-),but these relationship is inverse, that means each increase in the authoritarian will lead to a decrease in organizational effectiveness.This authoritarian style applied in enterprise under study, impose a centralization organizational structure, and which has also had an inverse relationship with organizational effectiveness where the coefficient equal 0.343-.And we can return this inverse relationship between the organizational effectiveness and leadership style to disagree this style with the school of human relations (Mayo1933, Argyris 1956, Mc Gregor 1960).Which considers that to increase enterprise performance must include workers in the decision-making..
Regarding the Analyzer Strategy as well, we note the inverse relationship (0.329-) between it and the organizational effectiveness, although this relationship remains weak, but they are important as stated in the studies of Schendel And patton's (1978) who believes that strategy considered one of the most important factors in determining the effectiveness .Thus there is significant correlation between organizational characteristics and organizational effectiveness.

5.
Through our study to determine Algerian SMEs characteristics turned out to be consistent the theories that explain the small enterprises and we found that the Algerian entrepreneur prefer Continuity, independence, and then the growth, and the decision making is Entrepreneurial type, where the leadership type for management conflict, manager personality and access to information is Perish Leadership style as the Managerial Grid's of (Blake & Mouton), also this enterprises are characterized by the centralization structure.In addition and through the study of the relationship between these characteristics and the organization effectiveness we found that there is a strong relation but this relation differ from variable to another.

-
The size of the organization -The organization age -Combination of capital -Legal form of organization -Investment -Export -Positioning of the enterprises -the degree of differentiation from other organizations.
Table N° 01.The number of questionnaires distributed and retrieved

Table N°02 .
Variables of the study

Table N° 03
. Items Ranking of Entrepreneur Type

Table N° 4
. Items Ranking of decision-making

Table N°
05. Arithmetic Mean of Management Conflict

neutral position and does not interfere at all 1,88 Gives solutions and each of the parties that have conflict can coexist with its. 1,83 Looking for the conflict causes of and try to find solutions 2,39 Looking for a causing the conflict between the workers and punished him
Prepared by the researcher through a table N° 5 it is clear that the Perish Leadership style ranked first, as the arithmetic mean for this question was (4.20) and it was the highest value compared to the rest of the questions, followed by Country Club Leadership with a mean equal to (3.34), then we find the other three leadership type team leadership type, Impoverished Leadership and Middle-of-the-Road Leadership with estimated mean (2.39), (1.88) and (1.82), respectively. Source:

, Prospector Strategy, Analyzer Strategy, Reactor Strategy), the
In order to measure this variable we has been relying on the four strategic dimensions of Milles & Snow (Defender Strategytable below shows strategic items Ranking according to Coefficient of variation.

Table N° 09. The
Arithmetic mean and standard deviation of the centralization items

Table N°10 .
Coefficients of variations of three organization structure dimensions

Table N° 11. Spearman
's correlation coefficient between organizational effectiveness and internal variables

relationship between organizational characteristics and organizational effectiveness
Through Table N°11 appeared significant correlation between each of the Entrepreneurial style,

Perish Leadership (management conflict, manager personality ,access to the information),entrepreneur type (Continuity, independence
, growth), Analyzer Strategy and Centralization structure and organizational effectiveness where p-value of these variables is less than 5%.Firstly we found a strong and positive correlation between the decision-making style (entrepreneurial style ), the