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• Manager-Employee Relationship
• Organization Design and Performance of the Global Pension Fund Industry - November, 1997
• Financial Performance and Employee Satisfaction in a Financial Services Business - 1992 to 1997 Organization Design Improvement - 1995 to 1997

Organization Design and Performance of the Global Pension Fund Industry*

A study of 80 major pension funds focused on pension fund financial performance in relation to organization design. The study was sponsored by 8 large pension funds from Canada, the United States and Europe. Pension fund financial per-formance was measured using four-year data adjusted for pension fund cost and risk.

Organization design information was collected. A questionnaire on organization design was completed by 80 pension fund CEO’s. As well, more detailed organization design information was collected for each sponsor organization.

The results show a strong relationship between pension fund financial performance and organization design. Better fund organization design, as perceived by the CEO, demonstrated a statistically significant relationship with better pension fund financial performance. As well, better fund organization design, as directly measured inside the sponsor funds, demonstrated a statistically significant relationship with better pension fund financial performance (r=0.880, P<0.05).

Better organization design is related to better organization performance. This study illustrates the the powerful relationship between better organization design and better bottom line financial results.

* Ambachtsheer, K., Capelle, R.G. and Scheibelhut, T. 1998. Improving Pension Fund Performance. Financial Analysts Journal, November/December, p.15 –20.

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