Credit Union Boards and Credit Union Effectiveness
Professor Jacob Hautaluoma and his co-investigators surveyed more than 2,400 credit union CEOs, directors, and staff members. Using organizational psychology theory and research techniques, they probed questions about credit union boards including: What board duties and activities are most important? How should boards conduct their business? Who should serve on boards? What board development activities are useful?
In addition, the researchers define and measure the tasks, styles of operating, and other characteristics of credit union boards, and relate these attributes to measures of credit union effectiveness. Credit union effectiveness is measured across a number of dimensions, including service satisfaction, public image, growth, willingness to improve, staff morale, participatory management, comparison to competitors, and CAMEL ratings.
The researchers also examine how boards’ tasks, work styles, orientation toward board training, nominating process, democratic composition, and average age and tenure affect overall board effectiveness. Furthermore, the researchers separate the credit unions in their sample into different sets of credit unions with similar patterns of scores and analyze how they differ on the board and credit union effectiveness measures.