THe confusing and often contradictory literature on organizational effectiveness is reviewed briefly, followed by a discussion of the leading models of effectiveness, their relative applicability to colleges and universities, questions for guiding the design of a specific study of organizational effectiveness, and guidelines for effective administrative action that have surfaced in the research on organizational effectiveness in higher education. The several models of organizational effectiveness compared include: the goal model, the system resource model, the internal process model, the strategic constituencies model, the competing values model, the legitimacy model, and the model of ineffectiveness. Questions are identified that force investigators to make decisions about the key sources of controversy regarding organizational effectiveness studies and to help channel debate into more productive avenues. These questions deal with the perspective from which effectiveness is judged, the domain of activity being considered, the level of analysis being used, the purpose of the assessment, time frame, type of data gathered, and the referent used to make judgments. In addition, characteristics of effective administrators are detailed. They include such things as sensitivity to how decisions are made, establishing a "risk neutral" culture, nurturing critical support groups, acting responsibly, increasing communication, and maintaining an organizational image. (LB)