Organizational performance
Encyclopedia
Organizational performance comprises the actual output or results of an organization
as measured against its intended outputs (or goals and objectives).
According to Richard et al. (2009) organizational performance encompasses three specific areas of firm outcomes: (a) financial
performance (profits, return on assets, return on investment, etc.); (b) product market performance (sales, market share, etc.); and (c) shareholder return (total shareholder return, economic value added, etc.). The term Organizational effectiveness
is broader.
Specialists in many fields are concerned with organizational performance including strategic planners, operations, finance, legal, and organizational development.
In recent years, many organizations have attempted to manage organizational performance using the balanced scorecard
methodology where performance is tracked and measured in multiple dimensions such as:
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
as measured against its intended outputs (or goals and objectives).
According to Richard et al. (2009) organizational performance encompasses three specific areas of firm outcomes: (a) financial
performance (profits, return on assets, return on investment, etc.); (b) product market performance (sales, market share, etc.); and (c) shareholder return (total shareholder return, economic value added, etc.). The term Organizational effectiveness
Organizational effectiveness
Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit organizations...
is broader.
Specialists in many fields are concerned with organizational performance including strategic planners, operations, finance, legal, and organizational development.
In recent years, many organizations have attempted to manage organizational performance using the balanced scorecard
Balanced scorecard
The Balanced Scorecard is a strategic performance management tool - a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the...
methodology where performance is tracked and measured in multiple dimensions such as:
- financial performance (e.g. shareholder return)
- customer service
- social responsibility (e.g. corporate citizenship, community outreach)
- employee stewardshipStewardshipStewardship is an ethic that embodies responsible planning and management of resources. The concept of stewardship has been applied in diverse realms, including with respect to environment, economics, health, property, information, and religion, and is linked to the concept of sustainability...
See also
- Management effectivenessManagement effectivenessIn the management, the ultimate measure of management's performance is the metric of management effectiveness which includes:* Conflict management, or how well management is able to utilize confrontation and collaboration skills; management's ability to be flexible and appeal to common interests.*...
- Performance improvementPerformance improvementPerformance improvement is the concept of measuring the output of a particular process or procedure, then modifying the process or procedure to increase the output, increase efficiency, or increase the effectiveness of the process or procedure...
- Organizational engineeringOrganizational engineering- Theory :Organizational Engineering is a form of Organizational Development. It was created by Dr. Gary Salton of Professional Communications, Inc. It has been developing continuously since 1994 on both theoretical and applied levels....