What is Organizational Performance?
Organizational performance is defined as analyzing the
company’s performance against its predefined goals and objectives.
- Financial Performance of the Organization
- Market Performance of the Organization
- Shareholder Value of the Organization
Above mentioned are the key main areas that measure the
organizational performance.
According to senior manager at Pitcher Partners , Organizational
Performance is usually identified according to how successfully an organized
group of peoples perform a predefined task to ensure a particular purpose is
fulfilled
In the process of analyzing the organizational performance, each area should be analyzed and managed in a proper manner.
- Financial Performance
Financial performance of an organization is
measured using several factors like Profits, Return on Investment and Return on
Assets. In the process of managing the organizational performance, financial
performance is a much important aspect. This aspect mainly focuses on
companies’ operations and policies using monetary terms.
2. Market Performance
Market performance is mainly assessed using how good the products or services offered by the organization acts in the market. In this aspect organization should identify the market share, competitive advantages, and customer retention.
3. Shareholder Value
In this aspect we measure how much an organization enriches its shareholder and the amount of the return they get on their investment.
Above mentioned are the key areas that used to measure the
organizational performance.
Factors of Organizational Performance
Organizational performance will be differentiated according
to three types of factors. These factors will determine the organizations
activities, goals, and work structure.
1.
External Factors
These factors are the aspects which
surrounds the organization which cannot be controlled by the management of the
organization. But they usually affect the performance, development, structure,
and the operations of the organization in a higher manner.
·
Economic Factors
·
Socio-Economic Factors
·
Political Factors
2.
Internal Factors
These factors are aspects which has set by
the organization and these factors are the key guiding points of a organization’s
workflow.
·
Purpose
·
Mission
·
Value
·
Instruments
3.
Individual Choice Factors
These are the decisions taken by individuals within the organization which affect the organizational performance.
Internal and External Environments of Organizational
Performance
In the process managing the organizational performance,
environment plays a major role. This helps organizations in determining the
success or failure. Strategic management of the organization should always work
on aligning the organization with the environment
1.
Internal Environment
Internal environment is the major aspect that lies within
the organization, and this can be altered according to the strategic management
decisions of the organization. Internal environment of an organization is
composed of its owners, chairmen, managers, employees, physical environment,
and culture.
2.
External Environment
External environment which affects organizational
performance is consist of much broader and intangible elements. It mainly consists
of five dimensions.
- Economical
- Technological
- Sociocultural
- Political -Legal
- International
These factors are the main areas that decide the external environment of the organization while organization cannot alter those factors. Strategic management can get decisions by adapting to the above-mentioned factors. This will help in increasing the organizational performance.
Conclusion
Organization performance is a major factor that is used to forecast the future of a company. According to the above analysis we have identified main areas that indicates performance, factors affect the organizational performance and environments of organizational performance(Bhasin, 2020).
By analyzing the above data, we can conclude the factors that
need to be identified to ensure a proper organizational performance to gain the
market share with competitive advantage over rivals.
References
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This artical is very clear and usefull,the internal and external part is very usefull for every organization keep it up...
ReplyDeleteThank you so much for your feedback! Hope you got an understanding on Organizational performance factors.
DeleteYou have explained the performance of the organization very well here.
ReplyDeleteGlad to see you found this post useful. Thank you for your feedback!
DeleteDue to high competitive environment, it is important to assess the performance of the organizations irrespective of their industry. And analyzing organizational performance is a key element to understanding the current position in the industry and creating the next move toward succession. Well explained the article. Looking forward to seeing more insightful content.
ReplyDeleteDear Nadun Narayana,
DeleteYes Indeed! Fundamental to realizing current status and develop future plans is analyzing the organizational performance. Thank you for sharing your thoughts and will share more in this aspect in the upcoming articles.
The organization itself does not perform any work.but its managers performing their assigned works and in a combination of these performed works is called organization performance.well explained article and get a clear idea.
ReplyDeleteIndeed! It is important to make sure that the managers and employees put their maximum effort in order to achieve organizational goals by increasing performance
DeleteThis article is a very comprehensive overview of organizational performance. It has touched upon many, if not all aspects of the subject and the information that is given is understandable to even individuals without any business background. It's a very informative article that provides all the basic details relevant to organizational performance and hence, this article is recommended to anyone interested in knowing this subject. Good job!!
ReplyDeleteThank you for sharing your valuable feedback
Deletelike you stated Environment has a significant impact on how organizational performance is managed. This aids businesses in evaluating their success or failure.
ReplyDeleteIt's preferable to include some details on how a business can compete in light of these local and international concerns.
Thank you for sharing your thoughts. And will definitely discuss about local and global context
DeleteA very well written article on Organization Behaviour. An effective organization behaviour will decide the future of any organization. I suggest you discuss further on how OB can be used to retain employees.
ReplyDeleteThank you for sharing your thoughts! Will include more regarding that aspect in upcoming articles
DeleteI suggest ' social responsibility of the company ' as a point of measuring the organizational performance.
ReplyDeleteWhat leadership factors need to be reduce to increase organization performance ?
ReplyDeleteLeadership factors like Neglecting others views, forgetting to Prioritize Spiritual, Mental and Physical Health of employees, failing to support others should be minimized in order to achieve good performance levels in any organization
DeleteAccording to your opinion what will be the most affecting factor for organizational performance? Internal or external?
ReplyDeleteThank you for your feedback
ReplyDeleteAs you mentioned in Internal factors, the purpose of the organization is the most important. It is describe the reason that company established on this planet. Impact of that every one know the company goal & what need to be achieved.
ReplyDeleteTotally agree with what you have shared! Every worker should given awareness regarding the goals of the organization.
DeleteThe actual output or results of an organization as compared to its expected outputs make up organizational performance (or goals and objectives). The accomplishment of an organization's goals at the conclusion of a project or program is referred to as organizational performance.
ReplyDeleteAlthough it might seem like a no-brainer to start here, this is actually the most crucial tactic you can do to lower employee churn. If people know that their professions make them happy, they are willing to labor for less money.
ReplyDelete