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Organizational performance refers to the original results or output of any organization that is measured against the targeted objectives and goals.

Many specialists in different fields are concerned about organizational performances such as operation managers, strategic planners, legal advisors, finance directors, and entrepreneurs.

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What is Organizational Performance?

Organizational performance has three areas such as the following:

  1. Financial performance such as profits, return on asset, return on investments, and others.
  2. Return of shareholders such as total shareholder return and the economic value added,
  3. Product market performance such as market shares, sales, etc.

Many organizations these days have tried to manage organizational performance with a balanced scorecard methodology wherein organizational performance is tracked as well as measured in several dimensions including financial performances, social responsibility, customer services, and employee stewardship.

The managers of an organization performs their respective jobs which are collectively referred to as organizational performance.

What are the Factors of Organizational Performance?

Different organizations differ based on many factors that are based on the objectives of the organization as well as the strategies chosen for their achievement. The factors that determine the aims, activities and structure of an organization might be grouped under the following that is discussed in our Organizational Performance assignment help.

  1. External factors: These are the factors that develop from the environments that are not under an organization’s control but that affect the development and structure. These include political factors, socio-economic factors, and economic factors.
  2. Internal factors: These are the organizational factors such as the organizational instruments and the objective of an organization.
  3. Individual factors: These are individual or joint decisions regarding expected benefits and costs.


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How to Measure Organizational Performance?

The measures are discussed in our Organizational Performance essay assignment help:

  • Profit: To measure profit, organizations use the traditional method, return on assets. Return on assets measures the operating efficiency and reflects the long-term financial strength of an organization.
  • Productivity: Though it is related to profit, some compute the employees’ productivity. Productivity is the revenue divided by the number of employees.
  • Market and sales share: Sales are used often to judge the performance of an organization. Many sales variants are used to computer organizational performance.
  • Customer service: Customer service is an objective measurement of work performance. Customer service is rated favourably when employees are trusted by the management.
  • Financial performance: Some researchers use a measure that combines the advantages of objective indices along with subjective indices.
  • Goals achievement: To know the performance of an organization, some evaluate the extent to which an organization has met its goals. An organization shall satisfy its goals when the employees are communicated about errors, they are collaborated for resolving errors and implement practices that can detect as well as manage errors.
  • Holistic measures: Consultancies measure workplace performance using tools, which can assess all the domains of an organization.

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