Organizational Performance

Organizational Performance

Organizational performance: Organizational performance means the accumulated result of the whole organization of the performance of all employees depends on internal and innovative factors. It means the actual output or results of an organization measured against its intended outputs. Organizations vary according to the relative influence of a number of factors related to both the objective of the organization and the instruments and strategies chosen to achieve them.

It is an analysis of a company’s performance as compared to goals and objectives. Within corporate organizations, there are three primary outcomes analyzed: financial performance, market performance and shareholder value performance (in some cases, production capacity performance may be analyzed).

According to Richard 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.).