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Types of Organizational Performance

Before explaining the types of organizational performance, it’s important to explain what organization is. An Organization is a group of people who come together to achieve a common goal. The set goal can only be achieved through a collective contribution of different talents that manifests in duties or responsibilities by its members.

Common types of organizational performance

  1. Financial or accounting performance: This type of performance Is usually accounting based. E.g return on investment, return on sales, return on equity etc.
  2. Market- Based Performance: Given the criticism with regard to accounting based measures, several authors proposed market-based measures as better overall performance indicators. Market data are assumed to reflect investors estimations of future firm potential and thus focus on the long-term value of the enterprise under the assumption that investors evaluate firms appropriately. The relation of market and accounting based measure is unclear. A number of empirical studies have found both wanting.
  3. Operational Performance: Operational performance measures and can be subcategorized into market share, new product introduction, product/service delivery, marketing effectiveness etc.
  4. Team Leadership: Leadership is the ability of the leader to easily influence and carry the people along to achieve the desired organizational goal. A team leadership quality is very important in the actualization of organizational goals.  For every organization to function effectively, a team leader is a necessity. Leadership is a complex moral relationship between people, based on trust, obligation, commitment, emotion and a shared vision of the good.
  5. Team Spirit: It can be defined as an attitude that makes people work well together. In an organization where people can’t work together as a team, growth is millipedic. When employees work as a team, they work in solidarity and tend to pursue the general interest as designed by the organization and it is geared towards actualization of organization and individual goals.
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BRUCE TUCKMAN THEORY OF TEAM DEVELOPMENT

Still on the types of organizational performance, we would also be explaining the Bruce Tuckman theory of team development.

Tuckman is a psychology professor, who identified 4 stages of development; forming, storming, norming and performing. However, another stage also known as adjourning was later added making it 5 stages that every team experience in performing its job. The effectiveness of a team depends on the team’s arrival at the performing stage.

Following another research, Tuckman developed a fifth stage called “adjourning”. This final sage involves the disengagement of relationships between team members and a short period of recognition for the team’s achievements. Sometimes, concluding the operations of a team is disturbing for members, especially if they have worked together for long periods.

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I am Israel Otoijamun, the Founder of Ofarms.ng. I am a blogger, web and graphics designer, brand manager, product manager and farmer. I have interests in crypto currency, technology, business and agriculture.

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Israel Otoijamun

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