Organizational performance

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Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Organizational performance also the success or fulfilment of organization at end of program or projects as it is intended. 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.).[1] The term Organizational effectiveness[2] 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:

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People involved in research[edit]


  1. ^ Richard, Pierre J.; Devinney, Timothy M.; Yip, George S.; Johnson, Gerry (2009-02-06). "Measuring Organizational Performance: Towards Methodological Best Practice". Journal of Management. SAGE Publications. 35 (3): 718–804. doi:10.1177/0149206308330560. ISSN 0149-2063.
  2. ^ a b c Upadhaya, Bedanand; Munir, Rahat; Blount, Yvette (2014). "Association between performance measurement systems and organisational effectiveness". International Journal of Operations & Production Management. Emerald. 34 (7): 853–875. doi:10.1108/ijopm-02-2013-0091. ISSN 0144-3577.