Organizations Performance Essay

An organization’s performance is vital for their success and it is important that all employees are on board with making sure the performance is of high quality. It differs from other evaluations within the company because the performance evaluation “focuses on the organization as the primary unit of analysis” (Evaluating the Performance of an Organization, 2012). Within an organization’s performance it helps determine the actual output or end results of an organization against the intended outputs or goals for the organization (

The product market performance is also included in an organizations performance. Some tools can help the organization change or “improve their policies on behalf of greater preparedness for the many futures ahead” (NYUWagner, 2011). Different areas and tools are used to determine the organization’s performance and how well they either are doing or how much improvement the organization needs to bring their performance up. “Organizations are constantly trying to adapt, survive, perform and influence” but that does not always mean they are successful at doing what they do (Evaluating the Performance of an Organization, 2012).

One way that an organization can better their performance is by conducting an organizational assessment to diagnose their current performance to see what is working and what could use a little bit of improvement. This “tool can help organizations obtain useful data on their performance, identify important factors that aid or impede their achievement of results, and situate themselves with respect to competitors” (Evaluating the Performance of an Organization, 2012). The main four tools for organizational performance are effectiveness, efficiency, relevance, and financial viability.

“Effectiveness is the capability of producing a desired result” ( This means that if something is considered to be effective then it has an intended or expected outcome which is what is used in the organizations to determine if what is set in place is working effectively or if additional changes need to be made. There is sufficient reason and means with effectiveness and that is to accomplish a purpose.

Without a purpose there is not an effective meaning behind conducting business or maintaining a successful organization. Effectiveness is a very good tool for organizations and managers to understand and become familiar with to be on the right track for success. Another tool that management should be familiar with and make sure the organization is doing is efficiency. Efficiency is not to be confused with effective even though sometimes they are mixed up and confused. “Efficiency describes the extent to which time, effort or cost is well used for the intended task or purpose” (

Typically efficiency is used with the specific purpose of relaying the capability of a specific application of effort to produce a specific outcome effectively with a minimum amount or quantity of waste, expense, or unnecessary effort (Evaluating the Performance of an Organization, 2012). Relevance is a basic tool but one that can help in the success of an organization. It is “the ability to retrieve material that satisfies the needs of the user” mostly in the terms of an informational retrieval system ( Management need to have relevance in order to be successful because they need to be able to pull the necessary information from production, departments, and other sources to see if what is being produced or utilized is satisfying their requirements or not. For a business to be effective they need to “strive for the best possible economic results from the resources currently employed or available” (Drucker, 1963).

Having an effective business is the key for the business to be able to grow and establish themselves as a company and within the community. Several different techniques are used to allow the business to become effective. One of the keys for successful management “is to examine the marketplace” and focus on the process of management versus the output (Drucker, 1963). When focusing on the process of management it is important for the company to look at strategy, planning and budgeting and understand the difference between each of them yet understand how each one works with each other to make it successful. “Strategy is a high level plan to achieve one or more goals under conditions of uncertainty” ( For a business to be successful they need to implement some sort of strategy.

Strategy is important because it helps to utilize all of the resources that are available or could be available for the project at hand. Most of the time resources are usually limited and in order to achieve the goals that the company has set in place making sure the strategy is set in place will help the process flow more smoothly. “Strategy is also about attaining and maintaining a position of advantage” over the opponents, or competition that is able to have flexibility instead of having to stick to any specific fixed plan. By allowing there to be slight flexibility that allows the company to try to keep an advantage over the competition and stay ahead compared to the other organizations. Planning “is the process of thinking about and organizing the activities required to achieve a desired goal” ( Strategy could be considered the first step and then planning would be the second step in achieving the desired goal for organizational success.

Planning involves the construction and maintenance of a plan. “This thought process is essential to the creation and refinement of a plan” or combination of it with other plans (NYUWagner, 2011). Planning typically combines forecasting of development with the preparation for how the organization should react to these situations. For the organization to remain successful it needs to understand the importance and relationship between planning and forecasting. “Forecasting can be described as predicting what the future will look like” or what the future might hold for the company and “planning predicts what the future should look like” (NYUWagner, 2011). Organizations that do not understand the difference between planning and forecasting will not be as successful as the organizations that do. This is because looking at the numbers of what something might look like and what it should look like are two different ways of planning.

For a business to be successful the need to focus on planning so their predictions are what the future should look like to be successful and stay on the right path. Budgets are also incorporated with strategy and planning, they all intertwine together. “A budget is a quantitative expression of a plan for a defined period of time” ( Several different factors can be associated within a budget such as sales volumes and revenues, resource quantities, costs and expense, assets and liabilities, and even cash flows. The budget “expresses strategic plans of business units, organizations, activities or events in measurable terms” (Evaluating the Performance of an Organization, 2012). For a company to have success in their daily operations they need to make sure the stay on budget and current with all of their projects.

Many organizations create a budget for each plan however they do not follow through with the budget. It is one thing to create a budget for a product and it is another thing to actually follow through with the budget and make sure everyone stays on track. If the company goes over budget then the planning and strategy process were not calculated correctly. Everyone involved within the project needs to be familiar with the strategy, plan and budget aspects to keep the organization successful and continue moving forward instead of always having to back track. It is easy to get off of track or to change the plan in the middle of the project. It is up to the organization and the team responsible for the project to keep the budget that they were assigned. Works Cited

NYCWagner. (2011). Retrieved August 21, 2013, from Evaluating the Performance of an Organization. (2012). Retrieved August 1, 2013, from Business Dictionary. (n.d.). Retrieved July 30, 2013, from Ferrell. (2011). Business Ethics. Houghton Mifflin Harcourt. Kirby. (2012). Accounting Principles. McGraw.

Zain, B. (2011). Strategic Management. Pittsburg: McGraw.

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