Organizational Performance
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When it comes to evaluating the performance of an organization, there can be a multitude of factors to consider. One can determine the company's culture by observing its artifacts and ceremonies or by how the organization handles its subcultures (Colquitt et al., 2021). Different companies pride themselves on specific culture types, such as companies that pride themselves on their sustainability might have an ethical stance for recycling and using renewable product sources. There can be advantages and disadvantages to taking a solid view, though.
When it comes to evaluating the performance of an organization, there can be a multitude of factors to consider. One can determine the company's culture by observing its artifacts and ceremonies or by how the organization handles its subcultures (Colquitt et al., 2021). Different companies pride themselves on specific culture types, such as companies that pride themselves on their sustainability might have an ethical stance for recycling and using renewable product sources. There can be advantages and disadvantages to taking a solid view, though.
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For example, Walmart claims to have a strong connection with their associates and present itself as an employer helping the most vulnerable in society. However, with the boldness of that claim, their legitimacy may come under attack if they do not meet their goals (Koca-Helvaci, 2015). Between 2011 and 2013, there were countless violations of workers' rights (2015), and the validity of an organizations’ claims matter if they want to maintain a healthy relationship with their staff and customers.
Key performance indicators (KPI) can be used to gauge your organization's effectiveness. KPIs do not have to be consistent, and developing reasonable KPIs can be the difference between success and failure. Pan, Kuo, and Brethold discuss how KPIs developed using Parasuaraman's gap model perform well because it considers the gap between customers' expectations and their perspectives in five categories (2010).
These categories are tangibles, reliability, responsiveness, assurance, and empathy. This gap model allows management to quickly determine the root of the problem and find a solution to resume optimal production.
References:
Colquitt, J. A., LePine, J. A., & Wesson, M. J. (2021). Organizational behavior: Improving performance and commitment in the workplace (7th ed.). McGraw-Hill.
Koca-Helvaci, Z. C. (2015). Walmart and its employee relations: organizational stance-taking and legitimacy. On the Horizon, 23(4), 374–386. https://doi.org/10.1108/oth-05-2015-0025
Pan, J., Kuo, T., & Bretholt, A. (2010). Developing a new key performance index for measuring service quality. Industrial Management & Data Systems, 110(6), 823–840. https://doi.org/10.1108/0263557101105507
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