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
- Financial or accounting performance: This type of performance Is usually accounting based. E.g return on investment, return on sales, return on equity etc.
- 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.
- Operational Performance: Operational performance measures and can be subcategorized into market share, new product introduction, product/service delivery, marketing effectiveness etc.
- 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.
- 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.
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.