Lesson 8 - Organizational performance

Question 1

What does performance look like?

Answer 1

• Resources must be well utilized and customers well served

Question 2

What is value creation?

Answer 2

• When organizations resources are utilized in the right way at the right time and at minimum cost they create high quality goods/services for customers
• Value creation leads to PROFIT

Question 3

What are ways to measure performance?

Answer 3

1. Customers
2. Employees

Question 4

How can customers be used to measure performance?

Answer 4

• Customer satisfaction
• Loyalty
• Market share

Question 5

How are employees used to measure performance?

Answer 5

• Retention
• Career development
• Job satisfaction

Question 6

What is productivity?

Answer 6

• Quantity and quality of work performance can be measured at individual, group and organizational level

Question 7

What is performance effectiveness?

Answer 7

• The measure of task output or goal accomplishment
• Ex. Computer firm meets the daily requirements for quality and quantity of keyboards assembled

Question 8

What is performance efficiency?

Answer 8

• Measure of resource cost associated with goal accomplishment
• Ex. Cost of labour, equipment utilization, facilities maintenance, returns on capital investment
• If you make too few items or make a lot of mistakes = inefficient work = increased cost

Question 9

What does poor resource utilization and low goal attainment result in?

Answer 9

• Neither effective nor efficient
• Goals not achieved
• Resources wasted

Question 10

What does poor resource utilization and high goal attainment result in?

Answer 10

• Effective but not efficient
• Goals achieved
• Resources wasted

Question 11

What does good resource utilization and low goal attainment result in?

Answer 11

• Efficient but not effective
• No wasted resources
• Goals not achieved

Question 12

What does good resource utilization and high goal attainment result in?

Answer 12

• Effective and efficient
• Goals achieved
• No wasted resources
• High productivity

Question 13

How is accountability used in managerial performance?

Answer 13

• The requirement to show performance results to a supervisor
• Many things can be measured/ assessed
• Effective managers help others to achieve high performance outcomes and experience satisfaction in their work
• Dual concern- high performance does not always equal high satisfaction

Question 14

How is managerial performance assessed?

Answer 14

• Accountability
• Quality of work life (QWL)
• Total quality management (TQM)

Question 15

How is QWL assessed in managerial performance?

Answer 15

• Overall quality of human experience in the workplace
• High QWL means true respect for others in the workplace
• Ex. Fair pay, safe working conditions, protection of rights

Question 16

How is TQM assessed in managerial performance?

Answer 16

• Managing with commitment to continuous improvement, product quality, and customer satisfaction