Organisational Performance

Organisational Performance

Effectiveness How an organisation formulates and achieves its

Objectives ‘Doing the right thing’

Efficiency How well you use your resources (inputs) to meet

your Objectives Getting the lowest possible costs Using the minimum quantities ‘Doing things right’

Performance Dimensions

Used to evaluate the performance of management

Is management action effective?

Is management action efficient?

Describe how so.

Performance Dimensions

Provide precise and measureable data to evaluate performance and improvement. Must be precise

You don’t want fluffy data Must be measureable

If you can graph it, it’s great data Must relate to strategies and objectives of the

organisation

Performance Indicators

Profit or loss Market share Return on Investment (ROI) Level of Wastage Rate of injuries/workplace accidents Growth in productivity Expenditure on environmental improvement Results of a survey

Performance IndicatorsExamples

Performance Area Performance Indicator

Explanation

Competiveness Market Share The LSO with the highest market share may outperform competitors

Profitability Net Profit Comparing profit between years shows whether the LSO has improved its earning performance

Productivity Rate of productivity growth

A high level of productivity growth may indicate the company is performing more efficiently and effectively

Customer Satisfaction

Results of a customer satisfaction survey

A high level of positive survey results can indicate the LSO is performing well

Performance Indicators

Performance Area Performance Indicator

Explanation

Workplace Accidents Accident Data A large number of accidents may indicate the LSO’s processes need revising

Staff Satisfaction Level of Staff Turnover High staff turnover may indicate the LSO is not a place where staff wish to work, or is not performing efficiently

Quality Number of customer complaints

Number of Sales

A high number of customer complaints may indicate the quality of the company’s product or service is low

A large number of sales may indicate customers are happy with the quality of the product or service

Efficiency Level of Wastage A high level of wastage may indicate the LSO is not operating as efficiently as it could

Performance Indicators

Firstly, to evaluate our performance To Benchmark:

the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries.

To seek out the international benchmark or Best Practice A method or technique that has consistently

shown results superior to those achieved with other means, and is used as a benchmark, best in class or leading practice

Performance IndicatorsWhy do we have PIs?

Can be expressed as financial or non-financial data

Apply to; Entire organisation Departments Teams Individuals

Employees should be involved in the creation of PIs Develops teamwork and motivation

‘They own it’

Performance Indicators

Specific and measureable

IMPORTANT!!!!

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Give a specific example!!!!!!!

Complete Test Yourself and do your Glossary Complete the Matching Worksheet

Activities