Measuring Organizational Performance: Towards Methodological Best Practice

Abstract

Organizational performance is one of the most important constructs in management research. Reviewing past studies reveals a multidimensional conceptualization of organizational performance related predominately to stakeholders, heterogeneous product market circumstances, and time. A review of the operationalization of performance highlights the limited effectiveness of commonly accepted measurement practices in tapping this multidimensionality. Addressing these findings requires researchers to (a) possess a strong theoretical rationale on the nature of performance (i.e., theory establishing which measures are appropriate to the research context) and (b) rely on strong theory as to the nature of measures (i.e., theory establishing which measures should be combined and the method for doing so). All management research on performance should explicitly address these two requirements. The authors conclude with a call for research that examines triangulation using multiple measures, longitudinal data and alternative methodological formulations as methods of appropriately aligning research contexts with the measurement of organizational performance.

The Relationship between HR Competencies and Organizational Performance in the Banking Sector in Nigeria

“…This part of the instrument is an adaptation from studies previously done by Richard et al, (2009) and Bourne and Franco-Santos (2010) on the measurement of organizational performance. Organizational performance is measured by self-report rating of the participants regarding the pointers of financial and operational performance, sustenance of profits, and employee turnover and growth prospect for staff.…”

Toward a Sustainable Community-based Enterprise: Organizational Architecture and Performance

“…Despite the importance of performance to judge if an organization is successful (or failed) to achieve its intended goals (Richard, Devinney, Yip, & Johnson, 2009), defining, conceptualizing, and measuring performance has not been easy and without controversy among researchers (Abu-Jarad, Yusof, & Nikbin, 2010;Venkatraman & Ramanujam, 1986). Based on two crucial questions what to measure and how to measure (Dess & Robinson, 1984;Kanter & Brinkerhoff, 1981), the author develops customized performance criteria that reflect the multiplicity of CBE-goals, i.e.…”

Influências Não Lineares Da Indústria No Desempenho Da Firma

“…raciocínio dos autores culmina no fato de que a estratégia se preocupa com a sobrevivência da firma dentro do seu ambiente e que isso requer modelos mais complexos para a sua gestão. Richard et al (2009) (Brito & Brito, 2012). O valor apropriado pela firma é a parte dedicada ao lucro e à rentabilidade propriamente, pois se aloca no intervalo entre preço e custo.…”