Organisation Performance

The term ‘organisational performance’ is used comfortably in three

time- senses - the past, present, and the future. In other words,
performance can refer to something completed, or something
happening now, or activities that prepares for new needs.

Profitability, for example, is often regarded as the ultimate performance

indicator, but it is not the actual performance. The actual performance
occurred some time back - first with decisions and then the actions that
followed the decisions. Profit is therefore an indicator of previous
performance. In this sense, performance is the outcome or ‘end’.

If you are also interested in current behaviours that are associated

with good or high performance, then you must identify and assess them
as they occur. These behaviours start with the strategic planning
process and continue into implementation, monitoring and
assessment. In this sense, performance is the ‘activity’ or ‘means’.

Organisations are also interested in predictors of performance -

conditions and behaviours that have been shown over time to lead to
better performance. In this sense, performance is a package of
behaviours around strategic planning and programming.

In other words, organisational performance is a complex topic that is

not addressed by the annual financial report.

INTRODUCTION

Ministry of Health and Family Welfare is charged with health policy in India. It is also responsible for
all government programs relating to family planning in India.

The Minister of Health and Family Welfare holds cabinet rank as a member of the Council of Ministers.
The current minister is Shri. Ghulam Nabi Azad who is assisted by Ministers of State for Health and
Family Welfare, Shri. Dinesh Trivedi & Shri. S. Gandhiselvan.

The ministry is composed of two departments: the Department of Health and Family Welfare and
Department of AYUSH (Ayurveda, Yoga, Unani, Siddha and Homoepathy). It regularly publishes the
Indian Pharmacopoeia since 1955 through Indian Pharmacopoeia Commission (IPC) an autonomous
body under the ministry for setting of standards for drugs, pharmaceuticals and healthcare devices
and technologies in India

Title: Customer orientation and performance: a study of SMEs

Author(s): Kwaku Appiah-Adu, (Business Management Department, Portsmouth Business
School, Southsea, UK), Satyendra Singh, (Business Management Department,
Southampton Business School, Southampton, UK)
Citation: Kwaku Appiah-Adu, Satyendra Singh, (1998) "Customer orientation and performance:
a study of SMEs", Management Decision, Vol. 36 Iss: 6, pp.385 - 394
Keywords: Competitive advantage, Customer orientation, Customer-oriented performance
 measures, Innovation, Managers, Small- to medium-sized enterprises
Article
Research paper
type:
DOI: 10.1108/00251749810223592 (Permanent URL)
Publisher: MCB UP Ltd
Abstract: This study examined the customer orientation - performance link in small- and
medium-sized businesses and tested for the possible effects of innovation orientation,
market dynamism and competitive intensity on the degree of customer orientation
among these firms. Specific performance measures used were new product success,
sales growth and return on investment (ROI). Based on constructs of these measures,
a research scale was developed for the study and data were collected via a self-
administered mail survey among a UK samples of small- and medium-sized
enterprises (SMEs). The results show a positive effect of customer orientation on SME
performance. There are also findings on the varied influences of innovation orientation
and the competitive environment on the levels of SME customer orientation. In the
light of existing literature, implications of our findings for SME managers, the study’s
limitations and future research directions are subsequently addressed.

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 • Dev to organizations, too, and includes recurring Innovation
elop activities to establish organizational goals, Crisis Management
ed by monitor progress toward the goals, and Customer
Satisfaction
Authent make adjustments to achieve those goals Customer Service
more effectively and efficiently. Those
icity Decision Making
recurring activities are much of what leaders Delegation
Consulti
and managers inherently do in their E-Commerce
ng, LLC
organizations -- some do them far better Employee
than others. Performance
Employee Wellness
Entrepreneurship
It's useful to think of organizational change
Ethics/Social
in the context of organizational performance,
Respons.
rather than change for the sake of change, Evaluations (all
so the topic of Organizational Change will be kinds)
useful, as well. Facilitation
Facilities
Sections of This Topic Include the Management
Finances (For-
Organizationa Following Profit)
l Performance Finances
Management Suggested Previous Readings (Nonprofit)
Identifying What to Improve in Organizations Fundraising (For-
-- Using Organizational Assessments Profit)
Fundraising
---Organizational Assessments (For-Profit)
(Nonprofit)
---Organizational Assessments (Nonprofit)
Group Performance
Interpreting Results of Assessments -- Group/Team Skills
Diagnostic Models Growing
Systematic Methods to Address Results -- Organizations
Organizational Performance Management Guiding Skills
Systems Hiring Employees
Managing Change While Implementing Human Resources
Insurance
Methods -- Managing Organizational Change
(Business)
Interpersonal Skills
Also see Interviewing (all
Related Library Topics kinds)
Leadership
Also See the Library's Blogs (Overview)
Leadership
Related to this Topic Development
Learning and
In addition to the articles on this current Development
page, also see the following blogs that have Legal Information
posts related to this topic. Scan down the Management
blog's page to see various posts. Also see (Overview)
Management
the section "Recent Blog Posts" in the
Development
sidebar of the blog or click on "next" near Marketing
the bottom of a post in the blog. The blog Meeting
also links to numerous free related Management
resources. Mentoring
Motivating Self &
Library's Consulting and Organizational Others
Development Blog Operations
Management
 Organization Dev.
Library's Human Resources Blog (Field)
Organizational
Library's Leadership Blog
Alliances
Library's Project Management Blog
Organizational
Change
Organizational
Commun's
Suggested Previous Reading Organizational
Performance
Organizational
Before undertaking activities to improve an
Sustainability
organization, it's best to have a basic Organizations
understanding of what an organization is. (Overview)
Organizing
Performance Management: An Overview Performance
(basic concepts in performance Mgmnt (basics)
management) Personal
Introduction to Organizations (defines Development
Personal
organizations, their basic parts, dimensions,
Productivity
life cycles, etc.) Personal Wellness
Cleaning Up the Language Regarding Planning (many
Organizational Change and Development kinds)
Organizational Sustainability Policies (Personnel)
Problem
Identifying What to Improve in Solving/Decisions
Product
Organizations -- Using Development
Organizational Assessments Project
Management
Program
When seeking to improve the performance of
Management
an organization, it's very helpful to regularly Public/Media
conduct assessments of the current Relations
performance of the organization. Quality
Assessments might be planned, systematic Management
and explicit (these often are the best kinds Research Methods
of assessments) or unplanned and implicit. Risk Management
Well-done assessments typically use tools, Sales
Social Enterprise
such as comprehensive questionnaires,
Social
SWOT analyses, diagnostic models (we often Networking/Media
use these models without recognizing or Spirituality in Work
referring to them as such), etc., along with Staffing
comparison of results to various "best Start a Business
practices" or industry standards. The Start a Nonprofit
following tools might be useful to you. Strategic Planning
Stress Management
Supervision
Organizational Assessments (Overview)
(For-Profits) Supervisoral
Development
Selecting from Among Publicly Available Sustainable
Development
Assessments
Systems Thinking
Talent Management
Read more about online tools that include Taxation
 Team Building
suggested "best practices" against which to Time Management
Training &
compare results of your assessment.
Development
Minimizing Bias in Organizational Surveys:
Volunteers
Guidance for the Practical Researcher Work-Life Balance
Organizational Health Survey Writing (Business)
Founder's Syndrome -- How Organizations
Suffer -- and Can Recover • Index
About Conducting Culture Assessments
• Assessme
The following links are to additional
nts
assessments, and include information about Free Trainings
what should really be measured -- • For-profit
performance. eMBA
A Study of New Zealand Business Practices • Nonprofit
and Performance
eMBA
The Balanced Scorecard and the Small
Business General
Small Business Owner/Operator Competency Resources
Guidelines • Org's That
Competencies and managerial effectiveness: Help
putting competencies to work • Free
Trainings
Organizational Assessments • Join Peer
(Nonprofits) Group
Selecting from Among Publicly Available
• Online
Assessments Groups
• Supersites
1. United Way Management • Blog
Indicators List Directory
(This is a comprehensive, behaviors-
• Periodicals
based tool that also includes a
suggested "best-practices" standard, • Reference
as well.) Mat'ls
Go to • Job Banks
http://www.managementhelp.org/org
_eval/uw_list.htm
(There are online, modified versions
of this tool available here.)
2. Drucker Five-Question Self-
Assessment Tool
(Guru, Peter Drucker, suggests five,
overall, primary questions that must
be answered about any organization.
There is a detailed workbook that can
be bought in order to guide the
reader to answer the questions. For
now, you might consider the five key
questions.)
 3. Minnesota Council of Nonprofits
"Principles and Practices"
(This is widely recognize,
comprehensive, principles-based
assessment tool that suggests
principles for effectiveness in many of
the major functions in nonprofits.)
4. Maryland Association of
Nonprofit Organizations
"Standards of Excellence"
(This is a widely recognized,
principles-based assessment tool that
suggests principles for effectiveness
in many of the major functions in
nonprofits.)
5. Assessment for Start-Up
Organizations
From LaPiana Associates, this
6. Fieldstone's Nonprofit Life-
Stage Assessment
(Includes descriptions of the various
life cycles of nonprofits, and
associates recommendations ("best
practices"?) to address each)

Also see:

Capacity Building (nonprofits)

Outcomes-Based Evaluation
Program Evaluation
Designing Assessment and Evaluation Tools
One Organizational Diagnostic Model (depicts
system and subsystems, and which causes
issues in others)
About Conducting Culture Assessments

SWOT Analysis (looking at

strengths, weaknesses,
opportunities and
threats)

Looking at Strength's, Weaknesses,

Opportunities and Threats (SWOT)

Interpreting Results of
Assessments --
Organizational Diagnostic
Models
Once you've conducted assessments of your
organization, whether explicitly or implicitly,
it helps to have some basis by which to
analyze the results. Diagnostic models can
provide that basis. There are differing
opinions about diagnostic models. Some
people suggest that these models should
come without bias or suggested solutions,
and should be used to accomplish an
objective, unfolding understanding of
organizations. Others believe that models
should suggest:
1. What types of practices should be
occurring in the organization.
2. The order in which those practices should
be occurring.
3. Standards of performance for various
domains, such as individual positions, teams,
projects, processes, functions, programs and
the organization.
Thus, a diagnostic model can be useful in an
organizational change effort to:
1. Analyze results of data collection.
2. Identify issues that should be addressed
by the organizational change effort.
3. Suggest what actions should be taken to
address the issues.
4. Evaluate the success of the organizational
change effort.
There are numerous organizational
diagnostic models available, depending on
one's beliefs on what the roles of the models
should be. Below are two examples. (NOTE:
Many of the systems mentioned later on
below can be used as diagnostic tools.)
A Diagnostic Model for For-Profit
Organizations
A Diagnostic Model for Nonprofit
Organizations
Do You Have a Venture Value Scorecard? |
Hot Sauce!

Maximum Performance -- Different Things to

Different People
Methods of Strategic / Organizational
Analysis

Systematic Methods to
 Address Results --
Organizational Performance
Management Systems

There are numerous, major methods and

movements to regularly increase the
performance of organizations. Each includes
regular recurring activities to establish
organizational goals, monitor progress
toward the goals, and make adjustments to
achieve those goals more effectively and
efficiently. Typically, these become
integrated into the overall recurring
management systems in the organization (as
opposed to being used primarily in one-time
projects for change -- see Organizational
Change and Development to Improve
Performance later on below).

Any or all of the following approaches will

improve organizational performance
depending on if they are implemented
comprehensively and remain focused on
organizational results. Some of the following,
e.g., organizational learning and knowledge
management, might be interpreted more as
movements than organization performance
strategies because there are wide
interpretations of the concepts, not all of
which include focusing on achieving top-level
organizational results. However, if these two
concepts are instilled across the organization
and focus on organizational results, they
contribute strongly to organizational
performance. On the other hand, the
Balanced Scorecard, which is deliberately
designed to be comprehensive and focused
on organizational results, will not improve
performance if not implemented from a
strong design.

The following descriptions are general and

brief. Follow the link to get more information
about each of the approaches.

NOTE: There certainly are other approaches

than those listed below for a planned,
comprehensive approach to increasing
organizational performance. It may very well
be that the vast majority of approaches used
in organizations are highly customized to the
nature of the organizations, and therefore
not publicized or formalized in management
literature.

Balanced Scorecard: Focuses on four

indicators, including customer perspective,
internal-business processes, learning and
growth and financials, to monitor progress
toward organization's strategic goals

Benchmarking: Using standard

measurements in a service or industry for
comparison to other organizations in order to
gain perspective on organizational
performance. For example, there are
emerging standard benchmarks for
universities, hospitals, etc. In and of itself,
this is not an overall comprehensive process
assured to improve performance, rather the
results from benchmark comparisons can be
used in more overall processes.
Benchmarking is often perceived as a quality
initiative.

Business Process Reengineering: Aims to

increase performance by radically re-
designing the organization's structures and
processes, including by starting over from
the ground up.

Continuous Improvement: Focuses on

improving customer satisfaction through
continuous and incremental improvements to
processes, including by removing
unnecessary activities and variations.
Continuous improvement is often perceived
as a quality initiative.

Cultural Change: Cultural change is a form of

organizational transformation, that is, radical
and fundamental form of change. Cultural
change involves changing the basic values,
norms, beliefs, etc., among members of the
organization.

ISO9000: Is an internationally recognized

standard of quality, and includes guidelines
to accomplish the ISO9000 standard.
Organizations can be optionally audited to
 earn ISO9000 certification. Another major
quality standard is the Baldridge Award.
ISO9000 is a quality initiative.

Knowledge Management: Focuses on

collection and management of critical
knowledge in an organization to increase its
capacity for achieving results. Knowledge
management often includes extensive use of
computer technology. In and of itself, this is
not an overall comprehensive process
assured to improve performance. Its
effectiveness toward reaching overall results
for the organization depends on how well the
enhanced, critical knowledge is applied in the
organization.

Learning Organization: Focuses on

enhancing organizations systems (including
people) to increase an organization's
capacity for performance. Includes extensive
use of principles of systems theory. In and of
itself, this is not an overall comprehensive
process assured to improve performance. Its
effectiveness toward reaching overall results
for the organization depends on how well the
enhanced ability to learn is applied in the
organization.

Management by Objectives (MBO): Aims to

align goals and subordinate objectives
throughout the organization. Ideally,
employees get strong input to identifying
their objectives, time lines for completion,
etc. Includes ongoing tracking and feedback
in process to reach objectives. MBO's are
often perceived as a form of planning.

Outcome-Based Evaluation (particularly for

nonprofits): Outcomes-based evaluation is
increasingly used, particularly by nonprofit
organizations, to assess the impact of their
services and products on their target
communities. The process includes
identifying preferred outcomes to accomplish
with a certain target market, associate
indicators as measures for each of those
outcomes and then carry out the measures
to assess the extent of outcomes reached.
 Program Evaluation: Program evaluation is
used for a wide variety of applications, e.g.,
to increase efficiencies of program processes
and thereby cut costs, to assess if program
goals were reached or not, to quality
programs for accreditation, etc.

Strategic Planning: Organization-wide

process to identify strategic direction,
including vision, mission, values and overall
goals. Direction is pursued by implementing
associated action plans, including multi-level
goals, objectives, time lines and
responsibilities. Strategic planning is, of
course, a form of planning.

Total Quality Management (TQM): Set of

management practices throughout the
organization to ensure the organization
consistently meets or exceeds customer
requirements. Strong focus on process
measurement and controls as means of
continuous improvement. TQM is a quality
initiative.

NOTE: There are various other approaches

that, if used comprehensively with strong
focus on achieving organizational results,
can be used to increase organizational
performance, e.g., Statistical Process
Control, Quality Circles, best practices, etc.

Managing Change While

Implementing Methods --
Managing Organizational
Change

This Library topic of organizational

performance management gives you a
concise overview of the approaches used by
leaders and managers to regularly improve
the performance of organizations. However,
if you want to learn about the approaches
used in one-time projects to address issues
in organizations, including by accomplishing
significant and successful change in
organizations, see the following topic:
Organizational Change and Development
 Learn More in the Library's
Consulting and Org. Dev.
Blog

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very useful blog hosted by an expert in
consulting and organizational development
who writes an article two times a week,
including from guest writers. The blog also
links to 100s of free resources related to
consulting and organizational development.
Read more about consulting and
organizational development, share an article
or opinion, or ask a question in the
Library's Consulting and Organizational
Development Blog!

For the Category of

Organizational Development:

To round out your knowledge of this Library

topic, you may want to review some related
topics, available from the link below. Each of
the related topics includes free, online
resources.

Also, scan the Recommended Books listed

below. They have been selected for their
relevance and highly practical nature.

Related Library Topics

Recommended Books

Managing Organizational Change

Growing Your Organization

Managing Organizational
 Change

Field Guide to
Consulting and Organizational
Development
by Carter McNamara, published
by Authenticity Consulting, LLC.
Provides complete, step-by-step
guidelines to identify complex issues
in for-profit or government
organizations and successfully resolve
each of them. This book is also
helpful to organizations that are doing
fine now, but want to evolve to the
next level of performance. This is one
of the truly comprehensive, yet
practical, books about this complex
subject! Includes online forms that
can be downloaded. Many materials
in this Library's topic about guiding
change are adapted from this
comprehensive book.

Field Guide to
Consulting and Organizational
 Development With Nonprofits
by Carter McNamara, published
by Authenticity Consulting, LLC.
Provides complete, step-by-step
guidelines to identify complex issues
in nonprofit organizations and
successfully resolve each of them.
This book is also helpful to
organizations that are doing fine now,
but want to evolve to the next level of
performance. This is one of the truly
comprehensive, yet practical, books
about this complex subject! Includes
online forms that can be downloaded.
Many materials in this Library's topic
about guiding change are adapted
from this comprehensive book.

The following books are recommended

because of their highly practical nature and
often because they include a wide range of
information about this Library topic. To get
more information about each book, just click
on the image of the book. Also, a "bubble" of
information might be displayed. You can click
on the title of the book in that bubble to get
more information, too.

Growing Your Organization

The following books are recommended

because of their highly practical nature and
often because they include a wide range of
information about this Library topic. To get
more information about each book, just click
on the image of the book. Also, a "bubble" of
information might be displayed. You can click
on the title of the book in that bubble to get
more information, too.

Also See for For-Profits

Strategic Planning --
Recommended Books

Business Development --
 Recommended books

Financing Your Business --

Recommended Books

Product Development --
Recommended books

Planning and Project

Management --
Recommended Books

Also See for Nonprofits

Strategic Planning --
Recommended Books

Social Entrepreneurship
(Nonprofit) --
Recommended Books

Capacity Building
(Nonprofit) --
Recommended Books

Fundraising --
Recommended Books

Program Management --
Recommended Books

Planning and Project

Management --
Recommended Books

Capacity Building
(Nonprofit) --
Recommended Books

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