Alternative Conceptualizations of Organizational Performance
By Rosalyn Sandoval, PhD, Equity & Entrepreneurship Consultant
Organizational performance is a hot topic, and rightly so. Suppose an organization can't perform at an adequate level. In that case, they risk negative repercussions, failure, and possibly the firm's death. Often, performance is measured in terms of revenue. Although recently, there has been a call for organizations to consider nonfinancial performance measures in the form of others' well-being.
Below, I want you to consider four alternative organizational performance measures and one practical application that can be implemented to help improve these performance measures. Each of these measures can vastly influence the overall organization's well-being and survival:
Employee Well-being: Establish a culture that promotes employee flexibility, autonomy, and health and provides a supportive and caring work environment by providing flexible work policies, informal learning opportunities, and incorporating employees in crucial decisions.
Customer Well-being: Establish quality employees that can help respond to customer and market needs. Customers are more likely to feel their needs are met and their concerns are heard when organizations have a quality product or service, pursue a customer loyalty strategy, and respond enthusiastically to customers.
Supplier Well-being: The most critical component of buyer-supplier relationships is communication between parties. Buying firms should make every effort to engage their suppliers in outlining the goals for both parties in the relationship as early as possible.
Local Community Well-being: Organizations can promote healthy practices within the community that allows relationships to develop and strengthen, build on community sustainability and goal attainment, and guide appropriate handling of conflicts and disputes through community leadership and consideration.
Rosalyn@work4changellc.com
