Four Indicators That Measure Performance of Organization

Have you ever been to a firing range and shot fires at the target? If yes, you already know what the performance of organization is. You aim at the central target of your Organization and the bulls’ eye. The key thing here to understand is how you shot the gunfire. The most important aspect is assessing whether you’re high, low, too far left, or too far right on your performance. Businesses also assess whether they are on the right track, on not through this aspect. The question is how can organizations measure their performance. Thus, today’s article is all about this topic. It will enlist four indicators that measure the performance of Organizations. But let’s define the term Organizational performance first.

What is Organizational Performance?

Measuring the performance of organization refers to how well an organization is doing to reach its target. Undoubtedly, every company has a vision, goals, and missions. Every company is trying to achieve those goals, and complete its mission. While companies perform, they also need to check whether they’re going in the right direction, or not. It is measuring the performance of Organization.


Organizational performance holds immense importance. It means a lot to companies as their progress in the market depends on their performance. This aspect measures how well a company is achieving its strategic plans. If the companies don’t measure their performance and keep working in the old fashion, they will be doomed in the end. Thus, businesses should not neglect the importance of measuring performance of organization.

Measuring the Performance

Every Organization follows a model for measuring its performance. Yet it is evident that every company doesn’t have the same goals. The goals will be different, and therefore, the models will be different as well. Different companies also use varied perspectives. Common perspectives of measuring the performance are as follows;

  • How efficiently an Organization meets its goals.
  • The efficiency regarding operations of the business.
  • How well an Organization meets the needs of its shareholders.
  • How effectively an Organization uses its resources.

These are some of the perspectives used in terms of measuring Organizational performance. Top business dissertation writers have listed down those perspectives in the detail.

Indicators of Performance

The indicators don’t depend on these perspectives. This is because they can give an overall measurement of the performance of organization. What are those indicators? In this section, we will only discuss those indicators. A brief description of these four key indicators is as follows;

Workforce Performance and Productivity

Workforce is the basic unit of any Organization. The people make companies effective performers within the market. It is evident that the company owner won’t come to work in the company. It will be the staff he has hired. Thus, most of the performance of organization depends on the loyalty of its employees in accordance with the Organizational goals. If the employees come and go without giving their best to the Organization, it will eventually fail to reach its goals.

Each business unit has to work for betterment of the company. The company will flourish, and enjoy great benefits if its workforce is productive. The crew of the marketing unit should go out daily, and sell their products/services to the customers. This is how companies can reach new heights within this context. Thus, measuring workforce productivity is a good indicator of Organizational performance in general.

Performance vs Strategy

Strategies of a company play a significant role in their performance. On a larger picture, it is the strategies that are responsible for a company’s growth. Good managers make everlasting strategies, and bring betterment to the Organization as well. Strategies must be devised keeping in view the goals, and mission of the Organization. Plans based on achieving short term goals can’t bring growth either. Therefore, the strategies are also an excellent indicator for measuring the performance of organization.

System of the company must be planned for managing the following aspects;

  • Stay Competitive: Modern time is the era of competition. This is because every company strives to surpass its competitor. Therefore, strategies must be made for staying ahead in the competition.
  • Meet the Demands: Customer demands are constantly changing with the changing world. An effective strategy helps businesses in meeting those demands. It increases customer value, and also measures the performance of a company. If the customers are loyal, a company is performing well enough. Otherwise, the situation is different.
  • Adopt the Changes: Another important thing is to keep pace with changing market trends. The world is changing rapidly, and constantly. And an Organization’s capacity of adopting those changes also measures its performance.

Tools and Technology

Measuring the performance of organization without taking technology into account is a foolish act. This is because the world is transforming digitally. Digital capabilities are a prerequisite for the success of Organizations. And without the right tools, a company can’t compete with its competitors. So providing modern tools to the workforce increases productivity of the crew as a result.

For example, a competitor company has provided brand new Apple laptops to its employees. Everyone knows that Apple laptops limit harmful blue rays. So that company’s workforce will be more productive than yours. Thus having modern tools and technology provides a better measurement regarding performance of organization.

Financial Performance Index

Money matters a lot. In my view, financial capabilities of a company are the most excellent way of measuring Organizational performance. Companies’ annual, or quarter statement gives a clear picture of the overall performance. They tell the readers, or customers whether the company is gaining profit, or is at a loss. If the company is in a good situation, it is performing well. Otherwise, manager, or upper body of the company has to think about the new strategies.

Apple is the most profitable company in the world. It also measures the performance of organization. Apparently, they don’t need to measure this aspect because everyone loves Apple devices. Still, they measure it for knowing about the customers’ demands, and other things.


Measuring the performance of organization is crucial in today’s rapidly changing world. This is because it tells the managers, and upper bodies about customers’ needs and time. The Organizations devise plans according to those demands, and try to perform better. There are some other indicators too. You can look for them on the internet.

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