Ma Chapter 20 CONTROLLING ROB B I N S COULTER FOR ORGANIZATIONAL PERFORMANCE ©Prentice Hall,2002 20-1
Chapter 20 CONTROLLING FOR ORGANIZATIONAL PERFORMANCE © Prentice Hall, 2002 20-1
Learning Objectives You should learn to: Define organizational performance Explain why measuring organizational performance is important Describe the different organizational performance measures Identify financial control tools used to monitor and measure organizational performance Explain how a management information system can be used as a tool for monitoring and measuring organizational performance ©Prentice Hall,2002 20-2
Learning Objectives You should learn to: – Define organizational performance – Explain why measuring organizational performance is important – Describe the different organizational performance measures – Identify financial control tools used to monitor and measure organizational performance – Explain how a management information system can be used as a tool for monitoring and measuring organizational performance © Prentice Hall, 2002 20-2
Learning Objectives (cont.) You should learn to: -Describe the balanced scorecard approach to monitoring and measuring organizational performance Tell how benchmarking of best practices can be used for monitoring and measuring organizational performance Discuss the manager's role in helping organizations achieve a high level of performance ©Prentice Hall,2002 20-3
Learning Objectives (cont.) You should learn to: – Describe the balanced scorecard approach to monitoring and measuring organizational performance – Tell how benchmarking of best practices can be used for monitoring and measuring organizational performance – Discuss the manager’s role in helping organizations achieve a high level of performance © Prentice Hall, 2002 20-3
Organizational Performance What is Organizational Performance? performance-the end result of an activity organizational performance accumulated end results of all the organization's work processes and activities Why is Measuring Organizational Performance Important? managers need to understand the factors that contribute to high organizational performance Better Asset Management asset munagement process of acquiring,managing,renewing. and disposing of assets design business models to take advantage of assets ©Prentice Hall,2002 20-4
Organizational Performance What is Organizational Performance? – performance - the end result of an activity – organizational performance - accumulated end results of all the organization’s work processes and activities Why is Measuring Organizational Performance Important? – managers need to understand the factors that contribute to high organizational performance – Better Asset Management • asset management - process of acquiring, managing, renewing, and disposing of assets – design business models to take advantage of assets © Prentice Hall, 2002 20-4
Organizational Performance (cont.) Why is Measuring Organizational Performance Important?(cont.) Increased Ability to Provide Customer Value-must monitor value obtained by customers customers will seek other sources of supply if value is not obtained Impact on Organizationall Reputation strong reputation leads to greater consumer trust and ability to command premium pricing Improved Measures of Organizational Knowledge organizational knowledge-knowledge created by collaborative information sharing and social interaction leading to appropriate action ©Prentice Hall,2002 20-5
Organizational Performance (cont.) Why is Measuring Organizational Performance Important? (cont.) – Increased Ability to Provide Customer Value - must monitor value obtained by customers • customers will seek other sources of supply if value is not obtained – Impact on Organizational Reputation - strong reputation leads to greater consumer trust and ability to command premium pricing – Improved Measures of Organizational Knowledge • organizational knowledge - knowledge created by collaborative information sharing and social interaction leading to appropriate action © Prentice Hall, 2002 20-5