Evaluation of organisational performance

Performance has two dimensions - effectiveness, and efficiency. Measurement requires definitions of what is to be measured. Effectiveness is a measure of the extent to which objectives are achieved, whereas efficiency is a measure of the cost of trying to achieve those objectives. An organisation's objectives are set out in its strategic plan along with its mission statement, and organisational objectives are operationalised at successively lower levels of the organisation. Therefore, measurement of outcomes involves definition of relevant criteria and measures. Chapter 16 explains a variety of techniques that may be employed for work performance measurement. This chapter is concerned with the measurement of collective or organisational performance.