Performance in Organizations

Organizations and Performance

The organization is part of an economic system. It responds to the marketplace, competition, fluctuating resources, etc. The survival of the organization depends upon its ability to adapt to the demands of this external system.

The Three level Framework (Rummler & Brache, 1990)

PI	Goals	Design	Management
Organization Level	Organization Goals	Organization Design	Organization Management
Process Level	Process Goals	Process Design	Process Management
Job/Performer Level	Job Goals	Job Design	Job Management

Organization Goals

At the organization level, goals are strategic in that they identify the organization's:

Product and services
Market (customer)
Competitive advantage
priorities

Organization Design

The design of an organization allows the goals to be met. The main tool used is a relationship map that looks at the flows among major groups, rather than specific activities. That is, it creates a broad picture of the organization. The map is constructed by identifying the various units, functions, departments, or individuals expected to participate in or impact the process. below is an example of one:

Organizational Relationship Map or Concept Map

The relationship map is used to help understand how the work is currently getting done so that "disconnects" can be discovered and fixed. Disconnects are missing, confusing, unneeded, or misdirected inputs or outputs.

Organization Management

Once the goals and design or structure has been identified, then the organization needs to be managed in four dimensions:

Goal - manage function sub-goals so that organization goals get accomplished.
Performance - getting customer feedback, tracking actual performance, comparing the performance to set targets, taking corrective action where needed, and resetting goals.
Resource - manage people, equipment, and money.
Interface - manage the "white space" between the various functions or business units.

For more information, see the Leadership Guide.

Reference