_____ Is A Measure Of How Efficiently And Effectively Managers Use Available Resources To Satisfy Customers And Achieve Organizational Goals.

Answer of MCQ | What Is Organizational Performance

The correct option of this multiple choice question is C, as in Organizational Performance (OP), we see both Efficiency and Effectiveness of a manager on how well he uses the available resources at minimum cost without compromising quality to get the desired outcomes or results to achieve Organizational Objectives & Goals (OB & G).

Organizational performance can be seen in the forms of operational performance and financial performance.

1. Operational Performance

It means the efficient utilizing of resources in conducting business operations and achieve targeted goals at the end. In other words, minimizing cost of production and increasing productivity to achieve goals.

2. Financial Performance

It means how well the organization uses its financial resources (monetary assets such as cash, property, etc.) at minimum cost to generate and increase sales and ultimately increase profitability to attract investors to make investment in the company. Due to effective financial performance, a company can grow its business and target more customers to attract them to buy its products or services at low price without losing their quality, which satisfies them to come again and again to buy its products or services.

Relationship Between Organizational Performance And Efficiency & Effectiveness

There is a direct relationship between OP and efficiency & effectiveness, i.e., the more efficient and effectiveness an organization will be, the more the OP will be. An organization has high OP if it has high efficiency and effectiveness in utilizing its resources and achieving organizational goals.

How To Improve Organizational Performance

1. Improve the Quality

If the manager uses the resources efficiently i.e., providing products or services at minimum cost without losing the quality of products or services, then, definitely, the OP is improved and end results to satisfy customers will be accomplished. For example, to improve the quality of products or services, skillful workers, trained and professional employees are hired and employed to work efficiently and effectively, i.e., workers avoid wastage of raw material and increase productivity while minimizing the cost of production without losing quality work, employees perform job tasks on schedule time and work honestly to get the desired results to achieve Organizational Goals (OG).

2. Innovation

Innovation also creates an impact on the OP as it shows that the company uses its intellectual resources (knowledge, skill, expertise, experience, etc.) efficiently to create a new unique product or service to create attraction in the minds of customers in order to satisfy customers to increase sales and achieve OG effectively. For example, by using knowledge, expertise and experience, the organization develops a new idea of improving its products i.e., adding a new design and package such as use of effective color design and placed of products in a box to attract the customers and to satisfy them to increase sales.

3. Effective Management System

If there is an effective management system i.e., the manager plans well, decides appropriate goals, assigns tasks to right persons, coordinates among team members and staff, leads by his actions, motivates and encourages them to work effectively and controls the performance of organization, etc., the OP will be improved. An effective management system means, different departments of the organization are efficiently and efficiently working as they coordinate with each other well. There is effective communication among them to work together to achieve common goals.

An effective management system is created only by establishing and implementing effective control systems to monitor OP, evaluate the results and take correct actions to achieve OB & G efficiently and effectively. For example, the human resource department depart establishes pay systems to encourage those employees who performed well by rewarding, i.e., increasing salaries, bonuses, etc., and punish those employees, who show low performance by not giving them bonuses, incentives, etc.

The other options of this mcq are incorrect choices here, however, these can be used efficiently and effectively to improve OP to achieve OB & G.