MANAGEMENT 1.1
CHAPTER 1
Organization
- A collection of people working together to achieve a common purpose
- Provide useful goods and/or services that return value to society and satisfy
customer needs
Organization performance
- “Value creation” is a very important notion for organizations
- Value created when an organization’s operations adds value to the original
cost of resource inputs
o When value creation occurs:
Businesses earn profit
Nonprofit organizations add wealth to society
Organizational performance
Performance
Productivity Performance efficiency
effectiveness
An overall measure of An output measure of An input measure of the
the quantity and quality task or goal resource costs
of work performance accomplishment associated with goal
with resource utilization accomplishment
taken into account
Productivity and the dimensions of organizational
, MANAGEMENT 1.1
CHAPTER 1
Organizations as open systems interact with their environment
CHAPTER 1
Organization
- A collection of people working together to achieve a common purpose
- Provide useful goods and/or services that return value to society and satisfy
customer needs
Organization performance
- “Value creation” is a very important notion for organizations
- Value created when an organization’s operations adds value to the original
cost of resource inputs
o When value creation occurs:
Businesses earn profit
Nonprofit organizations add wealth to society
Organizational performance
Performance
Productivity Performance efficiency
effectiveness
An overall measure of An output measure of An input measure of the
the quantity and quality task or goal resource costs
of work performance accomplishment associated with goal
with resource utilization accomplishment
taken into account
Productivity and the dimensions of organizational
, MANAGEMENT 1.1
CHAPTER 1
Organizations as open systems interact with their environment
