Following organization performance drivers: a methodology proposed

Abstract

This paper proposes a methodology to study the linkage between organizational performance drivers like internal resouces and competences, and organizational performance through its multiple perspectives like internal performance measures and its overall ability to meet financial and customer targets. Firstly the methodology suggests the exam of the main variables related to firm performance and the design of casual maps. Next data are collected according to that design and simplified using factorial analysis. Then, statistical techniques like regression analysis and structural equation modelling are employed to investigate relationship among variables to confirm or not the assumed linkages. As an example, the methodology is employed in a firm with a hundred business units, all monitored with similar performance indicator measurement. In the example, some drivers like human competency showed no association with organizational performance, whereas drivers like tangibles resource density and employee satisfaction seemed to affected internal process productivity, customer satisfaction and financial targets.