Why Do Organizations Need Performance Measures

question 35

Essay

Why do organizations need performance measures?

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Definitions:

Inefficiency

The lack of ability to achieve desired results or outputs with minimum waste of time, effort, or resources, often leading to productivity and economic losses.

Authoritarian Leadership

Demands strict compliance from subordinates. Authoritarian leaders are most effective in a crisis, such as a war or the emergency room of a hospital.

Democratic Leadership

Offers more guidance than the laissez-faire variety but less control than the authoritarian type. Democratic leaders try to include all group members in the decision-making process, taking the best ideas from the group and molding them into a strategy with which all can identify. Except during crisis situations, democratic leadership is usually the most effective leadership style.

Hawthorne Research

Studies conducted primarily at the Western Electric Company's Hawthorne Works in Chicago, which focused on how varying working conditions affected employee productivity, emphasizing the social and psychological factors.