An Organization A collection of people working together

Ø An Organization: ¡A collection of people working together to achieve a common purpose. ¡ Purpose - provide goods or services that satisfy customer needs in order to justify continued existence 1

Organizations try to be… l Value-added: occurs when an organization, through it operations, adds value to the original cost of resource inputs. l Example: –When value-added occurs: • Businesses earn a profit. • Nonprofit organizations add wealth to society. . 2

Ø Performance is measured by… ¡ Productivity: the quantity and quality of work performed versus inputs required (i. e. how much can we produce? ) ¡ Effectiveness: A measure of task output or goal accomplishment (i. e. was the goal achieved? ) ¡ Efficiency: The resource costs associated with goal accomplishment (i. e. what did we invest to accomplish the goal? ) 3

Example # 1 Ronny has an upcoming test in Business Leadership, Ronny sets a goal of 80% as an acceptable mark for his Unit Test. Ronny makes study notes, reviews the power points, and gets his mom to quiz him on the topics. (3 hours of prep) l Unfortunately, Ronny studies the wrong material and fails his Business Leadership Test l What is Ronny’s problem l 4

Example # 2 Mike is also preparing for the same test, he sets a goal of 70% for his mark. While Mike does glance over his powerpoints, he does this while playing video games and watching a Jersey Shore marathon. (9 Hours of Prep) l Mike does review the correct material and he achieves his goal by achieving a mark of 70% l What is Mike’s problem? l 5