There are different ways to measure organizational performance, but some of the most common are:
- Survival and Growth: Substantially, this means that a company or organization can define if its performance is effective depending on the meeting of their growth expectations and have a steady growth flow. The only downside of this metric is that it doesn’t precisely take into account the external and internal factors of the organization.
- Good fit with the Environment: This limitation, provided by Lorsch (1970), believes that if firms are able to find a right fit between their environmental demand and internal capabilities and resources, they will therefore perform better.
- Relevancy: This measure addresses the systems view of organizations, but still fails to consider the ever-changing modern markets and the pressure they put on companies to continuously evolve.