Organizational Performance Research Paper

Organizational Performance Research Paper-59
Organizational performance is a vital indicator of any organization success or failure.For instance, organizations that have high performance successful in the market and on the other hand those organizations that perform not well consider failure in the market.Nowadays, organizational performance playing a significant role for organizations especially in that environment where organizations face issues regarding higher competition (Cania, ).

Organizational performance is a vital indicator of any organization success or failure.For instance, organizations that have high performance successful in the market and on the other hand those organizations that perform not well consider failure in the market.

Subjects: management accounting, business, performance management Organizations work in a competitive environment, and if they want to exist in the current market, they face lots of challenges that reduce their performance.

For instance, organizations face these challenges such as poor planning, cultural issues, monetary issues, rewards and compensation issues, administrative issues, business strategy issues, environmental uncertainty issues, leadership issues, capabilities issues, and issues regarding cybernetic controls.

Long-range planning is playing a significant role not only in large or big organizations but also in small organizations.

Hence, there is a need for a long-range planning to take advantage of and avoid threats that come in the future (Steiner, ), planning controls that consist of two types of planning: the first one is action planning, and the second one is long-range planning.

Action planning refers to short run or tactical focus planning.

On another side in long-range planning objectives, actions of middle range and long range were established.Textile sector is the biggest manufacturing sector and considers the backbone of the Pakistani economy (Aftab et al. In Pakistan, the textile sector exports reduced due to some issues.For instance, high cost of production, lack of skilled labor, poor technology, lack of training programs, labor shift in other countries, poor production process, and low level of managerial capabilities (Iqbal et al. In Pakistan, the textile sector faces some challenges about management controls system (MCS) as a package (planning controls, cybernetic controls, cultural controls, rewards and compensation controls, and administrative controls) that leads to decrease organizational performance.According to Malmi and Brown (), planning controls play a significant role in directing the behavior of organization employees, and in MCS, topology planning controls use as a separate system.However, it is very significant for scholars/researchers to give importance to planning controls in the future to enhance organizational performance.Organizational capabilities mediate the relationship between all five elements of MCS as a package and organizational performance.The findings provide insights to top management of the textile industry to enhance organizational performance by focusing on indicators mentioned in the study.Organizational capabilities play an important role in increasing organizational performance (Obeidat et al. Research methodology plays a crucial role in any kind of research and this study quantitative in nature and data collected through the questionnaire technique.Results reveal that except cultural control and planning control, all variables have a significant influence on organizational performance.Moreover, some of the studies show that Pakistan textile sector faces some issues about MCS and due to these issues performance of this sector going downwards (Ataullah et al. For instance, there are some issues regarding cultural controls such as lack of trust and lack of appreciation among employees, no collective method for problem-solving, and low employee morale (Ataullah et al. In the current study, our focus is only in planning controls and cultural controls; those are elements of MCS as a package that has less attention in Pakistani textile sector. Moreover, most of studies conducted in developed countries with MCS in isolation but ignores MCS as a package to measures organizational performance and less attention has been paid in developing countries (Acquaah, ).MCS plays a significant role in enhancing organizational performance in both developing and developed economies. However, in one of the recent studies, the authors recommend that in developing countries there is a need to test the relationship between MCS and the performance of an organization (Bin-Nashwan et al. Hence, this study examines the relationship between MCS as a package and organizational performance in developing countries that is Pakistan.


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