Analysis of Organizational Excellence Based on Independent Key Indicators among Hungarian SME Leaders

Abstract

Excellence and success are those questions, which could hardly be held or clarified because there are exceptionally subjective and complex correlations behind the definitions. In specific literature we could see that success could be defined in many ways, but there is not any index number or formula that anyone could determine easily and according to that, “label” the companies. The conventional performance/excellence measuring methods are based on the financial indices, but we had a plan to measure other indicators. Therefore, we asked questions about the market share, size of the company, growth rate, export activities, efficiency, and the amount of turnover, awards, prominence lists, years of experience as a leader, quality of abilities as a leader. The number of the incoming questionnaires was 148 from Hungary (CEO-s and leading managers from the highest positions). Our results shows that the chosen variables to measure the organizational excellence as awards and appreciations, export activity, TOP-listing and market influence has impact on organizational excellence, so we can conclude that in the performance measurement systems it is important to include the “non numeric financial” indicators, too. Based on the correlations between the indicators and the organizational excellence we can conclude that in line with the company size, the chance rises to be awarded, the number of employees influences the chance to appear on prominence lists, and also affects the strength of the market position. Regarding the personal leadership we can establish that the micro- and small-sized enterprises have got real backwardness in the field of management in proportion to the multinational companies, and the self-assessment of the leaders is still rather low.