Which measure is often used to assess organizational performance?

Return on investment (ROI) is a widely recognized measure for evaluating organizational performance because it provides insight into the efficiency and profitability of investments made by the organization. ROI calculates the return relative to the investment cost, allowing stakeholders to assess how well the organization utilizes its resources to generate profit. A higher ROI indicates more effective use of capital, which is crucial for decision-making and strategic planning.

In contrast, while sales revenue reflects the total income generated from operations, it does not account for costs or the efficiency of resource usage. Budget adherence measures how closely an organization meets its planned budget but doesn’t directly correlate with overall performance or profitability. Similarly, market share percentage provides insight into an organization's competitive position within its industry but does not inherently measure financial return or investment effectiveness. Thus, ROI stands out as a comprehensive metric for assessing how well an organization is performing relative to its investments.