...A. What is the difference between efficiency and effectiveness? While efficiency and effectiveness are interlinked they are different. Efficiency, according to the textbook is, “getting work done with a minimum of effort, waste or expense.” Efficiency is a means or a process to reduce or eliminate any waste to a business’s scarce tangible and intangible resources has such as time, cash, supplies, raw materials, capital, and labor, which can cut into profit margins. The longer you have performed a task you find ways do it better and quicker, making you more productive. This then gives you a competitive advantage because you are more than effective; you are efficient at your specialty. Ultimately it is about streamlining and cutting costs in the right and professional manner. While effectiveness, according to the textbook is, “accomplishing tasks that help fulfill organizational objectives.” Effectiveness involves middle and front-line managers using their technical and human skills to lead and motive workers to completing a task or multiple tasks to meet organizational objectives towards a clear end goal or vision set by the CEO; which the company and individuals benefit. Unfortunately a company can be wasteful in many ways but its performance will still be adequate enough to meet objectives. B. Which is more important to performance? Arguably both efficiency and effectiveness are very important to business performance, however the main definition for performance is “1)...
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...The primary difference is efficiency is productivity concerned while effectiveness is quality concerned. In other words, efficiency refers to how much resource (time, money, materials and effort) required in accomplishing a task. Effectiveness refer to how well the job gets done, i.e., the output quality, zero defects. “Efficiency” is getting things done, it is not trying and it is not having ability. In other words, “efficiency” is actually accomplishing. It is execution. “Effectiveness” is also getting the right things done. This is where the efficiency is different than effectiveness. With efficiency, is to get the task done faster, easier, or better way. But with effectiveness, there always an initial question as to “what to do”? Example for efficiency, at the Siemens AG factory in Forchheim, Germany, where employees make X-Ray equipment, efficient manufacturing techniques were implemented by doing things such as cutting inventory levels, decreasing the amount of time to manufacture products, and lowering product reject rates. These efficient work practices paid off as the plant was named one of Industry Week’s best plants for 2002 “Industry Week’s Best Plant”, (2003) Industry Web site From this perspective, efficiency is often referred to as “doing things right”, that is, not wasting resources. Example for effectiveness, at the Siemens factory, goals included reducing equipment installation time for customers and cutting costs. Through various work programs, these goals...
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...Economy, Efficiency and Effectiveness as Performance Indicators in Government Agencies Table of Contents Executive summary 3 Introduction 4 Economy 4 Effectiveness 5 Efficiency 6 Conclusion 7 References…………………………………………………………………………………………………………………………………..8 Executive summary Evaluation of performance is part of managing performance. Public agencies use economy, effectiveness and efficiency to determine performance. All these three parameters relate to inputs and outputs of the agency (Cutler, Cutler & Waine, 1997, p. 98). However, measurement of inputs and outputs presents some challenges. Thus, during measurement of performance of a public agency one has to make a choice of what to measure among the three parameters in order for performance to be evaluated effectively. For instance, economy relate to input, efficiency relate to input and output while effectiveness relate to output (Chai, 2009, p. 45). Thus, the effectiveness of these concepts in determination of performance depends largely on the methods adapted to measure indicators of these parameters. Introduction The process of managing performance involves setting social outcomes and strategic plans that entails focusing strategic plan on social outcomes, identifying value drivers, focusing managerial attention on activities...
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...Do you think that efficiency can conflict with effectiveness? Explain and provide many real live examples as you can. Basically Efficiency and Effectiveness are two sides of a coin. Efficiency is competency in performance or ability to accomplish a job with a minimum expenditure of time and effort while effectiveness to achieve the intended or expected result. Ex. 1 In an advertising campaign. A company could spend millions of dollars on commercials and billboards to get a product out there. That example would be effective, but not efficient. That same company could make a silly viral video and "leak" it for free on the internet. That would be efficient. But the best way would be to balance between both approaches. That would be both efficient and effective. Ex. 2 Suppose that two guys, X and Y, are trying to change a flat tire on their cars (each one has his own car). X starts by taking out the jack and placing it under the car. He quite doesn’t know where to position it, so he goes by trial and error and wastes a lot of time doing it. After 30 minutes he finally manages to fix it, so he proceeds to lift the car and change the tire. As you can see X was doing the right thing, but he was doing it poorly. We can say that he was being effective, but not efficient. Y, on the other hand, starts by grabbing a towel and cleaning the tire. He wants to make the thing shiny before he changes it. And mind you he is very good and fast at cleaning every little detail...
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...HUMAN CAPITAL DEVELOPMENT: A TOOL FOR ORGANIZATIONAL EFFECTIVENESS AND EFFICIENCY AN ARTICLE TO BE PUBLISHED IN THE ISA KAITA MULTIDISCIPLINARY JOURNAL OF EDUCATION. ISA KAITA COLLEGE OF EDUCATION DUTSIN-MA. P.M.B 5007, DUTSIN-MA, KATSINA STATE BY LAWAL AMINU BALA MANE PHONE: 08065883870, 08153655522 Email: laminubala@yahoo.com HND ACCT. (H.U.K POLY KAT.) ADVANCED DIPLOMA GUIDANCE AND COUNSELLING (NTI KAD.) MEMBER ASSOCIATION OF NIGERIAN EDUCATORS (MANE) ADDRESS: C/O DEPARTMENT OF ACCOUNTANCY, HASSAN USMAN KATSINA POLYTECHNIC, KATSINA. Abstract Human capital development is aimed at equipping the work force for efficiency and effectiveness in productivity. This paper ‘Human Capital Development: A tool for Organizational Effectiveness and Efficiency’ Observes that human person is the most important production resources so if the human Capital is developed, it will equally develop all facets of the organization hence investment in human is a wise investment that will put the organization on the path to increase productivity which is the focus of most organizations. Moreover, the objectives of this paper is to find out the attitude of modern organizations in handling human resources. The method employed by the writer in collection data is purely secondary method of data collection; were by literatures of other authors on the topic under discussion were reviewed. The writer recommends on the job training (in service training) and other means of training...
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...The concepts and relations between efficiency and effectiveness, Lean and sustainability in organisations. Introduction Efficiency and effectiveness are two important, basic parts of work organisation which have a different focus. Challenge is to handle both of them. The question is: Does every organisation concentrates on both concepts? Lean approach is commonly use in a long-term companies focusing on minimizing waste. Sustainability is very comprehensive, holistic and challenging. The aim of this essay is to discuss the concepts mentioned above. This essay will describe each one separately and then discuss relations between them. 1.Review of the concepts 1.1 Efficiency Theory describes efficiency as to do things right. It is a relationship between outputs and inputs which can be measured. Main focus here is to use resources (mainly human) in a efficient way which means to achieve a specific product while meeting as little waste as possible. According to Reddin from University of New Brunswick 100% efficiency can be obtained by high output in relation to high input, the same result can be achieved where both output and input are low. Efficient managers seek to solve problems and reduce costs (Cole&Kelly, 2011). Those managers follow four step POMC approach which contains planning, organizing, motivating and controlling. Management does design group of people who work together with maximum efficiency to achieve common goals. Managers of operational planning are concerned...
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...Is empowerment a valuable tool for increasing efficiency and effectiveness in today’s organisations? In recent years, the degree of competition in the business world has increase dramatically, business has to be able to adapt with the change of the environment, law, and technology. Many managerial practices have been developed to enable the organisation to increase its efficiency and effectiveness. Empowerment as a tool that focusing on increasing employee motivation to contribute on the organisation has been discussed in widely for years, many scholars have conducted a large number of study on this regard. From various journal articles, this paper will define and discuss the benefit of the concept of empowerment on the organisation in three different aspects, first, the individual empowerment which personal perception on the workplace. Second, empowerment climate which is directly related to firm’s code of conducts as well as structures. Lastly, the relationship across two level or multi-level empowerment will be explained and discussed. The question that is the empowerment a valuable tool for increasing organisation’s efficiency and effectiveness will also be answered There are arguments on the definition of empowerment since this concept is complex and can be explained on multiple dimensions, levels, and disciplines. Definition of empowerment in general was explicitly given by Conger and Kanungo (1988) as “ a process of enhancing feeling of self-efficacy among organisational...
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...Managing for Efficiency And Effectiveness Centre Number: 821817 | Centre Name: Southpoint Education International Learner Name: Nadia V. Neely-Russell Introduction Operating a small family owned chain of Jamaican style cuisine restaurants is nothing short of daunting. It takes a lot of hard work and team of dedicated staff, to execute the goals set out by Top Level management. I work for Negril Café. It’s a small, but busy chain of buffet style restaurants here in Nassau, The Bahamas, and employs more than 36 persons across the 3 restaurants that are in operation. My role as Administrative Assistant lines me up to see both the big tasks and little ones that keep the company afloat. On a day to day I work closely with both top and middle management to ensure all the administrative tasks that knit all of our subsequent departments together. Some would even regard my position as the glue to the unseen magic that makes running the organization appear so streamlined and seamless. Some of my duties as administrative assistant are as follows: 1. Works directly with the CEO / Owners on projects. 2. Maintains employee file, update information as need. 3. Track employees’ sick, vacation days etc. 4. Prepare Employee Bank letters, reference letters as requested. 5. Process all owners’ bills for payments etc. 6. Receive daily requisition sheets from Store managers by 12noon. 7. Combine all requisitions into one purchase order by 1pm. 8....
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...Pennsylvania Correctional System Network Project Daniel Stanley Strayer University Pennsylvania Correctional System Network Project This proposal is for a data communication network to serve the Pennsylvania Correctional system. The Pennsylvania legislature recently approved funding sufficient to pay for the development of this proposal. Pending proposal acceptance by the Pennsylvania State Correctional Office of Technology (a department within the state Office of Corrections), funding will be sought to implement the proposal. The proposed network is designed to serve the state Office of Corrections and two of its local district offices. The state office, located in Pennsylvania, contains five departments to be served by this network. Each correctional office contains four departments to be served. The Correctional facilities located in York, 50 miles from the state office. The Correctional facilities located in Harrisburg, about 75 miles from the state office. This network is for administrative purposes and is specifically designed to be independent of officers computing facilities. Objectives of the Network The network is designed to achieve several specific business/operational objectives: 1. Secure Service: The main objective of this network is to provide secure administrative computing service to the State Office and two districts. It is designed to be functionally and physically isolated from access by people not employed by Pennsylvania Correctional...
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...WHITE PAPER Process benchmarking to improve effectiveness, efficiency and structure in Fast Moving Consumer Goods (FMCG) firms June 2012 WHITE PAPER Contents Executive summary Introduction Problem definition Existing solutions Process benchmarking as a solution Business benefits Summary Contact us 2 3 5 7 8 14 14 15 Contact us on +61 2 8005 0753 or visit www.assentcg.com C:\Users\Hayley\Documents\OS Clients\Assent\White papers\12.06.26 WP Benchmarking processes.docx 1 © Copyright Assent Consulting Group 2012 WHITE PAPER Executive summary Benefits The benefit of benchmarking a firm’s processes is that one company can look at other companies with different strengths and learn then improve from them. FMCG is a truly global business and excellence varies by category and channel expertise. This is an industry in which there are several opportunities to learn and adopt best practice processes. Best practice has been derived from studies of 80 FMCG firms conducted from 2006 to 2012 in lead world markets. These studies observed, evaluated, measured and documented 12 major areas of work and described these as processes. Therefore FMCG has a standard against which one company’s ways of working (processes), and structures can be compared and evaluated against another’s. Why benchmark? The purpose of benchmarking is to help companies achieve maximum effectiveness and efficiency by comparing its processes to best in class in the FMCG industry. However strong...
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...Exploring efficiency and effectiveness in the supply chain A conceptual analysis Benedikte Borgström Jönköping International Business School P.O. Box 1026, SE- 551 11 Jönköping Sweden bobe@jibs.hj.se Abstract Firms struggle for efficiency and effectiveness. Strategies involving collaboration between actors and integration of activity chains are reliant of factors that firms do not have direct ownership and control over. This has implications for strategizing, setting the goals and measuring performance. Efficiency and effectiveness are often used to describe performance. From a resource dependence perspective efficiency is defined as an internal standard of performance and effectiveness as an external standard of fit to various demands (Pfeffer and Salancik 1978). In supply chains efficiency improvements are e.g. Just-in Time production while effectiveness is achieved through customer orientation and innovation. The conceptualization of efficiency and effectiveness has its roots in system theory. Definition of the system is difficult for a quasi-organization as a supply chain that has blurred structural boundaries. Defining the system as processes of activities implies that the meaning of and the relation between efficiency and effectiveness might change as well. This is a conceptual paper with a purpose to describe and analyze efficiency and effectiveness as constructs based upon activity systems. The analysis of efficiency and effectiveness involves the meaning, the...
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...effectively and efficiently. Efficiency and effectiveness were originally industrial engineering concepts that came of age in the early twentieth century. Efficiency refers to doing things in a right manner. Effectiveness, on the other hand, refers to doing the right things. Management has been defined as a process of getting things done with the aim of achieving goals effectively and efficiently. Literature Review “Efficiency is doing things right; effectiveness is doing the right things.” (Peter F. Drucker, 2006) “It is knowing exactly what you want to men to do and seeing that they do it in the best and cheapest way.” (F.W.Taylor) “A principle of work allocation and specialization in order to concentrate activities to enable specialization of skills and understandings, more work focus and efficiency to do the right job.” (Henri Fayol) The terms effectiveness and efficiency have a lot to do with a business entity. Every business stands to attain its goals and objectives while particularly stressing on its ability of maintaining its survival and profitability throughout. In doing so, the effectiveness and efficiency counts immensely. On the one hand, on the basis of these two terms a business goes to heighten its level immensely, on the other hand it bears losses in the absence of the results being associated with effectiveness and efficiency. It is, thus, essential for a business to maintain effectiveness and efficiency continuously. Effectiveness means producing desired...
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...Study of relation between effectiveness audit and management audit GHODRATOLLAH TALEBNIA Department Of Accounting ,Science And Research Branch ,Islamic Azad University,Tehran , Iran Gh_talebnia@yahoo.com Bahareh Banitalebi Dehkordi* Department Of Accounting , Shahrekord Branch , Islamic Azad University, Shahrekord , Iran banitalebi76@yahoo.com Abstract— Nowadays, one of the most critical strategies for innovative management is decision making optimization for increasing economicality, efficiency and effectiveness of resources used in institutes. In this regard, we should create organizational management control, and internal audit is one of the most imperative factors designed to help an organization accomplishes these objectives, which divides into two major categories: Financial Audit, and operational Management Audit. Many countries’ experiences have shown that from the standpoint that financial audit by itself does not eliminate informational management needs, with considering the advantages, shift in audit strategies toward operational audit which includes management audit and effectiveness audit is inevitable. In this regard, operational audit with integrated assessment of operational activities and organization procedure creates policies and useful methods and help recognized weakness and provide explanation for such flaws and also can pinpoint the opportunities for optimizing operational activities and detecting strength points. It also provides practical suggestion...
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...TOPIC: THE IMPROVEMENT OF EFFICENCY AND EFFECTIVENESS AMONG UUM STAFF’S BY USING MANAGEMENT INFORMATION SYSTEM (MIS) * DV- Efficiency and effectiveness among staff of management in UUM * IV- Management Information System (MIS) Abstract An efficiency of management in university is depends on its staff who worked at different sector and different department. It is because the staff play an important role to the development of an university. The purpose by doing this research is to study the effect of management information system in efficiency and effectiveness of management among UUM staff. In this study, we focused on College of Business staff in UUM. We distributed a questionnaire to 140 sample of staff from total number of population which is 220 that inquired about their satisfaction in doing their worked by using management information system and how the system effect the quality of efficiency and effectiveness among them based on nominal, interval and ordinal scale. According to our result, the uses of management information system effect their efficiency and effectiveness as most of the work they do are based on the system. CHAPTER 1 : INTRODUCTION 1.1 INTRODUCTION OF THE STUDY The information system are consider such as arena which is concerning to provide the information for using it in the organization, and the information and its system have took today dimension well, because its became dealing with it now as a resource from the organization resources...
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...THE CATHOLIC UNIVERSITY OF EASTERN AFRICA GABA CAMPUS-ELDORET MASTERS OF BUSINESS ADMINISTRATION TITLE: EFFICIENCY AND EFFECTIVENESS OF MANAGEMENT NAME: OBADIAH KIPRONO ROTICH REG NO. MBA/GC/690/13/14 COURSE CODE: 510 COURSE NAME:MANAGEMENT AND ORGANIZATIONAL ANALYSIS LECTURER :SR LUCY DATE:3/6/2014 Management is the organization and coordination of the activities of a business in order to achieve defined objectives. Management is often included as a factor of production along with machines, materials, and money. According to the management guru Peter Drucker (1909-2005), the basic task of management includes both marketing and innovation. Practice of modern management originates from the 16th century study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More (1478-1535). Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization's resources in order to achieve the objectives of that policy.The directors and managers who have the power and responsibility to make decisions and oversee an enterprise. The size of management can range from one person in a small organization to hundreds or thousands of managers in multinational companies. In large organizations, the board of directors defines the policy which is then carried out by the chief executive officer, or CEO. Some people agree that in order to evaluate a company's current...
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