Organizational efficiency and effectiveness.

Introduction

EFFICIENCY:

By definition, efficiency is = outputs over inputs. “Organizational efficiency will be the degree of organization’s

ability to fulfill its mission with the smallest costs or

resources.”

“Efficiency signifies a level of performance that describes a

process that uses the lowest amount of inputs to create the

greatest amount of outputs. Efficiency relates to the use of

all inputs in producing any given output, including personal

time and energy.”

EFFECTIVENESS:

“Organization’s effectiveness – is the organization’s ability to

meet its objectives. Effectiveness in Management refers to the capability of the

management to achieve the desired targets in the specified time. It

is concerned with doing what is right or what should be done.” Although this is quite often implied, the most effective

organization is not necessarily the most efficient.

EXAMPLE: Take the Army of any country that is properly

protected from all evil forces: that must be an effective military

organization – but might have cost a fortune and hence not really

efficient.

Efficiency Over Effectiveness

Some people finish a task as soon as possible—maybe even before

thinking of a solution. To them, the most important thing is to

complete it in a short period of time regardless if it is the most effective way to do it. They may end up working harder and longer

to make up for this method's lack of effectiveness. “While efficiency may get things done at a lower cost and higher

profit today, companies are only sustainable if they can effectively

solve their customers' problems.” Efficiency vs. Effectiveness:

If you're thinking about whether to be effective vs. efficient, it's

important to look at what efficiency and effectiveness mean as well

as the result of being efficient versus the result of being effective. According to the dictionary, efficiency is all about doing specific

tasks in an optimised way. You’re more efficient if you find a way

to do something two times or five times or ten times in the time it

used to take you to do it once.

FOR ULTIMATE SUCCESS OF AN ORGANIZATION

WHICH IS IMPORTANT; EFFICIENCY OR

EFFECTIVENESS:

For the ultimate success of an organization a balance should be

very necessary. Make clear your goals, do the right and fast things , to show effectiveness first . Then minimize the loss of your raw

materials, try to get your goal quickly as possible, minimize the

waste of time and effort means to efficient. Before you try to be more efficient you need to be more effective. Once effectiveness to be achieved you need to go to efficiency to

compete in the market. If you are only effective mean just

achieving your goal, but your product waste lot of resources, take

time to build you may lags behind in the competition. If managers achieve the organization goals they are effective, but if

they end up using or wasting a high amount of resources, then

definitely, the concerned manager is not being efficient

On the other hand, if the manager is very efficient by using the

resources in a limited manner, but misses accomplishing the

organizational goals and objectives. CONCLUSION:

SO in the end I want to conclude it that

“ A stable balance between efficiency and effectiveness is

necessary to achieve the ultimate success of your organization. And to be successful in the competitive marketing environment".