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Essentials of Contemporary Management 4th Edition by Gareth Jones,Jennifer George
Edition 4ISBN: 978-0697812384Essentials of Contemporary Management 4th Edition by Gareth Jones,Jennifer George
Edition 4ISBN: 978-0697812384 Exercise 1
Describe the difference between efficiency and effectiveness and identify real organizations you think are, or are not, efficient and/or effective.
Explanation
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The managers of the real time organizations are obligated to utilize the resources of the organization effectively and efficiently in order to satisfy the needs of the customers and to enhance the organization's performance.
The major differentiations between the efficiency and effectiveness are discussed here
Efficiency: Efficiency can be achieved if the managers make use of the resources productively in order to achieve a goal. For being efficient the input is minimized and the output is maximized which enhances the organizations performance.
From the real world example the organization which is efficient is MD. This organization minimizes the ratio of input like the oil consumption etc which makes it more productive as well as socially responsible considering the health of the public. The example for the organization which is not efficient is TT which is a supermarket chain as it has an unbalanced input ratio as it focuses more spending in packaging and its attractiveness.
Effectiveness : This is considered as the degree to which the managers or the organization set its appropriate goals and measures taken to achieve those goals. In an effective organization the managers set appropriate goals for the organization which makes it to perform better and to be competitive.
The example for the organization which is effective is A which has a smart goal of being the market leader and the managers achieves those objectives with different strategies. The organization S, which lost its competitiveness in the market as it lacked setting appropriate goals or objectives. Hence remained ineffective.
The major differentiations between the efficiency and effectiveness are discussed here
Efficiency: Efficiency can be achieved if the managers make use of the resources productively in order to achieve a goal. For being efficient the input is minimized and the output is maximized which enhances the organizations performance.
From the real world example the organization which is efficient is MD. This organization minimizes the ratio of input like the oil consumption etc which makes it more productive as well as socially responsible considering the health of the public. The example for the organization which is not efficient is TT which is a supermarket chain as it has an unbalanced input ratio as it focuses more spending in packaging and its attractiveness.
Effectiveness : This is considered as the degree to which the managers or the organization set its appropriate goals and measures taken to achieve those goals. In an effective organization the managers set appropriate goals for the organization which makes it to perform better and to be competitive.
The example for the organization which is effective is A which has a smart goal of being the market leader and the managers achieves those objectives with different strategies. The organization S, which lost its competitiveness in the market as it lacked setting appropriate goals or objectives. Hence remained ineffective.
Essentials of Contemporary Management 4th Edition by Gareth Jones,Jennifer George
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