Popular measures of organizational efficiency include return on investment, output per hour of labor, and ________.
A) profit per dollar of sales
B) number of employees retained
C) number of franchises created
D) reduction in customer complaints
E) achieving sales goals

Question

Quizplus · Accepted Answer

Return on investment and profit per dollar of sales are closely related measures of organizational efficiency as they assess how effectively a company is utilizing resources to generate profits. Output per hour of labor is also an important measure of efficiency, but it measures productivity rather than profitability. Retaining employees, creating franchises, and reducing customer complaints may all be indicators of success, but they are not necessarily measures of organizational efficiency in the same way as the other options. Achieving sales goals is important, but it doesn't provide insight into how efficiently the company is operating.

Popular Measures of Organizational Efficiency Include Return on Investment, Output