The Difference Between Efficiency And Effectiveness - Essay Example

The Difference Between Efficiency And Effectiveness 1.​What is the difference between efficiency and effectiveness? Give examples of each. Which is more important for performance? Can managers improve both – efficiency and effectiveness – simultaneously? Efficiency and effectiveness are two crucial aspects for the success of any organization. Whereas efficiency refers to the use sufficiently the limited available time, minimal effort, and reduced costs in successfully accomplishing an intended task, effectiveness refers to the aspect of reaching the target results. From the two definitions, it is ideal that efficiency is how well a task is performed in the most optimal way possible while effectiveness covers the aspect of performing the appropriate task, completing it, and achieving results. In simpler terms, efficiency means doings right while effectiveness is all about doing the right thing. An example of effectiveness is the ability of a sales employee to make a customer make a purchase without any struggle to make sales consistently. In the case of efficiency is an instance in which a manager introduces the use of technology at the workplace by sending emails to employees to enable them work faster rather than sending letters. Both effectiveness and efficiency are important for performance in an organization and in most instances, organizations have tried to apply both, however, limited success is usually attained. To a greater perspective, neither efficiency nor efficiency is more important than the other as far as performance is concerned. Performance is usually a measure of whether a target has been reached or not. Therefore, in the case of effectiveness, performance is enhanced as it measures the degree to which an organization meets its target objectives, while efficiency measures that which is used in the achievement of the objectives. In both instances therefore, there is no measure of performance and hence none is more important in such a perspective. Performance is mainly attributed towards the result rather than the process used in realizing the results. In an instance in which minimal resources are used and no objective is met then the performance is reduced, and additionally, if the target is not met regardless of the effectiveness of the process, the performance is low. One aspect of significant importance in both instances is that organizations, managers can improve both simultaneously. Managers usually work towards attaining certain goals for profitability while at the same working on minimizing the associated resources such as time and costs. From this perspective, it is evident that a manager can improve both efficiency and effectiveness simultaneously. 2.What is one (1) current ethical issue in the business news today? Identify one company that seems to be handling an issue in an ethical and socially responsible manner – how are they doing? Identify one company that seems to be unethical and irresponsible? In the current business world, numerous ethical issues are experienced ranging from simple to complex issues. One of the greatest issues is that of inversion of privacy, a contribution of technology and communication, which has become an integral part of organizations towards achieving their objectives. In order to understand an ethical issue, it is best to find out the moral obligation behind it. Inversion of privacy has become of substantive ethical issue for many organizations that are not able to control such matters with the increase of globalization through technological advancement. One common instance in which ethics becomes an issue through the inversion of privacy is based on outsourcing. Outsourcing refers to the use of another organization to perform tasks that your organization is not able to perform effectively but at minimum resources such as the case of interview. This requires the two organizations involved in the transaction to share certain vital and personal information pertaining to certain individuals, which one party might share with unintended audience. This ideally is an aspect of inversion in a person’s privacy. One company that has developed appropriate measures in handling ethical and social issues within its sphere is Apple Inc. in order to tackle ethical issues appropriately; the organizational culture must be aligned towards effective control of ethical issues. In the case of inversion of privacy, this is a common problem for numerous organizations in terms of the ethics; Apple has developed appropriate strategies that work effectively towards curbing such occurrences. One of the measures taken especially on the aspect of outsourcing for its new recruits is that to avoid sharing of personal employee, the company has instituted an internal department, whose major role is to interview and recruit new employees into the organization. By this particular measure, there is no instance that an outside source has the opportunity of sharing any personal information regarding employees. All employee information is only shared within the members of the company without any unintended audience having an opportunity to access such vital information. To a greater perspective, this measure has contributed immensely towards the limitation of privacy inversion for the staff members in the company. There are however, some companies that take very little concern about ethics and social responsibility towards how the make their operations. One of such companies is Nestle. Nestle is currently one of the world’s most successful and profitable companies dealing in food-based products. Despite the success the company has been able to achieve from its operations, there is very little concern given to the ethical aspects making it very unethical and irresponsible in the manner in which it conducts business. For a period now, the company has experienced numerous criticisms most especially from the health care agencies. This is done through the manner in which it conducts its recruitments. Nestle in recruiting new employees to the organization seeks the services of other companies to get the best out of the many applicants. Considering that in this particular manner, Nestle does very little verification to new recruits, there have been numerous questions over the manner in which privacy of such employees is protected. In most occurrences, Nestle has continuously shared vital and personal applicants’ information with the recruiting companies, which is a great infringement to personal privacy as the recruitment companies usually such information for purposes other than those of recruitment purposes. This is a violation of privacy by Nestle, considering that has the initial mandate in protecting such violations. This is unethical and socially irresponsible behavior. 3.Discuss why an organization in an uncertain environment requires more ‘horizontal’ relationships than one in a certain environment. Use examples An organization’s working environment plays an integral part for an organization to realize success in its operations. Through analysis of both the internal and external environments, an organization is able to develop workable strategies that work towards the achievement of the target goals and objectives set by the management. Lack of this crucial aspect could result into poor performance by the organization. Relationships that organizations build are very important aspects in determining the success orientation. The two common types of relationships that organizations build are horizontal and vertical relationships. Vertical relationships a common for large organizations involve the establishment of many levels of management and supervision for a single organization, making a long chain of command running top to bottom. Organizations that apply such relationship type are usually well established. However, for organizations that exist in very uncertain environments, the most appropriate type of relationship is the horizontal one. Horizontal relationship involves few levels of management and usually used by smaller organizations. In uncertain environments, it is virtually ideal for organizations to use the horizontal relationship type. Horizontal relationship enhances effective communication considering that there are fewer levels of management. This ensures that there is faster information processing and sharing between the management team and the subordinate, a substantive aspect in enhancing performance in the organization. With the smaller layers of management, there is ideally a reduced chain of command and limited bureaucracy. This enhances the decision making process, which is a significantly important in uncertain environments where there are numerous obstacles towards success. With faster decision processes, it is significant that an organization is able to make faster adjustments in various performance perspectives that could drive the organization towards attaining certainty. It is evidently clear that with horizontal relationship types of organization, there is reduced management levels and hence low operational costs. Uncertain environments require for low operational costs as a measure of stabilizing the organization. Uncertain environments call for efficiency in which there is achievement of the objectives with the minimal resources possible. With horizontal type of relationship, an organization in an uncertain environment is able to attain success by meeting its target objectives with substantively reduced costs. Read More