The paper "Effective and Efficient Manager" is a wonderful example of an assignment on management. Due to the increasing complexity of the working environment as a result of globalization, social, demographic, and technological changes have made management complex than ever. A manager is more concerned with getting things done, as well as finding approaches in how things will be accomplished. For this reason, corporate success is tied to its ability to highly value its people well and manage them properly. Research indicates that firms that do so have increased their sales, profitability, and stock values per workers compared to firms that do not.
According to Robbins (2000), a company's performance is measured by efficiency and effectiveness. These two words may look equal, however, according to Harris (2000) efficiency is not always effective and these terms have a distinct meaning. For managers who focus on effectiveness, they emphasize on meeting goals, mission, and vision of the organization. In other words, a manager should ensure that the job is correctly done irrespective of whether it was done at a higher cost or on time.
On the contrary, efficiency refers to the ability to maximally of the available resources to attain the desired output (Chavan 2009), that is, a job is accomplished at low cost and on time but may not be very thoroughly or impressively accomplished. Various studies have acknowledged that when the workers leave, they are leaving the managers rather than the firm. Following, we can say that that great manager creates a competitive advantage regarding building an excellent workplace environment. A manager acts as a medium through which organization policies are given to the staff, and thus should maintain a balance between effectiveness and efficiency.
Both are crucial when it comes to managing an organization, and it is essential to recognize that an organization cannot survive with efficiency or effectiveness alone. This paper will discuss effectiveness and efficiency in the organization and how it is linked to organizational behavior, and then a case study of Software Company to understand why a manager should balance both effectiveness and efficiency. Effectiveness and Efficiency in the OrganizationLu and Hung (2011) stated the variation between efficiency and effectiveness.
Efficiency is doing things right by achieving outputs with minimum inputs level. Efficiency can also mean the utilization of resources, which is labor, machine, capacity, and energy (Keh, Chu & Xu 2006).
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