1. Efficiency & Effectiveness goes hand in hand
Efficiency & Effectiveness
go hand in hand
Efficiency and effectiveness are the two sides of the same coin. It has to go
together. It cannot work alone. It is always done in unity. Below are the
definitions of the two E’s which are been discussed in the topic.
EFFECTIVENESS means the capability of, or success in, achieving a given
goal. Contrary to efficiency, the focus of effectiveness is the achievement as
such, not the resources spent, so anything that is effective is not
necessarily efficient, but anything that is efficient also has to be effective.
EFFICIENCY means the production of the desired effects or results with
minimum waste of time, effort, or skill. A measure of effectiveness;
specifically, the useful work output divided by the energy input in any
system.
“Efficiency is intelligent laziness”
Now let’s deal with these two criteria’s differently. First let’s deal with
effectiveness to make it clearer we have some examples they are as
follows:-
♥ Optimum utilization of raw materials
Well today there are many economic goods which are inadequate or
insufficient in supply so it is necessary to make use of the raw materials
more efficiently to optimum utilization.
♥ Recruiting people having skill set matching the requirement
Today in India where the population is more than a billion from which ¼
of them are skilled employees. So they should be efficiently recruited and
given a position suitable for their qualification.
♥ Good relationship between employees
Today where the employees get a better job and pay by other companies
it is only the social environment which wants them to live in the existing
company. So good relationship between employees is important.
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2. Efficiency & Effectiveness goes hand in hand
♥ Individualize and personalize market offering
♥ Lower cost of ownership (Suppliers)
Secondly now comes the other E that is effectiveness to make it clear we
have some examples
♥ Low distribution cost
If distribution method / pattern is effectively and efficiently handled,
it will result in low Distribution cost.
♥ Streamline order processing
♥ Reduce inventories
If inventories are effectively used and handled – then the company
need not have to keep it in large quantities and could be ordered as
and when required – so company would save on working capital.
♥ Reduces cost of customer acquisition
♥ Streamline production of Goods
♥ Low employee turnover
If employees are efficiently used and are handled well in the
company i.e. effectively – then there is no reason for high employee
turnover so that company has to bear the expenses.
♥ Good work environment.
♥ Recruitment procedure.
It’s the most important thing for any company because if recruitment
is not handled effectively and if a wrong person is hired – we all know
that the training of people is very costly and if the person is not able
to cope up with it–the charges which the company would bear would
be high and after that ultimately again you have to start the
procedure so that you get the right person for the job – so again
more expenses for the company.
♥ Optimum level of employees
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3. Efficiency & Effectiveness goes hand in hand
So to conclude I would like to say that if either of the 2 E’s are
missing in an organization – the organization cannot survive in the
industry – because today the markets have become very
competitive and company has to give more for less. Customers have
become the king in the market and market has become competitive
and price sensitive with demand for excellent quality. So the work,
processes, products and anything and everything related has to be
efficient and effective so that company can go from strength to
strength.
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