Chapter 1, Problem 5DQ

Summary Introduction

To determine:

Whether managers can improve upon effectiveness and efficiency should be determined. Consider GM situation for defect in the ignition system wherein it has come to the picture that efficiency goal is preceded by quality goals in the organization.

Introduction:

Organization effectiveness stands to be the degree pertaining to which a stated goal is being achieved by the organization. Organization's efficiency on the other hand reflects the amount of resources that are taken in consideration of attaining the goal of the organization. It relies upon the number of people, the amount of money and raw material required to manufacture a specific level of output. The key obligation of the manager is to ascertain great performance, which stands to be the ability of the organization to achieve its goals by making use of resources in an effective and efficient manner.

Although effectiveness and efficiency stand vital for performance, most of the individual would most likely say that effectiveness tends to have more significance rather than efficiency. The reason behind such statement is that no value is being provided to the internal efficiency if it fails to make possible for organizations to respond to external environment or achieve its goals. Whereas an organization that stands to be effective does attain its objective or goals as per the definition.