EFFICIENCY AND EFFECTIVENESS : 5 TERRIFIC KEYS TO MANAGERIAL SUCCESS

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Management is a deep concept, and many researchers have defined it as creation of an environment which is feasible internally for enterprises and externally for stakeholders.Efficiency needs to be prioritized.Business needs to be in this state wherein people who work for an organization can perform effectively and efficiently to achieve the group organizational objectives together. 

Effectiveness means choosing the right goals. A manager who selects an appropriate goal will definitely achieve success.An ineffective or an inappropriate goal which involves characteristics like unrealistic expectations will not lead to success. For example: If the demand in the market is to produce a black Coca Cola and the production which is being done is of a blue Coca Cola, it is a demonstration of an ineffective manager. Even though the blue Coca Cola might have good quality or taste better than the black Cola, but if the demand is not reached the goal is not fulfilled.It is important to achieve the goal effectively and efficiently. 

Efficiency is defined as an individual’s ability to do the right things or strike the right balance between the input and output. An efficient manager achieves the required output by utilizing all the input resources or raw materials. For example, labor materials and time, optimally. This is known as resource utilization in management and hence the concept of minimization of costs and maximization of benefits came up. 

How to function with efficiency and effectiveness ?

Therefore, it is important for management to achieve the desired goals with minimum resources, I.e., prioritize efficiency and function as optimally as possible, thereby maintaining a balance between effectiveness and efficiency. Management is the process of planning, organizing, staffing, directing, and controlling the resources available in the organization to achieve specified goals. These functions are interrelated and may be grouped into the following categories: 

1. Planning – It is a function of determining in advance what is to be done, how to do it and when to do it along with who will do it. 
2. Organizing – It is a function of identification of activities to be carried out, grouping tasks, establishing authority, and allocating resources are required to carry out the plan. 
3. Staffing – It is a function related to recruitment, selection, placement and training the personal for different various jobs in the enterprise. 
4. Directing – It is a function of establishing an atmosphere that encourages employees to do their best it includes supervision, motivation, leadership, and communication. 
5. Controlling – It is a function of monitoring organizations performance towards the attainment of his goal. It ensures that activities are in conformity with the predetermined goals.  

All the above functions are done continuously throughout the life of an organization. Also, they are interrelated. For example, if planning is not done properly, then the other functions such as organizing, and staffing will not be done effectively. 

If an organization wants to modify its existing product line in the market due to any reason for example decreasing sales a lot of steps in decision-making from each level of management is required. 

All the management should work together to modify the existing product so that the sales can be increased there are 3 levels of management- 

• Top management 
• Middle management 
• Supervisory management end list 
• Decisions taken by top level management are- start list 
• Direction of modification of the existing product 
• Policies to enhance the value of the product in qualitative terms 
• Organizing activities to be performed 
• Assembling of required resources 
• Financial decisions 
• Decisions regarding marketing and promotion of modified product 
• Controlling and monitoring the plan target end list 
• Decisions taken by the middle level management I- 
• Start list interpretation of the policies claimed by top management organizational setup in their department’s 
• Hiring necessary personal with the required qualities and qualifications 
• Assigning responsibility and establishing the supervisor- subordinate relationship 
• Compilation of detailed instructions regarding operations and issuing them to operational level managers 
• Motivating the personal for higher productivity 
• Taking the feedback and arranging follow up meeting. 

Decisions taken by supervisory level management are- 

• Preparation of plans regarding the work and distribution of work. 
• Maintaining standards, quality control and frequent checks. 
• Helping and directing the workers and instructing them how to go about with work. 
• Communicating their devices and eliminating work related problems by giving feedback to the middle level management. 
• By welcoming workers’ suggestions for better techniques. 
• Minimalization of wastage. 
• Motivating the workers so that they can do their best. 

A lot of things need to be taken care of in advance so that a strong organization structure with efficient supervisory staff and control system is in place. There are a few guidelines which we have talked about here and this can be referred to avoid confusion and duplication of work- 

• Ensure transparency in working system.  
• Ensure proper coordination by implementation of plans and monitoring results. 
• Follow proper communication pattern and the communication system should be strengthened. 
• Planning and controlling should be well coordinated. The p plans should be revised in the light of deviations and actual results achieved from stop appropriate 
• Appropriate motivational strategies should be framed and implemented to improve performance.  

Management involves the utilization of group efforts in the pursuit of predetermined objectives. The members of the group work together as a team and coordinate their individual efforts in a common direction to achieve group goals. Hence management is a group activity. 

 Moreover, by providing excellent quality products and services, creating employment opportunities, adopting modern technology, and leading the path towards growth and development it also contributes to the society. Management is the process of getting things done and performing primary functions of planning, organizing, staffing, directing, and controlling. Management is not only concerned with achieving their goals, but it is also concerned with efficient use of resources. This will result in reduction of costs and leads to higher productivity because activities involved in managing an enterprise are common to all organizations whether economic, social, or political. Management is also called “all pervasive” due to this quality. Management helps people to adapt to changes so that the organization can maintain its competitive edge. This results in creating a dynamic organization. 

The objectives of management- 

• It should ensure that organization makes a profit. 
• It should fully exploit the growth potential of the organization. 
• Using environmentally friendly methods of production, it should help organization reach its goal this is one of the social objectives of organization management.  

The two personal objectives of management are also listed below – 

• Competitive salaries and rewards. 
• Personal growth and development.  

Management is not tangible; it is considered as an intangible or unseen force. Management cannot be seen. However, the existence of a good management is indicative through order, enthusiasm of employees, success, and productivity. 

Management influences behavior in the sense that it affects the way people view their work and how they perform the work. Managers rather than performing the actual work, influence the behavior of people to work towards the productive organizational goal. This can be achieved by establishing two-way communication, inspiring leadership, and creating a strong motivational environment.  

Effective utilization of resources and effectiveness in management 

Efficiency means “doing things right” and effectiveness means “Doing the right things.”  

Efficiency [The ability to do things right] is a concept that is related to the input and output. Any personnel or a manager who achieves the output that justifies the input used to achieve them, is considered as an efficient manager. In management, the efficiency of resource utilization is cost minimization and benefit maximization. This results in the achievement of organizational goals.  

Effectiveness, in contrast, involves choosing right goals, it will stop a manager who selects an inappropriate goal. For example, producing black colas when demand is for Blue Colas is an ineffective manager. Even though the Colas, which were blue in color, were produced with maximum efficiency. 

No amount of efficiency can make up for lack of effectiveness or effectiveness as the key to an organization success. It is a precondition for an efficient management. 

Therefore, it is important for management to achieve goals. Effectively, with minimum resources that is as efficiently as possible, maintaining a balance between effectiveness and efficiency.