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Summary 115
Summary 115
The increasing competition in the modern world makes service organizations such as banks
have to choose whether to increase productivity or reduce costs in order to optimize their
companies. To that end, efficiency and effectiveness will be reviewed and emphasized. The literature
advises managers and policy makers to evaluate the productivity of their companies.
The finance department has an important role in economic growth. Efficient companies in
economic growth are the needs of all countries. In the advancement of technology and globalization
of financial services the banking industry is vulnerable to competition. Where every company must
consider how to build and protect its company. Therefore, the importance of the role of researchers
for productivity and efficiency in the banking industry, the number of researchers conducted in this
field is increasing in developing countries.Limited human and financial resources can worsen the
situation, therefore it is necessary to increase productivity which is the most important role of the
operational management process to find out the accurate level of productivity in the competition of
different banks.
Drucker defines efficiency measures can assess the ability of the organization to achieve
output and consider the minimum level of input. Likewise, according to Achabal, efficiency is
principally related to costs at a minimum level and refers to the allocation of resources. most of the
studies conducted in this subject on changes in quantity ostensibly explain changes in quantity at the
center or perhaps changes in the quality of the research
“Doing the right things” and choosing activities in the right way as effectiveness.
Effectiveness can be defined as measuring the company's ability to achieve predetermined goals and
objectives. The main objectives of effectiveness are often associated with the organization's extent
to the desired results and the extent to which customer requirements are satisfied. Factors not
achieving productivity in the organization of service features involved such as heterogeneity,
perishable and intangible capabilities and simultaneity.
The importance of analyzing productivity because banks must strive to improve their ability
to change inputs and outputs which will lead to improved results for taste, organization and
economy. Therefore, productivity will be measured based on effectiveness and efficiency in order to
achieve accurate and correct values.Accurate productivity should be the rule for bank managers and
policy makers enabling tires to redesign n revise bank goals and strategies based on real values. The
exact position of organizational productivity can be carried out in future studies.