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Name: Ahmed Hassan Hussein Ahmed

Mobile: 01001885484
Contemporary Management Assignment (3)
 You are kindly requested to apply the productivity of the
organizational performance on four different scenarios, explain each
case.

Efficiency and effectiveness are two pillars in the organizational performance

Efficiency vs Effectiveness
Efficiency: Doing things right to produce consistent and rapid results
Effectiveness: Doing the right things to produce the results you wants
Efficiency is important for profitability. Effectiveness is important for growth.
(www.glennsmithcoaching.com)

 How To Improve Business Efficiency


The best way to improve efficiency is to measure and evaluate all of your
processes and systems. Again, your employees and team members can be
great help here. If you ask them you may be surprised how insightful they
can be. Also, if they feel like they are making a meaningful contribution,
they will have more pride and a higher level of ownership of the outcomes.
So engage your team to start documenting, measuring, and evaluating every
critical process in your company. As you become more efficient you will
discover new capacity for production and profitability.

 How To Improve Business Effectiveness


The best way to improve effectiveness is for you as a leader to take time on
a consistent basis to evaluate, plan, and focus. This is why we encourage
business owners to take a strategic retreat every 90 days. By doing this you
can step back and look at the big picture. You can get clear on what results
you really want, and then assess how you’re doing at getting those specific
results.

How Effectiveness & Efficiency Relate to Productivity

When you start a small business, you must determine your purpose. One way to
do this is to explain why you will be good at serving your customers. Once you
have this purpose firmly in mind, you can target your productivity efforts toward
serving your customer and therefore growing your sales. You must look at how
effective you are at serving your customer, and you must look at how efficient
you are at serving your customer, because effectiveness and efficiency drive
productivity. (www.smallbusiness.chron.com)

 Effectiveness
Effectiveness must come first in all of your considerations about
productivity. Effectiveness is doing the right things. You must make sure
that all your objectives serve your goals, which in turn serve your purpose.
Objectives are short-term achievements, goals are long-term achievements,
and your purpose is serving customers in ways that satisfy their needs and
desires. Start by looking at whether you are doing the right things, and
whether you are asking employees to do the right things. For example, if you
are a manufacturer, ask yourself whether all employee tasks contribute to
manufacturing, or whether some tasks, such as washing company vehicles or
ordering lunch for staff, are irrelevant. Make sure your employees engage in
activities that are effective in moving you toward your goals.
 Efficiency
Once you have employees doing the right things, you can make sure they do
things right. Examine all employee tasks and determine if there is a better
way to get them done. For example, perhaps your order pickers spend most
of their time walking through the warehouse looking for products. To give
another example, your back-office personnel may be dictating to front-office
salespeople how many orders they can handle. Find more efficient ways to
get work done through computerization, streamlined communication
channels and rearranging of the physical environment.
 Productivity
Productivity is doing the right things in the right way. Once you ensure
employees are being effective and efficient, you will see a rise in
productivity. You should start measuring this productivity on a daily, weekly
and monthly basis. You can use metrics such as number of units produced,
sales or customer-satisfaction surveys. With effectiveness and efficiency in
place, you will be able to establish some baseline measures of the
productivity of your company.
 Increased Productivity
With the basics in place, you can increase productivity incentives. These can
take the form of increased commissions on sales above your present levels,
bonuses for reaching higher production quotas and pay raises for sustained
productivity increases. With incentives in place, employees will find their
own ways to become more effective and efficient, and thus increase
productivity.

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