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Effectiveness is more important than efficiency

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Effectiveness is more important than efficiency
Effectiveness is more important than efficiency?

Joel Fleming – Affirmative

The following theory was first propounded in ’ (Samson, D & Daft 2012, p. 17) “Effectiveness is the degree to which the organisation achieves a stated goal. It means that the organisation succeeds in accomplishing what it tries to do. Organisational effectiveness means providing a product or service that customers value. Organisational efficiency refers to the amount of resources used to achieve an organisational goal. It is based on how much raw materials, money and people are necessary for producing a given volume of output. Efficiency can be calculated as the amount of resources used to produce a product or service.”

This clearly acknowledges and outlines the differences between the two words in the author’s eyes, but what makes effectiveness more important than efficiency. Effectiveness is about success; it is about innovation, reaching goals, hitting targets and therefore is an essential to the growth and the continuation and prosperity of any organisation.

In the workplace effectiveness generates a positive environment and stability in employees who feel more comfortable and secure in their roles and who also want to be part of an organisation that is heading in the right direction and achieving it’s goals. Management that is effective is more likely to increase profitability and sustainability as well as continue to flourish and expand its opportunities for expansion and development.
"Effectiveness is the foundation of success—efficiency is a minimum condition for survival after success has been achieved." (Drucker, P, 1977)
Efficiency is about minimising costs and simplifying process in order to survive, to remain stagnant and obtain the current level or place. That’s where effectiveness must take precedence over efficiency in order for any organisation to thrive in today’s world it must move forward it must adapt and evolve. Once a goal or target has been reached



Bibliography: Samson, D & Daft, RL 2012, Management, 4th edn, Asia Pacific edn, Cengage Learning, Melbourne Drucker, P, 1977, People & Performance, Harvard Business School Press, 60 Harvard Way Boston MA 02163

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