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Efficiency and effectiveness: Presentation with Examples


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Find out the essential difference between effectiveness and efficiency. Examples such as business meetings v/s video conferencing and Steve Jobs' working strategy discussed.

Published in: Business

Efficiency and effectiveness: Presentation with Examples

  1. 1. Efficiency and Effectiveness Presented By: Abhimanyu Mathur Deepika Nehru Abhishek Nayak
  2. 2. Efficiency and Effectiveness “Efficiency is doing things right Effectiveness is doing right things” Peter Drucker
  3. 3. Efficiency and effectiveness example
  4. 4. • Business Meeting often require frequent travelling. • Costs Go High • Unfeasible for long time • Stressful environment
  5. 5. • Long term investment • Can connect to multiple people at same time • Sustainable • Less stressful to employees
  6. 6. Utility of Efficiency • To achieve short term goals • Improving productivity in limited time • Minimizing costs
  7. 7. Utility of Effectiveness • Sustainable growth • Long term profits • Focus on market performance
  8. 8. Need for self assessment in an organization • • • • • Customers and /or Competitors are driving a need to change. The industry or environment is changing. The organization is among the best. Therefore it is important to make sure it stays that way. Performance is efficient, and it is crucial to keep it that way. The drive to enhance organizational learning.
  9. 9. Organizational Benefits • Is able to identify successes and opportunities for improvement. • Knows how to initiate changes or energize current initiatives. • Learns how to energize the workforce focus on common goals. • Efficiently utilizes benchmarking strategy. • Aligns the resources with the strategic objectives • Delivers world-class results
  10. 10. Effectiveness Oriented Companies • Effective Oriented companies effectiveness is much broader perspective and are concerned with • Output • Sales • Quality • Creation of Value added • Innovation • Cost Reduction
  11. 11. Ways to improve organizational effectiveness • Better communication • Interaction • Leadership • Direction • Adaptability • Positive environment
  12. 12. Efficiency Oriented Companies • Efficiency measures the relationship between inputs and outputs or how successfully the inputs are being transformed into outputs. • It focuses on elimination of six losses, which are: • Reduced yield – from start up to stable production • Process defects • Reduced speed • Idling and minor stoppages • Set-up and adjustment • Equipment failure.
  13. 13. Business Efficiency and Organizational Efficiency • Business efficiency reveals the performance of input and output ratio • Organizational efficiency reflects the improvement of internal processes of the organization, such as organizational structure, culture and community • Excellent organizational efficiency could improve entities performance in terms of management, productivity, quality and profitability.
  14. 14. Organizational Performance • Organizational performance = effectiveness x efficiency • Total asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales; therefore it can be treated as efficiency. • Profit margin ratio is an indicator of a company's pricing strategies and how well it controls the costs, also it is a good measure for benchmarking purposes; therefore it could be treated as effectiveness.
  16. 16. CONCLUSION