Efficiency vs. Effectiveness


It is said that the difference between efficiency and effectiveness is the difference between’ doing things right’ and ‘doing right things.’ It should encompass both efficiency and effectiveness. That is ‘doing right things right.’

Imagine that you visit your friend. As you are chatting, your friend asks his wife to bring coffee. A little later a tray with milk, sugar, coffee powder and cup is placed before you to prepare coffee of your taste, light or strong, with or without sugar, etc. and you prepare coffee and drink it.

On some other occasion, you visit another friend. As you are chatting, your friend’s wife brings coffee in a cup (before being asked by your friend). Coffee is already prepared. As you take the first sip, she enquires if the sugar is enough. As you say, ‘its ok’ and drink coffee, she stands there. After you finish, she takes the cup and goes off.

In these two cases of serving coffee, it could be seen, that the purpose was served. In the first case it was done in a ‘5-star’ style. No one can find fault with it. But in the second case, there is an additional component attached to it, namely the personal touch. This definitely had its role in creating an ‘impact.’

The first can be said to be an efficient way of serving coffee and the second an effective way. Efficiency is all about how the ‘producer’ has felt and effectiveness is all about how the ‘user’ has felt.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Adopt Open Communication


To build trust and solid working relationships with employees and others in the organization, it’s important to be seen as someone who is committed to sharing information with others and who goes beyond communicating only what is necessary. Developing a climate in which you and your team are open with information—information exchanges between you and your people, between departments or divisions, and between team members—is critical in order to function effectively.

  • Find out what your employees want to know.
  • Encourage your staff to keep one another informed and share information.
  • Establish a departmental bulletin board to keep people up-to-date on both personal and professional items of interest.
  • Hold periodic staff meetyings to share information about recent developments in the organization.
  • In staff meetings, encourage two-way communication, solicit agenda items from employees, and allow employees time to raise issues.
  • For the purpose of informal communication, hold monthly breakfast meetings that have no agenda.
  • Keep your manager and employees up-to-date by submitting a monthly activity report for your area.
  • Alert your manager to possible implications of events occurring either inside or outside of the organization. Don’t assume that your manager is aware of these implications.
  • Don’t “shoot the messenger” of bad news.
  • Ask your manager which key people you should keep informed.
  • List the key organizational people upon whom your success depends, and make a special effort to keep them informed.
  • Copy your manager on all correspondence to managers in the organization at his or her level or higher level.
  • Ask your manager about any perceived “surprises” in your area and then look for ways to avoid recurrences.
  • Don’t gloss over anything that goes wrong in your area. Report the situation as accurately as possible.
  • Talk with peers or people in other departments about “communication breakdowns.” Devise ways to avoid them.
  • Always double check all written communications before mailing; also ask yourself, “Who else should know about this?”
  • Use the “informal organization” as a way of keeping others informed. Wander around, have coffee with people, ask them questions, and so on.
  • At the end of every day, ask yourself of what occurred that should be reported to other people.
  • Return phone calls promptly.
  • Make a point of updating the appropriate people even when nothing new has developed.
  • Ask your secretary to suggest who should be copied on documents you produce.
  • Appoint a “recorder” for the meetings you conduct and have the minutes distributed to the appropriate people.
  • Promptly respond to notes, letters, and other requests so people know what you are doing about their communications.
  • If they are available, use electronic aide (voice mail, email) to pass along information that doesn’t require face-to-face exchange when you cannot do so in person or in writing.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Managing a Shortage


In the real world, equilibrium prices are always changing. A flood in Brazil may cause the price of coffee to rise; good farming weather in the Midwest will lead to a fall in the price of wheat; advancing technology steadily lowers the price of computers. If enough people are drastically affected by the price change the government may decide to do something about it—whether wisely or unwisely. Rising apartment rents will lead to pressure for rent control, falling wheat prices will lead to pressure for agricultural price supports, and so forth.

When the government controls the price of a good below the market-clearing level, there will be a “shortage.” A shortage is not the same as scarcity. Scarcity simply means that not all desires can be satisfied, and so scarcity is always present. Diamonds are scarce, but there is no shortage—anyone who can pay the price of a diamond can buy one. A shortage exists when goods are not just expensive but unavailable to some people—except perhaps by unlawful means. In a city with rent controls, newcomers may be unable to rent an apartment at all, regardless of their willingness to pay. Thus, faced with a supply shift or demand shift dictating a higher equilibrium price, consumers are bound to lose out one way or the other—either from the higher price if the market adjustment proceeds unimpeded, or from the “shortages” that follow when government interventions keep the price low.

Using the concepts of short-run and long-run supply, let us trace out the consequences of coping with upward pressures on price by imposing a “ceiling.” There are some less visible consequences of price ceiling. Unable to raise price openly, firms may use subtler strategies. They may eliminate discounts or seasonal sales, reduce quality or variety or convenience of their offerings, or concentrate production in product lines that happen to have received a better break from the price-control authorities. Supplies may be sold abroad, leaving even less available for domestic consumers. And of course black markets may arise, providing a wider scope for people specializing in illegal activity. In extreme cases, there may be a breakdown of legitimate trade. In this connection, we can learn much from a previous great inflationary episode associate with World War 11 and its aftermath.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight