Efficiency and Values


The term ‘efficiency’ is a concept that has meaning only in the context of an agreed set of objectives. Such objectives can include objectives about inter-personal distribution, typically reflecting one or other interpretation of equity. Occasions when the goals of efficiency and distribution conflict of the agreed set of objectives does not include equitable distribution. Indeed, historically and still to a great extent, the dominant interpretation of ‘efficiency’ has typically included only the objective of measured economic production/consumption. We should at most call this interpretation ‘economic efficiency’ and not honor it with the label of efficiency in general. But the efficiency label has enormous legitimizing power and functions as a trump card in the modern vocabulary. No one can declare themselves against it. If a policy option is deemed inefficient that usually sinks it. So contenders try to capture the label, to serve their particular set of objectives. This is what business interests and mainstream economists have successfully done for a long time. We need ask: Efficiency by which values?

 

Mainstream economists have focused on growth of aggregate production and national income. Business and other sectional interests may focus on sectional gains but advocate these behind the language of ‘efficiency.’ Not infrequently, the policies behind an efficiency label have been less economic as well as less equitable, and an ‘efficient’ only for elites.

 

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 contact www.asifjmir.com, Line of Sight

Connoting Business Opportunity


What is being offered with businesses is usually an idea which may work, depending on your business or sales abilities. It is up to you to establish an area or your clientele. You are usually provided with the tools, such as the vending machines, the inventory, or the samples and the business opportunity. For this, you will pay a price—the rest is up to you.

Many of the businesses will present you with an idea that is made to sound so exciting and profitable, you can’t wait to sink your teeth into it. Caution! Do not proceed or pass go without sound, professional accounting advice. Remember: you are usually buying an unestablished business using someone else’s ideas, for which you may be paying too much. You are starting from scratch, and those promises of big money usually don’t pan out. Warning! You must be especially diligent about so-called business opportunities that offer huge, quick returns. There are people who are ready to take your money and run, or sell you a business that is either non-profitable, not quite legal, or makes money for no one but the vendors. You have to reach not only the market, but the business, the business owners, and the history of the products they are selling. Before making any final decisions, consult with a lawyer and have an appropriate agreement for sale drawn up. If problems arise between you and the vendor your agreement will become a valuable document in court.

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 contact www.asifjmir.com, Line of Sight