Factors Affecting Business Efficiency

This assignment explores various factors that can impact the efficiency of a business. It delves into how an unhealthy work environment, negative relationships with managers or colleagues, low employee motivation, and inadequate pay can contribute to reduced productivity. The analysis emphasizes the importance of addressing these issues to enhance organizational performance.

Running head: ORGANIZATIONAL BEHAVIOR
Organizational Behavior
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1ORGANIZATIONAL BEHAVIOR
Thesis statement: Significance of efficiency at workplace
Efficiency has played a pivotal role in human life with respect to the increasing and
developing the economic circumstances. It is a critical fact that people own numerous talents,
hidden abilities and potentials. These are required for the people to prove their efficiency at
workplace and be successful. So, it can be argued that the people who do not have these abilities
remain backward. To categorize according to the priorities, motivation can be counted in the first
as it important for disclosing several known and unknown talents and powers in the most
efficient way (Bolino et al. 2013). To have an impact of this talent the managers use certain
motivational techniques in an organization to develop the hidden skills in an employee. These
skills increase the efficacy of the employees which is beneficial for them in their social life and
other enterprises. If the employees can practice these motivational techniques provided by their
managers then they will be able to meet up to their expected outcome.
According to DuBrin 2013, in this world, conjunctions such as the changes and
advancements at the global and regional level are growing in an interesting way. But the fact that
can be argued here is that the rapid growth and development not only has a positive impact on
the organization but also affects in a negative way. To maintain with the negativities the
organization needs to be driven by strong and decisive managers who will be able to assess the
process well. As per the article, the techniques that are used by the managers for motivation
purposes increase the efficiency of the employees in the workplace. Efficiency is undoubtedly
the most important factor which has an impact on the success of the employee as well as the
organization both in a positive and negative way. Efficiency is the most important factor and
extremely valuable for enterprises. It is the indicator of the degree of success and the stability of
an enterprise. Although the ever- changing environment provides innumerable scope for the
organization yet there arises some crisis sometimes. It is recommended for the enterprise to make
effective use of the opportunities which arises in the critical situation, and using the potential
skills and resources should be able to reduce the risk with a minimum loss (Gelfand et al. 2017).
The notion of efficiency can be measured and described almost in each and every socioeconomic
system as it is the potential to produce. In the contemporary era of increasing competition, the
organization should have a competitive advantage over others by making use of efficiency. High
efficiency can be seen as a big challenge and the organization must be able to achieve that in any

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possible way. Efficiency either in micro or macro economy, is critical in various ways. It can be
seen that the definition is not derived by any consensus but vary in many forms. The
technological component should be equipped with integrity along with the organizational goal.
The important part that should be taken into consideration is the situation of
transportation, procuring raw materials, the economic structure of the place where the investment
takes place, the national and international market scenario of the product that will be produced
and the intra- business efficiency (Greenberg 2013). Irrespective of the sector, it is absolutely
important for the organization to have operational efficiency. It has become the latest style of the
people to be efficient in whatever they do. Efficiency can be attained by getting positive
feedback which is valued in the social, economic, cultural and other fields. On the other hand it
can be stated that efficiency is related to elimination of the prevailing problems, perception and
implementing the necessary changes as opportunities by utilizing the resources and keeping the
sense of intra- business service quality very high. It should also be taken into consideration that
the best possible living conditions of the employees are maintained, by boosting the production
by optimum costs, the hard work put for supplying the best living and working conditions for the
employees by securing the natural and environment areas. Keeping aside all these factors, when
effectiveness is measured, many factors should be kept in mind such as preparing the raw
materials for production, using the core and auxiliary products necessary for production, shift
timing and schedule of the employees, their salaries, the added value of the product, procurement
of the raw materials and the cost of the raw materials which are present in the enterprise
(Hildreth and Anderson 2016). The final step, that is, the process of output, takes place in the
flawless and unrepeated production with the proper utilization of the skills of the enterprise.
It can be argued at this juncture that, in case of efficiency, the connection between the
input and the products are used for production. Efficiency is explained as the prevailing
correlation between the attained products and the raw materials required for producing that
attained product in the facility of production, necessary equipments, workforce, labor, capital and
energy and a balanced using of the resources and the services. Thus, efficiency is, the appropriate
utilization of the by combining the capital with technology and thus achieving the high level of
the workforce labor and making the prudential investment for a place. It can be considered as the
utilization of the factors such as resources, goods and services, raw material, labor, machines and

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equipments, capital, property, energy and material (Hoch and Kozlowski 2014). There can be
many defects in the efficiency factor. It is calculated as the ratio of the incomes that is gained by
production and service to the applied costs in that sector. Thus, it can be summed up as the ratio
of the total revenue acquired after the sales of the product that was produced to the cost of
production. It is the process of enhancing the sales by decreasing the prices to an optimum level
due to the two factors of making more production in comparison to others and gaining high
efficiency. But the fact is that if the dialogue between the employer and the employee is
maximized, the employee agents will be improved in the organization which will further improve
the relationship between the manager and the wage- owner (Hogg and Terry 2014). This
effective relationship will have an impact on the intra- organizational efficiency by making
successful production. The process of intra- organizational efficiency is gaining momentum and
the production is gaining profit because of the investment which began by making production.
The modern economic efficiency can, thus, be justified as the significance put in the
years which was increased by the capital investments and thus, began the rising of life. It is
feasible to describe the importance of efficiency by from various perspectives. In today’s modern
world of competitiveness, efficiency can be directly tallied with the organization and the
containing human factors. It is important from every aspect of employees, managers,
organization and also the community. In fact, employees are the most essential elements which
have an impact on the enterprise. The other elements of efficiency, effect, benefit,
productiveness are useless despite their significance, if the employees do not use them. This can
lead to the problem of supplying of efficiency (Luthans, Luthans and Luthans 2015). Therefore,
the role of the employees inside the enterprise remains the same. But, at the same time it is
possible to distinguish the factors which affect the efficiency in two classifications- intra-
business and extra- business. The intra business factors can be sorted as that affect the efficiency
such as the system and structure of the organization, factory, machines and equipments. The
extra business factors can be sorted as that affects the efficiency such as energy and equipment,
business practice, technology and management approach.
The causes of the reduction in efficiency in an enterprise are several. Unhealthy and
unsafe working environment can be considered as one of them (Miner 2015). Unfavorable
relations with the managers are another essential factor which gives scope to the organization to

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reach to the targeted goals and objectives. Negative relations between the colleagues do not
provide a suitable working environment for the employees. So, it is required by the management
of the organization to let the employees work peacefully and in harmony which will reduce the
deficiency in each other. Another factor which can be taken into consideration is low motivation.
It not only results in negativity of the employees’ productivity but also create unwillingness on
the part of the employees to bring a task forward. Therefore, low motivation is directly
proportional to low productivity (Pinder 2014). Low payment, on the other hand, leads to
negative productivity on the part of the employees. Payment is of great significance when it
comes to maintain the satisfaction level of the employees in the organization. Employees can be
retained if their effort can match up to the payment they are receiving. Low payment de-
motivates the employees which in turn are related to low productivity on the part of the
organization.

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