Efficiency vs. Effectiveness: An Analysis of Chester Barnard's View

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Added on  2023/06/03

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This essay delves into Chester Barnard's perspective on efficiency and effectiveness in organizations, arguing that an organization can be efficient without necessarily being effective. Efficiency is defined as the optimal use of resources, while effectiveness is the degree to which an organization achieves its goals. The essay uses examples to illustrate how a company can efficiently manage its resources and processes but still fail to meet its objectives, highlighting the importance of both efficiency and effectiveness for long-term organizational success. It also explores the role of employee motivation and training in achieving efficiency and emphasizes that while efficiency can be managed, it does not automatically translate into effectiveness in a competitive market. The essay concludes by affirming Barnard's view, stating that while organizations can strive for efficiency, effectiveness requires a more holistic approach that ensures goals are met and positive outcomes are achieved.
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In Chester Barnard’s view, an organization can be ‘efficient’ without
being ‘effective’.
It has been seen that organization can be efficient but it cannot be effective. It is stated
that efficiency is the amount of the resources used to attain the overall goals of the company,
while it has been stated that effectiveness is the overall degree in which the company can achieve
its goals. In this paper the focus will be given on the view given by Chester Barnard. The view
given by him is related to the statement that organization can be efficient without being effective.
Therefore, the company can use the overall amount of the resources to accomplish the goal but
they are not able to achieve it. Like a company set the goal to make 400 sneakers by the month
end, but made only 350 sneakers. The process that is considered to make the shoe can be stated
as an efficient framework but it is not effective approach as there are not able to attain the goals
of the company.
On the other hand, if the company is inefficient, then it cannot be considered as effective.
If the company does not take into consideration proper resources which are required to be
successful then there can be a chance that will never focus on the overall goals of the company.
For instance: if the company does not have proper machinery for making shoes then they will not
be able to focus on producing a lot thus it can be considered as ineffective. If there is efficiency
but there are no resources then it can be seen that negative impact can be seen on the entire
activities of the company. It can affect the entire effectiveness of the company (Cardy and
Leonard, 2014).
Being efficient in the workplace can be possible but it cannot lead to the overall
effectiveness of the company. If in the workplace, the managers force the employees to work by
deducting their salary on monthly basis then it has been seen that employees will work with
efficiency but it cannot lead to the overall effectiveness. In this case the direct impact will be
seen on the long term goals which are set by the company (Jackson, Schuler and Jiang, 2014).
It can also impact the overall operation of the company and can lead to satisfaction
between the employees who are engaged in managing the overall operations. It can be stated that
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efficiency can be maintained of the employees by giving feedback or warning but it cannot lead
to the overall effectiveness in the workplace. It is necessary for the employees to be efficient so
that top management cannot be able to impose penalties on them (Arnold, 2017).
The organization can be efficient but it cannot be effective for long time. This statement
simply states that the company can be efficient by improving the overall function of the
employees but if top management pushes the employees to work in a proper manner then it can
give benefit for short time but for long run the effectiveness in the workplace cannot be
determined.
It can also been seen that organization can be efficient without being effective.
Efficiency is related with how the company resources are being considered without considering
the overall results. Effectiveness emphasizes on the explaining that how well the results are
attained without saying anything about the entire resources that are related to the actions.
Efficiency and effectiveness are two different things that can be managed without considering
the each other (Bucata and Rizescu, 2016). For example: The person can be efficient in
managing the workload but still attain the poor outcomes. So, it can be stated that the person is
efficient in the work but effectiveness cannot be seen as the negative outcome is attained.
One of the examples is also related with the overall task management. It has been seen
that the person can manage the task which are allocated to them but by completing the task the
positive outcome is not achieved. So, it can lead to efficiency in the work but there is no
effectiveness which is analyzed from the overall work done by the employee. It is necessary for
the employees to bring efficiency in the work so that it can be simple for the top management to
control the other activities of the company (Barrett, 2014).
Like a company set the target to make 500 chocolates by the month end, but made only
400 chocolates. So, it has been seen that the entire process of in making the chocolates can be
considered as the efficiency of the employees but the approach which is considered is not
effective as the company is not able to achieve the set target. This can be considered as the
perfect example as through this the overall efficiency is given by the employees but the
organization is not able to be effective by considering the overall work. So, the statement given
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by Chester Barnard can be stated as true as the organization can be efficient but it is not possible
to maintain the overall effectiveness in the workplace.
The employees in the workplace can be made efficient towards work but it is not assured
that effectiveness will be attained in future. There are many cases where employees are efficient
towards work but it is not possible for the company to be effective in the high level of
competition prevailing in the market. It is also the concept where efficiency can be maintained
but there are few chances for the company to be effective in the market or between the
customers. It is important for the company to focus on enhancing the efficiency of the employees
so that growth can be attained in the market (Brewster, 2017).
One of the functions of the top management is to motivate the employees so that they
can give their best. Through motivation an organization can be efficient but there is no assurance
of the effectiveness in the workplace. The factor related to motivation can help the employees to
be efficient in the work but it cannot be possible to ensure the effectiveness in the workplace. It
is necessary for the managers to enhance the confidence level of the employees towards the work
so that it can be easy to achieve the overall goals. Also it will help the companies to enhance the
overall profits in the workplace (Shemilt, Khan, Park and Thomas, 2016).
If there is efficiency then it is not important that there will be effectiveness in the
workplace as employees give their best. It also helps to ensure efficiency but it not always
ensures effectiveness in the workplace. So, the statement is right which states that an
organization can be efficient without being effective. If the employees who are rendering their
activities are not able to achieve positive outcome then this statement can be supported in
reference to the overall efficiency at the workplace (Bratton and Gold, 2017).
As it has been seen that the employees of the organization are dedicated towards work
but they are not able to achieve the targets which directly affect the overall level of profits in the
workplace. It is necessary to maintain the efficiency in the workplace as it can assist the
company in managing the overall tasks which are assigned to the employees. Effectiveness is
related to the workplace when they achieve goals in the competitive market. So, it can be seen
that an organization can be efficient but it is not sure that the activities which are delivered by the
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employees will bring effectiveness in reference to the overall activities of the company (Ahmadi,
Nami and Barvarz, 2014).
So, by analyzing the paper it can be stated that the view given by Chester Barnard is
correct as organization can be efficient without being efficient. The employees in the workplace
can give their best towards the activities but it is not possible that by giving the best the company
can be effective in the market. It can be seen that it is important for the management to focus on
motivating the employees so that they can be efficient towards the work but the management is
not sure that the work which is delivered by the employees is effective or not. So, by rendering
the work with efficiency cannot guarantee the success of the company. It can help the company
to manage the activities but it is not possible that they will achieve success in the competitive
market.
So, the statement which is given by Chester Barnard is true. So, the companies can
maintain their efficiency but to success related to effectiveness cannot be assured. It is necessary
for the management to train their employees in such a manner that they deliver the good work as
it can help to maintain the workplace culture and can also affect the employees who are
managing their activities in the workplace.
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References
Ahmadi, S., Nami, Y. and Barvarz, R., 2014. The relationship between spirituality in the
workplace and organizational citizenship behavior. Procedia-Social and Behavioral
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Arnold, M., 2017. Fostering sustainability by linking co-creation and relationship management
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Barrett, B., 2014. Training global managers to prepare and train expatriates for more efficiency
and effectiveness. Journal of Economics, Business and Management, 2(3), pp.196-201.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C., 2017. The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35). Routledge.
Bucata, G. and Rizescu, A.M., 2016. Management style as a triggering factor for organization
effectiveness and efficiency. Journal of Defense Resources Management, 7(2), p.159.
Cardy, R. and Leonard, B., 2014. Performance Management: Concepts, Skills and Exercises:
Concepts, Skills and Exercises. Routledge.
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human
resource management. The Academy of Management Annals, 8(1), pp.1-56.
Shemilt, I., Khan, N., Park, S. and Thomas, J., 2016. Use of cost-effectiveness analysis to
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