Answer to Question #142546 in Management for Hashir Masood

Question

In today’s environment, which is more important to organizations—efficiency or
effectiveness? Explain your choice.

Answer 1

Efficiency.

I have chosen that because, although both are important pillars of organizational success, and would be difficult to separate one from the other, it is important to note that efficiency makes organizations stay competitive, and maximize on profits. However, a business should also be effective in the good or service it offers to be able to market itself with ease. If I were not restricted to only choosing one, I would have concluded that both efficiency and effectiveness are equally important, and it would be suicidal to disregard one or the other.

Najafi, E., et al. "Efficiency and effectiveness rating of organization with combined DEA and BSC." Applied Mathematical Sciences 3.25-28 (2009): 1249-1264.