IN TODAY’S ENVIRONMENT, WHICH IS MORE IMPORTANT TO ORGANIZATIONS—EFF...

4.In today’s environment, which is more important to organizations—efficiency or effectiveness? Explain your choice.　　　　Both are integral to effective management. Management refers to the process of coordinating and integrating work activities so that they’re completed efficiently and effectively with and through other people. There is no way to say that one of these is more important than the other. No organization can succeed in today's highly competitive world unless it is both efficient and effective. An efficient organization is one that produces a good or service using the least possible amount of inputs. This is vitally important in today's world. If a firm cannot produce efficiently, it cannotcompete because other companies will be able to produce at lower prices. An effective organization is one that does the right things. It is an organization that gives the customers what they want. This is just as vital in today's world. A firm that is really good at making things well and at low costs will still fail if it is making things that people no longer want. The most efficient firm making film cameras is not going to prosper in today's world of digital cameras. No firm can prosper if it is not both efficient and effective. A company that makes popular goodscannot compete if others can produce the good more cheaply. A company that produces goods at a low price cannot compete if no one wants its product. Therefore, both are equally important.　8. “Management is undoubtedly one of humankind’s most important inventions.” Do you agree with this statement? Why or why not?“Management is undoubtedly one of humankind’s most important inventions.”I agree with this statement . because , without the principles of management and the guidance of managers in organizations, we as a society would not have reached the level of development that we enjoy today. The goal of management centers on the art of getting things done. Without organizations and their managers, it would be impossible to accomplish what has been done in history so far. It is has always been up to managers to coordinate and oversee work activities in the art of getting things done in the areas of agriculture, medicine, science, and manufacturing. Achieving Company TargetsWhen a company begins its operations, specific goals are setup which can only be achieved if all the parts of the organization function together and efficiently. Proper management makes sure that each part of the company works towards achieving a common goal without disarray. Management actually plans, executes and balances the resources of a company in such a way thatthere is maximum work output to attain the goals of organization swiftly, while retaining work quality. In absence of proper management, different sections go on to attain individual targets. However, common goal may not be achieved, which would further lead to delays, losses and lowquality output.Reduction In WastageWhen resources of a company are effectively managed, wastage is reduced, thereby lowering overall costs and attaining the state of ‘resource optimization’. This means that company is making profits not only from output, but also from better and optimum use of input. Proper utilization of resources and reduced wastage prevents both under employment and exploitation of resources. Management can identify resources which are scarce and find alternatives for the same, thus reducing the cost again. It also employs the specialization of employment and leads to increased productivity and quality output.Simplifies The Organizational StructureManagement controls effective work division, specialization and resource allocation. This creates a uniform flow of work and specifies boundaries of responsibilities, authority and rights, which do not overlap. This structure is necessary, as it clarifies to each employee his position andfield of influence in the organization. In such a scenario, every employee would know his/her basic rights, duties, immediate superiors and subordinates, along with the knowledge of opportunities awaiting him, as his relation with the company grows. Effective management also helps to ascertain that no two people are doing the same work and that right person is allocated for the right job, thus increasing productivityIncreases StabilityThe company should be maintained in such a fashion that external market turbulences do not hamper the company’s functioning. This requires effective changes that need to be made in the company, without hurting the company’s stand or its workers too much. Without proper management this will not be possible. Management will provide increased stability and adaptability to the company, helping it survive market conditions and grow with time. Also, the workers would not be apprehensive about losing their job, which would, in turn, help them work with peace of mind.Provides The “Feel Good Factor” According to Harold Koontz, ‘‘Management is an art of getting things done through and with people in formally organized groups”. This statement ascertains the importance of people in the whole scenario. It is extremely important to keep the workers happy for the successful functioning of the company. A company which is managed with efficacy prospers rapidly and, in turn, produces better revenue, thereby opening avenues of growth for theworkers involved. The upward climb in the growth chart assures the workforce of not just better salaries, but better positions, which provides motivation for better work. Profits GaloreThis is a cumulative effect of all of the benefits mentioned above. Proper management helps to build efficient organizational structure, set targets that are testing yet achievable and optimize resource utilization (both human and otherwise). Such a scenario increases profits by maximizing productivity and reducing costs. Happy and de-stressed workers work with more zeal and enthusiasm. This increases quality and quantity of output, which aids in the growth of the company, beating competition and emerging out victorious!