efficiency

Examples of efficiency in the following topics:

• Ratio Analysis

  • Ratio analysis is a useful tool for benchmarking the financial and operational efficiency of a project compared with other projects.
  • In project management, a ratio analysis may be related to the efficiency of a project and how well the project managers are controlling resources.
  • These can include profitability ratios, efficiency ratios, activity ratios, and debt ratios.
  • Ratios used to determine a project's health include operating margins, profitability margins, efficiency ratios, and debt.
  • The goal of process control is increased efficiency; ratio analysis uses a wide variety of point in similar projects as benchmarks to denote where efficiency can be enhanced, and underlines differences in profitability and efficiency that may sway resource allocation for the organization in the future.

• Classical Versus Behavioral Perspectives

  • The classical perspective focuses on direct inputs to efficiency, while the behavioral perspective examines indirect inputs too.
  • Scientific management theory, which was first introduced by Frederick Winslow Taylor, focused on production efficiency and productivity of employees.
  • By managing production efficiency as a science, Taylor thought that worker productivity could be completely controlled.
  • This quantitative, efficiency-based approach is representative of the classical perspective.
  • Henri Fayol, another leader in classical management theory, also focused on the efficiency of workers, but he looked at it from a managerial perspective—i.e., he focused on improving management efficiency rather than on improving each individual employee's efficiency.

• Flaws in the Classical Perspectives

  • The classical approach to management is often criticized for viewing a worker as a mere tool to improve efficiency.
  • The classical view of management tends to focus on the efficiency and productivity of workers rather than on workers' human needs.
  • This dissatisfaction undoes the value captured via increased efficiency.
  • The behavioral approach to management took an entirely different approach and focused on managing morale, leadership, and other behavioral factors to encourage productivity rather than solely managing the time and efficiency of workers.
  • The onus of enabling efficiency, therefore, shifts from workers to managers.

• Administrative Management: Fayol's Principles

  • Fayol's approach differed from scientific management in that it focused on efficiency through management training and behavioral characteristics.
  • Taylor was concerned with task time and improving worker efficiency, while Fayol was concerned with management and the human and behavioral factors in management.
  • Another major difference between Taylor and Fayol's theories is that Taylor viewed management improvements as happening from the bottom up, or starting with the most elemental units of activity and making individual workers more efficient.
  • Fayol believed that by focusing on managerial practices organizations could minimize misunderstandings and increase efficiency.

• Why Study Organizational Theory?

  • Organizational theory studies organizations to identify how they solve problems and how they maximize efficiency and productivity.
  • Organizational theory studies organizations to identify the patterns and structures they use to solve problems, maximize efficiency and productivity, and meet the expectations of stakeholders.
  • Other firms observe these innovative developments and recreate them efficiently.
  • These developments make it easier for a company to produce and thus incentivize firms to aggregate and utilize more efficient methods for running their companies.

• Operations-Management Tools

  • Six Sigma and Lean are two popular operations-management theories that help managers improve the efficiency of their production processes.
  • Operations managers are responsible for ensuring that business operations are efficient, both in terms of conserving resources and in terms of meeting customer requirements.
  • Both of these operational strategies offer managers an extensive toolbox with which to analyze how efficiently their production is running.
  • These tools analyze workflow, evaluate the presence and cause of waste, and decrease defects in products or services, all of which make a company more efficient.

• Scientific Management: Taylor and the Gilbreths

  • Scientific management focuses on improving efficiency and output through scientific studies of workers' processes.
  • Scientific management, or Taylorism, is a management theory that analyzes work flows to improve economic efficiency, especially labor productivity.
  • All of these components focus on the efficiency of the worker and not on any specific behavioral qualities or variations among workers.
  • At its most basic level, time studies involve breaking down each job into component parts, timing each element, and rearranging the parts into the most efficient method of working.
  • Taylor was focused on reducing process time, while the Gilbreths tried to make the overall process more efficient by reducing the motions involved.

• Benefits of Innovation

  • Innovation may be linked to positive changes in efficiency, productivity, quality, competitiveness, and market share, among other factors.
  • Supporting the HR and IT departments so that they can provide training and tools for higher employee efficiency can contribute substantially to a culture of internal innovation.

• The Importance of Motivation

  • In summary, motivated employees will retain a high level of innovation while producing higher-quality work more efficiently.
  • To increase employees' efficiency and work quality, managers must turn to understanding and responding to individuals' internal and external motivations.

• Advantages of Teamwork

  • The benefits of teamwork include increased efficiency, the ability to focus different minds on the same problem, and mutual support.
  • Higher efficiency: Since teams combine the efforts of individuals, they can accomplish more than an individual working alone.