The Concept of Efficiency
This article aims to give an analysis of the concept of efficiency. The importance of such an analysis lies in the fact that the role which efficiency plays in different sectors of our society leads to opposite evaluations resulting in a clash of opinions concerning this role. In order to clarify this situation, I first trace the historical roots of the concept. This brief historical reconnaissance shows that ‘efficiency’ is not a unitary concept. Moreover, I also argue that our use of the concept of efficiency presupposes the decisions which we make with regard to the kinds of costs we recognize. Such decisions do not come out of the blue; they relate to the opposite evaluations of efficiency mentioned above. The decisions concerning what we consider to be costly determine in part the actual content of the concept of efficiency. I argue that this content must be in harmony with the meaning of the different practices in which we are engaged, otherwise this concept can easily lead us astray. Therefore, a proper use of the concept of efficiency demands a clear and reliable view of these meanings.
1. Introduction
Efficiency is a concept widely used by economists, engineers, organization theorists, consultants, politicians, managers and others. It figures large in the many vocabularies that abound in the world today and it seems that 'efficiency' is one of the focuses of Western culture.
Efficiency has met with enthousiasm as well as critique. An early advocate of efficiency is Frederick Taylor (1911). (1) Shortly after, John Dewey made critical remarks on scientific management but considered efficiency to be a "servant of freedom" (Middle Works, Vol. 10, p. 119). Kotarbinsky (1968) defended e...
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Efficiency is not always the answer, according to David Owen, in his novel The Conundrum, explains that society is headed in the wrong direction, believing that to be greener we need to make our everyday lives more efficient when in reality we need to change our behavior. As consumers, people want to be sustainable and preserve the Earth while greedily expanding our collection of trinkets. Efficiency can be beneficial, but to make the world a greener one, it is essential for people to change their behavior, not efficiency of the products.
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... A successful strategy in the accommodation of national minorities within a liberal democracy could be founded upon mutual trust, recognition and sound financial arrangements. However, a certain degree of tension between central and regional institutions may remain as a constant threat in this complex relationship since they entertain opposing aims. The federal governments determination to protect its territorial integrity, and its will to foster a single national identity among its citizens clashes with Quebec’s wish to be recognized as a separate nation and decide upon its political destiny and to foster its distinct identity (Guibernau pg.72). Moreover, if the ROC and the federal government can come to an agreement on terms that satisfy the majority and an identity that encompasses the heart of a country; Canada will continue to exist with or without Quebec.
Social efficiency is related to the concept of the government intervening in a situation where the costs pertaining to a firm or a number of firms acting in a specific way is higher that its benefits. One might want to say for correctness purposes that one achieves social efficiency when "the marginal benefits to society - or marginal social benefits (MSB) of producing any given good or service exceed the marginal costs to society or marginal social costs (MSC)." [2]
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Another factor of efficiency is tardiness. Tardiness is a big factor in the work place. No matter who a person works, for they will not keep their job if there is a problem getting to work on time. The one about your car not starting only works so many times before they say, "You’re Fired". Bottom line is don’t be late. If there is one morning where the car doesn’t start, the most important thing to do is call in and tell the employer what happened. In this case forget about the car. Fix it later, just find a ride to work.
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Efficiency is highly prized in a culture turned toward productivity. It is therefore cultivated in contemporary business administration theories. It also tends to be prized above all other values in modern society, as society is more and more oriented toward technological advancement. Efficiency is also defined here as the most economic or the shortest or fastest or most simple way of realizing or achieving a goal with the least cost.
As the popularity of systematic management rose, there were many organizations that were implementing its main features such as employment of more unskilled workers and work standardization methods (Thompson and Mchugh, 2009, p.28 a). It had several features, a few of which included focusing on the manner in which production took place, being precise about how the activities were going about and to ensure that productivity and overall efficiency improved. Thus, the primary focus was on methods of production as compared to the end result of the production activity. This is when the role of Taylorism came about. Frederick Winslow Taylor, a name that transformed the management scheme forever. Also known as the Father of scientific management, Taylor was the brain behind recognizing the need for efficiency in the workplace. He first started off with his research at Midvale Steel Works, where he meticulously observed the workers and in order to develop his principles and theories with the prime focus of constructing a way to have full control over the activities taking place (Thompson and Mchugh, 2009, p.28 a).
For operations management to be successful, the function of the operation must be first be defined. The degree to which this is achieved is a measure of effectiveness, the key objective of operations management. Efficiency is less important since there is no point in which carrying out an irrelevant, or worse damaging, activity effectively. Effectiveness means achieving objectives, efficiency means consuming minimum resources. While both are desirable, the former is of overriding importance.
This essay will discuss the relevance of Taylor’s Principles of Scientific Management to organisations today. Taylor’s theory of Scientific Management is based around how efficiently a member of staff works in order to improve their productivity, the theory was introduced in 1911 and has four principles which were tested to determine optimal work methods, and are still seen in organisations today such as fast-food restaurants. Taylor believed that workers left to their own devices would restrict their output and not progress with the task, this was called ‘soldiering’ and it was described in two forms; natural
Although it maximized efficiency and productivity but its main limitation was ignoring human aspects of employment. This is manifested in the following: