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Corporate social performance (CSP). Using a sample of firms from 42 countries spanning seven years, we construct an annual composite CSP index for each firm based on social and environmental metrics. We find that the political system, followed by the labor and education system, and the. Social Educational qualifications Hours of training Skill levels Community development expenditure Note: ¹ Environmental resources such as water, biodiversity and air quality are considered as “public goods”, not private entities, and therefore are not used as performance indicators because they do not, as such represent the company’s.
- 1 5 Characteristics of Successful Goal Setting
- 2 Team Building & Developing Common Goals
- 3 How Effectiveness & Efficiency Relate to Productivity
- 4 Measure Production Efficiency
In business, success depends in large part on how well your team is able to adhere to work procedures to achieve the intended or expected results. This is known as effectiveness. Another sign of success, however, is how well your employees accomplish tasks without wasting time, effort, or resources. This is known as efficiency. When applied to a business, these two concepts may seem to be the same, but there are important distinctions you need to understand to ensure that your company stays on a profitable course.
Elements of Organizational Effectiveness
As a business owner, one of the best ways to understand the essence of organizational effectiveness is to ask this question: “Is my business doing the right things?” The reason this is such an important question is that effectiveness in business is about making sure that your company is pursuing the right goals and objectives.
For example, if you own a comic book store, it would be effective for you to try to sell as many comic books and collectibles as possible, but it would be ineffective to pursue the goal of becoming the comic book store that has more sales than any other comic book store in the entire state. Or, using another example, let’s say that you own a software company and you require your sales team to make 50 prospect calls a day. Your sales team achieves that goal, so you could reasonably assume that your sales team is effective at its job.
Elements of Organizational Efficiency
Organizational efficiency is all about figuring out how you can be more effective by using fewer resources, as well as less time and less money to achieve the same goal. Organizational efficiency is time-based, effort-based and measurable. The main question you must ask when you’re trying to determine efficiency is this: “How can I maximize the desirable results, using the least amount of money and time?'
Organizational Effectiveness and Organizational Efficiency
The primary difference between organizational effectiveness and organizational efficiency is that you can use effectiveness to evaluate just about every process that makes your business run. Efficiency, however, is always about the financial costs and the results of doing something. Efficiency is especially important when it comes to measuring the return-on-investment of marketing and sales. As a small business owner, you’re probably not working with unlimited resources, so you need to find ways to maximize the resources you do have.
If you go back to the computer software sales example discussed above, you would have assumed that your company is effective if your sales team can make 50 prospect calls a day. That doesn’t necessarily mean that your company is efficient, however, because you would need to know how many of those 50 prospect calls are converted into actual buyers. In this example, the difference between effectiveness and efficiency is the difference between achieving an objective (making 50 prospecting calls) and achieving measurable results (the percentage of calls that become sales).
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About the Author
Sampson Quain is an experienced content writer with a wide range of expertise in small business, digital marketing, SEO marketing, SEM marketing, and social media outreach. He has written primarily for the EHow brand of Demand Studios as well as business strategy sites such as Digital Authority.
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Quain, Sampson. 'Organizational Effectiveness Vs. Organizational Efficiency.' Small Business - Chron.com, http://smallbusiness.chron.com/organizational-effectiveness-vs-organizational-efficiency-22413.html. 01 February 2019.
Quain, Sampson. (2019, February 01). Organizational Effectiveness Vs. Organizational Efficiency. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/organizational-effectiveness-vs-organizational-efficiency-22413.html
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Business efficiency is crucial to the success of any enterprise. Business efficiency is a broad term that covers a lot of ground. Every aspect of your business, from finance to human resources, from production to distribution, can be riddled with inefficiencies that drive costs up. When assessing costs, it’s important to remember that there’s more than money at stake: cost is time, quality, and good will. Being efficient in business means making choices that benefit one sector of a business without (unintentionally) taking from another. Knowing the steps to take and the tools to use to make your business more efficient will help you get the best results at the least possible cost.
Five Steps to Increasing Business Efficiency
Increasing your business efficiency can seem daunting, but in five relatively straight-forward steps you can get a handle on how to identify and eliminate costly inefficiencies.
- Measure where your business is today across spectrums such as finances, customer sentiment, product/service quality, and employee dawdling.
- Brainstorm and list potential inefficiencies (and potential solutions) across your organization.
- Quantify the potential impact of any proposed solutions may have on other sectors of the business.
- Set efficiency goals and corresponding projects to achieve them.
- Define and execute a clear project plan for reaching your goals.
Seven Steps to Efficient Change Management
Change is good, but it can also wreak havoc on an organization if not managed with thought and careful planning. Here are seven steps to managing change in any organization, efficiently.
- Assuage fears upfront.Top fears include being replaced, not being able to keep up with new skills, not having enough time/resources to adapt, and loss of quality.
- Invite everyone to the table.People complain less afterwards if they are given a chance to chime in upfront.
- Help others see themselves as change agents.Encourage ideas and innovations for improvement from every corner of the workforce.
- Be a guinea pig.Try new tools and processes yourself first to show your team that you have skin in the game, too.
- Plan for the future.If your change doesn’t stick, it’s not real change.
- Allow room for change.This means giving employees the time and tools they need to master new skills and ways of doing things. In other words, don’t just pile change on top of everything else.
- Don’t forget your external communication.Outsiders and potential new players also need to know what your project is trying to achieve and how close it is to the goal.
Eight Efficiency-Enhancing Tools
Knowing which tools to use and how will get you quickly on your way to identifying inefficiencies and ridding your business of them forever. Here are eight invaluable tools for any business owner of efficiency expert.
- A Customer Relationship Management (CRM) tool for tracking all customer interactions.
- A wiki for clear and updated internal communication.
- A calendaring system with transparent free/busy time that lets colleagues book appointments on one another’s calendars, circumventing the need to share suggested times back and forth.
- A text-expansion tool that can speed up routine tasks by pasting common sales pitches or loading a favorite website with just a few keystrokes. (See ActiveWords for Windows or TextExpander for Macs.)
- A central file repository for sharing the latest company memos, scripts, and graphics.
- A public knowledgebase to let customers and potential customers help themselves.
- A case ticketing system to keep track of product/service issues and feature requests.
- Group email lists to ensure key project players are never left off messages, and peripheral players can limit their exposure to daily or weekly digests.