To summaries all the management theories that had be made from centuries till now, they only surround on how to improve the effectiveness and efficiency of the company. In today’s business environment, the core theory to be successful is to be efficiency and effectiveness. It is not talking about those businesses that government owned or those which are regulated to eliminate any competitions, a business which is not run efficiently and effectively will not survive. But what will happen if one of them is missing, will the company still run successfully? Working with limited resources, managers may feel forced to choose where to apply their focus. Before discuss the influence on only choosing one of the working processes, efficiency and effectiveness, it is important to understand what each of these terms means.
In the textbook “Management” Stephen P. Robbins and Mary Coulter (2005) (pp.7 & 8) defines efficiency as getting the most output from the least amount of inputs; referred to as “doing things right.” Effectiveness recognize as completing activities so that organizational goals are attained; referred to as “doing the right things.”
Effectiveness therefore is a measurement on how appropriate the goal choosing that would fitness for companies to be followed and the extent of organizations to reach the goals. Hence, organizations are effective when managers choose the right goals and then achieve them. (Jones, & George, 2006) McDonald would be a good example on working effectiveness. After it started the goal on offering the breakfast service, it become a third of McDonald's revenue. (Blackwell 2009) Managers are wise to use breakfast to attract customers as most of them are lazy to make the breakfast and it is timeless to have breakfast.
Efficiency is measure how manager to utility the scarce resource to achieve a goal. If managers could minimize the input of resources but increase the production, then organizations will be seems as efficiency....