MANAGING EFFICIENCY AND EFFECTIVENESS IN COMPANIES
Keywords:
efficiency, effectiveness, professional labor, productivity, organizational developmentAbstract
The purpose of this paper is to theoretically consider the concepts of efficiency and effectiveness as a key factor in organizational success. In business, the concepts of efficiency and effectiveness mean success for companies. There is a synergistic connection between these two concepts, so when we talk about efficiency, we also mean effectiveness. Efficiency and effectiveness are mutually related. Efficiency refers to the rational use of resources and optimization of processes, while effectiveness measures the degree of achievement of set goals and results. The paper takes into account modern approaches to measuring and improving human professional labor, as well as the factors that influence its productivity individual, organizational, technological and institutional. Effectiveness, in its simplest form, means doing the right things in a unique special way, i.e. effectiveness refers to the selection of business activities and the activities of the entrepreneur that will bring maximum results with a minimum of commitment and energy. Efficiency, in its simplest form, means doing things the right way, in fact, efficiency refers to the way of performing business activities, by reducing or minimizing and even completely eliminating unnecessary activities within the framework of operational engagement. Technological progress and the development of artificial intelligence have a particular impact on efficiency and effectiveness in modern organizations companies in modern business conditions. Efficiency and effectiveness are interconnected, but not identical categories. Efficiency represents the rational use of resources, while effectiveness measures success in achieving goals. Human labor, as a bearer of specialized knowledge and competencies, is a key element in ensuring organizational competitiveness. In order to achieve an optimal balance between efficiency and effectiveness, organizations need to integrate technological solutions with human resource strategies, continuous training and motivation of professional staff. Based on contemporary foreign literature. The conclusion of the paper is that achieving a balance between efficiency and effectiveness is a prerequisite for long term sustainability and competitiveness in the market and for the success of companies.
References
Armstrong, M., & Taylor, S. (2020). Armstrong’s handbook of human resource management practice (15th ed.). Kogan Page.
Brynjolfsson, E., & McAfee, A. (2017). The business of artificial intelligence. Harvard Business Review, 7, 3–11.
Cameron, K. S., & Quinn, R. E. (2019). Diagnosing and changing organizational culture: Based on the competing values framework (4th ed.). Jossey-Bass.
Daft, R. L. (2020). Organization theory and design (13th ed.). Cengage Learning.
Daft, R. L. (2021). Organization theory and design (13th ed.). Cengage Learning.
Davenport, T. H., & Ronanki, R. (2018). Artificial intelligence for the real world. Harvard Business Review, 96(1), 108–116.
Drucker, P. F. (2018). The effective executive: The definitive guide to getting the right things done. Harper Business.
European Commission. (2019). Employment and social developments in Europe 2019. Publications Office of the European Union.
Hill, C. W. L., Jones, G. R., & Schilling, M. A. (2020). Strategic management: Theory: An integrated approach (13th ed.). Cengage Learning.
Northouse, P. G. (2021). Leadership: Theory and practice (9th ed.). Sage Publications.
Khan, M., Ahmed, S., & Zafar, R. (2022). Digital transformation and employee performance: A review of efficiency and effectiveness in professional work. Journal of Organizational Behavior Studies, 14(2), 55–68.
Li, Y., & Zhang, H. (2021). Technology-driven efficiency: The role of AI in professional work optimization. International Journal of Productivity and Performance Management, 70(7), 1883–1899.
Oswald, A., & Proto, E. (2021). The relationship between happiness and work effectiveness. Labour Economics, 73, 102024.
Popescu, A., & Brătianu, C. (2021). Knowledge management strategies for improving labor effectiveness. Management & Marketing Journal, 19(1), 73–86.
Robbins, S. P., & Judge, T. A. (2022). Organizational behavior (19th ed.). Pearson.
Robbins, S. P., & Coulter, M. (2018). Management (14th ed.). Pearson Education.
Schein, E. H. (2017). Organizational culture and leadership (5th ed.). Wiley.
Wang, X., Zhao, L., & Chen, J. (2020). Competence-based approaches to enhancing professional work efficiency. European Journal of Training and Development, 44(8/9), 765–781.
Trpeski, P., Korunovska, V., Stojmenovic, G., & Smelcerovic, M. (2021). Financial management – purposes and functions. Knowledge - International Journal, 48(1), 131–136https://ojs.ikm.mk/index.php/kij/article/view/5394
Trpeski, P., & Korunovska, V. (2021). Financial management – goals and functions. Knowledge - International Journal, 46(5), 805–809. https://ojs.ikm.mk/index.php/kij/article/view/5417
Trpeski, P., Korunovska, V., & Smelcerovic, M. (2021). Balance of payments and its impact on the monetary policy. Knowledge - International Journal, 47(1), 101–105. https://doi.org/10.35120/kij4701101t
