Question

can organization be efficient and yet not be effective. explain with and example how and under what circumstances such situations may occur in an organization?​

Answer 1

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Answer 2

Yes, organizations can be efficient yet not be effective.

• Successful but inefficient organisations may succeed, whereas productive but unsuccessful organisations will slowly collapse.
• Organizations must aim to equally improve productivity and effectiveness metrics to attain prowess in competitive performance.
• Organizational efficacy tests an enterprise's large-scale success across a wide variety of parameters.
• Critical components that effect efficacy and efficiency include -

1. Financial performance - There can be profits, but through wrong practices
2. Long-term planning - Inability to plan long term effects both
3. internal structure - Lack of healthy relationships and internal structure can hamper the organization
4. Adherence to core values - Not following the legal and core values will collapse the business.