Efficiency improvement trap - Efficiency improvement trap...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Efficiency improvement trap Efficiency is basically finding the best way to attain a given goal. It mainly concerns itself with the way things are done. In most cases, an increase in efficiency is accompanied by an increase in productivity. However, organizations enhancing their efficiency should be vigilant to avoid being caught up in an “efficiency improvement trap.” While efficiency deals with the quantity and quality of a product and mainly concerns itself with how things are being done, productivity mainly concerns itself with an operations end results. It is hence clear that by using efficiency as a way to find the most appropriate way to reach a goal in a given operation, the end results of the operation i.e. productivity will be more impressive with every increase in efficiency. However, organizations find themselves deep into the efficiency trap by concentrating so much on cost cutting measures as opposed to the production of the right quantity of production units. It is clear therefore that an organization concentrating on efficiency improvement as opposed to
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online