Organisational effectiveness and efficiency at different management levels

Organisational effectiveness refers to the organisation formulating goals and pursuing these goals through completion of relevant tasks. Effectiveness is concerned with getting the job done. When an organisation is efficient they are doing things right in the organisation by utilising resources so that there is no waste. These resources include financial, human, raw materials and capital. Resources are inputs in the transformation process and the aim of efficiency is to use the least amount of inputs to generate maximum outputs during the process of transformation.Organisational effectiveness and efficiency at different management levels.

When an organisation is efficient they are doing things right in the organisation by utilising resources to avoid waste. These resources include financial, human, raw materials and capital. Resources are inputs in the transformation process. The aim of efficiency is to use the least amount of inputs to generate maximum outputs during the process of transformation.

According to Goh, “Being effective is about doing the right things, while being efficient is about doing things right”.

The three levels of management are top level management, middle-level management and lower level management.

Top-level management

Top level management consists of a small group of executives that have control and final say in the organisation. They execute the management process, determine the organisation’s missions and long-term goals and influence the corporate culture. Top level management possesses low technical skills and high conceptual skills which give them the ability to view the organisation holistically.  This level deals with strategic planning – formulating long-term plans and goals that apply to the organisation as a whole.

Top management contributes to the organisation’s efficiency and effectiveness. In order for the organisation to be effective, the correct organisational structure must be created. This ensures that employees with the correct skills are performing the correct tasks that will contribute to the achievement of organisational goals. Employees that are performing irrelevant tasks are not effective. Top management needs to interpret opportunities and threats in the environment and determine what resources to utilise to gain a competitive advantage.

Top management needs to interpret opportunities and threats in the environment and determine what resources are required to gain a competitive advantage. They must ensure that organisational strategies are angled in a way that provides the organisation with a competitive advantage through the efficient use of resources. For example, if top management knows that their competitors are not environmentally friendly, they could incorporate the efficient use of natural resources in their strategy to encourage the use of eco-friendly processes and materials in the attainment of organisational goals.

Middle-level management

Middle-level management are responsible for functional areas of the organisation. They execute policies, plans and strategies of top management. These managers monitor the environment that affect their own departments.

These managers have an equal amount of conceptual and technical skills. They need to be able to see the organisation as a whole to implement top management plans as well as understand the technical activities their subordinates are involved in.

This level of management is responsible for tactical organisational plans. These are medium-long term plans concerned with resource and time allocation as well as human commitments.

Middle management contributes to an organisation’s efficiency and effectiveness. In order for the organisation to be effective there needs to be consistency. This level of management executes the rules, procedures and policies to ensure that subordinates are all doing the right things and following a uniform set of guidelines aimed at achieving the organisational goals and maintaining corporate culture.

Resource allocation, time management and human commitments are how middle management contribute to organisational efficiency. They must determine how to utilise the minimum amount of resources to generate maximum outputs in a reasonable amount of time as expected by top management. Certain tasks should be completed using the correct human resources.

Middle management also contributes to the effectiveness in the organisation by monitoring efforts that are interacting with the organisational environment. For example, it would be ineffective for the marketing department to pursue trends that are not relevant in the external environment.

Lower level management

Lower-level management holds supervisory roles. You may know them as line managers. They deal with day-to-day operations and activities of the organisation and maintain close control of subordinates. The direct influence they have on subordinates puts them in a position to increase or decrease levels of production. T and the role they play in implementing plans, policies, procedures and rules of middle management. This level of management is responsible for operational plans that set unit goals and operational standards. They require a high level of technical skills to supervise the technical activities of their subordinates.

This level of management is responsible for organisational efficiency and effectiveness because it ensures that workers are performing the correct tasks and under close supervision, utilising resources as intended by middle level management.

Sources

  • Management Innovations, 2008. Management innovations. [Online] Available at: https://managementinnovations.wordpress.com/2008/12/04/managerial-effectiveness-efficiency/
    [Accessed 28 08 2016].
  • Brevis, T., 2016. The Management Process. In: M. V. T Brevis, ed. Coontemporary Management Principles. Cape Town: Juta, pp. 28-43.
  • Goh, G., 2013. The Difference Between Effectiveness And Efficiency Explained. [Online] Available at: http://www.insightsquared.com/2013/08/effectiveness-vs-efficiency-whats-the-difference/
    [Accessed 28 08 2015].
  • BJ Erasmus, J. S. S. R.-K., 2013. Introduction to Business Management. 9th ed. Cape Town: Oxford.
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