Homework #1 – Organizational Effectiveness and Efficiency

Homework#1 – Organizational Effectiveness and Efficiency

Homework#1 – Organizational Effectiveness and Efficiency

Atwhat point did the creators of Twitter consider the success of theirsocial network venture a success? Was it when Twitter`s audience grewto 2 million users in May 2008 from 200,000 in May 2007 (Graham J.,2008, p. 1) or when the business generated $24 million in revenue inone quarter? (Liagat, 2014). Success is an accomplishment that everybusiness seeks to achieve and individually define. Some companiesdefine success in terms of financial achievement or the number ofcustomers reached, while others define it in terms of numbers helped.Success is not universal and neither is its measure. A company canachieve success by understanding and fine tuning organizationaleffectiveness and efficiency. According to Daft (2013), “Efficiencyrefers to the amount of resources used to achieve the organization’sgoals” (p. 23). Efficiency is based on the quantity of rawmaterials, employees, and money required by the organization toproduce a given quantity of products. Effectiveness, on the otherhand, refers to the extent to which a given organization achieves itspre-determined goals. The two concepts are not easily achieved andshould not be dismissed.

Themilitary takes pride in its capacity to utilize the two concepts.Under the auspices of strong traditions and values, the military canbe viewed through the lens of an organization that strives tooptimize efficiency and effectiveness. “Military effectiveness isthe process by which armed forces convert resources into fightingpower. A fully effective military is one that derives maximum combatpower from the resources physically and politically available.Effectiveness thus incorporates some notion of efficiency”(Millett, 1986, p. 37). This is realized through the armed forces`ability to project the strength of the United States around the worldfor the protection of America’s sovereignty and in the defense ofher allies. Lack of ability to adjust based on these concepts reducethe capacity of the nation’s military to achieve its goals.

Apartfrom the application of these concepts in the military, effectivenessand efficiency is also integrated in the organizational theorists.Mouzas (2006) emphasized on the significance of the use of theconcepts of effectiveness and efficiency in the evaluation andassessment of the business performance. Many companies fail toachieve the targeted levels of innovation and differentiation byfocusing on efficiency while neglecting effectiveness. These toolsshould be used in equal measure to gage the current condition ofthings and leverage those findings against the company’s goals andthe external environment. Without these necessary conditions,managers would be ignoring potential business growth.

Inmore recent times soldiers, sailors and airmen have experienced theeffects of effectiveness and efficiency in relation to thefluctuations in the ways the military deals with money and manpower.In addition, the Air Force has been leaning the most importantrecourses in every organization to help spur fluctuations. The degreeto switch the military has been effective in achieving its goal ishard to quantify. Protection of the United States from both foreignand domestic threats can become objective. The objectivity can beenhanced by determining whether the stakeholders should consider theabsence of achieved threats or the decline in the percentage ofsuccessful acts of terror from previous years.

In2006, the Air Force introduced Air Force Smart Operation 21 (AFSO21),which was intended to help the Air Fore optimizing the way itconducts its missions (U.S. Air Force, 2007). This operation takesthe opinions, innovative ideas, and initiatives from the Airmen thatcould potentially aid the Air Force. This continuous improvementprogram spans the gamut from improving established processes andprocedures, ways of saving money, time or other resources in themilitary.

TheAir Force goes through the continuous improvement process in anattempt to improve aspects of how they perform the mission. This isaccomplished by examining the Air Force resources dedicated to themission. The use of effectiveness and efficiency proves to be a vitaltool for managers and organizations who wish to transform theirorganization based on trends of the current environment and achievesuccess.


Daft,R. (2013). OrganizationTheory &amp Design.Scarbrough, ON: Nelson Education, Ltd.

GrahamJ. (2008, July 21). Twitter took off from simple to ‘tweet’success. USA Today. Retrieved October 7, 2014, fromhttp://usatoday30.usatoday.com/tech/products/2008-07-20-twitter-tweet-social-network_N.htm

Liagat,B. (2014, June 29). When Will Twitter Become Profitable. SeekingAlpha. Retrieved October 7, 2014, fromhttp://seekingalpha.com/article/2291565-when-will-twitter-become-profitable

Millett,R., Murray, W., &amp Watman, H. (1986). The effectiveness ofmilitary organization. International Security, 11 (1), 37-71.

Mouzas,S(2006) Efficiencyversus effectiveness in business networks.Journal of Business Research, 59(10-11). pp. 1124-1132.

U.S.Air Force (2007, February 9). Air Force Smart Operation 21 (AFSO 21).CivilAir Patrol.Retrieved October 7, 2014, fromhttp://capnhq.custhelp.com/app/answers/detail/a_id/1908/~/air-force-smart-operations-21-%28afso-21%29