MGT

To be efficient means to use resources like people resources, raw material, capital more wisely and more economical. It may save related organizational resource but achieve a barely satisfactory result. In other words, in this way we may focus on economical approaches to achieve goal in a short time. However, we may not guarantee quality of the result.

To be effective means in order to achieve results, we always only focus on how to produce the best quality of the product or service but rarely take the economic cost of making it into account, namely this way will be more costly but we will get a perfect feedback. Moreover, this approach works slowly.

In my opinion, it is difficult for me to point which is more significant for organizations because different organizations have different business position. For UMKM, “Efficient” may be more important. Because they may not have enough best material or sufficient money to produce products with high quality using for a long time for clients. They tend to product more cost-effective products to achieve organizational goals. To the contrary, high-end luxury companies that focus on quality tend to be suited to “Effective” to maintaining their brand reputation and then achieve their organizational goals. They can reach the station that an order can target turnover can be achieved with one order. For instance, ordinary clothing stores tend not to order clothes made with fine raw materials, and their main goal is to sell more clothes while the West Railroad City Watch Company pursues in the material, the technology choice to give the customer more high-quality service.