Question

Some organizations strive to be effective and others efficient. How would you define the concepts cost effective and cost efficient for your organization? Is cost effectiveness or cost efficiency more important for your organization? Justify your response. please elaborate with references

Answer 1

In today's environment, I find it more important for an organization to be efficient over being effective. I say this because by being effective that means an organization can produce at a very high level but it's more than likely going to cost them more money due to the number of resources that will be needed to accomplish the tasks. An organization that is efficient will work with fewer resources in order to meet the requirements needed in order for the organization to be successful. To support my opinion, in an article written by Glenn Smith in 2016 titled "Business Growth: Efficiency vs Effectiveness," he stated that "Efficiency is important for profitability. Effectiveness is important for growth. As business owners we are always looking for ways to increase profitability". I believe that is accurate because in order for an organization to maintain success they must provide results on a consistent basis.