What is Managerial Performance?


0

Peter F. Druker has defined managerial performance in two terms that bring about the relationship between successful organisations and managers. The two terms are efficiency and effectiveness.

 

Efficiency means doing things right. It is an input-output concept. The manager has to minimize the total cost of production i.e. cost of labour, materials and time to achieve set goals. If he is doing so then he is considered as efficient.

 

Effectiveness means the ability to do the right thing. This involves choosing the right goals or ends. Thus, effectiveness not only requires a manager to be efficient but also to understand the overall goal of the organization to be able to deliver the output effectively.

 

As per Indian wisdom, under value driven management, both means as well as ends must be driven by the values of the organization. Hence, skill-giving efficiency must recognize human values, and goals must be based on them. Then only both the company and the society will be happy and prosperous.

 

Thus, effectiveness is regarded as the key to the success of the organization.

 

Example:

The US car manufacturers in the late 1970’s and 80’s were concentrating on manufacturing large, luxurious but fuel ineffective cars. At the same time the nascent Japanese car manufacturers were manufacturing small but fuel-efficient cars. The same era was marked by the fuel crisis of the mid 70’s. Thus the Japanese manufacturers were doing the right thing at the right time. This strategy of theirs helped them to gain recognition world over and even in the US markets.

Thus, this example highlights the importance of effectiveness in today’s business.


Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

4 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format