Principles of management efficiency and organizational inefficiency

Abstract

Purpose The purpose of this paper is to introduce two important principles of efficiency, one on the management of a business entity and the other on the structure of employees’ efforts and devotion toward realizing the mission of their organization. Design/methodology/approach All discussion and reasoning are established on some of the traditional methods of microeconomics and on the basis of the systemic yoyo model. Here, the yoyo model plays the role of intuition, while the traditional methods are utilized to present the exact details underneath the systemic thinking. Findings What is discovered include how management efficiency can be achieved by being flexible in terms of allowing individual employees to have conflicting personal values and how organizational inefficiency always exists no matter how the business entity is set up. Research limitations/implications The established results are applicable in all business scenarios without foreseeable limitations. Practical implications By understanding these results, business managers could simply devote more of their time and effort on being flexible in terms of management styles and focusing on the “big” picture of the corporation instead of dwelling on how to improve employees’ efficiencies. Originality/value This paper establishes two very important, very useful results for managers. These results are expected to enrich the managerial understanding on what can be improved and what cannot.