Cooperative system

Cooperative system: Bernard has laid out clear definitions for “ effectiveness” and “ efficiency” using which, the two can be clearly distinguished. Effectiveness is the name of achievement of organizational objectives, whereas efficiency is the name of fulfillment of ‘ individual’s motives”, because individual’s satisfaction leads to cooperative efficiency. The two terms, efficiency and effectiveness are however, co-acting and relational in reality. It can be so said because effectiveness can also not be achieved until “ individual’s motives” have been addressed and individuals have been satisfied. Satisfaction of individuals boosts their competence in work. Unless employees are satisfied, they can not display competence in their work, and this in turn, hinders their performance. Hence, they can not play their respective roles in achieving organizational objectives, thus lowering the effectiveness. Therefore, the two terms are relational. The statement of Bernard is extremely relevant to the contemporary business scenario. In the modern age of increased competition, business entrepreneurs are looking for ways to gain competitive advantage over their parallels in the market. In these circumstances, it is imperative that they understand the relation between effectiveness and efficiency, because unless they improve their efficiency, they can be outshined by more efficient competitors. The statement of Bernard is also, quite useful for a manager given it is fundamentally a manager’s responsibility to take measures to improve the efficiency of workers in an organization. In order to achieve the ultimate organizational goals, managers need to address the problem at the grass root level and improve the employees’ efficiency by addressing their individualistic concerns.