1-6 Organizational Performance o Measures how efficiently and effectivel managers use resources to satisfy customers and achieve goals Efficiency: A measure of how well resources are used to achieve a goal Usually, managers must try to minimize the input of resources to attain the same goal Effectiveness: a measure of the appropriateness of he goals chosen (are these the right goals ls?), and the degree to which they are achieved e Organizations are more effective when managers choose the correct goals and then achieve them " win/MeGraw-HHill OThe McGraw-Hill Companies, Inc, 2000Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Organizational Performance ⚫Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals. ◼ Efficiency: A measure of how well resources are used to achieve a goal. ◆Usually, managers must try to minimize the input of resources to attain the same goal. ◼ Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved. ◆Organizations are more effective when managers choose the correct goals and then achieve them. 1-6