What is efficiency?

What is efficiency?
Producing at a lower cost or using fewer resources when making a product or providing a service. Also meeting the needs of consumers.
HOW TO BECOME EFFICIENT
• Use fewer raw materials
• Use fewer workers
• Have fewer managers
• Replace high cost labour with low cost technology
• Less waste, fewer reject goods
BENEFITS OF EFFICIENCY
• Lower costs
• Lower prices
• More sales (revenue)
• Greater profits
• Higher bonuses for workers / managers
• Greater returns for shareholders (limited company)
PROBLEMS OF GREATER EFFICIENCY
• Quality may suffer
• Low morale in the workplace as jobs are lost
• Stress as people have to work harder
• Redundancy payments to workers
• Initial cost of buying technology