Talking About Organizations Podcast
43: Appendix to Episode 43 - The Inefficient Quest for Efficiency
May 30, 2018
Explore the virtues of centralization vs. de-centralization in organizations. Examine the evolving definition of efficiency as an organizational goal. Learn about the efficiency movement during industrialization and its impact on companies. Understand the concept of overhead costs and challenges of measuring their benefits. Delve into the concept of allocative efficiency and the tensions it brings. Discover the hidden costs of pursuing efficiency and the impact of the BYOD policy.
27:52
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Quick takeaways
- Different people have different definitions of efficiency, leading to tensions in decision making.
- Efficiency for its own sake may deter innovation and should be prioritized over effectiveness.
Deep dives
The Paradox of Centralization and Efficiency
Efficiency is often seen as a goal for organizations, but the podcast challenges the belief that centralization brings efficiency. The economic view of efficiency is based on the ratio of output to input, but different people have different definitions of efficiency. The concept of efficiency as an organizational goal is relatively new, emerging in the late 1800s with the onset of industrialized competition. There are contradictory ideas embedded within the concept of efficiency, with examples like driver's licensing offices being consolidated to save money but inconveniencing citizens. Despite the different ways efficiency is defined, the pursuit of efficiency ultimately leads to some form of centralization.
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