How efficiency is measured
D.S Cheema

Optimising the Organisation
by Subhash Khare. Tata McGraw-Hill. Pages 195. Rs. 375

The author is a manager at Wipro Technologies and has been involved in optimising the business operations and resource management of the company for many years. In his foreword, Azim Premji says this is a book that should “…Not to be kept on the book shelf but to be used on the organisational shop floor.”

Management of organisations is an area which has generated a lot of literature. However, most of it is of such theoretical nature that it is of very little help to the managers. Here is a book which begins to clarify the concepts used in the book, does not tread the beaten path and throws a fresh light on optimisation of organisations through creation of appropriate balance between efficiency, utilisation and effectiveness.

Since modern organisations are more and more being staffed with knowledge-workers, such organisations need to be managed differently. The book under review will help in doing so as it provides new dimensions to the concepts of efficiency, utilisations and effectiveness as understood by the managers.

The book is divided in seven parts; the first chapter provides orientation of the need of optimisation in organisations; the other two sets of three chapters each deal with the basic elements of optimisation i.e. efficiency, utilisation and effectiveness, the last three chapters are related with ‘Optimising the People’, ‘Optimising Decision-making’ and ‘Optimising Customers’ which help in integrating the three main elements.

The author says that the book takes the ‘process view’ deals with the two challenges the organisations face—movement towards a higher and bigger goal while continuing to metabolise the progress in the system. Optimisation has to be institutionalised and become a habit of organisational process. Each of the optimisational elements of efficiency, utilisation and effectiveness as well as optimisation itself has two dimensions. The organisational process converts capabilities of men, machines and materials into the desired and specified results which get dove-tailed into further higher and better capabilities and results that helps the organisations grow. Good organisations learn to manage the spiral of such growth successfully.

Efficiency is seen by the author, not just as the ratio of output to input of a process but as change in the process, input and output and modes of ‘doing more with more’, ‘doing more with same’, ‘doing same with the less’ and ‘doing more with less’. Utilisation is seen as measure of ‘how much you are using out of what you have’ which complements the efficiency focus. Effectiveness is all about ‘Knitting together’ all components to achieve the desired results. However, optimisation is running an organisation at optimal level of utilisation, efficiency and effectiveness.

The book is a significant work and will help the reader in grasping the depth and breadth of how organisation can synergise and grow. A must for managers at all levels, students and consultants of management and a useful addition to the libraries of management and engineering institutions. 



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