Organization Processing For Effectiveness
Introduction
The evaluation of organizational processing is pivotal for effectiveness. When it comes to logistics, there have been various measures developed for purposes of logistics evaluation. The components of what can be regarded as optimal organization processing have however not been clearly evaluated when it comes to expended inputs and measured outputs comparison. In this text I will discuss organization processing for effectiveness.
Organization processing for effectiveness
James et al. (2000) defines effectiveness as the point to which accomplishment of goals takes place. Effectiveness can hence be taken as the output-input ratio. However, it has been identified in some quarters that the levels of effectiveness can arbitrarily be set. With that in mind, Gourdin (2006) argues that it may be prudent to take into consideration the appropriate or adequate output level within the framework of effectiveness.
The measurement of effectiveness includes how well the agreed upon goal has been executed. A goal includes what is to be attained in future as well as a provision for all the efforts that are being generated presently. The management is charged with the responsibility of coming up with or formulating the various organizational goals and it is very important for this goals to be reconciled with those of the various units as well as departments within the organization. For instance, in some cases, we may have a conflict between marketing management goals and logistic management goals. James et al. (2000) argues that the management needs balance the target market needs with in the backdrop of lowering operations costs. This is an efficient as well as effective way of developing opportunities with regard to marketing in future. In cases where the organization utilizes the expended resources adequately it can be said to be effective. However, as Gourdin (2006) notes, efficiency cannot be measured in isolation. With that in mind, we can reliably say that effectiveness is a function of performance.
According to James et al. (2000), the measurement of performance may need to have both efficiency and effectiveness taken into consideration. For any organization, physical distribution is underlined by the primary goal of transferring goods from the supply place to the point of sale. According to Sadler (2007), the logistic systems effectiveness is informed chiefly by customer service as well as cost. For quite some time, the physical distribution cost goal is informed by the assumption that a variety of the cost centers comprise the various logistics functions and hence cost minimization should be the overriding goal with regard to physical distribution.
Some authors still pinpoint the lowest cost point using the cost curve analysis. This low cost point is then taken to be the optimal point. Gourdin (2006) notes that though the usefulness of the cost curve is not in doubt, this approach may in fact be misleading. This is because this point taken to be the optimal point could in one way or the other be misleading if the measured cost interacts with the other total system factors. It is important to note that in cases where the task can be described as an expense as opposed to an attribute that happens to be desirable, assessment of the minimization strategies may then be efficient as well as effective.
It there follows that generally, in both the short term as well as the long term, effectiveness in customer service and costs are the main things to look out for when it comes to the analysis of logistics performance. The input in this case is brought out by cost while the overall output is brought out by the customer service. All in all, as it comes up or formulates a process with regard to logistics strategy, an organization should or must take into consideration its logistics cost in line with its performance in terms of service. James et al. (2000) notes that this may be one of the most effective approaches to compare the combinations with regard to cost benefit to that of competitors. On this comparison, the organization can then formulate a working performance measure for service as well as cost.
Voortman (2004) notes that for quite some time, customer service maximization and cost minimization has been one of the logistics areas that have been given much prominence. He goes on to state that for this two areas to be effectively achieved within the framework of the organization, there needs to be effective resource management. There has been a growing trend lately where a substantial number of organizations have actually made use of a comparison between achieved goals and utilized resources as a basis for performance level measurement and analysis. To utilize measures of performance for effectiveness, there should be a perfect understanding of the construction of the various measures of performance.
Conclusion
It is important to note that there is a real and overdue need to come up with better or improve the existing measures of logistics performance. This framework needs to be formulated with the logistics managers in mind so that they can be applicable in efforts to accurately chart the performance of all the functions the managers oversee.
Reference
Gourdin, K.N. (2006). Global logistics management: a competitive advantage for the 21st
Century. Wiley-Blackwell
James R.S., & Douglas M.L. (2000). Strategic Logistics Management. McGraw-Hill
Irwin Pub.
Sadler, I. (2007). Logistics and supply chain. SAGE
Voortman, C. (2004). Global Logistics Management. Juta and Company Ltd
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