Efficiency – Improving Bottom Line Profits

Efficiency is an aspect that is co-related to understanding. Understanding, why something is important, especially for the person you work for. Knowing the motive itself brings sincerity to a worker. Efficiency is improving profits

Objective Of Efficiency


The main objective of increasing operating efficiency is reduced costs and improving bottom line profits. Cutting out wasted steps for speeding up the process, we lower our expenses. Eliminating overhead costs like the tedious paperwork can save both time and energy. Hence, efficiency is improving profits Over time, this improves your profit margins and your overall profit performance.

Efficiency and Customer Satisfaction

In any sort of organization, it is very important to satisfy the targeted audience, i.e. customer satisfaction.

Increased efficiency means delivering your services with more punctuality to the customer. A manufacturer can generate products more quickly to satisfy its distributor, retailer, and, ultimately, the consumer. Fast response time to customer orders and issues can lead to more business from current customers and draw new business from others that become aware of your performance benefits.

Customer satisfaction

Increasing efficiency should be done while keeping the season, the profits in mind. This means Increased professional and operational efficiency is finding a good balance between time and quality. However, when we emphasize too much on efficiency, productivity is somewhat left behind.

Limitations in resources and availability of people contribute to stress work, which affects quality performance.

Greater efficiency furthermore gives birth to new technology and hence improving profits. For example, if a company is compared to a lump of coal, then its efficiency can turn that coal into a diamond, petrol, a source for thermal power, and whatnot.  High energy technologies are often more economic in the longer term.

However, being efficient without being assertive and prudent, makes one assertive to exploitation by self – centered people, who will get the work done and squeeze you to the last drop no matter what. This happens in various corporate organizations, where people are supposed to work day and night without any relaxation. This affects mental health as well, and as a result instead of living and working, a person starts working and barely living.

Efficiency is Improving Profits Through Productivity


Being efficient, irrespective of whether it is a machine or human is spending the least amount of energy at completing a task(s). What is weird is that the human mind which actually made machines is the one being inefficient and wasting their energy and their capabilities.

Efficiency is all about making the best use of the available resources. Efficient firms maximize outputs from given inputs, and so minimize their costs. By improving efficiency a business can reduce its costs and improve its relevancy by competing.

There is a difference between production and productivity. Production is the total amount made by a business in a given period. Productivity measures how much each employee makes over some time. It is calculated by total output divided by the total number of employees. If a production house employing 50 staff produces 1000 chairs  a day, then the productivity of each worker is:

1,000 tables/50 staff = 20 tables

1. Staff Productivity Depends on Skills

For increasing efficiency, it is even more important to possess the relevant skills. If a company wants the employee to be an asset  while delegating, they should possess relevant skills

2. Quality of Machines available

After than comes the realization of the fact that not everything can be done manually. Having good quality machines available is also an important factor to increase efficiency. Tech these days has improved and developed to an extent that a human can’t imagine. The best part being it never stops developing.SO, possession of such great minds and holders of such undeniably helpful tech helps us to do wonders. We, therefore, must use it

3. Effective Management

Management, division of roles, nonchaotic process of work is equally important as much as the other factors, it is even more important. The management system should solve problems from as small as disputes between individual employees regarding the profession, and as big as non-punctuality of work or indecency. It is very essential for the management team to make a pace where people can be comfortable, and like what they do with discipline.

With efficiency comes the even more important factor called productivity. Efficiency becomes a liability if there is no productivity. Hence it is equally important to focus on productivity  

Productivity and Efficiency are Proportional


Productivity can be improved through:

1. Training

It is very essential to train the employee before exposing them to the actual work. It becomes even more important in corporate houses and companies that work on technology.

 2. Purpose of work

 This is somewhat under training, it says that every employee should not the thick and thin of the work he would perform and what is the purpose of it.

For example, If an employee is employed in Internal Sales, of a company that sells an app that educates children. Now, the employee can only increase the pace of the selling process if he/she knows everything about the app, and can explain it to the customer. If not this, then the employee would turn aa liability and no progress will be seen in the company’s growth and as a result, it will not reach it’s targeted goals

3. Availability of right and dependable data

Taking the above example of Internal Sales, If the company does not have any leads of their own, and ask the employee to get them on their own each time. Then, the efficiency would decrease at any cost.

4. Presence on Social Media

This is a factor that has recently started making a difference. A company should know where the audience is. Nowadays, almost everyone has access to social media, and advertising or making your presence important on social media will expand the audience reach, and will also bring in diversities.

5. Ability to adapt and change

It is truly said that the world would never stop, and it won’t, for a fact. The only thing we can do is be flexible and adapt to the current ongoing trend to earn and reach out to a larger audience.

For example, Before the pandemic, It was not really important to use sanitizers and be worried about it. But, considering the current situation that we all are in, sanitizers, masks, and health care types of equipment suddenly became an inevitable part of survival. It is this situation when the producers of the sanitizers and other equipment increased their prices and began producing it in a larger quantity as well. This is how they grabbed the opportunity and turned it into a success.

Efficiency can be increased in various ways for example, if there’s a company on the outskirts of the city. There’s another company whose office is in the main city while the workhouse is on some outskirts. So, for the first company, the first company needs to reallocate.

Equity and delegation are important in efficiency

Another important factor of efficiency is EQUITY. The delegation of work should be equal in every sector and subdivided similarly.


Why we focus on Equity is because,


If there isn’t enough work on one side and a load of work on the other side, there will only be one sector being efficient and again it won’t be of any use.


The unequal distribution of work at the same pay brings grudges and thus decreases the internal bond and strength of a company. This even widens if it is even between and female and a male co-worker and brings out topics like feminism in the role play that doesn’t even exist.

This is a bigger concern,


INEQUITY, can also lead to people taking your work and other people’s effort for granted and thus decreasing the efficiency.

Efficiency, as explained above, is an extremely vast concept of teamwork and challenges.

One of the weirdest, yet undeniable fact about efficiency is that has the same advantage and disadvantage i.e. money


Efficiency can both cost you money as well as save your money. In simpler words its both a liability and an asset. In the course of our lifetime, we meet both under efficient and over efficient people.

If someone is under sufficient he/she lacks professionalism, determination, commitment, and patience.

Well if someone is over sufficient, he/she lacks, time management, the joy of life, self –confidence and above all satisfaction.

Procrastination is a major setback of inefficiency. Sometimes, it is even connected to how lazy one can be, or the importance or stand of the work in the person’s eye. Yes, obviously it is important to divide and prioritize things in your daily life and therefore divide the workload and efficiency accordingly.

Management System In Efficiency

Management system

The Management system is not just important in corporate houses and other professional platforms, it is equally important to be equally efficient in your personal life.

Having said a lot about efficiency and productivity already, factors like Equity and delegation should not go unnoticed and unconsidered. As these factors are directly proportionate to efficiency.

Truth is being efficient and not being one is totally dependant on your interest in the field, and your eagerness to work.

Efficiency is both soft and hard skills.

Frequently Asked Questions

Ques-1. How is efficiency different from productivity?

Ans. Efficiency is a subpart of productivity. Productivity can only come when people are efficient enough to work. Efficiency and productivity go hand in hand. If one is efficient in the right direction productivity is a must.

Ques-2. How can being efficient be important to the entire team? 

Ans. It is important for each individual to think individually about his/her own efficiency. One every person is efficient it makes the entire team efficient. It is necessary to be active to work efficiently and then focus on productivity.

 Ques-3. What if the efficiency does not bear any fruit?

Ans. No houses are built in one day. It doesn’t matter if it doesn’t bear fruit. It is important not to stop trying in the right direction. Efficiency should be given the right path to make sure it bears fruit at the right time.

2 thoughts on “Efficiency – Improving Bottom Line Profits

  1. Pingback: DELEGATION IN TEAMWORK - Thinkers Point

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