Efficiency, effectiveness and profitability: an interaction model

Abstract

<p>In order to analyze the interdependence of efficiency, profitability and effectiveness, an analytical model is developed which treats efficiency and profitability as functions of effectiveness. Since both efficiency and profitability in turn depend upon value and cost, the analytical nature of these functions are also examined. An example of a multiple server system in an office environment is used to demonstrate the applicability of this approach to the study of office productivity problems, but the technique may also be used in analyzing and optimizing organizational productivity in general.</p>