Business – 4.1 The nature of operations – Efficiency, effectiveness, productivity and sustainability | e-Consult
4.1 The nature of operations – Efficiency, effectiveness, productivity and sustainability (1 questions)
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Answer:
Intensive efficiency drives cost reduction by minimising resource use and waste. However, this can lead to:
- Choosing cheaper, less durable materials that increase waste and environmental impact.
- Increasing production speed at the expense of employee health, safety or work‑life balance, harming social sustainability.
To reconcile efficiency with sustainability, managers can:
- Adopt circular‑economy practices: Design products for reuse, recycling or remanufacturing, which can reduce material costs (enhancing efficiency) while lowering environmental footprints.
- Implement integrated performance metrics: Use balanced scorecards that include financial efficiency, environmental impact (e.g., carbon intensity) and social indicators, ensuring that efficiency improvements are evaluated against sustainability criteria.
These strategies enable businesses to achieve cost savings while maintaining or improving their long‑term sustainable performance.