Research on Enterprise in Modern Economy Theory and Practice (Jul 2017)
CATEGORY OF EFFICIENCY TO CONTEMPORARY DEFINITIONS AND MEASUREMENT REQUIREMENTS
Abstract
Efficiency is an economic category, which is often found not only in economics, but also in a more general way. Due to the popularization of this concept, there are many differences in the way it is defined. There is therefore a need to redefine the notion of efficiency both at the general level and on the basis of economic theories rather than the colloquial meaning of the word. It should be a necessary step in the process of assessing the efficiency of an enterprise, often only limited to financial analysis. There are business sectors relevant to functioning of company and strategic from perspectives whose analysis in current practice is neglected and does not consist into an analysis of the efficiency of the whole enterprise. The purpose of this article is to try to define a new category of efficiency. This should be a necessary preparatory phase of analysis, leading to a global look at efficiency in the context of the whole enterprise, not just its individual areas. The research hypothesis is that, in response to the complexity of the enterprise and the complexity of its assessment, and the widespread use of the notion of efficiency, the extension of the components of the overall efficiency assessment will improve the real assessment of business activity. Methods used in the work are literature studies and critical analysis, simple observation of the Polish enterprise market and intuitive method. The result of the analysis is to organize the definition of efficiency and to introduce a generic, newly defined concept of efficiency that will enable the whole enterprise to be covered and thus bring researchers closer to the analysis of the actual level of overall effectiveness.
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