Appreciating social structures: a strategy for advancing the efficiency and effectiveness loci in organisation

The purpose of this paper is to advance organisational efficiency and effectiveness by appreciating the division of labour espoused by the classic economist Adam Smith (1723-1790). Adam Smith proposes that the division of labour into specialisation units can yield increased productivity. By determining the desired capacity and the set of skills that capture what the organisation does best using appreciative inquiry (AI), the entire organisation can advance to the next level. Adam Smith envisioned increased ratio of output as each man perfected his act. AI, a change management method can be deployed to determine the skillfulness required in avoiding wasted time and efforts. The AI methodology makes it possible for the entire organisation to participate in the determination of what needs to be changed making it possible to distinguish between efficiency and effectiveness. It is essential to make this differentiation because successful corporations are both efficient and effective. By drawing from the Adam Smith pin-making enterprise the paper illustrates how AI can be one of the best methods used to perfect the acts of different specialists. More wealth can be created by controlling operational costs.