Executive Summary of An Efficient Management Hypothesis

Efficient management is not a simple concept, judging from the meaning in the dictionary. Efficient management means not just cutting costs or reducing the numbers of employees and redundant assets, but also improving the profitability, quality of the business and customer satisfaction. In this sense, most companies seem to implement efficient management up to a point, but they may never get adequate results. They all need to be more efficient. There might be an ultimately efficient situation that no one can better any more. The ultimate situation may differ with each development stage. Companies that do not make efforts to reform or revolutionize their inefficient businesses cannot even survive in the new-economy world, because stronger competitors may beat them in the market. So all companies always try harder to pursue their own ultimately efficient situation in light of their corporate missions and objectives. That is an efficient management hypothesis (EMH), which I developed as a theoretical model in order to drive all top managers to insatiably reform or revolutionize their companies. All companies are required to become more efficient in order to survive and continue to grow in the competitive new-economy world. Even in such a situation, more competency and efforts will make a difference in getting additional profits.