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" "When a specific desired end is attained we shall say that the action is "effective." When the unsought consequences of the action are more important than the attainment of the desired end and are dissatisfactory, effective action, we shall say, is "inefficient." When the unsought consequences are unimportant or trivial, the action is "efficient.
Chester Irving Barnard (November 7, 1886 – June 7, 1961) was an American business executive, public administrator, and the author of pioneering work in management theory and organizational studies.
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An organization can secure the efforts necessary to its existence, then, either by the objective inducements it provides or by changing states of mind. It seems to me improbable that any organization can exist as a practical matter which does not employ both methods in combination. In some organizations the emphasis is on the offering of objective incentives — this is true of most industrial organizations. In others the preponderance is on the state of mind — this is true of most patriotic and religious organizations.