Efficiency in Managerial Economics: with reference to Banking Sector

Plethora of tasks involved in management need to be appraised constantly, thus the mechanism of ‘Efficiency Analysis’ has become an inevitable requirement today. Efficiency has several definitions, however; it generally refers to how well resources are being used. Profit maximization and cost minimization are the two important aspects of efficiency analysis. In addition to these components positive externalities i.e. benefit to the society also reflect efficient working of an organization. This study is an attempt to bring together the thoughts and works related to analysis of efficiency from managerial point of view in order to present a clear picture of what actually comprises efficiency, how many types of efficiencies exist and how can efficiency be measured.