Operational inefficiency refers to the failure of an organization to use its resources—such as time, money, and labor—effectively. This can result in wasted resources, increased costs, and reduced productivity. Common causes include poor management practices, outdated technology, and lack of employee training. When an organization experiences operational inefficiency, it may struggle to meet its goals and satisfy customer needs. Identifying and addressing these inefficiencies is crucial for improving performance and competitiveness. Tools like Lean Management and Six Sigma are often employed to streamline processes and enhance overall efficiency.