Bottleneck Effect

The dictionary meaning of bottleneck is "the narrow part of a bottle near the top". However, the term bottleneck effect has more to do with the abstract meaning of this word. Bottleneck effect can be linked to the "narrow or obstructed section, as of a highway or a pipeline". In other ways, this means some "hindrance or obstruction in a certain growth pattern". It is used to co-relate population trends in humans and in business terminology, it is linked to limiting production in a firm.

What is the Bottleneck Effect in Humans?
In humans, this effect is referred to as population bottleneck or genetic bottleneck that is believed to be an evolutionary event in which there is a drastic decrease in the population of the human species. The bottleneck effect can be a consequence of epidemics, natural disasters fire, floods, drought and other destructive events. Any form of temporary restriction to the population drastically reduces the genetic diversity of the species. Genetic diversity is a crucial factor that ensures longevity and adaptability of any particular species in a particular environment. Reduced genetic diversity leads to genetic drift in a population and may result in poor adaptability towards the changing trends of climates and gradually, may lead to extinction of a generation. Let's consider a simple example from our daily life. If certain individuals in certain population have eyes of black and blue color and in case bottleneck effect occurs in the population, then some of the alleles (series of alternative form of gene that occupy positions on chromosomes), carrying these specific characteristics, may reduce or can be eliminated completely. What exactly is a genetic drift? In medical terminology, genetic drift is defined as a change in the frequency of allele in a certain population. If we take a practical example of bottleneck effect, then according to evolutionary scientists, the species of the northern elephant seal has been adversely affected by bottleneck effect. Extensive hunting of these elephant seals led to a tremendous decrease in their numbers in the late 19th century. Since then, their numbers have increased considerably after some steps were taken by governments of various states, though still, there is lack of genetic diversity in their population.

What is the Bottleneck Effect in Business?
It is related to limiting of production in the business field and this can be due to a number of constraints. These constraints or "bottlenecks" limit growth and reduce the overall efficiency of the firm. Bottleneck effect in the business world is used to hint at the limitations in manufacturing factories or even in the thinking pattern of managements. Identifying bottlenecks and eliminating them as early as possible, is essential for the steady growth of firm and to avoid huge financial losses. An example of bottleneck in a manufacturing plant is a machine that produces only a certain number of units and can't produce more than that, due to its speed limitations or poor efficiency, though there is a possibility that it may increase the output if it is checked/repaired or innovated. This was just an example of bottleneck limitations in firms.

Besides such limitations, there are a lot of other bottlenecks in companies that management needs to consider for proper growth of the firm. One of the most effective management theories that have been put forth in relation to the theory of constraints (TOC) was by Dr. Eli Goldratt. His extensive research and unique theory helps firms and management leaders to come up with business solutions that are effective for the firm. Bottleneck effect as we can see, is used to address different situations, as per the requirement.