I react poorly to the idea that efficient=good.
You lost me at:
organizations in general are subject to lapses from efficient, rational, law-abiding, virtuous, or otherwise functional behavior.
The single biggest problem facing Western society right now is the hidden moral philosophy created and enforced by the economics academy.
This moral philosophy occasionally breaks thru into the open, often thanks to the soft brained Greg Mancow.
But generally it is transmitted in two forms: unspoken assumptions and tightly controlled language.
The perfect example of the latter is the word "efficiency". In the Reagan/Thatcher world we live in, "efficiency" is always good. In fact, when describing a laborer, the word means "good", displacing the role once served by the word "conscientious".
An efficient worker completes the task without error in the quickest time. A conscientious worker notices a way to improve the product. Contractors may be efficient, but they are never conscientious.
But the subversive moral philosophy of economics is all around. Without even knowing it, society has rejected George Romney and endorsed Mitt. God help us.