Difference Between Efficiency and Effectiveness

Efficiency means whatever you produce or perform; it should be done in a perfect way. Although, Effectiveness has a broader approach, ... Efficiencymeanswhateveryouproduceorperform;itshouldbedoneinaperfectway.Although,Effectivenesshasabroaderapproach,whichmeanstheextenttowhichtheactualresultshavebeenachievedtofulfillthedesiredoutcomei.e.doingaccuratethings.Thesearethemetricusedtogaugetheperformanceofanemployeeinanorganization. EfficiencyandEffectivenessarethetwowordswhicharemostcommonlyjuxtaposedbythepeople;theyareusedinplaceofeachother,howevertheyaredifferent.Whileefficiencyisthestateofattainingthemaximumproductivity,withleasteffortspent,effectivenessistheextenttowhichsomethingissuccessfulinprovidingthedesiredresult. Takeareadofthearticletounderstandthedifferencebetweenefficiencyandeffectivenessinmanagement. Content:EfficiencyVsEffectiveness ComparisonChart Definition KeyDifferences Conclusion ComparisonChart BasisforComparisonEfficiencyEffectiveness MeaningThevirtueofbeingefficientisknownasefficiency.Themagnitudeofnearnessoftheactualresultwiththeintendedresult,isknownaseffectiveness. Whatisit?Workistobedoneinacorrectmanner.Doingaccuratework. EmphasisonInputsandOutputsMeansandEnds TimeHorizonShortRunLongRun ApproachIntrovertedExtroverted AscertainmentStrategyImplementationStrategyFormulation OrientationOperationsStrategies DefinitionofEfficiency Efficiencyreferstotheabilitytoproducemaximumoutputfromthegiveninputwiththeleastwasteoftime,effort,money,energyandraw materials.Itcanbemeasuredquantitativelybydesigningandattainingtheinput-outputratiosofthecompany’sresourceslikefunds,energy,material,labor,etc. Efficiencyisalsoconsideredaparametertocalculatetheperformanceandproductivitybymakingcomparisonsbetweenthebudgetedoutputandthe actualoutputsproducedwiththefixednumberofinputs.Itistheabilitytodothingsinawell-manneredway,toachievethestandardoutput. Efficiencyisanessentialelementforresourceutilisation,astheyareverylessinnumber,andtheyhavealternativeuses,sotheymustbeutilisedinthebest possibleway. DefinitionofEffectiveness Effectivenessreferstotheextenttowhichsomethinghasbeendone,toachievethetargetedoutcome.Itmeansthedegreeofclosenessoftheachieved objectivewiththepredeterminedgoaltoexaminethepotencyofthewholeentity. Effectivenesshasanoutwardlooki.e.itdisclosestherelationshipofthebusinessorganisationwiththemacroenvironmentofbusiness.Itfocuseson reachingthecompetitivepositioninthemarket. Effectivenessisresultorientedthatshowshowexcellentlyanactivityhasbeenperformedthatledtotheachievementoftheintendedoutcomewhichiseitheraccurateornexttoperfect. KeyDifferencesBetweenEfficiencyandEffectiveness Thepoints,givenbelowdescribethesubstantialdifferencesbetweenefficiencyandeffectiveness: TheabilitytoproducemaximumoutputwithlimitedresourcesisknownasEfficiency.Thelevelofthenearnessoftheactualresultwithplannedresultis Effectiveness. Efficiencyis‘todothethingsperfect’whileEffectivenessis‘todoperfectthings’. Efficiencyhasashortrunperspective.Conversely,thelongrunisthepointofviewofEffectiveness. Efficiencyisyield-oriented.UnlikeEffectiveness,whichisresultoriented. Efficiencyistobemaintainedatthetimeofstrategyimplementation,whereasstrategyformulationrequiresEffectiveness. Efficiencyismeasuredinoperationsoftheorganisation,butEffectivenessofstrategiesismeasuredwhicharemadebytheorganisation. Efficiencyistheoutcomeofactualoutputupongiventhe numberofinputs.Ontheotherhand,Effectivenesshasarelationshipwithmeansandends. Conclusion EfficiencyandEffectivenessbothhaveaprominentplaceinthebusinessenvironmentwhichmustbemaintainedbytheorganisationbecauseitssuccessliesonthem.Efficiencyhasanintrospectiveapproach,i.e.itmeasurestheperformanceofoperations,processes,workers,cost,time,etc.insidetheorganisation.Ithasaclearfocusonreducing theexpenditureorwastageoreliminatingunnecessarycoststoachievetheoutputwithastatednumberofinputs. Inthe caseofEffectiveness,ithasan extrovertedapproach,thathighlightstherelationshipofthebusinessorganisationwiththerestoftheworldtoattainacompetitivepositioninthemarket,i.e.ithelpstheorganisationtojudgethepotencyofthewholeorganisationbymakingstrategiesandchoosingthebestmeansfortheattainmentresult. RelatedDifferencesDifferenceBetweenAcceptandExceptDifferenceBetweenGeneralElectionsandBye-electionsDifferenceBetweenCostAccountingandFinancialAccountingDifferenceBetweenCustomerandConsumerDifferenceBetweenForecastingandPlanning YouMightAlsoLike: DifferenceBetweenProductivityandEfficiency DifferenceBetweenShortRunandLongRunProductionFunction DifferenceBetweenProductionandProductivity DifferenceBetweenEconomiesofScaleandEconomiesofScope DifferenceBetweenProjectandProgram DifferenceBetweenMonitoringandEvaluation Comments Excellentandclearlynarratedexplanationonefficiencyandeffectiveness.IthasservedmypurposebecauseIwillhaveareflectionsessionwithmyco-workers.Bravo Reply YesitwasreallyhelpfulandIappreciatethat.Iamverygrateful.Keepthegoodwork. Reply Wellexplainedarticle.Helpsmealottodistinguishbetweentheterms(efficiencyvseffectiveness) Reply Thanksmuch Reply VERYIMPORTANTINFORMATION!THANKSALOT! Reply yourexplanationissoexhaustiveandclear.manythanksindeed Reply IamalawstudentattheUniversityoftheFreeState(RSA).Itookbusinessasanelectivemoduleandifoundithardtodifferentiatebetweenthetwotwoterms.However,afterreadingthisarticle,ifoundmyselfreadytoexplainitwelltomypeers.Thankyour Reply goodjob Reply Veryhelpful.Thankyousomuch! Reply Excellentjob Reply IamanMBAStudentofuniversityPunjabiPatialaUniversityinIndia.IhavestudiedmywholeeducationintheFrenchlanguage.Itismyfirsttimedoingmymaster’sintheEnglishlanguage. Igotalotofdifficultiesunderstandingthemeaningofthattwowords.Butnowitisokthanks. Reply bestonesandhelpfultounderstandwellbetweenefficiencyandeffectiveness Reply LeaveaReplyCancelreplyYouremailaddresswillnotbepublished.Requiredfieldsaremarked*CommentName* Email* Website Savemyname,email,andwebsiteinthisbrowserforthenexttimeIcomment. Top5Differences RelatedDifferences DifferenceBetweenAcceptandExceptDifferenceBetweenGeneralElectionsandBye-electionsDifferenceBetweenCostAccountingandFinancialAccountingDifferenceBetweenCustomerandConsumerDifferenceBetweenForecastingandPlanning NewAdditions DifferenceBetweenUngroupedDataandGroupedData DifferenceBetweenAllowancesandPerquisites DifferenceBetweenNormalLossandAbnormalLoss DifferenceBetweenCostAuditandManagementAudit DifferenceBetweenUnqualifiedandQualifiedReport DifferenceBetweenMulti-ChannelandOmni-Channel DifferenceBetweenListedCompanyandUnlistedCompany DifferenceBetweenDenotationandConnotation DifferenceBetweenManagingDirectorandWholetimeDirector DifferenceBetweenIllusionandHallucination