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Efficiency |
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Being efficient requires one to use resources such as people, equipment and raw materials wisely and in the most cost effective manner. |
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In other words, it is about getting the most output from the least amount of input. |
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Effectiveness |
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Being effective on the other hand requires one to make the right decisions in order to achieve the organization's goals. |
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While efficiency is about doing things right, effectiveness is about doing the right things. |
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Importance of efficiency and effectiveness to management |
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In running an organization, the management is not only concerned about accomplishing the stated organization goals but also on accomplishing the goals at high efficiency. |
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A successful organization operates at both high efficiency and high effectiveness. |
1.2 Efficiency and Effectiveness