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Difference Between Effective And Efficient Pdf

difference between effective and efficient pdf

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Published: 01.06.2021

Professional and personal tasks for managers often are similar. In both settings, managers organize, direct, coach, supervise, and at times, discipline. One of the other common tasks for managers is budgeting and metrics.

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, which means the extent to which the actual results have been achieved to fulfill the desired outcome i. These are the metric used to gauge the performance of an employee in an organization. Efficiency and Effectiveness are the two words which are most commonly juxtaposed by the people; they are used in place of each other, however they are different.

While efficiency is the state of attaining the maximum productivity, with least effort spent, effectiveness is the extent to which something is successful in providing the desired result.

Take a read of the article to understand the difference between efficiency and effectiveness in management. Basis for Comparison Efficiency Effectiveness Meaning The virtue of being efficient is known as efficiency. The magnitude of nearness of the actual result with the intended result, is known as effectiveness. What is it? Work is to be done in a correct manner. Doing accurate work. It is the ability to do things in a well-mannered way, to achieve the standard output.

Effectiveness refers to the extent to which something has been done, to achieve the targeted outcome. Effectiveness has an outward look i. Effectiveness is result oriented that shows how excellently an activity has been performed that led to the achievement of the intended outcome which is either accurate or next to perfect.

The points, given below describe the substantial differences between efficiency and effectiveness:. Efficiency and Effectiveness both have a prominent place in the business environment which must be maintained by the organisation because its success lies on them.

Efficiency has an introspective approach, i. Excellent and clearly narrated explanation on efficiency and effectiveness. It has served my purpose because I will have a reflection session with my co-workers. Well explained article. Helps me a lot to distinguish between the terms efficiency vs effectiveness. I took business as an elective module and i found it hard to differentiate between the two two terms.

However, after reading this article, i found myself ready to explain it well to my peers. Thank your. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Key Differences Between Efficiency and Effectiveness The points, given below describe the substantial differences between efficiency and effectiveness: The ability to produce maximum output with limited resources is known as Efficiency.

Efficiency has a short run perspective. Conversely, the long run is the point of view of Effectiveness. Efficiency is yield-oriented. Unlike Effectiveness, which is result oriented. Efficiency is to be maintained at the time of strategy implementation, whereas strategy formulation requires Effectiveness. Efficiency is measured in operations of the organisation, but Effectiveness of strategies is measured which are made by the organisation. On the other hand, Effectiveness has a relationship with means and ends.

Comments Excellent and clearly narrated explanation on efficiency and effectiveness. Leave a Reply Cancel reply Your email address will not be published.

Efficiency vs Effectiveness

Efficiency is when you do the same things faster or with less waste. For example, you might find a better way to run a project status meeting so it takes 30 minutes on average rather than 45 minutes. Effectiveness is finding a way to improve outcomes, perhaps by doing something very differently. You might change your whole approach to the work. For example, project teams updating task status as they go may result in the elimination of project status meetings. Efficient telegraph operators would find ways to send telegraphs more quickly—perhaps by improving their knowledge of morse code.

Efficiency and effectiveness were originally industrial engineering concepts that came of age in the early twentieth century. Management theorists like Frederick Taylor and Frank and Lillian Gilbreth designed time and motion studies primarily to improve efficiency. Work simplification efforts again focused primarily on questions like "How fast can we do this task? The concept of effectiveness, which takes into consideration creating value and pleasing the customer, became popular in the United States in the early s when Americans perceived Japanese products such as cars and electronics to offer greater value and quality. The words efficiency and effectiveness are often considered synonyms, along with terms like competency, productivity, and proficiency.

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Differences between Effectiveness and Efficiency

Efficiency and effectiveness are both commonly used management terms. Yet, while they sound similar and start with the same letters, they both mean different things. Efficiency refers to doing things in a right manner.


  1. Tyson P.

    08.06.2021 at 01:26

    In general business processes, and especially within procurement functions, a big question is often looming: can an organization be both efficient and effective?

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