Efficiency and Effectiveness: Value of the Correct Understanding (2024)

Efficiency and Effectiveness: Value of the Correct Understanding (1)

In a globalized world of fierce competition, become more productive is a commonplace theme in organizations. And, speaking in productivity, inevitably we must take into account the broader concepts of efficiency and effectiveness.

Sometimes occurs confusion in understanding the difference between these important concepts, leading some people to believe that you are talking about the same thing.

Efficiency concerns the manner and means used in this activity, which is much more efficient the smaller the resources (raw materials, people, money and time) employed in its realization.

The efficiency is associated with standardization and specialization answering the question: what was done. Maximum efficiency is achieved when using the minimum of resources and reviews on the question: how did it.

Effectiveness measures the degree of satisfaction and the achievement of objectives, given the results obtained. The more effective one, the output level is greater and the satisfaction task. Maximum effectiveness is reached with the full range of pre-established goals achieved.

Be effective is to comply with all obligations without any mishap, be it finance related to time, finally, connected to various other aspects. We can say that the efficient person goes beyond what was effective, all in perfect running order, flawlessly.

So there are some distinctions between these words, that is, now we can be effective, but not so efficient; sometimes can be effective and efficient at the same time.

For example, to produce thousand cars a day with minimal wastage of steel, inks, and other components. The goal is to produce a thousand cars. When struck efficiency is maximum.

Another example: we can say that efficiency is digging with technical perfection, an artesian well; efficacy is finding water.

In practice, the efficiency is considerably simpler to measure. Already efficiency is more complicated, because it comes mainly from the implementation of new production methods, automation of procedures and present technology. Thus, efficiency gains translate usually by decreases in costs.

EFFICIENCY is: do right; is the means to achieve a result; this is the activity, or what you do.

EFFECTIVENESS is: the right thing; is the result; the goal: is what it comes to what to do, i.e., their mission.

Efficiency comes to how to do, not what to do. Comes to doing the right thing, and do the right thing. When it comes to efficiency, is talking about productivity, doing more with the least possible resources.

Already effectively deals with what to do, to do the right things, the decision of which way to go. Effectiveness is related to the choice and, after choosing what to do, do this thing productively leads to efficiency. Effectiveness is the degree to which the results of an organization meet the needs and desires of the outside environment.

For clarity: What is the mission of an air conditioning maintenance area?

Of course the answer would be: fix the air conditioning, which is a wrong answer. Air conditioning repair is what makes the maintenance area to achieve its primary mission which is: air conditioning running.

Often the area of air conditioning maintenance is measured by the time spent repairing air conditioning, when it should be measured by the time of operation of the equipment. This is a measure of its effectiveness.

By favoring measures that accompany the effort of realization can lose the relationship with the outcome of this effort. On behalf of this many achievements within organizations end up being lost in the evaluation of the level of value addition to the organization's objectives.

Imagine you have a goal to accomplish by the tasks that plays on your desktop. If the meet in its entirety, means that you were effective, as efficacy results in achieving the proposed run something in accordance with the determined goal.

The differences between these two concepts may even seem subtle, but it really is extremely important.

Peter Drucker, our guru, is emphatic in stating:

"Efficiency is doing things right, effectiveness is doing the right things. And adds, the result depends on doing the right things right."

Efficiency and Effectiveness: Value of the Correct Understanding (2024)
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