The terms efficiency and effectiveness are thought to be the same and sometimes it is used in place of each other. However, both are different.
Efficiency and effectiveness are two terms that are most commonly used in management. Efficiency refers to the act of performing activities with minimum wastage of time and optimum usage of resources, so that the work done is faster and in an error free manner.
Effectiveness is a broader concept than efficiency and it is related to the extent to which work is done in order to achieve the desired or targeted outcomes. In other words, we can say it is the extent to which someone or something is successful towards meeting the desired outcome.
Both these concepts are widely used for assessing the performance of the employees in an organisation.
Let us have a look at some of the points of difference between the two terms efficiency and effectiveness.
| Efficiency refers to the act of performing activities with minimum wastage of time and optimum usage of resources, so that the work done is faster and in an error free manner. | Effectiveness is the extent to which someone or something is successful towards meeting the desired outcome. |
| Doing the assigned task in a correct way | Doing the assigned task accurately |
| Efficiency is focused on the inputs and outputs | Effectiveness is focused on the extent to which work is done and the end result achieved |
| Efficiency is effort oriented | Effectiveness is not effort oriented |
| Efficiency is more operation oriented | Effectiveness is more strategy oriented |
| Efficiency is time oriented | Effectiveness is not time oriented |
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