Topics: Management, Economics, Organization Pages: 4 (970 words) Published: October 11, 2013
Effectiveness x Efficiency = Results.

The above formula which is usually used for high performance always baffled me. I often get confused with both the terms as to what these words mean & hence extremely curious enough to know as to what these words actually mean in management parlance. After going through some of the texts, books I could really gather what these words stands for and what is the exact meaning of this particular word in the context of the management. If both these words are understood the way it has to be understood & if you as a manager could percolate / trickle the instructions down to the people with whom you are working with, the results achieved shall be amazing.

“Effectiveness” means doing the right things. “Efficiency” means doing them right. Effectiveness and efficiency both require that you set goals, analyze your work carefully, determine your priorities, and always focus on the highest-value use of your time.

An organization which fails to achieve desired goal cannot be called either efficient or effective. Goal achievement may be stated as an objective index of effectiveness of an organization. But, goals (ends) with taking into account the process (means) will forfeit the very purpose of goal achievement. It is not, for instance, sufficient for an organization to have attained the desired level of production but equally necessary with what level of cost and quality. If the cost of production increases due to wastages and the quality deteriorates, the goal achievement will not reflect effectiveness of organization. It may be a case of rather ineffectiveness.

Thus, effectiveness is a continuous or an ongoing process in an organization. The effectiveness is brought about by the manager in the context of ever-changing organization goals by restructuring available resources, altering technologies, modifying climate and developing goal-oriented strategy of performance of employees.

On the other hand, efficiency, implying...
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