Efficiency and Effectiveness as stated by Peter Drucker “Efficiency is doing things right; Effectiveness is doing the right thing.” An organization survives based on the efficiency and effectiveness of a manager/management. Efficiency is the use of financial, human, physical and information resources such that output is maximized for any given set of resource inputs, or input is minimized for any given quantity and quality of output. An efficient manager might be doing the right job but not the job right. Doing the right job does not require much time or resource. A job can be done very quickly and efficiently within time. In this case, the manager’s main aim is to get the job done within the allocated time using the given resources. But doing a job effectively involves time and planning the right strategy. In this case the manager concentrates more on the outcome rather than just the input. Both efficiency and effectiveness are an integral part of a successful management.
Management is almost entirely concerned with getting things done and determining how to get things accomplished. In each manager’s mind there is a debate over whether more concern should go into low-cost production or to disregard production costs and go after complete satisfaction of goals and objectives. These two paths are known as the decisions which separate “Efficiency” and “Effectiveness”. Efficiency means that the job was accomplished cheaply and on time yet may not be a very thorough and impressive accomplishment. Whereas, effectiveness means that the job was done correctly and was accomplished but with no regard to whether the job was done inexpensively or on time.… Read the rest