Organizational Efficiency or Effectiveness?

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Principles of Management - Fayol > Best Practices > Organizational Efficiency or Effectiveness?

Organizational Efficiency or Effectiveness?
Shabbir
Which is more important for an organization: efficiency or effectiveness? Why?
 

 
Organizational Efficiency vs Effectiveness
Pradeep Sukumar
Dear Shabbir, to me, organisational efficiency appears to be of paramount importance, in the light of the intensively competitive business environment. Don't you feel that effectiveness would be a natural consequence of efficiency?
 

 
Organisational Effectiveness
RAMESHWER RAO, EXECUTIVE-SUPPLY CHAIN, India, Member
Undoubtedly organisational efficiency is the real mantra for success of any organisation. However, it should be well supported by effective working practices.
 

 
Management
Muhammad Yousaf
Efficiency and effectiveness also callled end and means how we can more explain? if possible?
 

 
Organizational Efficiency and Effectiveness
SILVANUS OBONDI, Manager, Kenya, Member
Efficiency is more important since it indirectly encompasses effectiveness..
The fact that both are very crucial in any entity, efficiency refers to meeting the desired output with minimum possible input. This then means that the desired output( effectiveness) is achieved through minimum output.
 

 
Efficiency & Effectiveness
Michael P. Enriquez, Student (MBA), Philippines, Member
Effectiveness refers to attaining the objective and efficiency determines the quality of achieving that objective.
For example, the objective is to deliver a pizza to the customer yet the taste of the pizza and how soon the pizza will be delivered determines efficiency.
Both are needed, yet efficiency is more important.
 

 
Organizational Efficiency and Effectiveness
pradeep deo, Strategy Consultant, India, Member
Efficiency and effectiveness are interdependent. Without efficiency effectiveness has little meaning and vice versa. It is the proficiency which makes real difference.
 

 
Effectiveness and Efficiency
jinson
I would like to compare efficiency to a river and effectiveness to a sea. If there is no river there can also be no sea. And if there is no sea then what is the use of a river?
 

 
Efficiency and Effectiveness
Amankwa Prince, Student (University), Ghana, Member
Efficiency is the ability to minimize available resource to achieve a specific objective and effectiveness is the ability to reach organizational objectives.
 

 
Organizational Efficiency and Effectiveness
bala, Manager, India, Member
Efficiency means: "doing things right"
Effectiveness means: "doing the right things".
 

 
Efficiency and Effectiveness
O. Faruk Kocak, CxO / Board, Turkey, Member
@Bala: congratulations Bala, it is the best description.
Also efficiency is more technical, whereas effectiveness needs leadership skills as it requires sensing, foresight and precision.
 

 
Both are Important in Job Setting
Kwok, Student (Other), Hong Kong, Member
An organisation has to strike a balance between efficiency and effectiveness. Or even better: achieve both.
For the definition:
- Efficiency indeed means doing things right. It focuses on the process. In order to achieve the most output for the least inputs, there may be a standardised working method which helps to avoid mistakes.
- Effectiveness means doing the right things. It demands people to think about the different ways to attain organisational goals.
If there's only efficiency, but no effectiveness, the company may not meet the goal or requirements.
On the other hand, only effectiveness but no efficiency may lead to high cost of operation.
 

 
Organizational Efficiency and Effectiveness
Ebwongu Michael
@Michael P. Enriquez: Efficiency does not necessarily equate to quality; efficiency translates to the cost of achieving an objective.
Two entities can reach the same objective but at varying costs (money, time, manpower and materials. The one with lower cost is considered more efficient although both are effective by the mere fact that the achieved the objective.
 

     
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