Sunday, February 15, 2015

World of Management | Discuss the difference between efficiency and effectiveness

Discuss the difference between efficiency and effectiveness. 

1 comment:

  1. Answer:

    a. Efficiency refers to getting the most output from the least amount of inputs. Because managers deal with scarce inputsincluding resources such as people, money, and equipmentthey are concerned with the efficient use of resources. It's often referred to as "doing things right"—that is, not wasting resources. For instance, efficient manufacturing techniques can be implemented by doing things such as cutting inventory levels, decreasing the amount of time to manufacture products, and lowering product reject rates.
    b. Effectiveness is often described as "doing the right things"that is, doing those work activities that will help the organization reach its goals. For instance, goals can include meeting customers' rigorous demands, executing world-class manufacturing strategies, and making employee jobs easier and safer. Through various work initiatives these goals can be pursued and achieved. Whereas efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals.