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Efficiency and Effectiveness

Efficiency is doing things right by minimizing waste of resources like time and materials, while effectiveness is doing the right things by achieving desired outcomes. An example of efficiency from work is automating tests with software on a laptop to save staff time configuring instruments. This was also more effective by providing wider ranges of tests and reducing errors. An example from personal life is organizing books on shelves to efficiently save time finding them and effectively keep them in better condition for exams.

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Arup Das
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275 views2 pages

Efficiency and Effectiveness

Efficiency is doing things right by minimizing waste of resources like time and materials, while effectiveness is doing the right things by achieving desired outcomes. An example of efficiency from work is automating tests with software on a laptop to save staff time configuring instruments. This was also more effective by providing wider ranges of tests and reducing errors. An example from personal life is organizing books on shelves to efficiently save time finding them and effectively keep them in better condition for exams.

Uploaded by

Arup Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Define efficiency and effectiveness and illustrate these definitions with two sets of

examples. One from your work life and other from your personal life.
Suggested answer
Efficiency and effectiveness are both commonly used management terms. While they sound
similar, they both mean different things. According to Peter F. Drucker, efficiency is doing things
right and effectiveness is doing the right things.
Definition of Efficiency
Efficiency is defined as representing or producing things correctly with a minimum of waste,
expense or unnecessary effort and as showing a high ratio of output to input. Efficiency is
concerned with the immediate results. To be efficient means to reach an end result by using
resources such as time and materials without wasting them in order to optimize performance.
Since efficiency is about doing things right, it demands documentation and repetition of the same
steps.
Definition of Effectiveness
Effectiveness is defined as having a desired or specified result. Effectiveness involves thinking
long term and therefore takes into consideration any variables that may change in the future. An
effective performance is one that brings about the objective of a task. Effectiveness encourages
innovation as it demands people to think, the different ways they can meet the desired goal.
Examples
Efficiency can be measured in performing activities swiftly and economically such as reduced
cycle time per unit, transaction, or labor cost; lesser queue time per unit, transaction, or process
step; minimized resources (dollars, labor) expended per unit of output; lower inventory etc.
Effectiveness can be measured by the quality of output such as how well the output of the
process meets the requirements of the next phase in the process (internal customers) as well as
the end user or customer; how well the inputs from the external suppliers meet the requirements
of the process etc. These can be quantified through less defective products and customer
complaints; low warranty costs; increased market share; and percent of activities that customers
perceive to be value-added etc.
Examples from work life
One test and measurement software (LabView) is installed in a laptop computer that automates
the identifying and verifying of test signals from any circuit or PCB. Now a single platform can
simulate various test instruments and there is no requirement of separate and costly instruments
likes Multimeter, Oscilloscope, Spectrum Analyzer, Logic Probe, Signal Generator, Power Meter
etc. The objectives of this new system is to improve efficiency in order to save the human

resources staffs time in manually configuring the various test instruments and carrying those in
field conditions for regular checks and verifying errors.
The new automation software also gives various ranges (e.g. voltage, frequency etc.) which can
be selected easily from a drop-down menu. No individual test instruments can provide such a
wide range due to hardware limitations. The system has improved the effectiveness of the
organization by introducing various value-added activities and reducing the possibility of
erroneous results due to limited hardware and wire connections.
Examples from personal life
One rack with small shelves is taken for keeping the books of kid. The objectives of this system
is to improve efficiency in order to save the time of finding a book from the mix of sketches,
books, publications that are kept on a study table and searching a particular copy daily.
The rack system for keeping the books, publications etc. separately will also improve the
effectiveness of the family since the possibility of wearing and tearing of the books has been
reducing before the examinations i.e. it will keep the books in good condition almost throughout
the year.

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