What is Efficiency?
Peter F. Ducker defines efficiency as doing things right. It means completing the task correctly with minimum cost. It improves the achievement of objectives through the use of minimum inputs. It aims at enhancing an organisation’s profit by reducing the cost involved in completing a particular task. Management is said to be efficient when for the same level of output, fewer resources are used and less costs are incurred.
For example, Manager ‘B’ also promised the same company ABC Ltd. to produce 3,000 units in half the production cost of Manager ‘A’, but in one year. Now manager ‘B’ can produce 3,000 units but needs a longer period. Here, the manager was efficient, but not effective, as for the same output, more time was needed.
Features of Efficinecy:
- Resource Utilization: Efficient systems or individuals use resources, such as time, money, personnel, and materials, in the most productive way possible, minimizing waste and maximizing output.
- Time Management: Efficiency involves completing tasks in the shortest time possible without sacrificing quality, through effective prioritization and time management.
- Process Optimization: Efficient operations continuously seek to streamline processes, eliminating unnecessary steps and reducing complexity to enhance productivity.
Difference between Efficiency and Effectiveness
We can define management as the process of getting things done through and with people to achieve a common goal efficiently and effectively. When we go through the definition, we find the two buzzwords efficiency and effectiveness which are alike terms and popularly used by managers. They are essential elements of management. Though both are different, they are commonly misused and misinterpreted.
Table of Content
- What is Efficiency?
- What is Effectiveness?
- Difference between Efficiency and Effectiveness