Contrast between effectiveness and efficiency in organizational performance? What happens when you have one without the other?

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Effectiveness in business is essentially a measure of success and performance. If you are effective at your job, you can complete the required tasks well. Efficiency, however, is the ability to do your work quickly and without excess. Efficiency is more of a measure of quickness and the lack of...

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Effectiveness in business is essentially a measure of success and performance. If you are effective at your job, you can complete the required tasks well. Efficiency, however, is the ability to do your work quickly and without excess. Efficiency is more of a measure of quickness and the lack of wastefulness. If you are efficient, you will accomplish something fast and without using too many resources.

In and of themselves they are beneficial, but without having the other, they are not practical. You can effectively complete a project, but if it costs twice as much as projected and goes twice as long, it's not a successful solution. On the other hand, if you do something quickly and without wasting resources, but don't properly solve the problem, then it was all for naught as well. Combining these two criteria is where a business succeeds, and most of the time, the goal is to find the intermediate point, where a project is as effective as possible while also being as efficient as possible.

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In a business, both effectiveness and efficiency are important factors in production. To start answering your question, there is a defined key difference between these two ideas.

Effectiveness is described as being the ability to produce goods. If a business or worker is effective, it means that they are able to produce a high level of goods. The more effective a business is, the more goods that they are producing.

On the other hand, efficiency is the measurement of the production of goods with regard to the use of physical resources or time. When a business or worker becomes more efficient, it means that they are producing goods in a shorter period of time or using their resources in a better fashion.

Both of these attributes are important for a business to have. If a business is effective, but not efficient, they can be wasting time and resources on the goods they produce. This can result in a loss of capital gains. In reverse, if a company is efficient, but not effective, it means that they are not producing enough products to be making a profit.

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