What is effectiveness and efficiency in management with example?

INTRODUCTION 

In this article we will understand what is effectiveness and efficiency ? And also take example.

Efficiency 

Efficiency involves minimizing costs and increasing output.

Effectiveness 

Effectiveness means doing the right work, on or before time, in the right quantity, and maintaining the right quantity.

Example:

Situation I, firm is able to produce 15,000 shirts at cost of ₹200 per shirt and shirt produced within time then we can say firm is effective but not efficient because it done its goal but in cost effective manner.

In Situation II, Another firm is able to produce 15,000 shirts at cost ₹180 per shirt, and the production is also completed within the given time. We can say firm is effective and efficient.

RELATIONSHIP BETWEEN EFFICIENCY AND EFFECTIVENESS 

Equally Important:

Effectiveness means completing or finishing task on time, but not only this sufficient .

While, efficiency is Focus on finishing task  without wastage of resources.

Two aspects of same coin:

One side of this coin is effectiveness and another one is efficiency. Both are essential for well managed organization.

Base for Success:

When effectiveness (reaching goals on time) and efficiency (minimum wastage of resources) works together, it results in more profit and success for the organization.

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