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Efficiency in general terms can be defined as the ability and Effectiveness is the ability to distinguish or the power applying authority.
Effectiveness it means the process is happening (eg. production of goods)
Efficiency - the capacity to consume less ressource to make the process happen
Agree with the reply of Arinjay.
efficency is effectiveness but for the least cost
agreed with arinjay,,,,,,,,,,,,, better response
Efficiency and effectiveness are both commonly used management terms. Yet, while they sound similar and start with the same letters, they both mean different things.
Efficiency refers to doing things in a right manner. Scientifically, it is defined as the output to input ratio and focuses on getting the maximum output with minimum resources. Effectiveness, on the other hand, refers to doing the right things. It constantly measures if the actual output meets the desired output. Since efficiency is all about focusing on the process, importance is given to the ‘means’ of doing things whereas effectiveness focuses on achieving the ‘end’ goal.
Efficiency is concerned with the present state or the ‘status quo’. Thinking about the future and adding or eliminating any resources might disturb the current state of efficiency. Effectiveness, on the other hand, believes in meeting the end goal and therefore takes into consideration any variables that may change in the future.
In order to be efficient time and again, discipline and rigor is required. This can build inflexibility into the system. Effectiveness, on the other hand, keeps the long term strategy in mind and is thus more adaptable to the changing environment.
Since efficiency is about doing things right, it demands documentation and repetition of the same steps. Doing the same thing again and again in the same manner will certainly discourage innovation. On the other hand, effectiveness encourages innovation as it demands people to think, the different ways they can meet the desired goal.
EFFICINCY DEFINE IS THE POWER OF ELECTRONICS... COMPONENT
The difference between efficient and effective is that efficiency refers to how well you do something, whereas effectiveness refers to how useful it is.
For example, if a company is not doing well and they decide to train their workforce on a new technology. The training goes really well - they train all their employees in record time and tests show they have absorbed the training well. But overall productivity doesn't improve. In this case the company's strategy was efficient but not effective.
