Efficiency & Effectiveness goes hand in hand

Efficiency & Effectiveness go hand in hand

Efficiency and effectiveness are the two sides of the same coin. It has to go together. It cannot work alone. It is always done in unity. Below are the definitions of the two E’s which are been discussed in the topic.

EFFECTIVENESS means the capability of, or success in, achieving a given goal. Contrary to efficiency, the focus of effectiveness is the achievement as such, not the resources spent, so anything that is effective is not necessarily efficient, but anything that is efficient also has to be effective.

EFFICIENCY means the production of the desired effects or results with minimum waste of time, effort, or skill. A measure of effectiveness; specifically, the useful work output divided by the energy input in any system.

“Efficiency is intelligent laziness”

Now let’s deal with these two criteria’s differently. First let’s deal with effectiveness to make it clearer we have some examples they are as follows:- Optimum utilization of raw materials Well today there are many economic goods which are inadequate or insufficient in supply so it is necessary to make use of the raw materials more efficiently to optimum utilization. Recruiting people having skill set matching the requirement Today in India where the population is more than a billion from which ¼ of them are skilled employees. So they should be efficiently recruited and given a position suitable for their qualification.

Good relationship between employees Today where the employees get a better job and pay by other companies it is only the social environment which wants them to live in the existing company. So good relationship between employees is important.

Individualize and personalize market offering Lower cost of ownership (Suppliers)

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Efficiency & Effectiveness goes hand in hand

Secondly now comes the other E that is effectiveness to make it clear we have some examples

Low distribution costIf distribution method / pattern is effectively and efficiently handled, it will result in low Distribution cost.

Streamline order processing

Reduce inventories If inventories are effectively used and handled – then the company need not have to keep it in large quantities and could be ordered as and when required – so company would save on working capital.

Reduces cost of customer acquisition

Streamline production of Goods

Low employee turnoverIf employees are efficiently used and are handled well in the company i.e. effectively – then there is no reason for high employee turnover so that company has to bear the expenses.

Good work environment.

Recruitment procedure.It’s the most important thing for any company because if recruitment is not handled effectively and if a wrong person is hired – we all know that the training of people is very costly and if the person is not able to cope up with it–the charges which the company would bear would be high and after that ultimately again you have to start the procedure so that you get the right person for the job – so again more expenses for the company.

Optimum level of employees

So to conclude I would like to say that if either of the 2 E’s are missing in an organization – the organization cannot survive in the industry – because today the markets have become very competitive and company has to give more for less. Customers have become the king in the market and market has become competitive and price sensitive with demand for excellent quality. So the work, processes, products and anything and everything

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Efficiency & Effectiveness goes hand in hand

related has to be efficient and effective so that company can go from strength to strength.

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