The Efficiency Vs Effectiveness theory of Peter Drucker is highly focused on determining the difference between efficiency and effectiveness.

Although these terms are quite interchangeable, there is a striking difference between these two which works as a driving force in the organization management. Here is what you need to know about it.

What is efficiency Vs effectiveness?

Efficiency Vs Effectiveness by Peter Drucker is focused on doing the right thing for an organization. According to Peter Drucker, an organization's survival is based on the efficiency and effectiveness of the management.

Efficiency is described as the capacity to do a task with the least amount of wasted time, money, and effort, as well as performance competency. Effectiveness is defined as the degree to which something is successful in delivering the desired result.

On the other hand, the input may get minimized for any of the quantity or quality of the output. Sometimes the efficient manager might or might not do the right job. Doing their right job does not call for many resources or time. A job can be done quickly within time. In such cases, the main goal of the manager must be to get done with the job at the right time with the help of given resources.

However, effectively doing the right job involves much time planning and the proper strategy. In this scenario, the manager will focus on the outcome rather than just on the input. Both efficiency and effectiveness play a crucial part in successful management.

Any management is highly concerned with getting things done and determining how to complete the things. In the mind of each manager, there must be a debate regarding whether more concern should go into disregard production or too low-cost production or go after the satisfaction for the goals and objectives. These two paths are considered as the decisions that separate Effectiveness and Efficiency.

Efficiency means that the job is getting done cheaply on time which may not be impressive or thorough through its accomplishment. On the other hand, effectiveness means that the job has been done correctly and has been accomplished with no regard to the inexpensiveness or time.

Is it better to be efficient or effective for the management of a business organization?

To achieve your goals, first of all, you need to start with a strategy that can be highly effective to let you accomplish it. You cannot achieve any goal as a business organization management if you are working without any kind of specific steps.

Though you can efficiently do many things, if that is not relevant to the purpose of your goal, then it will not help you. But when you know what you need to do with effectiveness, then you can work better on excelling and improving on your skills to have expertise over the task.

For example, companies like Facebook, Google work with expert managers who are focused on the effectiveness of the results and goals.

Conclusion

To improve productivity in business organizations, it is highly important to know the difference between effectiveness and efficiency, which this theory marks properly. It is better to adopt the method which is highly suitable as per the situation of the organization. However, it is always better to deliver productive results with effectiveness rather than being efficient and busy.

“Focus on being productive instead of busy.” - Tim Ferriss, American podcaster, author, and entrepreneur.