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Commerce: Business Studies Concept

Tejinder Singh
21/07/2017 0 0

Topic: Effectiveness and Efficiency

I have devised a very simple definition to describe effectiveness and efficiency.

Effectiveness is DRT where DRT stands for "Doing Right Things." (Effectiveness is concerned with the end result and by doing it, the task is achieved). Example: Mr Ram was told to produce 10 units of steel in a day, he achieved the number. Therefore he is effective.

Efficiency is DTR where DTR stands for "Doing Things Right" (Efficiency is concerned with doing a task in the best possible manner.) Continuing with above example, besides Mr Ram, another employee Mr Bharat produced 10 units of steel in half a day. Therefore, Mr. Shyam is effective as well as efficient. Mr. Ram is definitely effective but less efficient.

From the above, it can be concluded that for management apart from effectiveness, efficiency also needs to be considered. Mr. Shyam's performance above will be set as a benchmark performance for other co-workers by the management.

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