Efficiency vs. Effectiveness

The two terms ‘efficiency’ and ‘effectiveness’ have to be under stood correctly. It is very important to distinguish between those two parameters. Efficiency is about finding the best ways of doing an assigned job. It is the methodology. Then what is effectiveness? If you analyze the word “effective”, you will find the word within the word namely “effect.” Effect means result. When you say you are effective, what you mean is that you produced a result. You would have carried out some activity but the result may not have taken place. Any effort made without result is a waste of time. This means you are not effective.

Your strategy should be to produce more effect or outcome with least investment of effort and resources. This is ‘smart’ working. If you are producing more outcome with more effort, you are working ‘hard’.

Suppose you have currencies of various denominations on your table amounting to 100$. Imagine that a whirlwind blows them all over your room. What would be your strategy for picking them up?

If you are efficient, you will pick up the currency closest to you and work towards the other end. If you are effective, you will pick the highest denominations currency first and then the others. Are you efficient or effective? In fact, you should be effective and efficient and combine both tactfully.

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