What Are Effectiveness And Efficiency, And How Are They Related To Organizational Behavior?

Effectiveness is the extent to which the individuals in the organization are able to finish and achieve their goal or task given by their supervisor. Efficiency deals with the time and resources the individuals use to finish their task. An employee is said to be efficient and effective if he achieves his goals with lesser time and lesser resources. Both the concepts are highly related to the organizational behavior. More the organizations motivate their employees, more effective and efficient they will be in performing their tasks. The purpose of organizational behavior is to study the individuals in the organization so that they can achieve higher efficiency and effectiveness in achieving their bigger goals such as increase in market share, increase in operational productivity etc.

Effectiveness is basically the ability to produce an effect. It entails doing the right things. When you are effective, you set the right targets and your aim is to achieve an overall goal.

On the other hand efficiency is defined as doing things in the most economical way. In other words, it is best utilization of resources. It is doing things in the most economical manner.

Efficiency = Input /Output

These two concepts are very important for organizational behavior. An organization has to be effective and efficient in order to be productive.

The main difference is that efficiency means doing things right and effectiveness means doing only the right things.Both are very much required in the successful running of any business organisation.The ultimate aim of every business is to maximize its profit and to minimize its cost of production. In order to minimize its production organisations should make the best utilisation of its available resources, because resources are limited and scarce.