Last Updated 25 Mar 2020

Management performance: efficiency and effectivity

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Efficiency is the relationship between the means and the end. It simply refers to the amount of resources used to achieve target production and company goals. The main objective of which is to increase productivity by increasing respective efficiency at all levels. Where the concept of process improvement relies on the provision of technology, it integrates links of all key business functions and makes use of integrated structured software to run and manage the company. The philosophy of planning and organizing company’s activities demands proper control and monitoring of its resources.

This serves as the basis to making necessary corrections and guidelines. Information technology (IT) therefore plays an important role in the aspects of technology adaptation. Its vital design is accessibility to information or speed of access created to fit total client and business management system. However, the main consideration of the integration with IT is still the people, and the workflow. Teamwork and management leadership are factors that shall still be mutually carried over the entire workflow. Efficiency aims to bring together knowledge, people and materials to achieved optimal results in market positioning. It entirely reflects the methods and the means to try to accomplish the plan.

Strong management leadership in line with employee motivations greatly influences the effects of efficiency. To recapitulate: efficiency enables the organization to support the business by leveraging on its integrated workflow management to customer relations management for higher productivity. This ensures virtual service quality in simplified mapping enhancements of the network performance reporting capabilities.

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The basic key of the process is to align every diverse constituent to critical information asymmetries that allows timing and participation in the cycle. Where the people are highly motivated and is performing at high levels, organization performance always refers to the means and methods used to achieve corporate goals. It focuses on management of human, conceptual and technical skills to enhance flexibility through teamwork in the art of getting things done through people and integration of technology in an efficient manner.

The diversity of the corporate culture needs solid management skills and action in creating the conditions and environment to manage and run the company in an efficient manner to sustain its long term existence. The results of which can be measured on its productivity and effectivity. In comparison, effectivity is the means to measure the methods and applications applied to achieve corporate goals.

Thus it is the task involve in making an analysis of the result and efficiency of the management tools and skills being utilized by the current organizational system and practices. It utilizes systems thinking to assess cause and effect variables of its applications in the fundamental aspects of planning, organizing, leading, and controlling of each unit or department in reference to overall effectivity.

Efficiency is the logical integration of people, equipment, and technology resources to promote productivity and achieve end values while effectivity measures the consistency of the means to achieve corporate goals by the measure of man-machine-systems efficiency and calculations of productivity ratios. Working in the efficiency of each individual, machine, and technology performance is what defines the heart and soul of an organization’s systems and procedures which aims to regulate management practices to enhance productivity.

Efficiency is the primary indicator of either a successful or failing management performance. It can be improved simultaneously only by making critical analysis of its efficiency by measures of the individual productivity. This measure of efficiency and productivity is the task or the concept of effectivity. (Daft 2004).


Daft, Richard. (2004). Management. South Western College.


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