Efficiency means “doing things right” and effectiveness means “doing the right.” EFFICIENCY (the ability to the things right) is an “input-output” concept. AN efficient manager is one who achieve output that justifies the input (labor, Material and time) used to achieve them. In Management, efficiency of resources utilization is thus minimization of cost and maximization of benefits resulting in achieving the goals. Effectiveness in contrast involves choosing the right goals .A manager who selects an inappropriate goal say producing mainly large cars when demand for small cars is high is an ineffective manager even if the large cars are produced with high efficiency. No amount of efficiency can make up for lack of effectiveness. So effectiveness is the key to an organization’s success. It is a pre- condition for an efficient management.
