Although they are often used synonymously, the terms efficiency, effectiveness and efficacy refer to different aspects and their correct differentiation and calculation helps the company to assess the performance of staff and processes and implement actions for continuous improvement.
To say that a worker is efficient when in fact he or she is effective or to say that a campaign has been effective when what we want to say is that it is effective is to say that the campaign has been efficient when what we want to say is that it is effective. common business mistakes.
Therefore, in order to know the degree of efficiency, effectiveness and efficiency of the company it is important, first of all, to know how efficient, effective and efficient the company is, know the conceptual differences between these three terms, a cornerstone of business productivity.
Thus, Efficiency means achieving maximum expected results from minimum resources. For example, a worker who manages to produce 10 items with half as much raw material as another worker will be more efficient.
For its part, the concept of effectiveness refers to the extent to which certain objectives are achieved, If the second employee manages to create 10 goods every hour, while the first only 7, he/she can be considered more effective, even if less efficient.
Finally, effectiveness is related to the balance of these two factors. concepts of efficiency and effectiveness, defined as the ability to carry out the maximum planned work with the least possible resources.
Having clarified the concepts of efficiency, effectiveness and efficiency, how are these indicators calculated? Generally speaking, the following are used for this purpose mathematical formulae:
Indicators of efficiency, effectiveness and efficiency are closely related to business performance and productivity, so measuring them allows to obtain an essential X-ray to plan the organisation's strategy.
In particular, their correct calculation contributes to several aspects:
