Efficiency and Effectiveness
Efficiency and effectiveness are both commonly used management terms. Yet, while they sound similar and start with the same letters, they both mean different things. The primary difference: Efficiency - productivity metric and Effectiveness - quality metric
Efficiency is a productivity metrics meaning how fast one can do something. Hence Testing efficiency metric can be "No. of test cases executed per hour or per person day". This explains how efficient (i.e. fast) the person is at testing.
Effectiveness is a quality metrics meaning how good a person is at testing. Hence Testing effectiveness metrics can be "No. of bugs identified by a tester in a given feature / Total no. of bugs identified in that feature". Here the difference between total bugs and bugs identified by the tester could be that some bugs must have been uncovered by the customer since the tester was not able to detect them during testing.
Efficiency refers to doing things in a right manner. Scientifically, it is defined as the output to input ratio and focuses on getting the maximum output with minimum resources. Effectiveness, on the other hand, refers to doing the right things. It constantly measures if the actual output meets the desired output.
Since efficiency is all about focusing on the process, importance is given to the ‘means’ of doing things whereas effectiveness focuses on achieving the ‘end’ goal.
Efficiency is concerned with the present state or the ‘status quo’. Thinking about the future and adding or eliminating any resources might disturb the current state of efficiency. Effectiveness, on the other hand, believes in meeting the end goal and therefore takes into consideration any variables that may change in the future.
In order to be efficient time and again, discipline and rigor is required. This can build inflexibility into the system. Effectiveness, on the other hand, keeps the long term strategy in mind and is thus more adaptable to the changing environment.
Since efficiency is about doing things right, it demands documentation and repetition of the same steps. Doing the same thing again and again in the same manner will certainly discourage innovation. On the other hand, effectiveness encourages innovation as it demands people to think, the different ways they can meet the desired goal.
Efficiency will look at avoiding mistakes or errors whereas effectiveness is about gaining success.
In the earlier days of mass production, efficiency was the most important performance indicator for any organization. However, with consumers facing an increasing number of choices, effectiveness of an organization is always questioned. In order to be a successful organization, there needs to be a balance between effectiveness and efficiency. Only being efficient and not meeting the requirements of the stakeholders of the organization is of little use to anybody. And effectiveness may result in success but at what cost?
Summary:
1.Efficiency means doing the things right whereas Effectiveness is about doing the right things.
2.Efficiency focuses on the process or ‘means’ whereas Effectiveness focuses on the end.
3.Efficiency is restricted to the present state whereas effectiveness involves thinking long term.
4.Organizations have to be both effective and efficient in order to be successful.
Management is a blend of Science and Arts
Management is everywhere - office, hospital, school, curity, Finance, trust etc., Management is basically Planning, Organizing, Coordinating, Directing, Assessing, Correcting, Motivating and Achieving a set goal. It is objective-oriented. We always have a doubt whether it is an art or science. It is the oldest of arts and youngest of science, because it is of dynamic nature.
Different Managements need different approaches; for example Business Management and Personnel Management are based on Common principles but vary a lot in the approach. Economists say Management is a Factor of Production; Socialist views it as a Group of People; others say that is a process; Mary Parker says “ Management in its true sense, a process by which an organization realizes its objectives in a planned manner”; Management is all about great ideas, people and achievements; though there are many definitions of Management no single definition is universally accepted, as it changes from situation to situation, industry to industry; it has got different dimensions and hence cannot be defined precisely as a Scientific Theory or Law; James A. F. says “ Management is the process of Planning, Organizing Leading and Controlling efforts of organization members and of using all other organizational resources to achieve pre-determined Organizational goals”.
Dr. James Lundy’s views : “Management is a task of Planning, Coordinating, Motivating and Controlling the efforts of others towards specific objectives”. According to Henry Fayol, “Management is to forecast, plan, organize, command, coordinate and control". Peter F Drucker defines Management as “An Economic Organ of industrial society”; E.F.L. Breach says “Management is concerned with seeing that the job gets done, its tasks are centered on planning and guiding the operations that are going on in the enterprise”; According to George R Terry “Management is a distinct process consisting of planning, organizing, actuating and controlling performance to accomplish the objectives by the use of people and resources”.
Management is taking inputs, transforming them into output-either a good or service; the effectiveness of this transforming the input into output depends on the Management - especially when the resources are scarce; It is a group activity; motivating others and getting the things done within the stipulated time, without compromising on the quality of the result; it gives shape and color to the great ideas of the manager; Management involves dealing with people who have different understanding, sensitivity, knowledge, capability, responsibility, maturity.
Science is a collection of systematic knowledge, collection of truths and Inferences after continuous study and experiments. The Relationship between Variables and Limits are defined and the Fundamental Principles discovered.
Science has got three specific characters :
1. It is a systematic and organized knowledge and based on scientific methods of observation.
2. Inferences are arrived after continuous observation and experiemtns;
3. It has logical principles which are well defined and are Universally applicable without any limitations.
Management Principles have also evolved and it is changing day by day according to the change in the human behaviour; In science keeping one factor as Variable and all others as constants the same experiment is repeated many times in order to arrive at a conclusion; but Management involves human element and hence all the factors are wildly varying.
Art uses the known rules and principles and uses the skill, expertise, Wisdom, experience to achieve the desired result. The point is how to get the things done in the desired manner to get the desired result. New methods can be adopted from the past experiences and incidents what to do and what not to do; Effective Management is extracting voluntary cooperation from the staff. So it is definitely an art and it can be acquired only by practicing the theoretical knowledge skillfully and prudently.
Management has got two faces like a coin; on one side it is art and on the other it is science. Management has got scientific principles which constitute the elements of Science and Skill and Talent which are the attributes of Art.
Management skills are acquired by constant practice as in the case of medicine, engineering and accountancy; Mere knowledge of concepts will not fetch results; understanding human behaviour, tactfulness, vision, pragmatism, creativity, compassion towards staff, team spirit are all needed by a Successful Manager for effective management. The Science and Art are not mutually exclusive but complementary to each other. Therefore Management is both a science and an art.
Efficiency and effectiveness are both commonly used management terms. Yet, while they sound similar and start with the same letters, they both mean different things. The primary difference: Efficiency - productivity metric and Effectiveness - quality metric
Efficiency is a productivity metrics meaning how fast one can do something. Hence Testing efficiency metric can be "No. of test cases executed per hour or per person day". This explains how efficient (i.e. fast) the person is at testing.
Effectiveness is a quality metrics meaning how good a person is at testing. Hence Testing effectiveness metrics can be "No. of bugs identified by a tester in a given feature / Total no. of bugs identified in that feature". Here the difference between total bugs and bugs identified by the tester could be that some bugs must have been uncovered by the customer since the tester was not able to detect them during testing.
Efficiency refers to doing things in a right manner. Scientifically, it is defined as the output to input ratio and focuses on getting the maximum output with minimum resources. Effectiveness, on the other hand, refers to doing the right things. It constantly measures if the actual output meets the desired output.
Since efficiency is all about focusing on the process, importance is given to the ‘means’ of doing things whereas effectiveness focuses on achieving the ‘end’ goal.
Efficiency is concerned with the present state or the ‘status quo’. Thinking about the future and adding or eliminating any resources might disturb the current state of efficiency. Effectiveness, on the other hand, believes in meeting the end goal and therefore takes into consideration any variables that may change in the future.
In order to be efficient time and again, discipline and rigor is required. This can build inflexibility into the system. Effectiveness, on the other hand, keeps the long term strategy in mind and is thus more adaptable to the changing environment.
Since efficiency is about doing things right, it demands documentation and repetition of the same steps. Doing the same thing again and again in the same manner will certainly discourage innovation. On the other hand, effectiveness encourages innovation as it demands people to think, the different ways they can meet the desired goal.
Efficiency will look at avoiding mistakes or errors whereas effectiveness is about gaining success.
In the earlier days of mass production, efficiency was the most important performance indicator for any organization. However, with consumers facing an increasing number of choices, effectiveness of an organization is always questioned. In order to be a successful organization, there needs to be a balance between effectiveness and efficiency. Only being efficient and not meeting the requirements of the stakeholders of the organization is of little use to anybody. And effectiveness may result in success but at what cost?
Summary:
1.Efficiency means doing the things right whereas Effectiveness is about doing the right things.
2.Efficiency focuses on the process or ‘means’ whereas Effectiveness focuses on the end.
3.Efficiency is restricted to the present state whereas effectiveness involves thinking long term.
4.Organizations have to be both effective and efficient in order to be successful.
Management is a blend of Science and Arts
Management is everywhere - office, hospital, school, curity, Finance, trust etc., Management is basically Planning, Organizing, Coordinating, Directing, Assessing, Correcting, Motivating and Achieving a set goal. It is objective-oriented. We always have a doubt whether it is an art or science. It is the oldest of arts and youngest of science, because it is of dynamic nature.
Different Managements need different approaches; for example Business Management and Personnel Management are based on Common principles but vary a lot in the approach. Economists say Management is a Factor of Production; Socialist views it as a Group of People; others say that is a process; Mary Parker says “ Management in its true sense, a process by which an organization realizes its objectives in a planned manner”; Management is all about great ideas, people and achievements; though there are many definitions of Management no single definition is universally accepted, as it changes from situation to situation, industry to industry; it has got different dimensions and hence cannot be defined precisely as a Scientific Theory or Law; James A. F. says “ Management is the process of Planning, Organizing Leading and Controlling efforts of organization members and of using all other organizational resources to achieve pre-determined Organizational goals”.
Dr. James Lundy’s views : “Management is a task of Planning, Coordinating, Motivating and Controlling the efforts of others towards specific objectives”. According to Henry Fayol, “Management is to forecast, plan, organize, command, coordinate and control". Peter F Drucker defines Management as “An Economic Organ of industrial society”; E.F.L. Breach says “Management is concerned with seeing that the job gets done, its tasks are centered on planning and guiding the operations that are going on in the enterprise”; According to George R Terry “Management is a distinct process consisting of planning, organizing, actuating and controlling performance to accomplish the objectives by the use of people and resources”.
Management is taking inputs, transforming them into output-either a good or service; the effectiveness of this transforming the input into output depends on the Management - especially when the resources are scarce; It is a group activity; motivating others and getting the things done within the stipulated time, without compromising on the quality of the result; it gives shape and color to the great ideas of the manager; Management involves dealing with people who have different understanding, sensitivity, knowledge, capability, responsibility, maturity.
Science is a collection of systematic knowledge, collection of truths and Inferences after continuous study and experiments. The Relationship between Variables and Limits are defined and the Fundamental Principles discovered.
Science has got three specific characters :
1. It is a systematic and organized knowledge and based on scientific methods of observation.
2. Inferences are arrived after continuous observation and experiemtns;
3. It has logical principles which are well defined and are Universally applicable without any limitations.
Management Principles have also evolved and it is changing day by day according to the change in the human behaviour; In science keeping one factor as Variable and all others as constants the same experiment is repeated many times in order to arrive at a conclusion; but Management involves human element and hence all the factors are wildly varying.
Art uses the known rules and principles and uses the skill, expertise, Wisdom, experience to achieve the desired result. The point is how to get the things done in the desired manner to get the desired result. New methods can be adopted from the past experiences and incidents what to do and what not to do; Effective Management is extracting voluntary cooperation from the staff. So it is definitely an art and it can be acquired only by practicing the theoretical knowledge skillfully and prudently.
Management has got two faces like a coin; on one side it is art and on the other it is science. Management has got scientific principles which constitute the elements of Science and Skill and Talent which are the attributes of Art.
Management skills are acquired by constant practice as in the case of medicine, engineering and accountancy; Mere knowledge of concepts will not fetch results; understanding human behaviour, tactfulness, vision, pragmatism, creativity, compassion towards staff, team spirit are all needed by a Successful Manager for effective management. The Science and Art are not mutually exclusive but complementary to each other. Therefore Management is both a science and an art.
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