What are organizational effectiveness and efficiency?

Organizational effectiveness embodies the ability of an organization to achieve its goals and objectives in a timely and efficient manner. It is a measure of how well an organization performs relative to its mission, goals, and strategies.

Organizational efficiency refers to the ability of an organization to use its resources (such as time, money, and people) as productively and effectively as possible to reach its goals. It is a measure of how well an organization can achieve its goals with the least amount of waste or excess.

In general, organizational effectiveness and efficiency are closely related, but not all organizations can optimize effectiveness and efficiency simultaneously. For large organizations with abundant resources, it would be great to optimize the effectiveness within their own rank. However, enhancing efficiency would be better for smaller organizations with minimal resources. Once you have mastered the art of being effective, you can determine how to reduce costs and manage your resources more effectively.