Lesson three will examine different components of an organization's environment and how managers can help the organization adapt to change. Effective vs. Efficient Effectiveness and efficiency of organizational resources is the final component of the management definition. Effectiveness refers to the ability to accomplish a goal. Essentially, effectiveness is a yes or no question. If your goal is to receive an A grade in this course, your are only effective upon receiving that grade.
Efficiency refers to the resources expended in order to achieve a particular goal.
That is, efficiency is the measurement of what is achieved relative to the effort expended. Effectiveness can be achieved without efficiency. To follow the example of your desire to achieve an A in this class, you might do so by working 80-100 hours per week, reading, rereading, writing, and rewriting assignments. Such effort would likely lead toward an A grade and would be effective. It would hardly be efficient.