Achieving Efficiency and Enhancing Productivity
In the competitive business world, the performance of a company in relation to its work
process is decisive. If the company can produce using lesser resources and getting the most
out of what they have, they are said to be efficient. Productivity controls are essential to the
success of any business. Companies are choosing productivity over efficiency as nowadays
technological advancements in production and manufacturing are almost on the peak of
progress and the next wave of growth seems to be scaling up the production and reaching
out to customers through technology tools. Efficiency focuses on the input of the process
while effectiveness deals with output.
The meaning and relationship between these components must be at the core of business
strategies. These terms can be explained as follows:
Efficiency is a measure of how good someone is in doing the things. If he/she is able to get
more outputs from the inputs, they are said to have increased the efficiency. Efficiency is
about 'doing the same with less'.
Productivity is seen as a degree of outputs divided by inputs. If the activity done in a day is
considered the output then the time required for it is the input. Productivity is about 'doing
more with the same'.
Effectiveness is a measure of 'doing the right thing doing more with less'. Companies or
persons are effective when they keep forwarding their priorities on in a balanced way.
Productivity remains a distinguishing factor between the winners and others from the long-
term perspective. This is exactly the reason why exceptional companies focus more on
productivity than efficiency nowadays. Productivity is the measurement of the work done
and value generated over a fixed period of time. Efficiency represents the capacity to
produce a certain desired outcome by utilizing the minimum time, resources and efforts.
Selection of the measures to us