Are managerial effectiveness and managerial efficiency related concepts?
krishna-agrawala Teacher Graduate School Effectiveness and efficiency are very much related concepts, and by that count we can say that managerial effectiveness and managerial efficiency are also closely related – However, we must note that these two terms are not used very commonly. Therefore we must have clarity about what we mean by these two terms. If we define effective manager as one who delivers results that are effective, and efficient manager as one who delivers efficient results, then we just need to understand the relationship between effectiveness and efficiency to understand the relationship between managerial effectiveness and managerial efficiency. Effectiveness is defined as the measure of total output produced, and efficiency is defined as a ratio of output produced and input used to produce it. Thus: Effectiveness = Output produced Efficiency = (Output produced)/ (Inputs used) When the inputs available for producing are being fully utilized, the output or the effectiv