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.
Functional Relationships
The meaning and relationship between these components must be at the core of business strategies. These terms can be explained as follows:
Efficiency
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
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’.
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Further Reading
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