Compare performance efficiency and performance effectiveness. Give an example of

Question

Compare performance efficiency and performance effectiveness. Give an example of each that you notice in businesses that you frequent--the example canNOT come from the text. For example, I am sitting in Starbucks right now. Are they effective? Yes. Why? The are delivering delicious coffee and tea drinks that people want. Are they efficient? Yes. They do not have a line more than 10 people long and when they have no line I notice they clean up windows, tables, floors, talk to customers, make samples, etc.

Explanation / Answer

Performance efficiency is defined as the actual output produced by a person when compared with the expected output. For e.g: In manufacturing performance efficiency is determined as the ratio of actual output produced in a given time by a machine to the actual amount of output that can be generated if losses are not there.

Performance effectiveness is defined as the degree to which objectives are achieved and the extent to which targeted problems are solved. For e.g.: If in a assembly line we need to produce 30 units of variant A and 40 units of variant B and we deliver exactly the same number of units for the respective variants, the process is said to be effective. But instead if produce 70 units, as expected, but we produce 20 units of A and 50 units of B, process is not 100% effective

Efficiency means "doing the thing right" while effectiveness means "doing the right thing."

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