The words effectiveness and efficiency are often mistaken to be synonyms, along with terms like competency, productivity, and proficiency. However, when it comes to management discussions, the two possesses very different meanings. Being an effective manager is about doing the rights things, on the other hand, being and efficient manager is about doing things right. Effectiveness involves thinking long term whereas efficiency is restricted to the present state. Organizations and managers have to balance both effectiveness and efficiency in order to be successful.
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