Although organizational efficiency and effectiveness both focus on the organization achieving its goal, they have slightly different methods. The term "organizational efficiency" refers to the company using the smallest number of resources in time, money, and effort to achieve its objective.
However, the focus of organizational effectiveness is on achieving an objective by taking the correct actions and isn't a time-based approach. Businesses measure these two aspects in different ways. To determine the effectiveness of their organization, it is possible to utilize several metrics to assess if they've achieved the goal. If they're efficient in their organization, they are more likely to analyze financial factors like expenses to gauge their success.
The most significant distinction between organizational effectiveness and efficiency is that you can use it to evaluate any process that runs your business effectively.
Efficiency is all concerned with the financial cost and the outcomes of taking action. Efficiency is crucial when it comes down to measuring the ROI of sales and marketing. If you're a small-sized business owner, you're likely not working with many resources. Therefore, you must discover ways to make the most of your resources.
Suppose your sales team can conduct 50 phone calls per day. It doesn't necessarily mean your business is efficient, as you'll need to know how many of those prospects' calls convert to actual customers.
In this case, the distinction between efficiency and effectiveness will be between reaching a desired goal (making 50 calls to prospect) and getting measurable outcomes (the per cent of calls that convert into sales).