Effectiveness vs. Efficiency

v

Definition

 

•Effectiveness : To be conducive to achievement of a goal (合目的性)

               i.e. “Doing the right thing,” or making the right decision

 

•Efficiency : To perform the thing economically (經濟性)

        i.e. “Doing it right,” or execution at the minimum cost

 

vWhich More to Focus on ?

 

•Strategy formulation or implementation ?

•Global Strategy, otherwise Transnational Management ?

•

Making vs. managing a strategic alliance?

 

vConceptually Effectiveness Practically Efficiency

 

•

In theory, EAFFECTIVENESS takes the precedence.

 

e.g.) Theodore Levitt : “Nothing is more wasteful than doing with great efficiency

           what should not be done.”

 

Most people pretty much well know what to do in the real world.  

    Then, “it’s the execution, stupid.”

 

   e.g.) Making 김치찌개 : Easy to get its recipe, difficult to make it delicious 

 

•In practice, EFFICIENCY is the key to excellence ?