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.
The meaning and relationship between these components must be at the core of business strategies. These terms can be explained as follows: