In economic terms, effectiveness is the ability of an organization to meet pre-defined objectives under pre-established conditions. It is therefore the assumption of production challenges and their fulfillment under their own parameters.

In the scope of the study of the company, the term of effectiveness is known as the level or ratio of fulfillment of the economic objectives defined by an organization. They are usually collected in a business plan.

This concept does not take into account the means used to achieve the production goal or estimated results. Regardless of the resources used, only their achievement is valued. Along these lines, it focuses on the concept of results obtained.

In many cases, companies propose efficiency goals to the fulfillment of works and projects with a time limit to dedicate or with quantitative objectives.

A construction company, for example, will act effectively if it plans to build a six-kilometer wall in two weeks and achieves it within the expected deadlines.

Additionally, efficacy is considered as an efficient regulation principle, as is efficiency. According to this point there would be various factors that affect it: clear definition of objectives, simple execution, coordination of tasks and avoiding legal loopholes.

Effectiveness and efficiency

It is common for this concept to be related and even confused with that of efficiency. However, the differences between the two phenomena lie precisely in the non-use of their capacities or the control of their resources in the best possible or most optimal way.

On the other hand, organizations seek to achieve their objectives in such a way that they achieve economic benefits thanks to the optimization of their resources, which is why they are governed by principles of efficiency. This point in turn establishes the competitiveness of a company against the rest.

Thus, this principle prevails over that of effectiveness, which is usually approached as more generic when focusing on the achievement of objectives. In other words, a company can be effective without being efficient, and vice versa.

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