What is Productivity, Effectiveness, Efficiency and the differences between them

I was confused between Efficiency and Effectiveness and Productivity so I go ahead and do some research about it. Below are my finding which clear my thought.

In Manufacturing, 

Productivity is an average measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it. The measure of productivity is defined as a total output per one unit of a total input.  

Effective refer to the capabilities to producing a desired product/ result. 

Efficiency refer to produce product in the most optimum way - Fastest and least expensive way. It is being measure by the amount of time, money and energy. 

What is Productivity efficiency: Productive efficiency occurs when the economy is utilizing all of its resources efficiently. The concept is illustrated on a production possibility frontier where all points on the curve are points of maximum productive efficiency (i.e. the maximum throughput). Productive efficiency occurs when the economy is using all of its resources efficiently

As for personal,

I believe Productivity is about doing the right thing (Effective) at the right time (efficient). If A person is being effective and efficient, we will see a rise in productivity.  

So what is the difference between Effective and Efficiency?
Efficiency refer to how well a person do something, whereas effectiveness refer to how useful it is. 

Lets see the comparison chart below (taken from Diffen.com): 

As a personal, we should first determine we are doing the right thing (read: effective) then only we should be looking at how to completing it in the fastest and least expensive way (read: Efficient), ultimately, become a more productive personal. 

Lastly, a video about efficiency VS effectiveness

(A lot of my notes were taken from the references links below. Credit goes to the authors)



  1. Nice tips and it is very easy to understand. It will be very helpful for me when I get a chance to start my blog. Thanks a lot for sharing such type of info.


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