What is effectiveness and efficiency in management?

In management, effectiveness refers to your team or company's ability to accomplish results that you've identified as essential for the business's success. In order to measure the effectiveness of a project, task, or process, you need to first have some way of measuring whether or not you've achieved what you set out to achieve. In a sense, this makes effectiveness a subjective measure. The same task can become less effective as goals and conditions change.

As a manager, efficiency refers to your team's ability to produce successful results with less time and fewer resources. For example, you may measure your project's effectiveness by how many new customers it generated, while you'd measure its efficiency by how much it cost, how many employees spent time on it, and how much time they spent on it.