The primary task of management is to effectively and efficiently accomplish organizational goals linked to the entity’s overall objectives. Effectiveness refers to the degree to which the goal or objective is achieved. Efficiency refers to maximizing output for a given input. In practice, effectiveness is of prime importance and efficiency may be secondary, since tradeoffs are frequently made between the two. Yet, entities usually have multiple objectives that are often contradictory. For example, the objective for value realization and the objective for maximizing service delivery could be mutually exclusive within a given year because expense might hamper, or preclude, service.
“View Part I of the Not-for-profit Strategic Alignment series here“