Productivity, Effectiveness and Efficiency definitions explained by pre-graduate students at UCSG

1. PRODUCTIVITY, EFFECTIVENESS
AND EFFICIENCY
 Sophia Cabrera
 Karen Solorzano
 Andrea Villamil
Lecturer: Max Galarza

2. EFFECTIVENESS
• Effectiveness is the capability of producing a
desired result or the ability to produce desired
output.

3. • Effectiveness has a broader approach, which means the
extent to which the actual results have been achieved.

4. PRODUCTIVITY
• Productivity is an economic measure of output per unit of input. Inputs
include labor and capital, while output is typically measured
in revenues and other gross domestic product (GDP) components such
as business inventories.

5. • Productivity measures may be examined collectively (across the
whole economy) or viewed industry by industry to examine
trends in labor growth, wage levels and technological
improvement.

6. EFFICIENCY
It can be defined as the
ability to produce
something with a
minimum amount of
effort.
Efficiency is a state where
every resource is
allocated optimally so
that inefficiency and
waste are minimized.

7. • Efficiency is the comparison of what is actually produced or performed
with what can be achieved with the same consumption of resources
(money, time, labor, etc.). It is an important factor in determination of
productivity.

8. REFERENCES
• http://www.businessdictionary.com/definition/efficiency.html
• https://www.investopedia.com/terms/p/productivity.asp
• https://www.investopedia.com/terms/e/economic_efficiency.as
p
• https://en.wikipedia.org/wiki/Effectiveness