The word efficiency comes from the Latin word efficientia and its definition implies the ability to dispose of someone or something to achieve a certain effect or the adequate fulfillment of a function. Not to be confused with efficacy.
In short, we could consider efficiency as the use of resources in a project and the result obtained in it. In this sense, when we apply efficiency to something, it allows us to obtain the same objective that we want to achieve using the least number of resources or increase our results using the resources available to us.
Do not confuse with effectiveness
You will not be the first nor the last to confuse efficiency with effectiveness because, after all, they are terms that constantly go hand in hand. But, making small concretions, we can help you differentiate them.
Efficacy is the ability to achieve the desired effect.
For example: if we want to copy 100 pages by hand, we would be effective but not efficient because we would fulfill our desire to have those 100 pages copied but we would take less time photocopying them.
Efficiency in Economy
Efficiency in Economics is a widely used concept in this matter.
Broadly speaking, economic efficiency or an efficient economic system is one in which someone can improve their situation without that of another worsen as a consequence.
At the same time, it is the relationship between the value that a product acquires and the resources that are used to carry it out, that is, the relationship between value and cost of what is produced.
In order to be efficient in Economics, important factors such as learning, specialization in goods and services, possession of natural resources and raw materials and the existence of the competitiveness of the product with which we work interfere.
In conclusion, economic efficiency is the ability to use the least productive resources intelligently in order to satisfy needs. All this without anyone being harmed in the transaction or sale of the same.
Energy efficiency
This is another of the concepts about efficiency that is very much the order of the day. The constant debate about global warming and the possible depletion of non-renewable resources means that energy efficiency is applied to many areas of daily life.
Taking into account the definition of efficiency, it can be said that energy efficiency is the use of the least possible energy or of the energy resources available to us, to obtain the best result.
An efficient person, in addition to looking for the same service using less energy, looks for less polluting alternatives or those that produce fewer emissions to the environment to supply themselves. The famous renewable or alternative energies.
Although it also implies changing daily acts that help reduce consumption, for example of fuel, without altering our needs.
Efficient management
In the world of team or project management, efficiency also applies. As explained in this article on Management, there is no magic formula to be 100% efficient. But there are small factors that help our goal to be met.
Our team management will be efficient when we achieve optimal results using the least number of resources possible or, failing that, grow our achievements within a project using the resources we have without expanding them.
For this we must also apply these fundamental pillars of management. Among them are a good strategy, verification, innovation, process optimization or the transfer of knowledge.
Efficiency is not precariousness
On many occasions, especially in economic matters, many people think that efficiency implies precariousness. It’s false.
This situation must be demystified because efficient administration or efficient management of the economy does not imply savings. As reflected at the beginning of this article, the idea is to get the best results with the resources you have.
Making an efficient economic administration implies looking for mechanisms that help us to take steps forward.
In economic management it does not imply making cuts or stopping investing money, that is, it is not saving but looking for the best way to redirect our resources while being aware of what is essential and what is not.
An example:
Companies often use first class or “business” on domestic or short-haul flights. Anyone who has traveled on a commercial plane of this type knows that the only difference is a curtain that separates us from the rest of the passage, the price of the ticket and that it includes food.
Efficient management is to study if it truly compensates the difference in ticket price and see if we can derive that “saving” to other things within the project.
Another possible example is in the field of energy efficiency. Having an efficient home does not mean that it is cold at night or that you are in the dark.
We talk about the same thing again. Changing conventional light bulbs for low consumption ones will give you the same service while saving energy. Or having a good insulator will make you use less heating or even turn it off once your home is warm.