Implementing on what has been already discussed, work Efficiency and Effectiveness has a huge
impact on productivity resulting in organization competitive advantage. Since as mentioned
before, organizations nowadays strive to succeed in a fierce market and to be able to do so,
strategies must be applied within the organization and its employees most importantly to reach
this goal (Biro, 2013).
Performance appraisal is the practice of assessing employee job performance and providing
feedback to those employees about both positive and negative aspects of their performance.
Performance measurements are very important both for the organization and the individual, for
they are the primary data used in determining salary increases, promotions, and, in the case of
workers who perform unsatisfactorily, dismissal.
The words efficiency and effectiveness are often considered synonyms, along with terms like
competency, productivity, and proficiency. However, in more formal management discussions,
the words efficiency and effectiveness take on very different meanings. In the context of process
reengineering, Lon Roberts (1994: 19) defines efficiency as "to the degree of economy with
which the process consumes resources-especially time and money," while he distinguishes
effectiveness as "how well the process actually accomplishes its intended purpose, here again
from the customer's point of view."
Increasing productivity is one of the most critical goals in business. Unfortunately, it’s an
activity seldom accepted by HR professionals as a legitimate mandate. While most HR
professionals acknowledge that their job entails establishing policy, procedures, and programs
governing people management, few attempt to connect such elements to increasing employee
output (volume, speed, and quality) per each dollar spent on labor costs (or as an easier to
measure alternative, revenue per employee) (Sullivan, 2011).
But the truth is, HR has never been more necessary. The competitive forces that managers face
today and will continue to confront in the future demand organizational excellence. The efforts
to achieve such excellence—through a focus on learning, quality, teamwork, and
reengineering—are driven by the way organizations get things done and how they treat their
people. Those are fundamental HR issues. To state it plainly: achieving organizational excellence
must be the work of HR (Ulrich, 1998).