Effectiveness generally refers to “doing the right thing”, the ability to produce the desired utility (effect, purpose, product). In management it is most often used in relation to the evaluation of this ability. Evaluation takes place on the output level, on the level of the resulting products.
Note: Effectiveness is often confused with a similar term Efficiency.
Effectiveness in practice: when talking about the effectiveness in practice, then it is generally an evaluation of whether an organization does not produce unnecessary, unimportant or undesired products or other utilities. Evaluation of effectiveness is part of the optimization methods in the organization, such as process audits, service catalogs or setting performance indicators (e.g. BSC (Balanced Scorecard). Ongoing review of the activities effectiveness in the organization should be a natural part of the activities of each manager.
When evaluating the business effectiveness, the list of purposes can be used according to P. F. Drucker. Evaluating the effectiveness of the public sector is based on different principles and apply the definition of the purpose using the public service catalog.
A popular quote in the management world is by P. F. Drucker: „Efficiency is doing things right; effectiveness is doing the right things“.