This question was asked in a Webinar yesterday. For collective learning, let me share..
People define their Purposes & qualify them with measurable goals. To be able to actualise their purpose, they need adequate funds, appropriate technology, suffecient stocks, effecient supply capability & dependable talent. But that never happens. Constraints are a reality of life. Full quantum of everything to support the recepie, is rarely available. But you cannot keep showing your labour pains. You have to show the baby to the visitors !
Efficiency is that ability of a system under an 'Efficient Manager' to achieve the maximum possible outputs from the full utilisation of all available resources, at full capacity, without any wastages within his command.
Effectiveness is magic. The 'Effective Leader' like a magician narrates a compelling story, connects emotionally, motivates & inspires his People to stretch.This encourages people to invest their discretionary best efforts to perform. They end-up (without any additional inputs),
creating output many folds higher & beyond imagination of what these resources could have ever created.
Whilst organisations need their share of 'Effecient Managers', Effectiveness is an ouput of 'Inspirational Leadership'