Some links that might be useful:

http://www.advancingyourorganization.com/?p=1071

http://smallbusiness.chron.com/organizational-effectiveness-vs-organizational-efficiency-22413.html

http://smallbusiness.chron.com/questionnaire-measuring-organizational-effectiveness-73542.html

thank you Naseem!

Efficiency and effectiveness criteria are numerous. They differ according to the nature of organization especially profit or non profit organizations. So, I think it would be judicious to specify the type of organization you are studying.

See the basic article of R.M. Steers, "Problems in the Measurement of Organizational Effectiveness", in, Administrative Sciences Quarterly,Vol. 20, No. 4 (Dec., 1975).

Dear Natthapong,

Efficiency is connected to how input resources are utilized and is achieved when the marginal productivity per unit is equated across all resources that contribute to a firm’s output [Keh, H.T., Chu, S., & Xu, J. (2006), Efficiency, effectiveness and productivity of marketing in services. European Journal of Operational Research, 170: 265-276]. Important efficiency indexes are the: Return on Equity and Return on Capital Employed.

On the other hand, effectiveness is concerned with determining which strategy – among all possible strategies – maximizes long-term Return on Investment - ROI.

The above information can be found in the following publication: Kapiki, S. and Fu, J. (2015). E-Hospitality Strategies Enhancing Competitiveness: Evidence from China and Central Macedonia, Greece in "Handbook on Tourism Development and Management", Editor: Kerri Hayden Collins, NOVA Science Publishers, ISBN: 978-1-63463-646-9, pp. 165-190.

The tables, figures and references of the above chapter are downloadable from ResearchGate.

I wish you success and a nice summer!

Much depends also on the type of organization - and the criteria should be multiple.

See:

Baruch, Y. & Ramalho, N. (2006). Communalities and distinctions in the measurement of organizational performance and effectiveness across for-profit and nonprofit sectors. Nonprofit & Voluntary Sector Quarterly, 35(1), 39-65.

Yours

Yehuda

Hi Natthapong,

In what concerns to Nonprofit Sector, consider to review the studies initially developed about effectiveness. Please find an important review of literature at Herman & Renz (1999). Theses on Nonprofit Organizational Effectiveness. Nonprofit and Voluntary Sector Quarterly. 28 (2), 107-126. 

Additionally, it is important to analyze some of these research questions that you can find explored at Herman & Renz (2002). Nonprofit Organizational Effectiveness : Pratical Implications of Research on an elusive Concept, accessible at: http://nationalassembly.org/uploads/documents/webinars/nonprofitorganizationaleffectiveness.pdf:

• What is nonprofit organizational effectiveness? And, is program effectiveness the same as organizational effectiveness?

• Is there some “real” effectiveness out there just waiting to be discovered?

• Can those of us trying to explain effectiveness agree on what it is?

• And if we found it, would we be able to agree on what we have identified?

• Do certain management practices generally promote greater organizational effectiveness? Are there “best practices” and, if so, what are they?

 You can also explore the recent frameworks developed to evaluate that effectiveness: Garcia et al,, (2013). The untapped potential of marketing for evaluating the effectiveness of nonprofit organizations: a framework proposal. International Review on Public and Nonprofit Marketing, 10 (2), 87-102.

Hope you have success on your research.

 Effectiveness and efficiency -- are exclusive performance measures, which entities can use to assess their performance.

Efficiency is oriented towards successful input transformation into outputs, where effectiveness measures how outputs interact with the economic and social environment.

http://stics.mruni.eu/wp-content/uploads/2013/06/45-53.pdf

Knowing the cause and effect relationship between performance drivers and what organizations achieve (results) actually enables greater effectiveness. The performance drivers would be strategy, performance management, leadership, teamwork, the structure, and the processes. Organizational efficiency primarily refers to how well an organization uses money. In many organizations, efficiency lies in the ability to maximize profits based on capital acquired through equity and debt. Writing in Philanthropy Journal, analyst Chris Harris has noted that return on investment (ROI) constitutes a good measure of organizational efficiency.

If you are using a questionnaire, it might help if you identify first what is the organizational facet that you want to measure for efficiency and effectiveness. The  McKinsey 7S framework might help in your crafting of the questionnaire if you want to measure your organization's health.

Hi Natthapong, the terms efficiency and effectiveness are two relative terms and commonly misunderstood as one. Efficiency basically is an production oriented phenomenon and effectiveness is quality oriented outcome phenomenon. One can be termed as abstract and the other as behavioral.

To measure efficiency the input-output ratio could be the measure. However accuracy and quality of that outcome will speak of effectiveness largely encompassing the behavioral aspect of the employee. 

You may use two different measures to measure the both wherein one can be process oriented and the other can be person oriented.          

Dear Punia,

I'd like to add that the concept of effectiveness is multidimensional. It encompasses not only behavioural aspects but also organizational, social, financial, and even environmental aspects. That's why effectiveness criteria are numerous and diverse.Researcher in this field has to make effort for judicious choice of criteria according to type of organization to be assessed, and the research objective.

Thank you everyone!

If I focus on non profit organization like an university, how to measure efficiency and effectiveness?

See the following articles of K.S. Cameron:

-"Measuring organizational effectiveness in institutions of higher education", Administrative Sciences Quarterly,vol 23, 1978. (DOI: 10.2307/2392582)

- " study of organizational effectiveness and its predictors", Management Sciences,vol.32, 1986.

(http://webuser.bus.umich.edu/cameronk/PDFs/Organizational%20Effectiveness/Measuring%20Org%20Effectiveness.pdf)

- "Domains of Organizational Effectiveness in Colleges and Universities", Academy of Management Journal,1981.(DOI: 10.2307/255822)

efficiency and effectiveness are directly related with each other. one is depended on another one. still we have to calculate individually. focus  more on effectiveness part in order to get more efficiency   

I conducted a study of university foundations using a variety of ratios (Ritchie & Kolodinsky, 2003). You might consider a similar approach. Two other thoughts...1) check out Kaplan & Norton's Balanced Scorecard work. They deal with NPOs as well. 2) Field's book "Taking the Measure of Work" is a great resource with lots of organizational measurement scales. This is available at most university libraries and elsewhere.

I investigate, in this paper of mine, a few CULTURAL characteristics of effectively performing organizations (see link)

Article THE INFLUENCE OF ORGANIZATIONAL CULTURE ON THE PERFORMANCE O...

...and since I'm Ethics-focused, I also assert, in this other paper of mine, the importance of the ethical nature of organizational cultures for organizational EFFECTIVENESS (see link)

Article Relationship between Employee Perceptions of Corporate Ethic...

Dear Aliza Racelis,

Nice papers on the issue in context.

see attached for some help

Being effective is about doing the right things, while being efficient is about doing things right.

Efficiency Vs. Effectiveness with the 2×2 grid below:

http://www.insightsquared.com/2013/08/effectiveness-vs-efficiency-whats-the-difference/

The efficiency and effectiveness measurement depends on the type of organisation, industry sector and organisation culture and priorities liked with objectives. We cannot generalise a common measurement. If one exists it needs to be again customised based on the attributes mentioned above. For example: Let us assume a backoffice (offshore) environment. For this organisation, efficiency could be same a productivity (no. of transactions per person per hour), which is so different from another organisation which offers consulting services, where the above definition of efficiency doesn't make any sense at all. Same logic holds good for effectiveness measure as well. So in a nutshell, it is important to understand the above mentioned attributes to define and measure efficiency and effectiveness of organsiations, rather than generalising them.

From my perspective: 

1. EFFICIENCY:  If you want to measure the efficiency of the organization's administration, (like Kundu says: doing things right),  you have to see the plans, the procedure manuals, because it is like doing an internal audit. Preparing a questionnaire for efficiency is preparing a questionnaire to know how well the actual processes are been carried out, in comparison to how they should be.  Your respondents are administrative employees. 

2. EFFECTIVENESS: Measuring effectiveness of the organization's administration, implies knowing how satisfied are the internal customers with their internal suppliers. You need performance indicators, like fulfillment, time and quality, 

In terms of its social awareness.

Mahamed, if  you consider efficiency and effectiveness according to Chester Barnard , maybe you can be useful this book:

Pérez López, JA., (1998) Ética, eficacia y competencia directiva. El liderazgo en el siglo XXI .Deusto

see attached file, I found it good.

Hi, Natt;

To measure results even though theory can define them, it all depends on the organization purpose, mission, vision and goals. Organization define what they want to achieve, and well, you can use a guide or reference, but it will also depend on the industrial or competitive environment.

It takes a complex questionnaire (quantitive and qualitive) to evaluate both. 

Usually, effectiveness measures in terms of quality aspects (and with a quality range of perception as Likert Scale, for instance, dicotomic -which you can make 0 and 1 to measure-) and efficency measures in very clear indexes money, units, ratios, frecuencies, but defined by organization goals.