The former is concerned with the activity of producing goods and services, while the
latter is concerned with the efficiency and effectiveness with which these goods and services are produced. Also, efficiency improvement does not guarantee productivity improvements. One can be very efficient and still not be productive, for example, assume a job was done in half the prescribed time but with unaccepted quality. Here, the efficiency was improved 100% while the effectiveness is zero. Thus, to be productive one must be effective as well as efficient in that order (Sumanth, 1998).