Performance efficiency is defined as what?

Performance efficiency is defined as the measure of resource costs related to goal accomplishment. This definition emphasizes the importance of evaluating how effectively resources—such as time, money, and labor—are utilized to achieve specific outcomes or objectives. By focusing on resource costs, organizations can assess whether they are achieving their goals in a cost-effective manner, thereby improving their overall performance.

In this context, performance efficiency not only looks at the quantity of output but also considers the cost associated with producing that output. This aligns with the broader goal of optimizing performance by minimizing unnecessary expenditures while maximizing results. Understanding performance efficiency helps organizations identify areas where they can improve their resource allocation and decision-making processes, ultimately contributing to better management and operational success.