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EFFICIENCY – means the best achievable results from the given expenditures. In economics, the widely recognized definition of e. was formulated by Vilfredo Pareto – in his view this is such allocation of production factors that it is impossible to increase the production of one good without reducing the production of another good. The measure of e. in this approach is the distance between the relation of products to expenditures for the analysed unit and the relations between products and expenditures which form a set of the best possible combinations. E. therefore refers to the relation: products/expenditures (i.e. to productivity) or costs (expenses)/products (i.e. to the unit cost). E. defined in this way is known as the total e., also called economic e. or cost e., which consists of e. of allocation of expenditures and total technical e., including clean technical e and e. of the scale. E. has both quantitative and qualitative dimensions, which includes such parameters as service costs, reaction time, error rates and improperly performed public services, availability of services and satisfaction of citizens with the service. E. is also a fundamental praxeological category. The principle of e. action in praxeological terms can be expressed in two different forms: the principle of productivity and the principle of savings. The application of the productivity principle means that the more effective the activity is, the more effects are achieved with a specific incurred expenditures. Applying the savings principle means that the action is more effective, the smaller the amount of expenditures required to achieve certain results [ T. Strąk ].
Literature: P. Modzelewski, System zarządzania jakością a skuteczność i efektywność administracji samorządowej [Quality management system and effectiveness and efficiency of local government administration], Warszawa 2009 ■ J.E. Stiglitz, Ekonomia sektora publicznego [The public sector economy], Warszawa 2004 ■ T. Strąk, Modele dokonań jednostek sektora finansów publicznych [Models of achievements of public finance sector entities], Warszawa 2012.