Efficiency and effectiveness are two very different traits, when used in description of a production cycle. Efficiency is the controlled use of resources and the prevention of unnecessary waste. In most references, resources refers to money, and is the most frequently used figure regarding the measuring of efficiency. Effectiveness, on the other hand, considers the repercussions of the end product. Effectiveness is a measure of skill or proficiency.
I believe a manager could use both measures of efficiency and effectiveness to motivate a work force. By offering cash incentives, even small ones, for managing resources more efficiently and saving money, and more importantly earning more money by saving money, would promote innovative ideas towards increasing efficiency, like using the backs of old inter office memos to print more inter office memos. Similarly, by placing bounties or performance incentives, your work force will be motivated to over perform and receive the aforementioned bounty. Instead of a winner-take-all “pot” beneficial to one employee, consider a periodic “commission”, where the employee is compared against their numbers from last month, and in the instance of an increase, are paid a percentage, incentivising the entire workforce to do better.