Abstract: Disclosed is a method of maximizing the system efficiency in the system comprising of a synchronous electrical machine (motor or generator) and a power converter. Furthermore, it discloses a system comprising of an electrical machine (motor or generator), a power converter, and a power converter's controller employing the disclosed method. In the disclosed invention, the power converter introduces a spectrum of harmonic components increasing the utilization of the torque creation capability of the electric machine acting as a motor, or current creation capabilities of the machine acting as a generator, and improving efficiency of the torque/current creating process. Consequently, the system efficiency is substantially improved, and the system reaches the performance level of the more sophisticated, therefore more complicated, and less cost-effective solutions.