When you pump water, you are adding energy to the water both in terms of velocity and height. Say, for example, that the actual movement of the water done by the pump takes 10 watts, but the pump itself actually draws 20 watts. The extra 19 watts is used by friction in the pump, heat generated by resistance in the wire windings, and other components in the pump that don't transfer energy perfectly as Klaus alludes to above. This pump would be 50% efficient (10W delivered power/20 watts consumed power.) i.e. 50% of the electrical power used by the pump goes towards the work you want to do and the other 50% is 'wasted.'
Now say that one of the bearings goes bad and the pump becomes harder to turn, so now you have to use 30 watts to keep the pump turning at the same speed. Now our pump would be 10/30 = 0.33, or 33% efficient, meaning that only ⅓ of the power used by the pump is the work you want while ⅔ is wasted.
To make an analogy, think of 2 bicycles - one is brand new with high pressure tires, perfect bearings and gears, oiled, lubricated and perfectly tuned up. The 2nd is 30 years old with rusty gears, flat tires and bad bearings. When you ride the good bike, you burn far fewer calories to ride a kilometer than you do with the old bike; the old bike is much less efficient because far more of the energy you use pedaling it is wasted on things other than forward motion.
Now remember that all energy gets converted to heat eventually. Going back to our example, your pump is using 20 watts do do the work you want it to do, so it's adding 20 watts to the tank. Now the inefficient pump with the bad bearings is adding 30 watts to the tank but still doing the same work. This means that an extra 10 watts of power is going into the tank as heat to move the same amount of water.
hope this makes more sense to you.