Answer question based on the passage below:-
Mona is working as Marketing Manager in IOTA Ltd. The company is venturing into a new segment of manufacturing "Power gummies" for health conscious segment of society who prefer eating supplements for vitamins, minerals, fish oil etc. The chief objective of the company is to make an entry into this new segment. So they are planning to endorse their product via a brand ambassador from sports field. They aim to earn at least that much profit so that its costs and risks are covered. The management also aims to reduce costs and increase productivity by providing common direction to the individual efforts in achieving the overall goal of the organisation.
The management of IOTA Ltd aims to:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Achieve efficiency
Option (1) Achieve effectiveness — Incorrect. Effectiveness means finishing the given task and reaching the goal. It looks at the end result, not at the cost. The passage stresses lower costs and higher productivity, which is efficiency.
Option (2) Achieve efficiency — Correct. The passage says the management aims to reduce costs and increase productivity. Efficiency means doing the task correctly and with minimum cost, that is, getting more output from fewer resources. Reducing costs and increasing productivity is the exact meaning of efficiency.
Option (3) Achieve personal objectives — Incorrect. Personal objectives are the employees’ own needs (salary, recognition, growth). The passage is about the company’s costs and output.
Option (4) Fulfill social objectives — Incorrect. Social objectives are about benefits to society. The passage says nothing about society here.
NCERT (2026-27 Edition): “Importance of Management … (ii) Management increases efficiency: The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.” “Concept … Being effective or doing work effectively basically means finishing the given task. Effectiveness in management is concerned with doing the right task, completing activities and achieving goals. In other words, it is concerned with the end result.” “Efficiency means doing the task correctly and with minimum cost. There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs. If by using less resources (i.e., the inputs) more benefits are derived (i.e., the outputs) then efficiency has increased. …” |