Manager of ABC Ltd is able to produce target production of 10,000 units but at a higher production cost, this indicates:
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 - Manager was effective but not so efficient.
The given situation indicates that Manager was effective but not so efficient.
While the manager was able to achieve the target production of 10,000 units, the fact that it was done at a higher production cost shows that he is not efficient.
Effectiveness in management is concerned with doing the right task, completing activities and achieving goals whereas 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.