Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation. Effectiveness in Management is concerned with doing the right task, completing activities, and achieving goals. Efficiency means doing the task correctly with minimum cost.

Answer the following questions on the basis of the above case.

Cutting down the cost but not achieving the target production is an example of:

Efficient but not effective

Cutting down the cost but not achieving the target production is an example of efficient but not effective. Efficiency is the ability to achieve the desired output with minimal input. In this case, the manager was able to reduce costs, but he was not able to achieve the target production. Effectiveness is the ability to achieve the desired outcome. In this case, the manager did not achieve the desired outcome, which was to produce a certain number of units.