'Management needs to be effective'. Which of the following is correct in respect of the given statement?

Both of 1 and 2 are correct

The correct answer is option 3: Both of 1 and 2 are correct

Both statements are correct as 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 also does not mean that the work has been done at the least cost. It is efficiency which 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. Efficiency is also increased when for the same benefit or outputs, fewer resources are used and less costs are incurred.