Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Nature and significance of Management

Question:

"Some government organizations get their jobs done but at a very high cost".
Which of the following statement is true for the above line?

Options:

Efficient but not effective

Effective but not efficient

Both effective and efficient

Neither efficient nor effective

Correct Answer:

Effective but not efficient

Explanation:

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. But it is not enough to just complete the tasks. There is another aspect also, i.e., being efficient or as we say doing work efficiently. 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. Efficiency is also increased when for the same benefit or outputs, fewer resources are used and less costs are incurred. Input resources are money, materials, equipment and persons required to do a particular task. Obviously, management is concerned with the efficient use of these resources, because they reduce costs and ultimately lead to higher profits.