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.

The company's target production is 10,000 units in a year. To achieve this target the manager has to operate on double shifts due to power failure most of the time due to which cost of production increased.

In the above case manager was:

Effective but not so efficient

The correct answer is option 3: Efficient but not effective

Effectiveness versus Efficiency: These two terms are different but they are interrelated. For management, it is important to be both effective and efficient. Effectiveness and efficiency are two sides of the same coin. But these two aspects need to be balanced and management at times, has to compromise with efficiency. For example, it is easier to be effective and ignore efficiency i.e., complete the given task but at a high cost. Suppose, a company’s target production is 5000 units in a year. To achieve this target the manager has to operate on double shifts due to power failure most of the time. The manager is able to produce 5000 units but at a higher production cost. In this case, the manager was effective but not so efficient, since for the same output, more inputs (labour cost, electricity costs) were used.