Read the following passage and answer the question. 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. |
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 and efficient both Only efficient Efficient but not effective Effective but not so efficient |
Effective but not so efficient |
The correct answer is option 4- Effective but not so efficient. In the above case, the manager was Effective but not so efficient. The manager was able to meet the target production of 10,000 units by operating on double shifts, which shows that the goal was achieved. So, the manager was effective in achieving the target. The use of double shifts due to power failures resulted in increased production costs. Efficiency is about achieving goals with minimal cost or effort, and in this case, the manager's solution was not cost-effective, as it led to higher production costs. Thus, the manager was effective in achieving the target but not efficient in the process due to the increased costs.
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. |