Question

If a company targets 1,000 units but achieves them at double the cost due to inefficiencies, is the manager 'Effective' or 'Efficient'?

• A. Both Effective and Efficient
• B. Efficient but not Effective
• C. Effective but not Efficient
• D. Neither Effective nor Efficient

Hint:

Difference between effectiveness and efficiency:

• \textbf{Effectiveness} → Achieving the desired objective
• \textbf{Efficiency} → Achieving the objective with minimum cost or resources

Memory trick: \[ \textbf{Effectiveness = Right Goal} \] \[ \textbf{Efficiency = Right Method} \] A good manager should aim for \textbf{both effectiveness and efficiency}.

Answer 1

The Correct Option is C

In management, effectiveness and efficiency are two critical measures of performance. While related, they refer to different aspects of achieving goals.
Step 1: Understanding the Question:
We are given a scenario where a goal was achieved, but with a very high cost. We need to analyze this performance in terms of effectiveness and efficiency.
Step 2: Detailed Explanation:
Let's define the two terms:

Effectiveness: Refers to completing the task or achieving the goal. It is concerned with the end result. In this case, the target of 1,000 units was achieved. Therefore, the manager was effective.

Efficiency: Refers to performing the task correctly and with minimum cost and resources. It is concerned with the means of achieving the result (cost-benefit ratio). In this case, the goal was achieved at double the cost, indicating a waste of resources. Therefore, the manager was not efficient.

Combining these two analyses, the manager was effective (achieved the goal) but not efficient (wasted resources).
Step 3: Final Answer:
The manager is Effective but not Efficient.