question_answer

"Management is a process of getting things done effectively and efficiently." In the light of the above sentence, explain the concept of effectiveness and efficiency with the help of an example. Also state how they are complementary to each other.

Answer:

In management, effectiveness is concerned with doing the right task, completing activities and achieving goals or we can say, it is concerned with end results. On the other hand, efficiency means doing the task correctly with minimum cost. Though efficiency and effectiveness are different, they reflect two sides of the same coin. e.g. the production target of a firm is 10,000 units in a month. To achieve the target, the production manager works in double shift. Employs more workers and is able to complete the target but the costs have increased. Thus, the manager is effective but not efficient because efficient utilisation of resources is not done. In another case with the same target, the production manager does everything to reduce cost, but he is unable to complete the target by the end of the month. Thus/efficiency is achieved but not effectiveness. Due to non-completion of target the goods don't reach the market in time and the competitor's products take over the demand. Thus company incurs huge losses. Therefore, it is important to be both effective and efficient at the same time.