Manag., November-2017 – Q7
0. The achievement of goals with the least amount of resources is :
- Option : B
- Explanation : According to Peter F Drucker, the key to an organization’s success is its efficient and effective management and the difference between these two concepts must be understood.
“Efficiency” is the ability to minimize the use of resources in achieving organizational objectives: It means “doing things right”.
“Effectiveness” means the ability to determine appropriate objectives. It means “doing the right thing”.
Before we can focus on doing things efficiently, we need to be sure that we have found the right thing to do. The best managers focus on achieving both efficiencies as well as effectiveness. This is known as the “efficiency-effectiveness nature”.
The “efficiency” essentially focuses on the “ability to do things right” in terms of the input-output comparisons. An efficient manager is one who is able to minimize the cost of the resources needed to achieve goals. Efficiency is the achievement of the ends with the least amount of resources.
On the other hand, effectiveness involves choosing the “right” goals. Any manager who selects an inappropriate goal is an ineffective manager, even if he has maximum efficiency.
The effectiveness and efficiency matrix is shown in the Figure demonstrates this.
Managers who have high effectiveness, but low efficiency may not be able to utilize resources judiciously and may produce at high costs. Managers who have high effectiveness and high efficiency will be the ones who will be the most successful.
