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

Concept:
In management, two important performance concepts are Effectiveness and Efficiency. Although they are related, they have different meanings.

• Effectiveness refers to achieving the desired goals or objectives. It focuses on doing the right tasks.
• Efficiency refers to achieving goals with minimum resources, time, or cost. It focuses on doing tasks in the best possible way.

In simple terms: \[ Effectiveness = Doing the right things \] \[ Efficiency = Doing things right \] An ideal manager should aim to be both effective and efficient. However, in some situations a manager may achieve the target but waste resources, or use resources efficiently but fail to achieve the target.
Step 1: Analyze the situation described in the question.

• Target set by the company: 1,000 units
• Actual production achieved: 1,000 units

Since the manager achieved the target, the goal has been accomplished.
Step 2: Evaluate efficiency.
The problem states that the target was achieved at double the cost due to inefficiencies. This means excessive resources were used. Therefore, the manager is not efficient.
Step 3: Determine effectiveness.
Since the objective (producing 1,000 units) was achieved, the manager is effective.
Step 4: Final evaluation.
\[ \text{Goal achieved} \Rightarrow \text{Effective} \] \[ \text{Resources wasted} \Rightarrow \text{Not Efficient} \] Thus, the manager is: \[ \boxed{\text{Effective but not Efficient}} \]