Question

“The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organization”. The statement highlights which point of importance of management?

• A. Management increases efficiency
• B. Management helps in achieving personal objectives
• C. Management creates a dynamic organisation
• D. Management helps in achieving group goals

Hint:

Remember:
$\bullet$ Reducing costs + increasing productivity = Efficiency.
$\bullet$ Completing targets on time = Effectiveness.

Answer 1

The Correct Option is A

Concept:
Management coordinates organizational activities to achieve goals effectively and efficiently.
Efficiency refers to completing tasks correctly with the minimum expenditure of resources, thereby reducing operational costs and optimizing output.

Step 1: Analyzing the Core Focus of the Statement:
The text states that a manager aims to “reduce costs and increase productivity” across administrative functions.
Cost reduction combined with productivity gains is the definition of operational efficiency in management theory.

Step 2: Distinguishing Among Points of Importance:
$\bullet$ Management increases efficiency: Focuses on reducing resource inputs, avoiding waste, and maximizing outputs across all managerial functions.
$\bullet$ Management helps in achieving group goals: Aligns individual efforts with the common organizational mission.
$\bullet$ Management creates a dynamic organisation: Helps the enterprise adapt to changing environmental conditions.
$\bullet$ Management helps in achieving personal objectives: Integrates individual employee aspirations with organizational success.

Step 3: Verification of the Match:
The emphasis on reducing operational costs and raising output aligns directly with Management increases efficiency.

Step 4: Final Answer:
Therefore, the correct option is (A).