Meaning of management:- Process of getting things done with the aim of achieving goals effectively and efficiently.
Effectiveness:

  • Effectiveness in management is concerned with doing the right task, completing activities and achieving goals.
  • In other words, it is concerned with the end result.

Efficiency:

  • Means doing the task correctly and with minimum cost.
  • If by using less input resources (money, materials, equipment and persons) more benefits are derived (i.e., the outputs) then efficiency has increased.
  • Efficiency is also increased when for the same benefit or outputs with fewer resources are used and fewer costs are incurred.

Effective but not efficient:

Suppose, a company’s target production is 5000 units in a year. To achieve this target the manager has to operate on double shifts due to power failure most of the time. The manager is able to produce 5000 units but at a higher production cost. In this case, the manager was effective but not so efficient, since for the same output more inputs (labor cost, electricity costs) were used.

Efficient but not effective:

Businesses may concentrate more on producing goods with fewer resources i.e., cutting down costs but not achieving the target production. Due to which the goods do not reach the market and hence the demand for them declines and competitors enter the market this is a case of being efficient but not effective since the goods did not reach the market.