As per the modern concept, management is the process of getting the things done efficiently and effectively. Thus, management concept is based on three terms:
- Process: Management is a process which performs series of functions. These are planning, organizing, staffing, directing, and controlling.
- Efficiency: It means to do the work efficiently in cost effective way. It means that the organization should use less of inputs; men, machine, material, money but give in result more output. So there must be efficient use of resources to get maximum profit. Its main aim is cost benefit.
- Effectiveness: It means doing the right task on the right time and achieving the goal. Its main aim is achieving end result.
To conclude, it can be said that the management is doing the work not only in cost effective way without wastage of resources but also within time, to achieve the organizational goal. Management is the combination of all the functions of management to get the goal of the organization.
CASE STUDIES BASED ON THE ABOVE TOPIC
Case study1: If manager achieve the target of producing the production of 10000 units but with high cost. Is he efficient or effective?
Ans: he is efficient because he achieves the target on time but he is not efficient as he fails to produce in cost effective manner.
Case study2: a company receives an order to produce 5000 shirts in 10 days, if the company fails to do it then contract would become void. So the production manager outsources the production to deliver on time. It results in increase in cost by 20%.
- Does he perform the duties effectively or efficiently?
- What is the difference between effectiveness and efficiency?
Ans: i) effectively
Case study 3: a company set the target to produce 500 shirts per month at the cost 200 per shirt. Ram worked hard and produce 750 shirts but at cost of 210 per shirt.
Sohan on the other hand produce only 400 shirts 150 per shirt.
Sham produced 500 shirts at the cost of 200 per shirt.
- Identify quality of three workers
- Which worker is preferred by management?
Ans: i) Ram is effective but not efficient.
Sohan is efficient but not effective.
Sham is efficient as well as effective.
ii) Management would prefer sham as he is efficient as well as effective.