'A successful enterprise has to achieve its goals effectively and efficiently'. Explain.
'A successful enterprise has to achieve its goals effectively and efficiently'. Explain.
The purpose of management is to achieve the goals/objectives set for the organisation. These goals have been achieved efficiently and effectively. While efficiency means at attaining objectives with specified cost, effective means achieving goals within a specific time limit.
For example: A company's target is to produce 5,000 units of goods per year at a cost of' 5 per unit. In order to achieve the target, he employs extra labour force which results in increasing the cost per unit to 5.50. Thus the manager is effective but not efficient, if, however, he works with same manpower to keep the cost at 5.00 per unit, he is unable to attain the target till a year. Thus, he becomes ineffective. Therefore, in order to be successful, it is necessary that he is efficient and effective in his operations at the same time.
The purpose of management is to achieve the goals/objectives set for the organisation. These goals have been achieved efficiently and effectively. While efficiency means at attaining objectives with specified cost, effective means achieving goals within a specific time limit.
For example: A company's target is to produce 5,000 units of goods per year at a cost of' 5 per unit. In order to achieve the target, he employs extra labour force which results in increasing the cost per unit to 5.50. Thus the manager is effective but not efficient, if, however, he works with same manpower to keep the cost at 5.00 per unit, he is unable to attain the target till a year. Thus, he becomes ineffective. Therefore, in order to be successful, it is necessary that he is efficient and effective in his operations at the same time.
