10 Questions
What does 'process' in the definition of management refer to?
The primary functions or activities performed by management
What is the main difference between effectiveness and efficiency?
Effectiveness is concerned with doing the right task, while efficiency is concerned with doing the task correctly
What is the relationship between inputs and outputs in terms of efficiency?
If fewer inputs are used, more outputs are derived
What is the ultimate goal of efficient management?
To reduce costs and ultimately lead to higher profits
Why is it important for management to balance effectiveness and efficiency?
Because they are interrelated and affect the overall performance of the organization
What happens when a company focuses on efficiency but not effectiveness?
The company's goods do not reach the market and demand declines.
What is the result of a manager being effective but not efficient?
The manager is able to produce the goods but at a higher production cost.
What is the aim of all managers?
To achieve high effectiveness with minimum resources.
What is the result of poor management?
Both inefficiency and ineffectiveness.
What is the consequence of undue emphasis on high efficiency without being effective?
The company's management is considered poor.
Study Notes
Management Definition and Key Concepts
- Management is a process of getting things done to achieve goals effectively and efficiently.
- The process involves primary functions or activities: planning, organising, staffing, directing, and controlling.
Effectiveness in Management
- Effectiveness means doing the right task, completing activities, and achieving goals.
- It is concerned with the end result or outcome of a task.
Efficiency in Management
- Efficiency means doing a task correctly and with minimum cost.
- It involves a cost-benefit analysis, considering the relationship between inputs and outputs.
- Efficiency is increased when:
- More benefits are derived from fewer resources or inputs.
- Fewer resources are used to achieve the same benefit or output, resulting in lower costs.
Input Resources
- Input resources include: money, materials, equipment, and personnel required to do a particular task.
- Management is concerned with the efficient use of these resources to reduce costs and increase profits.
Effectiveness vs Efficiency
- Effectiveness and efficiency are interrelated but distinct concepts.
- Management must balance both effectiveness and efficiency to achieve goals.
- Being effective but not efficient can lead to high production costs.
- Being efficient but not effective can result in not achieving target production.
- High efficiency is often associated with high effectiveness, but undue emphasis on efficiency without being effective is not desirable.
This quiz covers the definition and primary functions of management, including planning, organizing, staffing, directing, and controlling.
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