Step 1: Efficiency vs Effectiveness.
- Efficiency = Doing things in the best possible manner with minimum cost and effort.
- Effectiveness = Achieving the desired goals and outcomes.
Step 2: Role in management.
A successful manager must be both efficient and effective.
For example: Producing goods at low cost (efficiency) and delivering them on time as per demand (effectiveness).
Step 3: Option analysis.
- (A) Efficiency: Important, but not sufficient.
- (B) Effectiveness: Important, but incomplete alone.
- (C) Both: Correct, as both efficiency and effectiveness are required.
- (D) None of these: Wrong.
Step 4: Conclusion.
Managers achieve objectives by being both efficient and effective.