Question

Managers want to minimize resource usage and thus resource costs. It's not enough, however, just to be efficient. Managers are also concerned with completing activities. In management terms, we call this effectiveness:

a) True
b) False

Answer 1

The statement is true; in management, efficiency relates to minimizing resource costs, while effectiveness is about completing activities that contribute to organizational goals.

Step-by-step explanation:

In management terms, being efficient means ensuring that an organization uses the least amount of resources necessary to produce its goods and services, whereas being effective is about completing the activities that contribute to the organization's goals. This statement is true, as managers need to minimize resource usage to cut costs while also ensuring that they are focusing on activities that lead to meeting the company's objectives. Efficiency in the context of management can be seen as making best use of resources to maximize production, and effectiveness relates to the actual completion of tasks that lead to success.