Question

Organizations are efficient when managers use the maximum amount of input resources.

a) True
b) False

Answer 1

Efficiency in organizations is not achieved by using the maximum amount of input resources. Instead, it is achieved by allocating and utilizing resources in the most effective and productive way.

Step-by-step explanation:

The statement 'Organizations are efficient when managers use the maximum amount of input resources' is False.

Efficiency in organizations is not achieved by using the maximum amount of input resources. Instead, it is achieved by allocating and utilizing resources in the most effective and productive way.

For example, consider a manufacturing company that requires raw materials to produce its products. If the managers use excessive amounts of raw materials in the production process, it may result in wastage and increased costs, which is not efficient. Therefore, organizations aim for optimal resource utilization rather than maximizing input resources.