Please explain why efficiency and effectiveness are important to management.  

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mkoren's profile pic

mkoren | Middle School Teacher | (Level 3) Senior Educator

Posted on

It is very important for management to be efficient and effective. Successful businesses are the ones that are very efficient. When management uses resources efficiently, they are able to maximize production, the use of the workforce, and profits. Inefficiency leads to increased costs. It may also lead to a misuse of the workforce, which could create problems.

Management must also be effective. It must be effective in dealing with issues that arise with the workforce. Unhappy workers may be less productive. If tensions exist in the workplace, productivity may also suffer. Management must be able to deal with these issues to provide a positive work environment.

Management must also be effective when dealing with its customers. It is important for management to create an environment where the company has good relationships with its customers. Having good customer service is very important for the success of a business.

Management must also be effective in dealing with changes in the economy and changes in business trends. Management must respond when conditions in an industry change. Management must also respond to changing economic conditions. The most successful businesses are the ones that deal most effectively with issues that arise in the economy, with their workforce, and within the industry in which they exist.

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kipling2448's profile pic

kipling2448 | (Level 3) Educator Emeritus

Posted on

Efficiency and effectiveness are important to management because that is why managers are hired: to effectively and efficiently execute the agenda of the company for which they are employed.  "Efficiency" refers to the manner in which work is conducted, generally discussed in terms of schedule.  The less time it takes to accomplish the task in question, the more efficient the process. That is distinctly different from "effectiveness," which refers to the quality of the work performed.  Concluding a task on time is great, but useless if the result is unsatisfactory.  A manager is responsible for ensuring not just that schedules are met, but that the work is performed at or above the required level.  Time, it is said in the world of business, is money.  That means that an inefficient process is costing the company potential revenue because it is taking too much time to make the enterprise profitable.  Effectiveness is essential because customer complaints about shoddy workmanship result in lost business opportunities, damage to a company's reputation that complicates future business proposals, and significant damage to the company's bottom line when rejected products have to be redone.  A good manager understands the requirements for both efficiency and effectiveness and knows how to achieve both objectives.

litteacher8's profile pic

litteacher8 | High School Teacher | (Level 3) Distinguished Educator

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In today's economy, a manager needs to be able to trim the fat. A good manager is one who is able to keep the company profitable. That means spending as little as possible while taking in as much as possible. A manager is effective if he is able to get the company running efficiently and keep profitability high.
pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

In order to be a manager, a person must know the best ways to make a business be more efficient and more effective.  This is one of the most important things that a manager can do.  So, efficiency and effectiveness are important to management because they are the major goals that a manager must strive to achieve.

ssoufi's profile pic

ssoufi | (Level 1) eNoter

Posted on

Efficiency and effectivness are important for management.It causes management through organisational structutre team working and good communication to earn value added for customers and organisation.

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