Please explain why efficiency and effectiveness are important to management.  

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Efficiency involves using the least amount of resources in order to achieve the greatest results. Scheduling tools that measure the number of people needed to service the customers in a store is one efficiency measure. It is important to schedule adequate help to service the customer and yet not pay people who are not needed at the store during that time period. Computer-assisted ordering is another efficiency measure that monitors the amount of product being sold and the amount of product one has on hand. The computer can order products automatically if needed, thus freeing up an employee to do another task. An efficient manager knows how to use technology to get the most out of the talent they have on hand.

Effectiveness in management is the ability to successfully complete a task. Managers can assist in employee training. They can design training materials and evaluate if they are effective in creating good employees. A manager can also evaluate the effectiveness of a store's displays. Do some displays have more foot traffic than others? A manager can also evaluate the effectiveness of a company's sales strategy. If sales decrease in a department, a manager can re-evaluate the strategy and adjust the sales pitch or even modify the product to make it more attractive to consumers.

Last Updated by eNotes Editorial on February 24, 2020
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When we talk about efficiency in management, we are referring to those actions that maximize returns and minimize resource waste. Efficiency is important in management because it leads to better use of resources. An example of an efficiency strategy is the management deciding to reduce the number the overseas trips that managers take every year. Airline tickets are expensive, and some trips are not necessary. The management can do most of the communication online through video calls. This action ensures that the business reduces operational costs and increases revenue through technology. Another efficiency strategy is switching off the lights when someone is not in the room. These actions can help the company save millions of dollars in terms of energy costs.

When we talk about effectiveness in management, we are referring to the results of an action. Effectiveness is important in management because it helps to gauge the performance of a department or division. For example, if the sales team achieves the firm's sales targets in a given quarter, that department is effective. In most companies, different departments have specific targets that complement each other. For example, the objective of the marketing team is to create a promotion that will arouse the interest of an emerging market. The message in the promotion is what the sales team will use to pitch to buyers and meet their quarterly target.

Last Updated by eNotes Editorial on February 24, 2020
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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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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.

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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.
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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.

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