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Unformatted text preview: exam 1 review 21/02/2011 18:52:00 INVITATION TO MANAGEMENT 1. What is management? Management is the process of achieving desired results through the efficient utilization of human and material resources Simply put: getting things done through other people 2. What are the 2 key concerns of management? Effectiveness and Efficiency 3. What is effectiveness concerned with? Efficiency? Effectiveness is concerned with doing the right things at the right time (the ENDS) Efficiency is concerned with minimizing waste or reducing resource costs (MEANS to those ends) 4. How are effectiveness and efficiency related? Efficiency is not the key to success- you also need to be highly effective. The more you are concerned with efficiency; effectiveness goes down its much easier to be concerned with effectiveness if one disregards efficiency. In the end, effectiveness is more critical. These two goals are related in that its much easier to be effective if one disregards efficiency. For example, Seiko could produce more accurate and attractive timepieces if it disregarded labor costs and material input costs. Conversely, it becomes increasingly more difficult to be effective when one becomes more and more concerned with efficiency. For example, a state university will find it very difficult to give its students a high quality education if it has a shoe-string budget. Just because organizations are efficient does not necessarily make them effective. Sometimes organizations can do the wrong things well! However, high efficiency is more typically associated with high effectiveness than with low effectiveness. Poor management is most often due to both ineffectiveness and inefficiency or effectiveness achieved through inefficiency. The hallmark of good management is effectiveness combined with efficiency. But remember out of the two: effectiveness is more critical. If Im efficient, does that make me effective? Not necessarily Efficient organizations tend to be highly effective, however, there is no guarantee As I become more concerned about efficiency, effectiveness is more difficult to achieve or less difficult to achieve? More difficultthe more youre concerned about efficiency, the higher the cost of effectiveness Efficiency minimizing waste and resource costs Market share about effectiveness Cost about efficiency Efficient organizations tend to be effective More concerned about minimizing cost, effectiveness is harder to achieve As competition increases, efficiency becomes more important...
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- Spring '06