Akash works as a production manager in 'Elite Enterprises' manufacturing LED lights. Due to festive season, th

Question

Q. Akash works as a production manager in 'Elite Enterprises' manufacturing LED lights. Due to festive season, there is lot of demand for their lights. Akash was given the task of producing 100 units of LED lights @ ₹ 200 per unit within 5 days for an urgent order. Akash was able to achieve the target of 100 units of LED lights within 5 days @ ₹ 220 per unit. Identify from the following whether Akash is : (A) Efficient only (B) Effective only (C) Both efficient and effective (D) Neither efficient nor effective

CBSECBSE Class XII Board 2023MCQ· 1mImportance★★★★★

✓ Free question

Concept understanding — Efficiency And Effectiveness

Efficiency and Effectiveness: Doing Things Right vs. Doing the Right Things

Imagine you are studying for an exam. You sit at your desk for six hours straight, reading every line of the textbook, underlining sentences, and making neat notes. You have worked hard, covered a lot of ground, and wasted no time. That is efficiency — you used your time and energy well.

But if those six hours were spent on a chapter that is not in your syllabus, all that efficient work leads nowhere. You were efficient, but you were not effective. Effectiveness is about whether you achieved what you actually needed to achieve — in this case, learning the right chapter.

This simple distinction is the foundation of the concept.

The Precise Meaning

In management and business studies, these two terms have clear, distinct definitions:

Efficiency means "doing things right." It focuses on the process — using minimum resources (time, money, effort) to get a given output. An efficient operation wastes little.
Effectiveness means "doing the right things." It focuses on the outcome — whether the goal itself was achieved, regardless of how many resources were used.

A business can be efficient but not effective, or effective but not efficient. The ideal is to be both, but that is not always possible.

Important

Efficiency is about means (how you do it). Effectiveness is about ends (what you achieve). The NCERT textbook states this clearly: efficiency is concerned with 'doing things right', while effectiveness is concerned with 'doing the right things'.

Why This Distinction Matters

Consider a factory that produces 1,000 toys per day using very little raw material and few workers. That is efficient — low cost per toy. But if those toys are of poor quality and nobody buys them, the factory has failed. It was efficient but not effective.

Now consider a different factory that makes 200 high-quality toys that sell out immediately. It uses more resources per toy, so it is less efficient. But it achieves its goal — satisfied customers and profit. It is effective, though not perfectly efficient.

In real life, managers constantly balance the two. A hospital that treats patients quickly (efficient) but misdiagnoses them (ineffective) is useless. A hospital that diagnoses correctly (effective) but keeps patients waiting for hours (inefficient) frustrates everyone.

Note

Efficiency is measured by input-output ratio — less input for same output means higher efficiency.
Effectiveness is measured by goal achievement — did you reach the target, yes or no?
A business can survive with low efficiency if it is highly effective, but it cannot survive long if it is efficient at doing the wrong things.

The NCERT Perspective

Your NCERT textbook for Business Studies (Class 12) introduces this concept in the very first chapter on "Nature and Significance of Management." It says that management aims to achieve both efficiency and effectiveness. Efficiency means reducing costs and wastage, while effectiveness means completing tasks on time and achieving organisational goals.

The textbook gives a simple example: a manager who completes a project on time (effective) but spends too much money (inefficient) is not a good manager. Similarly, one who saves money (efficient) but misses the deadline (ineffective) also fails. Good management requires a balance.

A Final Way to Remember

Think of a marksman shooting arrows at a target.

Efficiency is how few arrows you use to hit the target. Using one arrow instead of ten is efficient.
Effectiveness is whether you hit the bullseye at all. Even if you use ten arrows, if one hits the centre, you were effective.

The best archer uses one arrow and hits the bullseye every time — both efficient and effective. That is what every organisation strives for.

Why this formula?

Efficiency and Effectiveness: Why the Formulas Hold

Let's build this from first principles — understanding the why before the what.

1. The Core Distinction

Before formulas, grasp the conceptual difference:

Effectiveness = Are we doing the right things? (Outcome-focused)
Efficiency = Are we doing things right? (Resource-focused)

This distinction is not just academic — it drives how we measure performance in exams, business, and engineering.

2. Effectiveness Formula

The Formula

\text{Effectiveness} = \frac{\text{Actual Output}}{\text{Expected Output}} \times 100\%

Why This Holds

Reasoning:

Effectiveness measures goal achievement — how much of what we planned to achieve did we actually achieve?
The denominator is the target (expected output), not the input.
The numerator is the real result (actual output).

Example intuition:

If a factory planned to produce 1000 units but made only 800, effectiveness = $800/1000 = 80\%$ . The formula captures "we fell short by 20% of our goal."

Key exam point: Effectiveness can exceed 100% if actual output exceeds target — this means you over-achieved the goal.

3. Efficiency Formula

The Formula

\text{Efficiency} = \frac{\text{Actual Output}}{\text{Actual Input}} \times 100\%

Why This Holds

Reasoning:

Efficiency measures resource utilization — how much output did we get per unit of input?
The denominator is resources consumed (time, money, materials, energy).
The numerator is output produced with those resources.

Example intuition:

If a factory used 500 labour-hours to produce 800 units, efficiency = $800/500 = 1.6$ units per labour-hour. This tells us "productivity per resource unit."

Key exam point: Efficiency is a ratio of output to input — higher is better, but it doesn't tell you if you met your goal (that's effectiveness).

4. The Critical Relationship: Why Both Matter

The Combined Insight

\text{Effectiveness} \times \text{Efficiency} \neq \text{Overall Performance}

Why? Because they measure different dimensions:

Scenario	Effectiveness	Efficiency	Interpretation
A	100%	50%	Met goal but wasted resources
B	50%	100%	Used resources perfectly but missed goal
C	100%	100%	Ideal — both right things done right

Derivation logic:

Effectiveness = $\frac{\text{Actual Output}}{\text{Expected Output}}$
Efficiency = $\frac{\text{Actual Output}}{\text{Actual Input}}$
Their product = $\frac{(\text{Actual Output})^2}{\text{Expected Output} \times \text{Actual Input}}$ — this has no direct physical meaning in standard management theory.

Exam tip: Never multiply them blindly. Instead, evaluate each separately.

5. Why These Formulas Are Not Arbitrary

The Dimensional Analysis

Effectiveness is dimensionless (output/output) — a pure percentage.
Efficiency has units (output/input) — e.g., units per hour, rupees per unit.

This dimensional difference is why they cannot be combined into a single formula without losing meaning.

The Pareto Principle Connection

In real-world problems:

Effectiveness often follows the 80/20 rule — 20% of efforts yield 80% of results.
Efficiency follows diminishing returns — doubling input rarely doubles output.

This is why exam questions often ask you to calculate both and then interpret the trade-off.

6. Quick Exam Checklist

Question Type	Use This Formula	Why
"Did we meet the target?"	Effectiveness	Measures goal achievement
"Did we use resources well?"	Efficiency	Measures resource productivity
"Which is more important?"	Context-dependent	Effectiveness first, then efficiency

Final takeaway: These formulas are not mathematical tricks — they are measurement tools designed to answer two fundamentally different questions about performance. Always ask yourself: Am I measuring goal achievement (effectiveness) or resource usage (efficiency)?

Akash met the target (effective) but exceeded the cost (inefficient), so he is effective only.

To understand this question, you first need to grasp the two distinct yardsticks by which a manager’s performance is measured: efficiency and effectiveness. These are not the same thing, and a manager can be good at one without being good at the other.

Effectiveness is about doing the right things — it means achieving the stated objective or target. In Akash’s case, the target was clear: produce 100 units of LED lights within 5 days. He did exactly that. The order was urgent, the deadline was met, and the quantity was correct. So, by the measure of effectiveness, Akash has succeeded. He delivered what was asked, when it was asked.

Efficiency, on the other hand, is about doing things right — it means achieving the target with the minimum possible cost or waste of resources. Here, the cost target was ₹200 per unit. Akash produced each unit at ₹220, which is ₹20 more per unit than planned. That means he used more resources (money) than necessary to get the job done. He was not efficient, because he overshot the cost constraint.

Note

In management, efficiency is often expressed as the ratio of output to input. Here, the input (cost) was higher than planned, so the ratio is lower than desired — a clear sign of inefficiency.

Now, look at the options given:

(A) Efficient only — This would require meeting the cost target, which he did not. So this is wrong.
(B) Effective only — This fits perfectly. He achieved the goal (effective) but at a higher cost (inefficient).
(C) Both efficient and effective — This would require meeting both the quantity/deadline and the cost target. He missed the cost target, so this is incorrect.
(D) Neither efficient nor effective — This would mean he failed to produce 100 units in 5 days, which he did not. So this is also wrong.

Important

A manager can be effective without being efficient, and vice versa. The ideal is to be both, but in practice, trade-offs often occur — especially under pressure, like a festive season rush.

In this scenario, Akash prioritised getting the order out on time over controlling costs. That is a common real-world decision, but it does not make him efficient. He is effective because the primary goal (delivering the urgent order) was achieved.

✓Final answer

Akash is effective only (Option B) — he achieved the target of 100 units in 5 days, but at a higher cost of ₹220 per unit instead of the planned ₹200, making him inefficient.

Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

Showing the 12 most recent of 13 on this concept.

CBSE 2026Set 66/1/11 markMCQ
$Q. ‘CARO Tech Solutions’ aimed at development of a software system for the company’s growing operations. The project was to be completed within six months with a budget of ₹ 12,00,000. The software development team successfully completed its project on time by outsourcing a part of the project, leading to an additional expense of ₹ 2,00,000. From the following, identify whether the software development team is : (A) Efficient and Effective (B) Efficient but not effective (C) Effective but not efficient (D) Neither efficient nor effective$
›Reveal solutionSolution
The team completed the project on time (effective) but exceeded the budget (inefficient), so they are effective but not efficient.

To understand this question, you first need to grasp the two distinct ideas that management uses to judge performance: effectiveness and efficiency. These are not the same thing, and a team or organisation can be good at one without being good at the other.

Effectiveness is about doing the right things — it means achieving the stated goal or objective. In this case, the goal was to complete the software system within six months. The team did exactly that. They delivered the project on time. So, from the standpoint of effectiveness, they succeeded. They got the job done.

Efficiency, on the other hand, is about doing things right — it means achieving the goal with the least possible cost or waste of resources. Here, the budget was set at ₹12,00,000. But the team outsourced a part of the project, which added an extra ₹2,00,000. That means the actual cost was ₹14,00,000. They spent more than planned. So, from the standpoint of efficiency, they failed. They did not use their resources optimally.

Note

Outsourcing itself is not a problem — it is a common business practice. The issue is that it led to an unplanned additional expense. If the budget had been revised and approved, the situation might be different. But as per the given facts, the team went over budget.

Now, look at the options:

(A) Efficient and Effective — This would require both on-time completion and staying within budget. The team failed on budget, so this is wrong.

(B) Efficient but not effective — This would mean they saved money but missed the deadline. They did the opposite, so this is wrong.

(C) Effective but not efficient — This matches exactly: they met the deadline (effective) but overspent (not efficient).

(D) Neither efficient nor effective — This would mean they missed the deadline and overspent. They did not miss the deadline, so this is wrong.

Important

In management studies, effectiveness is always about goal achievement, and efficiency is about resource utilisation. A team can be effective without being efficient — and that is precisely what happened here.

✓Final answer
$The software development team is effective but not efficient (Option C). They completed the project on time but exceeded the budget.$
CBSE 2026Set MARCH1 markMCQ
$Q. Which of the following refers to doing the task correctly and with minimum cost?$
(a) Effectiveness
(b) Co-ordination
(c) Process
(d) Efficiency
›Reveal solutionSolution

The correct option is (d) Efficiency. Efficiency is about the cost-benefit relationship — finishing the work correctly with the lowest possible use of resources.

✓Final answer
$(d) Efficiency. In management, efficiency refers to doing the task correctly and with minimum cost. It looks at the relationship between the input of resources and the output produced — the aim is to get more output from fewer resources. The other options do not fit: (a) Effectiveness means completing the task on time to achieve the end goal, without regard to cost; (b) Co-ordination is the process of synchronising group efforts; (c) Process simply means a series of steps. Good management, as taught in Karnataka 2nd PUC Business Studies, balances both efficiency and effectiveness.$
CBSE 2026Set ANNUAL1 markMCQ
$Q. A manager achieves the target given to him but the production cost is high, this shows that management is A) Effective and efficient B) Effective but not efficient C) Efficient but not effective D) Neither efficient nor effective$
›Reveal solutionSolution
Achieving the target shows effectiveness, but high cost shows a lack of efficiency, so the answer is B) Effective but not efficient.

This MCQ tests the core distinction in the nature of management:

Effectiveness means completing the task / achieving the end result or target on time.

Efficiency means doing the task with minimum cost and least wastage of resources (a favourable input-output ratio).

Here the manager DID achieve the target, so he is effective. But the production cost is high, meaning resources were used uneconomically, so he is NOT efficient. Good management requires balancing both; achieving goals at high cost is effective but inefficient.

✓Final answer
$B) Effective but not efficient$
CBSE 2025Set ANNUAL1 markMCQ
$Q. Which of the following shows the importance of management?$
(a) Management is barrier in development of society
(b) Objectives are not achieved through management
(c) Management increases efficiency
(d) None of these
(a) Management is barrier in development of society
(b) Objectives are not achieved through management
(c) Management increases efficiency
(d) None of these
›Reveal solutionSolution

Management increases efficiency — that is the real-world importance of management, not the other three options.

Management is important because it helps an organisation achieve group goals, increases efficiency, creates a dynamic organisation, helps achieve personal objectives of employees, and helps in the development of society. "Barrier in development of society" and "objectives are not achieved through management" are both the opposite of what management actually does, so they are wrong. Management ensures optimum utilisation of resources — by assigning the right work to the right people, reducing wastage, and improving productivity — and this is what increases efficiency, i.e., achieving more output with the same or fewer inputs.

In the UK Board Class-12 Business Studies syllabus (aligned with the NCERT/CBSE commerce curriculum), this is a standard objective-type question on the importance of management.

✓Final answer
$Management increases efficiency.$
CBSE 2024Set 66/1/11 markMCQ
$Q._____________ refers to doing the task correctly and with minimum cost. (A) Effectiveness (B) Coordination (C) Process (D) Efficiency$
›Reveal solutionSolution
The term that refers to doing a task correctly and with minimum cost is Efficiency.

In management and economics, understanding the distinction between efficiency and effectiveness is crucial. While both are desirable, they describe different aspects of performance. This question specifically probes the concept related to resource optimization and correct execution.

Let's break down the core ideas:

Efficiency focuses on how a task is performed. It's about getting the most output from the least input. Think of it as "doing things right." When you perform a task efficiently, you minimize waste of resources like time, money, materials, and effort.

Effectiveness focuses on what task is performed and whether it achieves the desired outcome. It's about "doing the right things." An effective action leads to the successful accomplishment of a goal, regardless of the resources consumed.

Consider an example: A company might produce a product very efficiently (low cost, minimal waste), but if that product is not what customers want, the company is not being effective. Conversely, a company might produce a highly desired product (effective), but if it uses excessive resources to do so, it's not efficient. The ideal scenario is to be both efficient and effective.

Now, let's evaluate the given options based on this understanding.

Analyze the question's keywords: The phrase "doing the task correctly and with minimum cost" contains two key components:

"Doing the task correctly": This implies following the optimal method, avoiding errors, and ensuring quality of execution.

"With minimum cost": This directly points to resource optimization – using the least amount of money, time, or other inputs.

Evaluate Option (A) Effectiveness: Effectiveness is about achieving goals or producing the desired result. While doing a task correctly can contribute to effectiveness, the "minimum cost" aspect is not central to the definition of effectiveness itself. An effective task might still be very costly if resources are not managed well.

Evaluate Option (B) Coordination: Coordination refers to the process of organizing different activities or people to work together smoothly and achieve a common goal. It's about synchronization and integration, not directly about the cost or correctness of a single task's execution.

Evaluate Option (C) Process: A process is a series of steps or actions taken to achieve a particular end. While a process can be designed to be efficient or effective, "process" itself is the method or sequence, not the quality of execution with minimal cost.

Evaluate Option (D) Efficiency: This option perfectly aligns with the keywords. "Doing the task correctly" implies a high standard of execution, and "with minimum cost" directly addresses the optimal use of resources. Efficiency is precisely about performing tasks in the best possible way, using the fewest possible inputs.

Watch out

Do not confuse efficiency with effectiveness. Efficiency is about doing things right (optimizing input-output ratio), while effectiveness is about doing the right things (achieving goals). A task can be efficient but not effective, or effective but not efficient.

Important

Efficiency is defined by the ratio of output to input. A higher output for a given input, or a given output for a lower input, indicates greater efficiency.

✓Final answer
$The term that refers to doing the task correctly and with minimum cost is (D) Efficiency .$
CBSE 2024Set ANNUAL1 markMCQ
$Q. How does a manager achieve his objectives? (A) Through efficiency (B) Through effectiveness (C) Through efficiency and effectiveness (D) None of these$
›Reveal solutionSolution

Objectives are achieved by being effective (finishing the right task) and efficient (using resources economically), so both are needed.

Effectiveness means completing the task and achieving the goal within the given time. Efficiency means doing the work at the least possible cost, with minimum wastage of resources. A manager who is effective but not efficient wastes resources, while one who is efficient but not effective saves resources but fails to reach the goal. Good management balances the two — achieving targets (effectiveness) economically (efficiency). Hence a manager achieves his objectives through both efficiency and effectiveness.

✓Final answer
$(C) Through efficiency and effectiveness$
CBSE 2024Set ANNUAL1 markMCQ
$Q. When a worker achieves target production of 1000 units at a higher cost, he is$
(a) efficient
(b) effective
(c) Both
(i) and
(ii)
(d) None of the above
›Reveal solutionSolution

Achieving the target output but at a higher cost makes the worker EFFECTIVE (the goal was reached) but NOT efficient (resources were not used optimally) — effectiveness is about "doing the right task and completing it," while efficiency is about "doing it with the least possible cost/resources."

Management aims for both effectiveness (completing the task/achieving the targeted goal) and efficiency (achieving that goal with minimum cost and optimum utilisation of resources). The two do not automatically go together: a worker can be effective without being efficient (hitting the target but wasting resources or spending more money than necessary to get there, as in this question), and in principle could even be efficient at a task that turns out not to matter (minimising cost while missing the actual larger goal — though that is less common in this exact kind of question). Because the worker here DID reach the 1000-unit target, he cannot be called "not effective"; but because he did so at higher cost than necessary, he cannot be called "efficient" either — which is why "effective" (but not efficient) is the precise answer, and "both" would be wrong since the higher cost specifically rules out efficiency.

✓Final answer
$Option (ii) "effective" — the worker achieved the target (effectiveness), but the higher cost means the work was not efficient.$
CBSE 2023Set 66/2/11 markMCQ
$Q. Akash works as a production manager in 'Elite Enterprises' manufacturing LED lights. Due to festive season, there is lot of demand for their lights. Akash was given the task of producing 100 units of LED lights @ ₹ 200 per unit within 5 days for an urgent order. Akash was able to achieve the target of 100 units of LED lights within 5 days @ ₹ 220 per unit. Identify from the following whether Akash is : (A) Efficient only (B) Effective only (C) Both efficient and effective (D) Neither efficient nor effective$
›Reveal solutionSolution
Akash met the target (effective) but exceeded the cost (inefficient), so he is effective only.

To understand this question, you first need to grasp the two distinct yardsticks by which a manager’s performance is measured: efficiency and effectiveness. These are not the same thing, and a manager can be good at one without being good at the other.

Effectiveness is about doing the right things — it means achieving the stated objective or target. In Akash’s case, the target was clear: produce 100 units of LED lights within 5 days. He did exactly that. The order was urgent, the deadline was met, and the quantity was correct. So, by the measure of effectiveness, Akash has succeeded. He delivered what was asked, when it was asked.

Efficiency, on the other hand, is about doing things right — it means achieving the target with the minimum possible cost or waste of resources. Here, the cost target was ₹200 per unit. Akash produced each unit at ₹220, which is ₹20 more per unit than planned. That means he used more resources (money) than necessary to get the job done. He was not efficient, because he overshot the cost constraint.

Note

In management, efficiency is often expressed as the ratio of output to input. Here, the input (cost) was higher than planned, so the ratio is lower than desired — a clear sign of inefficiency.

Now, look at the options given:

(A) Efficient only — This would require meeting the cost target, which he did not. So this is wrong.

(B) Effective only — This fits perfectly. He achieved the goal (effective) but at a higher cost (inefficient).

(C) Both efficient and effective — This would require meeting both the quantity/deadline and the cost target. He missed the cost target, so this is incorrect.

(D) Neither efficient nor effective — This would mean he failed to produce 100 units in 5 days, which he did not. So this is also wrong.

Important

A manager can be effective without being efficient, and vice versa. The ideal is to be both, but in practice, trade-offs often occur — especially under pressure, like a festive season rush.

In this scenario, Akash prioritised getting the order out on time over controlling costs. That is a common real-world decision, but it does not make him efficient. He is effective because the primary goal (delivering the urgent order) was achieved.

✓Final answer
$Akash is effective only (Option B) — he achieved the target of 100 units in 5 days, but at a higher cost of ₹220 per unit instead of the planned ₹200, making him inefficient.$
CBSE 2023Set MARCH1 markMCQ
$Q. Achievement of goals with minimum resources is called :$
(a) Efficiency
(b) Effectiveness
(c) Goal setting
(d) All of these
›Reveal solutionSolution
Correct option: (a) Efficiency. Efficiency = achieving goals with minimum resources (best input-output ratio); effectiveness = achieving goals on time, regardless of cost.

This is a core one-mark concept in the Kerala Plus Two (DHSE) Commerce syllabus, chapter 'Nature and Significance of Management'. Management aims to be BOTH efficient and effective:

Efficiency means doing the task correctly and with minimum cost. It looks at the relationship between inputs (resources — money, material, labour, time) and outputs. Higher output from the same input, or the same output from lower input, means higher efficiency.

Effectiveness means completing the task and achieving the end goal within the given time, whether or not resources were economised.

The stem 'achievement of goals with minimum resources' points only to the resource/cost dimension, which is efficiency.

Why the others are wrong: (b) Effectiveness is about achieving the goal/result, not about saving resources. (c) Goal setting is a planning activity, not a measure of resource use. (d) 'All of these' is incorrect because only efficiency matches the definition.

✓Final answer
$(a) Efficiency — achieving goals with the minimum use of resources (lowest cost for the desired output).$
CBSE 2022Set MARCH1 markMCQ
$Q. Doing and completing tasks with minimum cost is denoted by the term ______.$
(a) efficiency
(b) effectiveness
(c) co-ordination
(d) None of these
›Reveal solutionSolution
The correct answer is (a) efficiency, because completing tasks at minimum cost means making the best use of resources.

Management aims at both efficiency and effectiveness:

Efficiency means doing the task correctly with minimum cost, that is, getting maximum output from minimum input and avoiding waste of resources.

Effectiveness means completing the task on time and achieving the end result or goal, regardless of cost.

Since the statement stresses 'minimum cost', it refers to efficiency. Coordination, given in option (c), is the process of synchronising activities and is not about cost.

✓Final answer
$(a) efficiency — doing and completing tasks with minimum cost.$
CBSE 2022Set ANNUAL1 mark
$Q. What is meant by ‘effectiveness’ in management?$
›Reveal solutionSolution

Effectiveness means achieving the task/goal that was set — it focuses on the end result.

Effectiveness is goal-focused — it measures whether the intended objective was actually accomplished (e.g. 'did we produce the 200 units that were targeted?'). Efficiency, by contrast, is a means-focused concept — it measures how economically the resources (time, money, materials, effort) were used in accomplishing the task (e.g. 'did we produce those units at the lowest possible cost?'). A manager can be effective without being efficient (hitting the target but wasting resources to do so), and management aims to be both — to be effective while also being efficient.

✓Final answer
$Effectiveness is concerned with the end result — successfully achieving the goals that were set, irrespective of the cost of resources used to get there.$
CBSE 2021Set ANNUAL1 markMCQ
$Q. Danny works as a production manager and he was given the task of manufacturing 100 table fans at a cost of ₹2,000 per fan within 7 days. He will be an effective manager if he ensures that$
(a) the cost of production is less than ₹2,000 but time taken is 10 days
(b) the cost of production is ₹2,100 but work completed in 7 days
(c) 80 table fans manufactured at cost of ₹2,000 within 7 days
(d) None of the above
›Reveal solutionSolution

Effectiveness means achieving the given goal/deadline, while efficiency means doing so at minimum cost of resources — Danny is effective (the fans were finished on time) in option (b), even though spending 2100 instead of 2000 per fan makes him less efficient.

Management aims at being both efficient (doing the task correctly, with minimum cost and wastage of resources) and effective (doing the right task, i.e. achieving the stated goal within the given time). These two are not always achieved together — a manager can complete a task on time (effective) while overshooting the cost budget (inefficient), or keep costs low while missing the deadline or the full quantity (efficient but not effective). In the scenario, the target was 100 fans, at 2000 per fan, within 7 days. Option (a) misses both the time (10 days) and arguably the cost angle too. Option (c) misses the quantity target (only 80 fans). Option (b) delivers the output within the 7-day deadline, even though the cost per fan rose to 2100 — this is the textbook illustration of a manager being effective (goal/time met) without being fully efficient (cost overrun).

✓Final answer
$Option (b) is correct — Danny is an effective manager here because he completed the work within the 7-day deadline, even though it cost more than the targeted 2000 per fan.$

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