Which of the following is true concerning organizational effectiveness and efficiency?
A) A firm is effective when it uses its resources in the best possible way.
B) A firm with excellent goals cannot fail.
C) A firm is ineffective when it hires the wrong people.
D) A firm is efficient when it does things right and effective when it does the right thing.

Question

Quizplus · Accepted Answer

Efficiency refers to doing things right, which means using resources such as time, money, and labor in the most productive way possible. Effectiveness, on the other hand, refers to doing the right thing, or achieving the desired result. Therefore, a firm can be efficient without being effective if it is using its resources effectively but is not achieving its desired goals. Conversely, a firm can be effective without being efficient if it achieves its desired goals but uses its resources poorly. Thus, the best statement is that a firm is efficient when it does things right and effective when it does the right thing.

Which of the Following Is True Concerning Organizational Effectiveness and Efficiency