A company's target production is 5000 units in a year. To achieve this target the manager has to operate on double shifts due to power failure most of the time. The manager is able to produce 5000 units but at a higher production cost.
(a) Is the manager effective and efficient? Give reasons.
Why is it important for a manager to be both effective and effective and efficient? Explain.

Explanation

(a) In this case, the manager is effective since he is able to produce the company's target production of 5000 units in the year. But he is not so efficient, since for the same output, more inputs (labour cost, electricity costs) were used.
(b) For a manager, it is important to be both effective and efficient. (Explain)