“A successful enterprise has to achieve its goals effectively and efficiently.” This statement is explained below:

• Management is the process of getting a task done with the aim of achieving the goals of the organization in an effective and efficient manner.

• The different functions of management are planning, organizing, staffing, directing and controlling.

• The term effective means completing the given task and efficient means completing the task with minimum cost and time.

• It is important for an organisation to be both effective and efficient in its working.

• Being effective implies that the goals are being achieved and being efficient means that the goals are being achieved with minimum cost. It leads to an increase in profit.

• Often a company has to compromise with either of the two.

• For example, a firm has set a goal to produce a thousand boxes of cookies in a month. But due to frequent power failure, the workers work on double shifts and extra wages are been given to achieve the target.

• In this case, the firm is effective but not efficient. So it is important to maintain a balance between the two.