Answer to Question 1
Effectiveness is the degree to which the organization accomplishes what it sets out to do; whereas, efficiency means achieving the economic performance necessary for the organization's survival. The focus of effectiveness is to reach outcomes that are aligned with an organization's goal or agreed-upon standardin other words, to do the right thing. It is the manager's responsibility to monitor whether the part of the organization he or she oversees is being effective and, if not, to make changes. Rooted in values, effectiveness is sometimes difficult to measure in quantitative terms. Effectiveness will be defined in different ways by different people in the same organization.
The key element of efficiency is comparing the level of work output with the resources provided for doing the work. We might first think of efficiency as applying to just an individual, a work unit, or a company. But efficiency can also affect an entire market. Rooted in economics, efficiency is about using the fewest amount of resources (inputs) to achieve the greatest amount of output during a specific period of timein other words, doing things right in terms of economic outcomes. We can think of efficiency in terms of improving practical usefulness.
Answer to Question 2
TRUE
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