A Manager Decides To Produce A High Quality Product And Makes Good Use Of The Organization's Resources In Making It. However, Not Enough Customers Want To Buy The Product For The Organization To Make A Reasonable Profit. The Manager Is Said To Have:

Answer Of MCQ With Explanation With Examples

The options B, C, D and E are incorrect choices of this multiple choice question (mcq).

The correct option of this mcq is A, as the manager tries his best to well utilizes the resources, such as physical, financial, human and intellectual resources, of the organization (high efficiency) but the expected end results or set goals (maximum number of customers buy the product to gain reasonable profit) is not achieved at the end. (low effectiveness).

Reasons For High Efficiency/Low Effectiveness And Their Solutions

1. Low Demand For Products or Services

If maximum number of customers buy products or services of the organization in the market, then this is called high effectiveness but here sales are low, eventhough resources are well utilized, may be due to demand for such product is low in the market that is why the customers are not willing to buy the product. So, the company should see customers’ needs and wants, likes and dislikes in order to satisfy them to buy the products or services.

2. Lack of Innovation

If the organization creates maximum products with minimum cost but only few customers are willing to buy, then it may be due to lack of innovation. A company creates something new i.e., add features to the product such change the taste, design, etc., to satisfy customers’ likes. Create a unique quality product or service that solves their problems at the right time.

3. Failure To Adopt Technological Changes

It is possible that a company utilizes the technology resources efficiently but as these are not updated according to market demands or the company may fail to adopt new technological system to satisfy and solve their problems i.e., lack of using of advanced IT Tools such automation, AI, cloud computing, etc., there is low effectiveness. So, the organization must adopt to meet new technology requirements to satisfy customers at the end to achieve set organizational goals.

4. Failure To Align With Set Goals

Plans should be clear and organized to achieve the end results. The manager should implement the steps in the right direction aligning with objectives to achieve targets and set goals to get better results.

Resources are utilized efficiently, but on the wrong direction. For example, the set goal is to increase sales upto 70% but the resources are utilized in that area of market where the demand of such product is very low i.e., instead of supplying rice in the south region, where demand for rice is very high, supplying it to west region where people’s demand is low for rice.

Final Thoughts

Efficient use of resources is not enough. A company should also focus on end results, so the managers should utilize these resources in the right direction (in the direction of set goals) to achieve organizational objectives & goals.

It may also be possible that an organization is utilizing its resources efficiently and effectively but still the organizational goals are not achieved as the actual results are in the hands of Allah. So, always pray for Allah for better results.