Explanation : According to Peter F Drucker, the key to an organization’s success is its efficient and effective management and the difference between these two concepts must be understood. “Efficiency” is the ability to minimize the use of resources in achieving organizational objectives: It means “doing things right”. “Effectiveness” means the ability to determine appropriate objectives. It means “doing the right thing”. Before we can focus on doing things efficiently, we need to be sure that we have found the right thing to do. The best managers focus on achieving both efficiencies as well as effectiveness. This is known as the “efficiency-effectiveness nature”. The “efficiency” essentially focuses on the “ability to do things right” in terms of the input-output comparisons. An efficient manager is one who is able to minimize the cost of the resources needed to achieve goals. Efficiency is the achievement of the ends with the least amount of resources. On the other hand, effectiveness involves choosing the “right” goals. Any manager who selects an inappropriate goal is an ineffective manager, even if he has maximum efficiency. The effectiveness and efficiency matrix is shown in the Figure demonstrates this. Managers who have high effectiveness, but low efficiency may not be able to utilize resources judiciously and may produce at high costs. Managers who have high effectiveness and high efficiency will be the ones who will be the most successful.
Explanation : Business process reengineering is the redesigning of business processes as well as associated systems and organizational structures in order to achieve a substantial
improvement in business performance. The business reasons for making such changes could include poor financial performance, external competition, erosion of market share,
or emerging market opportunities. BPR is not downsizing, restructuring, reorganization, automation, new technology, etc. It is the examination and change of the following five
components of the business:
Michael Hammer and James Champy define business process reengineering in their book Reengineering the Corporation as: Fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance.
Explanation : Frederick Herzberg developed another popular needs-based theory of motivation called the two-factor theory. Herzberg interviewed hundreds of workers about times when they were highly motivated to work and other times when they were dissatisfied and unmotivated to work. His findings suggested that the work characteristics associated with dissatisfaction were quite different from those pertaining to satisfaction, which prompted the notion that two factors influence work motivation.