Organizations can only achieve their goals by using their resources well. The people who are responsible for how well resources are used are the organization$$s managers.

An organization is a group of people working together in a structured and coordinated way to achieve a set of goals. Management is the combining and coordinating of various resources to achieve the organization$$s goals.

Efficient and Effective Management of Resources

There are four types of resources:

$$ Human

$$ Financial

$$ Physical

$$ Information

Managers use the four types of resources to achieve organizational goals. Managers seek to achieve the organization$$s goals in an efficient and effective manner.

$$ Being efficient means using resources in a cost$-$effective way. To be efficient, a food delivery company might have a driver deliver to several addresses in the same neighborhood.

$$ Being effective means making the right decisions and carrying them out successfully. To be effective, a food delivery company would offer options that aligned with their customers$$ preferences.

It$$s possible for an organization to be effective but not efficient, or efficient but not effective. Successful organizations are both.

Select the word that best completes the following sentence.

A group of people working toward goals in a coordinated, structured way is $.$

Select the correct response to the following question.

When an organization is both effective and efficient, what is it doing?

Engaging in activities beyond those needed to fulfill its mission, at a little extra cost

Engaging in activities that fulfill its mission, with no unnecessary cost