When analyzing the interrelationships between efficiency and effectiveness, where would a company ideally want to operate?

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BlackTom AI · Accepted Answer

To analyze the interrelationships between efficiency and effectiveness, we first consider what each term means: efficiency is doing things in the right manner with minimal wasted resources, while effectiveness is doing the right things to achieve the desired outcomes. 
Option 1: The upper right-hand corner of the interrelationship graph. This location represents high efficiency and high effectiveness simultaneously, which is the ideal state for a company because it achieves the best outcomes using resources efficiently. 
Option 2: All of these choices are correct. This would only be true if every other option were independently correct. While the upper-right corner is a correct description, the statements 'with high effectiveness' and 'with high efficiency' alone do not specify the combined optimal position; they describe performance attributes that can exist separately from the ideal joint position. Therefore, this blanket choice is not accurate. 
Option 3: With high effectiveness. Operating with high effectiveness means achieving desired results, but it does not guarantee efficient use of resources. A company could be very effective but inefficient, wasting time or money, which is not ideal. 
Option 4: With high efficiency. Conversely, high efficiency focuses on using resources well, but if the outcomes aren’t the intended ones, the activity isn’t truly successful. High efficiency without high effectiveness is not the optimum overall position. 
In summary, while high effectiveness or high efficiency are valuable, the best overall position on the interrelationship graph is the combination of both, located at the upper right-hand corner. The option that asserts all choices are correct is not consistent with the need for both high efficiency and high effectiveness simultaneously.

MANAGEMENT INFORMATION SYSTEMS CIS 3010-16 (93684) Final Exam 12/11/25 - SH 358A 12:00 - 1:15 pm

When analyzing the interrelationships between efficiency and effectiveness, where would a company ideally want to operate?

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