In any business, an efficient manager is one who uses limited resources available viz., time, material and men to get the job done in a more professional manner. This includes securing productive and profitable results in a short span, using funds allotted for a business more legibly yet smartly, and appraising employee performance etc., In other words, an efficient manager would keep the business running even in dire circumstances.
An effective manager, on the other hand, is slightly different from the efficient one. The effective manager focuses on productivity rather than increased/balanced profitability. Effective management has various layers in its setup such as motivation, teamwork, communication and objectives. An effective manager is someone who leads, coordinates and filters various activities of the sub-ordinates and decides an appropriate mechanism to work upon. An effective manager usually works without any constraints such as funds, manpower etc. The focus always implies on better management practices and in turn, better output.
Effectiveness is a precondition for the success of any manager; however that depends more upon the uncontrollable variables dictated to the manager by the operational environment and his ability to come up with the right choices that would suit his resources built over time. It may be appreciated that a firm's resources in terms of manpower and technology as well as capital would have been built up over time and they have