A manager is responsible for achieving organizational objectives through efficient and effective utilization of resources. Efficient means doing things right so as to maximize the utilization of resources. Effective means doing the right thing in order to attain an objective. The manager’s resources are human, financial, physical, and informational.

Human resources are people, often referred to as human capital, and people are organizations’ most valuable assets. Managers are responsible for getting the job done through employees, so people are essential to organizational performance, as they are the ones to achieve the organizational objectives. Most managers have a budget stating how much it should cost to operate their department for a set period of time. In other words, a budget defines the financial resources available.

Managers are responsible for making the products and services and keeping equipment in working condition and ensuring that necessary products, materials, and supplies are available when needed. You need information to set objectives and make decisions on how to allocate and use your resources to attain the objectives. Information should be based on knowledge, and information should flow freely throughout the organization and between organizations. Managers have a profound impact on the performance of their organizations. So how you acquire and manage the four resources affects organizational performance.

The level of organizational performance is based on how effectively and efficiently managers utilize resources to achieve objectives. Managers are responsible for and evaluated on how well they meet organizational strategies and objectives through utilization and control of resources. Selecting the right resources—being effective—and using them efficiently results in high levels of performance.