CBSE Class 12 Business Studies HOTs Nature and Significance of Management Set A

CBSE Class 12 Business Studies HOTs - Nature and Significance of Management. Higher Order Thinking Skills (HOTS) download and print.

Chapter-1
Nature and Significance of Management

(1 Mark Questions)

1. In order to be successful, an organisation, must change it goals according to the needs of the environment. Which characteristic of management are highlighted in the statement.
2. To meet the objectives of the firm, management of Angora Ltd. offers employment to physically challenged persons. Identify the organizational objective it is trying to achieve.
3. Name the level of management involved in
a. Overseeing the activities of workers.
b. Taking key decisions.
 
4. Give any 2 functions of middle level management.
5. Give any 2 functions of low level management.
6. Which function of management is known as essence as management.
7. Management of any organisation strive to attain different objectives Enumerate any 2 Such objectives.
8. Give any 2 characteristics of management.
9. Name the level of management the following posts belong to :
a. Purchase Manager. b. CEO c. Superintendent.
10. What do you mean by “effectiveness” ?
11. What do you mean “efficiency” ?
 
HOTS QUESTIONS
1. In order to be successful, an organisation must change its goals according to the needs of the environment. Which characteristic of management are high lighted in this statement ?
2. To meet the objectives of the firm, management of Angora Ltd. offers employment to physically challenged persons. Identify the organizational objectives it is trying to achieve.
3. Name the level of management involved in
(a) overseeing the activities of workers.
(b) Taking key decisions.
4. Name the level of management the following posts belong to :
i. Purchase Manager
ii. CEO
iii. Supervisory level
5. Bhavan is the manager of northern division of a large corporate house. At what level does he work in the organisation? What are her basic functions?
6. Lack of proper management results in wastage of time, money and efforts.” Do you agree with this statement? Give reasons in support of your answer.
7. “Management is regarded as a perfect science like Physics or Chemistry.” Do you agree ? Explain in brief any 5 reasons.
8. “Management is neither as precise nor as comprehensive as natural and pure sciences are”. Why? Explain.
9. Your grandfather has retired as the director of a manufacturing Co. At what level of management was he working? What functions do you think he was performing at that level? State any four functions.
10. Your uncle is employed in Deepti Ltd., as a production manager. At what level of management is he working. State any three functions that he might be performing at that level.
11. Miss Amita is associated with Fortune Ltd. She told you that her workers have goods relations with her. At what level of mgt. is she ?
12. Why management is necessary where there is a group of people working in an organisation?
13. What is the main focus of the management?
14. “Management is the process of getting things done to achieve goals effectively & efficiently” what is the process in the definition?
15. Can planning prevent problems?
16. Name that intangible force which creates productive relationship among resources of an organisation.
17. Why is management an intangible force?
18. Why is management necessary for all organisation regardless of whether they are big or small?
19. A petrol pump needs to be managed as much as a school or a hospital.” Which characteristic of management has been highlighted here?
20. Mr. Donalds, the fast food giant, made major changes in its menu to be able to survive in the Indian market. Which characteristic of mgt. is highlighted.
21. What is the main objectives of any organisation?
22. Why does mgt. help people to adapt environment changes?
23. What should a mgt. do in order to ensure harmony in the organisation ?
24. A manager applies the various theories of mgt. in his unique personalized way? What aspect of nature of mgt. does this statement indicate
25. There is no restriction in anyone being appointed or designated as a manager of any business enterprise. What aspect of management as a profession does this statement indicate ?
26. Ankit Enterprise Ltd. manufactures tea. The production department produces more of tea than required and sales department is not able to sell the total production. What quality of mgt. do you think the Co. is lacking ?
 
Very Short Answer
1. What is meant by management ?
2. What is meant by efficiency ?
3. What is the aim of management ?
4. Why is management conserved with efficient use of resources ?
5. Name the function of management under which performance is compared with standards.
6. Why is planning considered to be the basic or primary function of management?
7. Why is management considered multi-faceted concept?
8. How is management a dynamic function?
9. Management of any organisation strives to attain different objectives. Enumerate any two such objectives.
10. List any two social objectives of business.
11. Name the two things required to learn the art of management.
12. Name any two designations at operational management.
13. Your grandfather is working in an MNC as chief operating officer. At what level of management he is working ?
14. What is the process called by which a manager synchronises the activity of different departments ?
15. Which force binds all other functions in management ?
 
Short Answer Type Questions
(3-4 Marks)
1. How does management help in achieving group goals and increasing efficiency?
2. What do you mean by “levels of Management”? Draw a diagram showing the levels of management.
3. State any three functions of top level management.
4. Explain the Social objectives of management?
5. Explain the term “Management as an Art.”
6. Explain the term “Co-ordination” and its importance in management.
7. “Effectiveness and efficiency are 2 Sides of the same coin.” Comment.
8. “Survival, Profit and growth are three important economic objective which management helps the organisation to achieve’” Explain this statement.
9. Management is a group activity. Explain.
10. Briefly explain the planning and organising functions of management.
 
Long Answer Type Questions
 
(5-6 Marks)
1. Management is the process of working with and through other to achieve organizational objectives in a changing environment”. In the light of this statement explain briefly the characteristics of management.
2. “Without management, the resources of production. will remain resources and shall never become production”. In the light of this statement explain the importance of management in business.
3. Explain briefly the important features of management as a profession.
4. Is management an exact science ? Explain.
5. Is management becoming a profession ? Discuss in the light of the emerging trend.
6. “co-ordination is the process of achieving unity of action among interdependant activities and departments of an organisation. Explain the nature of coordination in the light of this statement.
 
Answers to Hots Questions
1. It is highlighting- “Management is dynamic functioning”.
2. It is trying to achieve “Social objectives’.
3. (i) Supervisory level (ii) Top Level.
4. (i) Middle level
(ii) Top level
(iii) Supervisory level.
 
5. He works at “Middle Level”. His basic functions – List functions of middle management.
 
6. Yes, I agree with the given statement. Mgt. is necessary in all organizations Importance of Mgt. (Points) in support of answer.
 
7. No, I don’t agree with the statement. Mgt. is an inexact science or soft science. It is neither as precise nor comprehensive as the natural as an pure science like Physics or chemistry. Actual mgt. is a social science which deals with human behaviour in an organisation.
 
8. Mgt. is an inexact science or soft science. It is neither as precise nor comprehensive as the natural and pure science like Physics or Chemistry the principles of management are not-as exact as the principles of Sc., so their application and use is not universal.
 
9. Top level management. Functions of top level management.
 
10. Middle level management Functions of middle level management.
 
11. Operational management. Functions of operational management
 
12. To guide their efforts towards achieving a common objective.
 
13. The main focus of management is that the tasks are completed and goals are achieved (effectiveness) with the least amount of resources (efficiency)
 
14. The process in this definition means the primary functions or activities that a manager performs to get things done. These functions are planning, organizing, staffing, directing and controlling.
 
15. Planning cannot prevent problems but it can predict them and prepare contingency plans to deal with them.
16. Management
17. Management is necessary so that individuals make their best contribution towards group objectives.
18. Management is necessary so that individuals make their best contribution towards group objectives.
19. Management is all pervasive.
20. Management is a dynamic function.
21. The main objective is to utilize human & material resources to the maximum possible advantage i.e. to fulfill the economic objectives of a business survival, growth and profit.
22. Mgt. helps people to adapt environmental changes so that the org. is able to maintain its competitive edge.
23. Mgt. should reconcile the personal and organizational objectives.
24. Management is an art.
25. It is a profession but not a full fledged profession like medicine or law.
26. Co-ordination.
 
Suggested Answer to Question Bank
Very Short Question.
Ans1. Management is the process of getting things done with the aim of achieving goals effectively & efficiently.
 
Ans2. Efficiency means doing the task correctly & with minimum cost.
 
Ans3. (i) To achieve group goals
(ii) To create a dynamic organisation.
(iii) To increase efficiency
(iv) To ensure optimum utilisation of resources.
 
Ans4. Management is concerned with efficient use of resources by eliminating all kinds of wastages and thus increases profitability.
Ans5. Controlling
Ans6. Because planning precedes all other functions and all other functions are performed within the framework of planning. 
Ans7. Because management is a complex activity having different dimensions.
(i) Management of work
(ii) Management of people.
(iii) Management of operation.
 
Ans8. Management is a dynamic function & has to adapt itself to the changing environment.
 
Ans9. (i) Organisational objectives
(ii) Social objectives
Ans10. (i) Using environment friendly production technique.
(ii) living employment opportunities to disadvantageous sections of society.
 
Ans11. Art of management can be acquired through study. observation and experience.
Intelligence and creativity are required to learn the art of mgt.
Ans12. (i) Foremen (ii) Supervisors.
Ans13. Top level mgt.
Ans14. Co-ordination.
Ans15. Co-ordination.
 
Short Answer Type Questions
Ans1. Mgt. is done by the people and for the people. Thus it caters to the needs & aspirations of its stakeholders. Their satisfaction results in the effective and efficient achievement of organisational goals. The management uses inputs
such as men, machine, material & money efficiently by properly allocating them to reduce the wastage which ultimately decreases cost and thus leads to higher projects.
 
Ans2. The term “Level of Management” refers to a line of demarcation between various mgt. positions in an organisation.
CBSE_Class_12_Bussiness_Studies_Nature_And_Significance _Set_1
1) Coordinating the activities of different departments.
2) Welfare and survival of the organisation.
 
3) Framing of policies.
Answer 4) The social objectives involve the creation of benefits for the society. It includes.
a) Supply of quality products at reasonable prices .
b) Using friendly methods of production.
c) Generation of employment opportunities
 
Ans. 5 Art refers to the skillful & personal application of existing knowledge to achieve desired results. It can be acquired through study, observations & experience.
Ans. 6 Co-ordination is the process of achieving unity of action among inter dependent activities & harmonious implementation of plans for the achievement of desired goals.
Imp. 1. It brings unity of action.
2. It helps to avoid conflicts among department
3. It helps in harmonious implementation of plans.
4. It brings efficiency & economy by keeping together the team.
Ans.7 “Effectiveness & efficiency are the two sides of the same coin”.
→ Sometime a business concentrates on effectiveness & ignores efficiency i.e. complete then given task but at a high cost.
→ On the other hand, sometimes a business may concentrate more on producing goods with fewer resources i.e. it cuts down cost but cannot achieve the target production. This is a case of being efficient but not effective since the goods did not reach the market. Therefore it is important for mgt. to achieve goals (effectiveness) with minimum resources i.e. as efficiently as possible maintaining a balance between effectiveness & efficiency.
 
Ans. 8 Survival, profit and growth are three important economics objectives which mgt helps the organisation to achieve.
In order to survive, an organisation must earn enough revenues to cover costs. Mgt must work in this direction. It also must ensure that the organisation makes a profit, which is a pre condition for the continued successful operation of the enterprises. Profit is essential for covering costs & risks of the business. To remain in the industry, a business needs to add to its prospects in the long run. Mgt. must exploit fully the growth potential of the organisation.
 
Ans. 9 An organisation is a group of different individuals with different needs. But as members of the organisation, they work towards achieving the common organisational goal. This requires team work and co-ordination. Management
as a team can contribute more effectively & efficiently rather than individuals.
 
Ans. 10 Planning is the primary function of mgt. It is concerned with both ends & means i.e. What to do and how to do it. Therefore planning means setting objectives & targets & formulating an action plan to achieve them effectively &
efficiently. Planning is closely corrected with creativity and innovation. Organising is the mgt for of assigning duties, grouping tasks, establishing authority and allocating resources reqd. to carry out a specific plan.
 
Long Answer Type Questions :-

Ans. 1. The following basic characteristics of management highlight its nature :
1. Management is a goal – oriented process : An organisation has a set of basic goal which are the basic reason for its existence. These goals should be simple and clearly stated. Management unites the efforts of different individuals in the organisation towards achieving these goals. For example, a firm decides to sell 1000 TV sets in particular year. The manager will plan a course of action and organize the activities to achieve this goal.
 
2. Management is a group activity : An organization is a group of diverse individuals with different needs. Every member of the group has a different purpose for joining the organization. But as members of the organization they work towards achieving the common organizational goal. This requires team work and coordination of individual efforts in a common direction. Management as a team can contribute more effectively and efficiently 5 rather than individuals.
 
3. Management is an intangible force : Management cannot be seen. The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos and there is coordination in the working environment.
 
4. Management is all pervasive : Management is virtually applied to every type of organisation, whatever its size or purpose. An auto plant, a city government, a cricket team, a hospital or a school all require management, a cricket team, a hospital or a school all require management. Moreover, what managers do in India, the USA, Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history.
 
5. Management is multidimensional : Management is a complex activity which has three main dimensions.
i) Management of work
ii) Management of people
iii) Management of operation
6. Management is a continuous process : Management process is a series of continuous, composite but separate functions (planning, organizing, staffing and controlling). But these functions are inter-dependent. They are simultaneously performed by all managers all the time.
CBSE_Class_12_Bussiness_Studies_Nature_And_Significance _Set_2
7. Management is a dynamic function : Management is a dynamic function and has to adapt itself to the changing environment. An organization interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organization must change itself and its goals according to the needs of the environment.
 
Ans.2 The resources of production are Man, Machine, Material and Money. It is the mgt. which works in the direction of bringing these resources together and convert them into production thus achieving the organizational social and
personal objectives.
Man+ Machine+Material+Money=Output/finished product Market (earning profit) Customer (if satisfied again comes) Organisation (earns profits & survives & grow)
 
Ans. 5 Yes, management is, by and large becoming a profession :- This can be seen by referring to following emerging trend in business :-
All big companies appoint professional managers at all levels, i.e. they appoint MBA qualified persons to perform managerial activities.
Many India companies taken initiative to replace family members by professional managers.
In public undertakings, management is in effect by professional managers. They appoint professional experts except in departmental undertakings such as Railways, Posts and Telegraph Department, which are controlled by ministers.
Proprietary managers are becoming more interested in acquiring latest knowledge and technique of management. They are sending their relatives abroad to do managerial courses.
All over the world, management is widely taught in the universities and management institutions. There are a large number of books on management. A number of journals specialise in various aspects of management problems.
There are various formal training institutions which provide managerial training programmes, e.g. India Institutes of Management (IIMs) at Ahmedabad, Kolkata, Bangalore, etc., Post-Graduate Departments of Management; Colleges of Management in different parts of India.
 
Ans. 6. Co-ordination is the process of achieving unity of action among interdependent activities & harmonious implementation of plans for the achievement of desired goals. In the light of above statement the nature of co-ordination can be
summarised as :-
Synchronisation of different actions or efforts of the various units of an organisation.
This provides the requisite amount, quality, timing and sequence of efforts.
This ensures that planned objectives are achieved with a minimum of conflict.

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