CBSE Class 12 Business Studies Nature and Significance of Management HOTs

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


Nature & Significance of Management

1.The Activities involved in managing an enterprise are common to all organizations whether economic, social or political. Which characteristics of management is highlighted by this statement ?

Ans: Management is pervasive

2.Policy formation is the function of which level of management?

Ans: Top Level

3.In order to be successful an organization must change its goals according to the need of the environment. Which characteristic of management in highlighted in the statement?

Ans: Management is dynamic function.

4.To meet the objectives of the firm the management of Angora Ltd. Offer employment to physically challenged persons . Identity the organizational objective it is trying to achieve.

Ans: Social objective

5.Management of any organization strives to attain different objectives Enumerate any two such objectives?

Ans: a) Profit  b) Survival.

6.Who are considered as Operative managers?

Ans: Supervisors and Foremen.

7.“Management is considered to be a three-tier machinery”. Why?

Ans: Because of three levels in the management hierarchy-Top,Middle & operational.

8.Name the process by which a manager synchronizes the activities of different departments.

Ans: Coordination.

9.How is entry to a profession restricted?

Ans: The entry to a profession is restricted through an examination or through acquiring an educational degree.

10.State any two points which prove that management is multi-dimensional?

Ans: a) Management of work    b) Management of people. achievement of which organisational objectives results in “an increase in sales volume, increase in number of employees, no of products,and increase in capital investment’

ans: objective of growth

Ques:12 management is based on personalized application of knowledge ieit varies from person to person” which nature of management is signified by it?

Ans: management is an art

Ques:13 the authority responsibility relationship that binds individuals as superiors and subordinates in an organization, gives rise to what?

Ans: levels of management.

Ques: 14 if an organization derives more benefits even after using less resources it’s a result of what?

Ans: efficiency

Ques: 15 a companys target production is 5000 unitss in a year , to achieve this target the manager has to operate in double shifts due to power failure. The manager is able to meet the target but at a higher production cost. Is the manager efficient or effective?

Ans he is effective but not efficient

Ques: 16 “ managers in India do the same work as managers in usa or japan or germany” which characteristic of management is highlighted by it?

Ans: management is all pervasive

Ques: 17 “a collection of diverse individuals with different needs but working towards fulfilling the comman organizational goals” this statement highlights which characteristic of management?

Ans: management is a group activity

Ques :18 discrepancies between actual and realized activities are taken care at which stage

Ans: controlling

Ques :19ABC ltd. is facing a lot of problem these days. The company’s profit margin is declining day-by-day. The production manager is blaming marketing management whereas marketing is blaming production department for not maintaining the quality. Finance department is blaming both. What quality of management do you think is lacking. Explain it briefly.

Ans: the quality which is lacking in the above case is “co-ordination”. The manager is able to execute all the function but he is unable to co-ordinate these function of manager. co-ordination is the essence of management.

(addition : meaning/ definition of co-ordination)

Ques 20 your father has retired as a purchase manager of a company. At what level of management was he working? What function do you think he was performing at the level of management.

Ans: middle level of management explain three function of middle level of management.

Ques: 21 Rajat’s father was working as a foremen in a textile factory at what level of management is he working explain in brief his functions?

Ans: he is working at operator level of management his functions are :

  1. to prepare plans regarding their work and make distribution of work.

  2. representing the worker grievance before the management.

  3. ensuring adequate lighting, ventilation, odorless in the working area.

  4. looking after safety of workers.

  5. helping the management in selection, training, placement & promotion of workers.

  6. welcoming suggestion forms workers for better working practices.

Ques: 21.A company manufacturing mobiles is facing the problem of decreasing sales in the market. You can imagine any product about which you are familiar. What decisions/ steps should each level of management take to give effect to this decision.

Ans: modernization of product is needed to increase it shares in the market. Hence to modernize the product each level should work as follows

1. top level management –

i) they must plan to add some new features in there mobiles.

ii) They must organize and assemble necessary resources.

iii) They must co-ordinate the efforts of all the department towards modernization

2. middle level management-

i) they must implement the plans made the plans made by top level in their respective departments.

ii) They must interpretate the plans to their subordinates.

iii) They must select effective and efficient employers to perform the task.

iv) They should try to use available resources in best possible manner & should try to minimize the cost of product.

3 . lower/supervisory level-

i) they must assign the task according to efficiency & qualification of employees.

ii) they must maintain the quality of work and reduce the wastage.

iii) they must make efforts to improve the loyalty of workers.

Ques: 22 without effective management the resources will remain as resources cannot be converted into productive utilities. “do you agree” ? give reason.


“success of an organization largely depends upon its management.” Explain any five reasons to justify the above statement.

Ans: success of an organization largely depends upon its management because of the following reasons:-

(a)helps in achieving group goals

(b)increase efficiency

(c)creates a dynamic organization

(d)help in achieving personal objective of organization

(e)helps in development of society.


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