CBSE Class 12 Business Studies Nature And Significance Of Management Worksheet Set B

Read and download free pdf of CBSE Class 12 Business Studies Nature And Significance Of Management Worksheet Set B. Students and teachers of Class 12 Business Studies can get free printable Worksheets for Class 12 Business Studies Chapter 1 Nature and Significance of Management in PDF format prepared as per the latest syllabus and examination pattern in your schools. Class 12 students should practice questions and answers given here for Business Studies in Class 12 which will help them to improve your knowledge of all important chapters and its topics. Students should also download free pdf of Class 12 Business Studies Worksheets prepared by school teachers as per the latest NCERT, CBSE, KVS books and syllabus issued this academic year and solve important problems with solutions on daily basis to get more score in school exams and tests

Worksheet for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Class 12 Business Studies students should refer to the following printable worksheet in Pdf for Chapter 1 Nature and Significance of Management in Class 12. This test paper with questions and answers for Class 12 will be very useful for exams and help you to score good marks

Class 12 Business Studies Worksheet for Chapter 1 Nature and Significance of Management

Question. The Actities involved in managing an enterprise are common to all organizations whether economic, social or political. Which characteristics of management is highlighted by this statement ?
Answer : Management is pervasive

Question. Policy formation is the function of which level of management?
Answer : Top Level

Question. 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?
Answer : Management is dynamic function.

Question. 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.
Answer : Social objective

Question. Management of any organization strives to attain different objectivesm Enumerate any two such objectives?
Answer : a) Profit
b) Survival.

Question. Who are considered as Operative managers?
Answer : Supervisors and Foremen.

Question. “Management is considered to be a three-tier machinery”. Why?
Answer : Because of three levels in the management hierarchy-Top,Middle & operational.

Question. Name the process by which a manager synchronises the activities of different departments.
Answer : Coordination.

Question. How is entry to a profession restricted?
Answer : The entry to a profession is restricted through an examination or through acquiring an educational degree.

Question. State any two points which prove that management is multi-dimensional?
Answer : a) Management of work
b) Management of people.

Question. achievement of which ortanisational objectives results in “an increase in sales volume, increase in number of employees, no of products,and increase in capital investment’
Answer : objective of growth

Question. management is based on personalized application of knowledge ieit varies from person to person” which nature of management is signified by it?
Answer : management is an art

Question. the authority responsibility relationship that binds individuals as superiors and subordinates in an organization, gives rise to what?
Answer : levels of management.

Question. if an organization derives more benefits even after using less resources it’s a result of what?
Answer : efficiency

Question. 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?
Answer : he is effective but not efficient

Question. “ managers in India do the same work as managers in usa or japan or germany” which characteristic of management is highlighted by it?
Answer : management is all pervasive

Question. “a collection of diverse individuals with different needs but working towards fulfilling the comman organizational goals” this statement highlights which characteristic of management?
Answer : management is a group activity

Question. discrepancies between actual and realized activities are taken care at which stage
Answer : controlling

Question. ABC 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.
Answer : 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.

Question. 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.
Answer : middle level of management explain three function of middle level of management.

Question. 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?
Answer : he is working at operatory 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 ofworkers.
6. welcoming suggestion forms workers for better working practices.

Question. 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.
Answer : 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 al he department towards modernization
2. middle level managementi)
they must implement the plans made the plans made by top level in their respective departments.
ii) They must interpretate the plans totheir 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 leveli)
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.

Question. without effective management the resources will remain as resources cannot be converted into productive utilities. “do you agree” ? give reason.
Or
“success of an organization largely depends upon its management.” Explain any five reasons to justify the above statement.
Answer : 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.

Important Questions for NCERT Class 12 Business Studies Nature and Significance of Management

Question. Under what function of management does the ‘corrective action’ fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Answer : D

Question. Coordination is
(a) Function of management
(b) The essence of management
(c) an objective of management
(d) none of the above

Answer : B

Question. Management is always denoted by ‘We’ and not by ‘I’ because
(a) It is a process
(b) It is continuous
(c) It is a group activity
(d) It is intangible

Answer : C

Question. Identify the social objectives from the following.
(a) Providing good quality products at reasonable prices.
(b) Conducting business in fair and lawful manner.
(c) Expansion of the organisation.
(d) Both (a) and (b)
Answer : D

Question. Which of the following is not a dimension of management?
(a) Management of work
(b) Management of people
(c) Management of operations
(d) Management of ideas
Answer : D

Question. Assertion (A) The effect of management is noticeable in an organisation where targets are according to plans, employees are happy and satisfied and there is orderliness instead of chaos.
Reason (R) Every member of the organisation has a different purpose for joining the organisation and each member works towards his personal goal.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d)Assertion (A) is false, but Reason (R) is true
Answer : C

Question. The marketing manager of ‘Sisco Limited’ always keeps a check on the changes happening in the surroundings and instructs the research and development department to improve the products accordingly. This habit of the marketing manager helps the company to keep an edge over the competitors. Which feature of management is depicted in the above case?
(a) Pervasive
(b) Intangible force
(c) Continuous
(d) Dynamic
Answer : D

Question. For the two statements given below, choose the correct option
Statement I In order to survive, an organisation must earn enough revenues to cover cost.
Statement II Management increases effectiveness by reducing costs and increasing productivity.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect
Answer : A

Question. Management works with the following objectives
(a) Objective of profit maximisation
(b) Objective of sales maximisation
(c) Objective of becoming market leader
(d) Multiple objective

Answer : D

Question. Earning profit is essential to cover the costs, survival and growth. Which objective of the management has been referred here?
(a) Social objective
(b) Organizational objective
(c) Personnel objective
(d) Individual objective

Answer : B

Question. As Top Level is responsible for the welfare and operations of whole organisation, Middle Level is responsible for the welfare and operations of
(a) Workers
(b) Department
(c) Both (a) and (b)
(d) None of the above

Answer : B

Question. Coordination is
(a) A function of management
(b) An essence of management
(c) Part of Management
(d) None of the above

Answer : B

Question. Policy formulation is the function of
(a) top-level managers
(b) middle-level managers
(c) operational management
(d) all of these
Answer : A

Question. This level of management is responsible for all the activities of the business and for its impact on society. Identify the level of management:
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) Both A and B
Answer : A

Question. Which function of management ensures work accomplishment as per plan?
(a) Planning
(b) Directing
(c) Controlling
(d) Organising

Answer : C

Question. The process by which a manager integrates and synchronises the activities of different department is called
(a) Management
(b) Controlling
(c) Planning
(d) Coordination

Answer : D

Question. Coordination is more important in an organisation-
(a) Performing or dealing with single function
(b) Performing or dealing with multiple functions
(c) Performing or dealing with manufacturing goods
(d) All of the above

Answer : B

Question. All the businessmen prefer their children to do MBA and then join business. This is related to
(a) Management as Science
(b) Management as an Art
(c) Management as a profession
(d) Management as both Science and Art

Answer : C

Question. Which of the following is not a function of management?
(a) Planning
(b) Staffing
(c) Cooperating
(d) Controlling

Answer : C

Question. A good manager focuses on
(a) Prosperity of management
(b) Prosperity of employees
(c) Prosperity of both management and employees
(d) None of the above

Answer : C

Fill in the Blanks

1. The management of an organisation does not achieve its objective by chance, but it is done by following a process called Management.
2. The function of management, which creates various departments is called Organising.
3. The primary or first function of every manager is Planning.
4. Division/Department head belongs to Middle Level of management.
5. Managers must update and modify its objectives from time to time is indicated in Dynamic feature of management.
6. Management has Multiple objectives.
7. Completing the task with minimum cost and optimum utilisation of resources is called Efficiency.
8. Completing the task on time or achievement of target is called Effectiveness.
9. Increase in number of branches, number of products indicate that management is achieving Organisational objective.
10. Coordination does not come by chance but is a Deliberate process
11. Management is a continuous process as different functions of management are simultaneously performed by all the managers all the time.
12. Management is a dynamic function as it adapts itself according to the changing environment.
13. An organisation has a set of basic goals which are the basic reason for its existence.
14. Management is a complex activity that has three main dimensions.
15. The Multidimensional characteristics of management links work,. people,and operations.

 ONE WORD ANSWER QUESTIONS


Question. What distinguishes a successful manager from a less successful manager is the ability to put the principles and methods of management into practice. Which feature of management is being highlighted here?

Answer :  Management is dynamic.

Question. In an organisation targets are met according to plans, employees are happy and satisfied and there is orderliness instead of chaos. Which characteristic of management is being highlighted here?
Answer :  Management is an intangible force

Question. Identify the basic characteristic of management involved in the statement, ‘The activities involved in managing an organisation are common to all organisations, whether economic, social or political’.
Answer :  Management is all pervasive.

Question. To meet the objectives of the firm, the management of JMD Infrastructures Ltd. offered employment to a physically challenged person. Identify the managerial objective it is trying to achieve.
Answer :  Social Objective.

Question. “With the help of self-motivation and leadership techniques, management helps individuals develop co-operation, commitment, team spirit, etc.” The above statement refers to which type of objective of management?
Answer :  Personnel Objective.

Question. Personal growth and development of employees refers to which type of objective?
Answer :  Personnel objectives.

Question. An organisation needs to enhance its profit year after year. Which purpose of organisational objective is achieved here?
Answer :  Growth.

Question. Identify the nature of management when it is said to be a systematised body of knowledge that explains certain general truths.
Answer :  Management is a science.

Question. “The truth, managers are born has been replaced with managers are made.” What nature of management is highlighted here?
Answer :  Management is a profession.

Question. ‘A manager applies scientific methods and body of knowledge to a given situation, an issue or a problem in his own unique manner.’ Which aspect of nature of management is being discussed here?
Answer :  Management as an art

Question. Name the level of management which is engaged in overseeing the activities of the workers 36. At which level of management does directing take place?
Answer :  Supervisory/Lower level

Question. Which level of management has the power to decide about the opening of new branch of a business?
Answer :  Top level

  REASON AND ASSERTION


Question. Assertion (A): Management as an art and science are not mutually exclusive, but complement each other.

Reason (R): Managers work better if their practices are based on principles of management.
Find the correct option:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer :  (a) Both A and R are true and R is the correct explanation of A.


Question. Assertion (A): Through management the personnel objectives can be achieved.
Reason (R): Management helps to provide good quality products, create employment opportunities and adapt new technologies.
Find the correct option:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer :  (b) Both A and R are true but R is not the correct explanation of A
Explanation: The correct explanation to A is that a manager motivates and leads his team in such a way that individual members are able to achieve personal goals while contributing
to the overall organisational objective.
 

Question. Assertion (A): In any organisation coordination is required so that production and sales department can work hand in hand.
Reason (R): Coordination integrates group efforts.
Find the correct option:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer :  (b) Both A and R are true but R is not the correct explanation of A
Explanation: Both the statements i.e. Assertion and Reason are correct but R is not the correct explanation of A. The reason behind this assertion is that Coordination ensures unity of action. It acts as a binding force between departments.


Question. Assertion (A): The activities of each department need to be linked through coordination.
Reason (R): Specialists usually think that they only are qualified to evaluate, judge and decide according to their professional criteria.
Find the correct option:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer :  (b) Both A and R are true but R is not the correct explanation of A
Explanation: Both the statements i.e. Assertion and Reason are correct but R is not the correct explanation of A. The reason behind this assertion is the organisations have separate departments based on functions and all these departments have their own objectives.

 

Important Questions for NCERT Class 12 Business Studies Nature and Significance of Management

Question. Which of the following have no representative professional organisations available?
(a) Law
(b) Management
(c) Medical
(d) Accountancy

Answer : B
 

Question. Management ensures:
(a) Providing employment opportunities
(b) Maintaining profit
(c) Ensuring maximum utilisation of resources
(d) Control on cost

Answer : C

 

Question. A ________ chain is formed from the top-level management to the lower-level management.
(a) Vertical
(b) Thick
(c) Scalar
(d) Small

Answer : C

 

Question. Under what function of management does the ‘corrective action’ fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Answer : D

 

Question. What out of the following has been called the essence of management?
(a) Communication
(b) Coordination
(c) Supervision
(d) Leadership

Answer : B

 

Question. What contributes to the elimination of complexities of large-scale organisations?
(a) Planning
(b) Directing
(c) Controlling
(d) Coordination

Answer : D

 

Question. What is the focus of attention when a manager is busy in planning activity?
(a) Coordination
(b) Directing
(c) Controlling
(d) Staffing

Answer : A

TRUE AND FALSE

1. Supervisors and foremen may both be considered first-line managers.    True 

2. First-line supervisors are responsible for directing the day-to-day activities of operative employees.  True 
3. Middle level managers set goals and objectives and make decisions about the direction of the organisation that affect everyone in the organisation.   False
4. Middle level management is responsible for setting and achieving objectives for the organisation.   False
5. Directing takes place at every level of management.   True 
6. Coordination is sometimes considered a separate function of management.  True 
7. AIMA (All India Management Association) has a statutory backing.   False 
8. Creation of job positions from the top to bottom is known as hierarchy of the management.  True 
9. The top level of management is not responsible for all its activities of business and its impact on society.   False
10. First line managers are also known as top level managers.   False
11. A professional manager can possess professional degree or vast experience in a specialised field of business operations.  True 
12. Every manager must be the member of professional body/association.   False

CORRECT THE INCORRECT STATEMENT

Question. Activities involved in managing the enterprises are different to different to all organisations.
Answer :  Activities involved in managing the enterprises are common to all organisations.

Question. Management has to reconcile personal goals with the social objectives for harmony in the organisation.
Answer :  Management has to reconcile personal goals with the organisational objectives for harmony in the organisation

Question. The main motive of a profession is to earn sufficient money to society.
Answer :  The main motive of a profession is to render services to the society.

Question. Cooperation in the absence of coordination may lead to dissatisfaction among employees.
Answer :  Cooperation in the absence of coordination may lead to wasted effort.

Question. Through motivation and leadership, the management helps individuals to develop team spirit, cooperation and commitment to group success, thus achieving social objectives.
Answer :  Through motivation and leadership, the management helps individuals to develop team spirit, cooperation and commitment to group success, thus achieving personnel objectives.

Question. It is through process of controlling that a manager ensures the orderly arrangement of individuals and group efforts to ensure unity of action in the realization of common objectives.
Answer :  It is through process of coordination that a manager ensures the orderly arrangement of individuals and group efforts to ensure unity of action in the realization of common objectives.

Important Questions for NCERT Class 12 Business Studies Nature and Significance of Management

Question. Which is not a function of Management of the following?
a. Planning
b. Controlling
c. Cooperating.
d. Staffing.

Answer : C

Question. Setting Objective is a function of :-
a. Middle level management
b. Operational level management
c. Top level Management
d. None of the above

Answer : C

Question. Which one of the following sequence of process of management is correct:
(a) Planning, Controlling, Organising, Staffing
(b) Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Controlling
(d) Organising, Planning, Staffing, Controlling

Answer : C

Question. Management ensures:
(a) Providing employment opportunities
(b) Maintaining profit
(c) Ensuring maximum utilisation of resources
(d) Control on cost

Answer : C

Question. Saksham is responsible for taking decision on which machinery to be purchased to improve the productivity of the organisation. At which level Saksham is working?
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) Supervisory Level
Answer : B

Question. Human Resource Department of any organisation has to ensure the adequate number of employees available throughout the organisation. At which level a human resource manager works?
(a) top-level management
(b) middle-level management
(c) operational management
(d) all of these
Answer : B

Question. A manager obtains the required capital at 12% interest while the prevailing rate of interest happens to be 10%. How would you describe such a manager?
(a) Efficient
(b) Effective
(c) Efficient and Effective
(d) Inefficient

Answer : B

Question. Which element of one of the functions of management Kavita used in order to achieve organizational objectives?
(a) Supervision
(b) Motivation
(c) Leadership
(d) Communication

Answer : B

Question. At what level of management does the Chief Executive Officer operate?
(a) Top-level
(b) Middle-level
(c) Lower-level
(d) None of these

Answer : A

Question. Number of levels of management are:
(a) one
(b) two
(c) three
(d) four

Answer : C

TRUE AND FALSE

1. Management affects employee morale but not a company’s financial performance. False
2. The existence of management can be seen but it cannot be felt.  False
3. For management it is necessary to be efficient rather than effective.  False
4. Efficiency means doing the task correctly and with maximum cost.  False
5. Being efficient or doing work efficiently basically means finishing the given task.  False
6. Effectiveness refers to the relationship between inputs and outputs.  False
7. Effectiveness is concerned with the means of getting things done, while the goal of efficiency is to minimize resource costs.  True 
8. Managers who are effective at meeting organisational goals always act efficiently.  False
9. To be effective, an organisation must have clearly defined sets of goals and objectives.  False
10. Organisations that are more efficient are effective.  False
11. Efficiency means completing the right task correctly to achieve the predetermined goals within given time frame.  False
12. Effectiveness refers to completion of the right task correctly using minimum cost.  False
13. Effectiveness and efficiency are the two sides of the same coin.   True   
14. Functions of management are simultaneously performed by all managers all the time.  True 
15. Personnel resist to adapt the changes in business environment.   True 

Question. Enumerate any three functions of top level Management?
Answer : (I) Determining objectives Top-level Management sets objectives for the organization. For ex. objective can be set that in the following year the sale of the company has to cross Rs.1000 crore.
(II) Determining Polices: - Only at this level polices related to the realization of objectives are formed.
For ex. It can be a sales policy of a company to just make cash sales.
(III) Assembling Resources: - Needed resources are assembled for the realization of an objective like capital, raw-material, fixed assets, etc.

Question. Enumerate any three functions of middle level Management
Answer : (I) Interpreting Policies: - At this level, polices formed by top level mgt. are interpreted. Like the marketing managers introduces his salesman to the sales policy of the company that at no cost credit sales will be made.

(II) Appointing Employees: - Every departmental manager appoints employees to fulfill the activities of his department.

(III) Issuing Instructions: - Departmental managers direct their subordinates about what to do and how they have to do. Needful resources are made available to the subordinates so that they can do the assigned jobs intermittently.

Question. State any three functions of lower level Management?
Answer : (I) Submitting Workers Grievances: - Lower level Management is in direct contact with the workmen employees. They submit serious problems of workers to middle level management

otherwise they sort out the ordinary problems themselves.

(II) Ensuring safety of workers: - Probability to accidents can be annulled by building fences around machines.

(III) Inviting suggestions: - They invite suggestions from their subordinates as to how the quality of work can be improved.

Question. Write short note on Management as a profession?
Answer : Under profession a man after training and long experience acquires proficiency with which he impartially serves different sections of society. As Management satisfies some of the conditions for being a profession like- profession like-body of specialized knowledge and techniques. formalized methods of acquiring training and experience, priority to the feeling of service but the other characteristic like representative profession association and code of conduct have still not developed adequately. Its recognisation as a profession will increase in accordance with the pace of its development 

Question. Differentiate between Efficiency & Effectiveness:
Answer : Efficiency refers to the relationship between inputs and outputs. If we produce more from the given inputs, our efficiency is increased. Or if we produce the same from less input, again our efficiency is increased. And it is only possible when a manager avoids the wastage of scarce resources. Effectiveness refers to the successful consummation of activities so that organizational goals are achieved. When a manager attains goals, we say he/she is effective. It meAns. effectiveness is adjudged merely on the basis of the attainment of goals irrespective of the fact how much cost is incurred in their fulfillment.

Question. Explain in brief, “Management” as a group of people having managerial responsibility for an enterprise?
Answer : In the context of Management, the word “group” is used in two different contexts; firstly. It refers to the group of people who are actually doing the work and are being managed and secondly, to the group of people who are actually perform the activity of Management i.e. the mangers. In this discussion by ‘group’ we simply to the group of people who perform the work of mgt. acc. to this description of mgt, the activity of Management is not carried out by any 1 person but rather it is collectivity carried out by a group of persons.

Question. Explain in brief ‘Management’ as an activity?
Answer : A few Management experts have defined Management as an ‘activity.’ The word activity implies doing something, for ex. Reading, writing, Running, swimming etc, are all activities. In the same manner, it can also be said that Management is not a person or a group of persons, rather Management is an activity therefore, the activity of Management aims to get a specific task accomplished.

Question. Explain in brief. “Management” as a process.
Answer : a process meAns. a definite system of functioning. This appear to be true so far as Management is concerned because a manager, at Whatever level of Management he may happen to be, has to perform the function of Management in a sequence, i.e. planning, organizing, staffing directing and controlling.

(5/6marks questions)

Question. What is meant by management? Explain any four characteristics.
Answer : Management is the process of conducting a set of functions (planning, organizing, staffing, directing and controlling) to get the work done in an efficient and effective manner.
Characteristics of Management:- following are the main features of Management:
(i) Management is goal oriented Process:- No goal in the hand no need of management. In other words, we need management when we have some goals to be achieved. A manager on the basis of his knowledge and experiences tries to achieve the goals which are already decided.
(ii) Management is all pervasive- Anything minus management is nothing or zero. Here by anything we mean all types of activities- business and non-business. If we deduct
management out of these activities, the result will be failure or zero.
(iii) Management is a group activity- it meAns. that it is not a single person who consummates all the activities of an organization but it is always a group of persons. Hence management is a group effort.
(iv) Management is an Intangible force- Management is that power which cannot be seen. It can only be felt. If any organization is heading toward higher levels of achievement, it signifies an existence of good management & vice – versa.

Question. ‘Anything minus Management is zero’. Explain the importance of management in the light of this statement.
Answer : Not only in the field of business but in other field also, has management come to occupy an important place. In this reference, it is said that anything minus management is nothing. The following facts clearly highlight the importance of management.
(i) Management helps in achieving Group goals: it is the most important characteristics of management that it is goal oriented activity. A manager achieves these goals by giving
proper direction to the efforts of all individuals.
(ii) Management increases efficiency: a manager increases efficiency through optimum utilization of all the resources, such as Man, Machine, Material and money.
(iii) Management creates a Dynamic Organization: to face the changing environment many changes need to be made in the organization as well. But people resist changes,. Manager creates a favorable environment through introducing employees to the benefits arising by adapting changes.
(iv) Management helps in achieving Personal Objectives: every employee wants to get suitable remuneration a share in profit, participation in management etc, in the form of personal objectives. A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organization objectives.
(v) Management helps in the Development of Society- Management has some responsibility towards society. Managers by fulfilling their social responsibilities help in the development of society. These responsibilities are to provide employment opportunities to prevent environment from getting pollution, to make available good quality products at a reasonable price, etc.

Question. “Management is a science like physics or chemistry”. Do you agree with this statement? Give reasons in support of your Ans.wer.
Answer : This statement is wrong. Although management can be called science but not as an exact or pure science like physics or chemistry.
It is important to apply the characteristics of science to management in order to find out whether management is a science or not. Following are the main points:
(i) Systematized Body of Knowledge: it is necessary for science to be a systematized body of knowledge. Management is also a systematized body of knowledge because it has its own theory and principle which are developed by the management experts after years of research.
(ii) Principle Based on Experiments: after applying this characteristics of science to mgt, we find that development of mgt, took year for the collection of facts, their analysis and
experiment .
(iii) Universal validity- scientific principal are based on truth and they can be applied at every time and every situation. In the field of management and principles of management are considered to be based on truth and they too can be applied anywhere and in every situation.
Conclusion- the subject matter of management is human being who is an intelligent and sensitive being and whose behavior or conduct changes according to the changing situations. Therefore, no permanent principles like the principles of physics and chemistry can be enunciated in relation to his conduct or behaviour. Clearly the science of management cannot be called a pure science but it should be described as an Applied Science.

Question. Test the fact that “Management is an Art”?
Answer : Whether Management is an art or not will be known by the application of the characteristic of art in mgt., description of which is as under.
(i) Existence of theoretical knowledge: - Art is always based on certain theory of knowledge.
On the basis of this knowledge one can understand how a particular work can be accomplished. In this context Management is an art as a lot of literature available in various areas of Management
(ii) Personalized Application: - The use of available the theoretical knowledge is found in varying degree different person. For ex- 2 teacher, to players will always differ in
performing their jobs. Management processes the features of art too there are various principles of management as developed by management experts. Managers apply there
principles differently depending on their levels of knowledge.
(iii) Based on practice and creativity:- just as art can the embellished with the help Of practice in the same way managerial skills also improves with practice. Every manager has a desire to become a complete expert in this field. They can Fulfill his desire by continuous practice.
The above analysis clearly establishes that management possesses all the characteristic of art and on this very base it has been accepted as on art.

Question. Discuss the functions of Management in brief? Following are the functions of Management.-
Answer : (a) Planning – It refers to thinking before hand. Under this it is decided- what is to be done? How it is to be done when it is be done and by whom it is be done
(b) Organizing- it refers to harmonious adjustment of various elements to achieve common objectives. It involves determining activities needed to achieve the objectives, grouping these activities into depts., assigning such group of activities to managers & defining the interrelationship among various posts so that ambiguity in performance of duties can be eliminated.
(c) Staffing- It refers to filling & keeping filled the posts with people. It ensures that competent persons are appointed. The chief activities undertaken in it are recruitment, selection, training, promotion, trAns.fers, etc.

Question. What do you mean by coordination? Discuss its nature.
Answer : Coordination is a process to establish harmony among the different activities of an organization, so that the desired objectives can be achieved.
Nature of coordination: Definitions of coordination present the following facts about its nature.
(1) Coordination integrates group effort: the need for coordination is felt when group effort is needed for the accomplishment of an objective. In short, it can be said that coordination is related to group effort and not individual effort.
(2) Coordination ensures unity of action: the nature of coordination is of creating unity in action. It meAns. during coordination process an effort is made to create unity among the various activities of an organization.
(3) Coordination is a continuous process: it is not a job which can be performed once and for all, but its need is felt at every step.
(4) Coordination is an all-pervasive function: Pervasiveness refers to that truth which is applicable to all spheres (business and non-business organizations). Like making of time-table in an educational institution is an apt example of establishing coordination.
(5) Coordination is a deliberate function: coordination is never established by itself but it is a deliberate effort. Only cooperation is not suffice but coordination is also needed. For example, a teacher aspires to teach effectively (this is cooperation) but the time table is not prepared in the school (this is lack of coordination).

Important Questions for NCERT Class 12 Business Studies Nature and Significance of Management

Question. “It involves leading, influencing and motivating the employees to perform the assigned task”, highlighted one of the functions of management. Identify
(a) Staffing
(b) Planning
(c) Directing
(d) Controlling

Answer : C

Question. Which objective of management Kavita focused at?
(a) Organisational Objectives
(b) Personnel Objectives
(c) Social Objectives
(d) Growth Objectives

Answer : B

Question. Identify the reason that has made management so important from the above case study.
(a) Helps in achieving personnel objectives
(b) Creates dynamic organization
(c) Helps in development of society
(d) All of above

Answer : A

Question. The following is not an objective of management
(a) earning profits
(b) growth of the organisation
(c) providing employment
(d) policy making

Answer : D

Question. Irfan Khan and Naseeruddin Shah, both got training from National School of Drama, New Delhi but they perform differently. Which feature of art is associated with the above fact?
(a) Based on practice and creativity
(b) Universal validity
(c) Existence of theoretical knowledge
(d) Personalised application
Answer : D

Question. A doctor has to obtain certificate from the Medical Council of India to practice his medical profession.
Which feature of the profession is revealed here?
(a) Ethical code of conduct
(b) Restricted entry
(c) Service motive
(d) Professional association
Answer : D

Question. Whose speciality happens to be ‘personal skill’?
(a) Profession
(b) Art
(c) Science
(d) None of these

Answer : B

Question. The process of creating an internal environment, where individual work effectively and efficiently for achievement of goal is known as
(a) Coordination
(b) Delegation
(c) Management
(d) Planning

Answer : C

Question. When a worker achieves target production of 100 unit at a higher cost, he is
(a) Efficient
(b) Effective
(c) Both Effective and Efficient
(d) None of the above

Answer : B

Question. Management is a process because
(a) It involves series of steps
(b) It leads to systematic working
(c) It involves one single activity
(d) None of the above

Answer : A

Fill in the Blanks

1. Coordination is the essence of management, for achieving harmony among individual efforts towards the accomplishment of group goals.
2. Coordination is the force that binds all the other functions of management.
3. Coordination is implicit and inherent in all functions of an organisation.
4. The process by which a manager synchronises the activities of different departments is known as coordination.
5. Coordination involves synchronization of the different actions or efforts of the various units of an organisation.
6. Management as science creates cause and effect relationship.
7. A saying ‘Managers are born’ has been replaced by ‘Managers are made’.
8. All professions are based on well-defined body of knowledge.
9. The chain of command consisting of a series of managerial position is called the hierarchy of management.
10. Planning & organizing and Staffing & Directing are the respective jobs of top level and middle level of management respectively.

 

ONE WORD ANSWER QUESTIONS

Question. Which level of management spends more time on planning as compared to other levels?
Answer : Top level

Question. Name the level of management which is engaged in selection of employees.
Answer :  Middle level

Question. Name the level of management which is engaged in liaison with outside world.
Answer :  Top level

Question. Which level of managers are responsible for coordination? 
Answer :  All Levels

Question. Mr. Rounak, a director of Sunlight Bulbs Limited, gets involved in activities like procurement of raw material, production and dispatch of goods, employees discipline, etc. Name the level of management Mr Rounak belongs to.
Answer :  Top level of management.

Question. Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organization?
Answer :  Middle

Question. Which level of manages are responsible for all the activities of first line managers?
Answer :  Middle level.

Question. Which level is known as operative management in an organisation?
Answer :  Lower level/Supervisory level

Question. Which function of management can be said to be as central as the thread in a garland?
Answer :  Coordination

Question. Which aspect of management helps bring order to endeavours?
Answer : Coordination

Question. Name the voluntary action on the part of individuals working together in an enterprise for achieving common objective.
Answer :  Coordination

Question. Name the concept which binds the employees from top level to the bottom level of the organisation.
Answer : Coordination

Question. Name the process which provides the requisite amount, quality, timing and sequence of efforts and ensures that planned objectives are achieved with a minimum of conflict.
Answer :  Coordination

Very Short answer type questions

Question. “Planning, Organizing, Staffing, Directing and controlling” is the sequence of functions in a process. Name it.
Answer:
Management

Question. Production manager tries to produce goods with minimum costs. Name the concept which is being focused by management?
Answer: 
Efficiency

Question. Hritik Ltd target is to produce 10,000 shirts per month at a cost of Rs. 150 per shirt. The production manager has achieved this target at the cost of Rs 160 per shirt. Do you think the production manager is effective?
Answer:
He is effective as he has achieved the target but he is not efficient as he achieved the target by incurring higher cost

Question. What do you mean by effectiveness?
Answer: 
It means completing the task or achieving the goals within stipulated time period.

Question. In order to be successful, an organization must change its according to the needs of the environment. Which characteristic of management is highlighted in the statement?
Answer:
Management is a dynamic function.

Question. Your Grand Father has retired as the director of a manufacturing company. At what level of management was he working.
Answer: 
Top management.

Short answer type questions

Question. ‘Management is multi-dimensional’. Explain?
Answer: Management is a complex activity and involves following three main dimensions -
i) Management of works
In each and every organisation, certain type of work is to be performed.
In school, overall development of a child is to be done; in hospitals, patients are treated etc. Management converts these works into goals and devises the means to achieve them.
ii) Management of People.
Management is concerned with “getting things done through people”, which is a very difficult task. All the employees have different personalities, needs backgrounds and methods of work. Thus, it becomes management’s job to make them work as a group by giving common direction to their efforts.
iii) Management of operations.
In order to survive, each organisation has to provide certain goods or services. This involves production process thus, management of operations is inter linked with both the above dimensions viz., management of work and the management of people.

Question. What are the personal objectives of the management?
Answer: Personal objectives refer to the objectives which are related to theemployees of an organisation. They are as follows:
i) Financial needs like competitive salaries, incentives and other monetary benefits.
ii) Social needs like recognition in the organisation.
iii) Higher level need which includes personal growth and development.

Question. “Coordination is synchronization of group efforts to achieve organizational objectives.”Give definition and in the light of this statement highlight any three importance of coordination.
Answer: Definition of coordination
i. Growth in size
ii. Functional differentiation
iii. Specialization

Question. Explain the 'social objectives' of management.
Answer: Each organisation is a part of society and thus it has certain social obligations to fulfil.
Some of them are as follows:
(i) To supply quality goods and services
(ii)Providing basic amenities to the employees like schools and creches for their children, medical facilities etc.
(iii) To generate employment opportunities especially for the backward classes.
(iv) To provide environment friendly methods of production.
(v) To provide financial support to society by donating for noble causes.
(vi) To organize educational, health and vocational training programmes.
(vii) To participate in social service projects of Government and Non – Governmental Organisations (NGOs)

Long answer type questions

Question. ABC Ltd. sells Blood sugar testing equipment of three different brands vizGluneo, Onetouch and Oncall. There are three people in the dispatch department, five in sales department and two in purchase department. Of late, customers are complaining that the goods dispatched are as per the goods ordered. Many times quantity demanded is short or the products are of different brand. The sales department is also complaining that the goods are not in stock therefore they are not able to meet with the orders.
Purchase department says that neither the store in-charge informs them about the stock levels nor the sales manager provides them with forecast sales. Each department is holding others responsible for the chaos.
Which quality of management is missing in ABC Ltd. Explain the role that this quality plays in improving the business performance?
Answer: Coordination
• Ensures unity of action
• Erases interdepartmental conflicts
• Promotes harmonious implementation of plans
• Helps in maintaining a high degree of morale amongst employees

Question. Hindustan Entertainment Company is organizing circus shows internationally for the last thirty years. Their shows have been successful across the globe. Of late, their shows are not as popular as they were in the past. Therefore they are thinking of bringing necessary changes in their shows to regain their popularity. Identify which characteristic of management they reflect in their business. Give reasons. Suggest the necessary actions or decisions which should be be taken at each level of management to improve business opportunities.
Answer: Dynamic: adapt to changes, follow new strategies to attract their viewers
Goal oriented: because they want to achieve their objective that they were in pursuit for last 30 years At Top Level: analyse reason for downfall, see and learn from competitors, invest money and bring latest from the market & to promote innovation and coordinate efforts of all employees in this pursuit
At Middle Level: bring innovation, market their shows, advertise, implement the plans of top level, motivate the performers to adapt to changes and encourage initiative
At Lower Level: supervisors and workers must work in line with the policies of top level andmiddle level, open to changes, adapt and practice to the new innovations and initiate to bring innovative ideas.

 Important Questions for NCERT Class 12 Business Studies Nature and Significance of Management

 

Question. Management is     
(a) an art
(b) a science
(c) both art and science
(d) neither

Answer : c

Question. Which of the following is true?
(a) Coordination is not equally important at all levels of management
(b) Coordination has no importance
(c) Coordination is equally important at all levels of management
(d) None of these

Answer :  C

Question. Management is important because:
(a) It helps in achieving group goals
(b) It helps in development of society
(c) It increases efficiency
(d) All of the above

Answer :  D

Question. Name the country in which management is accepted as profession.
(a) America
(b) Japan
(c) India
(d) America and Japan

Answer :   D

Question. Which is not a function of management of the following:  
(a) planning
(b) staffing
(c) cooperating
(d) controlling

Answer :  C

Question. The principles of Physics and Chemistry are stable. What is your opinion about management?
(a) Stable
(b) Unstable
(c) No principle is available
(d) None of these

Answer :  B

Question. “Coordination is not a separate function of management but it happens to be the final truth of all functions.” In what context this observation has been made?
(a) Coordination is the essence of management
(b) Coordination is not established automatically
(c) Coordination is a continuously moving process
(d) None of these

Answer : A

TRUE AND FALSE

1. Art does not involve the creative practice of existing theoretical knowledge.  False
2. Management is a full-fledged profession like legal, accounting and medical profession.   False
3. Management is a soft science.   True 
4. The main objective of any profession is to serve the society as a whole.   True 
5. The basic objective of any profession is to earn money.  False
6. Management has the characteristics of a full-fledged profession.  False
7. Management as an art and a science are not mutually exclusive, but complement each other.  True 
8. Anyone can be called a manager irrespective of the educational qualifications possessed.   True 
9. It is not mandatory anywhere in the world to possess a specialized degree to become a manager.   True 
10. There is no compulsion for managers to be the members of any management association nor does it have any statutory backing.  True 
11. Profession refers to the skills to be put into action for the achievement of a given task.  False
12. Management is not an exact science because it fulfils principles of science fully in some situations and partly in others.  True 
13. Old saying ‘Managers are born’ has been replaced by ‘Managers are made’.    True 
14. Science is a well-defined body of knowledge which is learned intellectually with the motive to serve others.  False

CORRECT THE INCORRECT STATEMENT

Question. Management provides good quality products and services, creates employment opportunities and adopts new technology for the greater good of the people. In this way it helps in achieving personnel objectives.

Answer :  Management provides good quality products and services, creates employment opportunities and adopts new technology for the greater good of the people. In this way it helps in development of society.

Question. Every member of the group has a different purpose for joining the organisation but as a member of the organisation, they work towards fulfilling the common organizational goals.’ This statement says that management is a goal oriented process.
Answer :  Every member of the group has a different purpose for joining the organisation but as members of the organization, they work towards fulfilling the common organizational goals.’ This statement says that management is a group activity.

Question. Effectiveness is cost-benefit analysis; and efficiency is input-output relationship.
Answer :   Efficiency is cost-benefit analysis or in other words input-output relationship.

Question. Poor management is due to inefficiency.
Answer :  Poor management is due to both ineffectiveness and inefficiency.

Question. Management is multidimensional and it deals with management of work, goals and people.
Answer :  Management is multidimensional and it deals with management of work, process and people.

Question. Management fulfills personnel objectives through satisfying financial needs such as competitive salaries and perks, social needs like personal growth and higher-level needs such as peer recognition.
Answer :  Management fulfills personal objectives through satisfying financial needs such as competitive salaries and perks, social needs like peer recognition and higher-level needs such as personal growth.

Question. The managers apply the scientific methods and body of knowledge to a given situation in a prescribed manner.
Answer :  The managers apply the scientific methods and body of knowledge to a given situation in their own unique manner.


 REASON AND ASSERTION

Question. Assertion (A): Management is multidimensional.
Reason (R): The effect of management is noticeable in an organisation when targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos.
Find the correct option:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer :  (b) Both A and R are true but R is not the correct explanation of A
Explanation: The correct explanation to A is that Management has three dimensions. It translates the work in terms of goals and convert inputs into desired outputs through people.
 

Question. Assertion (A): The job of the lower level is complex and stressful, demanding long hours and commitment to the organisation.
Reason (R): Lower level managers interact with the actual work force, pass on the instructions, supervise their work, maintains quality of products, maintains safety standards and so on.
Find the correct option:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer :  (d) A is false but R is true
Explanation: The job of the top level is complex and stressful, demanding long hours and commitment to the organisation.


Question. Assertion (A): Manager is involved in the activities of the organisation. Studies critical situations and formulates his own theories for use in a given situation.
Reason (R): The principles of management have evolved over a period of time based on repeated experimentation and observation in different types of organisations.
Find the correct option:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer :  (b) Both A and R are true but R is not the correct explanation of A
Explanation: The correct explanation to A is that management in an art so a manager applies his acquired knowledge in a personalised ad skillful manner.

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