Samacheer Kalvi Class 12 Commerce Solutions Chapter 2 Functions of Management

I. Choose the correct answer

 

Question 1. Which is the primary function of management?
(a) Innovating
(b) Controlling
(c) Planning
(d) Decision-making
Answer: (c) Planning
In simple words: Planning is the very first and most important step in management. It helps decide what needs to be done.

🎯 Exam Tip: Remember that planning is the foundational function upon which all other management activities are built.

 

Question 2. Which of the following is not a main function?
(a) Decision-making
(b) Planning
(c) Organising
(d) Staffing
Answer: (a) Decision making
In simple words: While making choices is a big part of management, it is not considered one of the core or main functions like planning or organising.

🎯 Exam Tip: Distinguish between primary management functions (like planning, organising, staffing, directing, controlling) and other important managerial activities like decision-making or innovation.

 

Question 3. __________ is included in every managerial function.
(a) Co-ordinating
(b) Controlling
(c) Staffing
(d) Organising
Answer: (a) Co-ordinating
In simple words: Co-ordinating means making sure all parts of a plan work well together. This is needed in every single step of managing things.

🎯 Exam Tip: Coordination is often considered the essence of management, as it integrates all other functions to achieve goals.

 

Question 4. Which of the following is verification function?
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling
Answer: (d) Controlling
In simple words: Controlling is about checking if things are going as planned and making changes if they are not. It verifies performance.

🎯 Exam Tip: Identify controlling as the function that measures actual performance against standards and takes corrective actions.

II. Very short answer

 

Question 1. Write a short note about planning.
Answer: Planning is the first and most important job of management. Nothing can be done without first making a plan. Planning helps us look at what we will need in the future so that we can change what we do now to reach our goals. It helps set a clear path for everyone to follow.
In simple words: Planning is the main job in management. It means thinking ahead about future needs and setting current actions to reach goals.

🎯 Exam Tip: When defining planning, highlight its forward-looking nature and its role in setting the foundation for all other functions.

 

Question 2. What is meant by Motivation?
Answer: Motivation is what helps people achieve their goals. It involves making sure workers perform their tasks faster and willingly. This push can come from money, like cash bonuses, or from other things, like recognition or good working conditions. Good motivation makes employees feel valued and work harder.
(i) Goals are achieved with the help of motivation.
(ii) It includes increasing the speed of performance of a work and developing a willingness on the part of workers.
(iii) It may be monetary (cash) or non-monetary (kind).
In simple words: Motivation is about encouraging people to work well and willingly to reach goals. It can be through money or other benefits.

🎯 Exam Tip: Emphasize that motivation leads to both increased performance and willingness, covering both financial and non-financial incentives.

 

Question 3. What is meant by Controlling?
Answer: Controlling is done to check how well employees are performing and to help with decisions about pay raises and promotions. This function helps find employees who are not doing well and arranges extra training for them. It ensures that actual work matches the planned standards. Controlling keeps the company on track to reach its aims.
In simple words: Controlling checks employee performance, helps decide promotions, finds weaker performers, and arranges their training to meet standards.

🎯 Exam Tip: Focus on controlling as a feedback mechanism that evaluates performance and ensures alignment with established standards and goals.

 

Question 4. List the subsidiary functions of management.
Answer: The extra, supporting jobs of management include:
(i) Innovation: Finding new and better ways to do things.
(ii) Representation: Acting as the company's face to others.
(iii) Decision-making: Choosing the best path among different options.
(iv) Communication: Sharing information clearly with everyone.
These functions help the main management tasks run smoothly.
In simple words: Subsidiary functions are smaller tasks that support main management jobs, such as creating new ideas, representing the company, making decisions, and talking clearly with others.

🎯 Exam Tip: Clearly differentiate between primary (main) and subsidiary (supporting) functions, providing a brief explanation for each subsidiary function.

 

Question 5. What is the Traditional Proverb used in planning?
Answer: Two common old sayings used when talking about planning are: "Thinking before doing" and "Look Before you Leap". These proverbs highlight the importance of careful thought before taking action, which is the core idea of planning. They remind us to consider all possible outcomes first.
In simple words: The old sayings "Thinking before doing" and "Look Before you Leap" are used for planning, meaning you should think carefully before acting.

🎯 Exam Tip: When asked for traditional proverbs, ensure you provide the exact phrasing of common sayings related to the concept.

III. Short answer questions.

 

Question 1. List out the main functions of management?
Answer: The main jobs of management, sometimes called primary functions, are essential for any organisation to run well. They help achieve goals in a planned way. These main functions are:
(i) Planning: Setting goals and deciding how to reach them.
(ii) Organising: Arranging resources and tasks.
(iii) Staffing: Finding and hiring the right people.
(iv) Directing: Guiding and motivating employees.
(v) Motivation: Encouraging employees to perform.
(vi) Controlling: Checking performance against goals.
(vii) Co-ordination: Making sure all parts work together.
In simple words: The main jobs of management include planning, organising, staffing, directing, motivating, controlling, and co-ordinating.

🎯 Exam Tip: List the seven main functions of management accurately and ensure you provide a brief, clear description for each.

 

Question 2. State the importance of staffing.
Answer: Staffing is very important because it is about putting the right people in the right jobs. This includes choosing good candidates, training new employees, promoting the best workers, and deciding on fair pay. It also involves taking care of staff who retire and checking everyone's performance. The success of any company really depends on how well it manages its staffing function. Getting the right team in place is key to a company's success.
In simple words: Staffing is important for finding and placing the right people in jobs, training them, giving promotions, checking performance, and deciding their pay, which makes a company successful.

🎯 Exam Tip: Emphasize that staffing is crucial for overall organizational success by ensuring the availability and effective utilization of human resources.

 

Question 3. What is meant by Innovation?
Answer: Innovation means getting people and the company ready to handle changes in the business world. Businesses are always changing, so innovation helps by creating new products, using new materials, finding new ways to produce things, designing new packaging, and reducing costs. This continuous improvement keeps a business competitive and fresh.
(i) Innovation refers to the preparation of personal and organization to face the changes made in the business world.
(ii) Continuous changes are being made in the business.
(iii) It includes developing new products, new materials, new techniques in production, new package, the new design of a product, and cost reduction.
In simple words: Innovation is about preparing a company for changes by making new products, using new methods, and reducing costs.

🎯 Exam Tip: Define innovation in terms of adapting to change, developing new ideas, and improving products or processes to stay competitive.

 

Question 4. What is meant by co-ordination?
Answer: Coordination means making sure all the different actions of people working in a company, in their various roles, work together smoothly. This helps the company reach its common goals in the most successful way. Coordination is needed in every single part of management to ensure everything aligns.
For example, it is needed in:
(i) Planning and co-ordination
(ii) Organisation and Co-ordination
(iii) Staffing and co-ordination
(iv) Directing and Co-ordination
(v) Motivation and co-ordination and
(vi) Controlling and co-ordination.
In simple words: Coordination is about making sure all people and their actions in a company work together to achieve goals. It's vital for every management task.

🎯 Exam Tip: Highlight coordination as the process of integrating activities across different functions to ensure unity of action towards common objectives.

 

Question 5. How the employees are informed about important matters in a company?
Answer: Employees are kept updated on important company matters in many ways. This can include sending out circulars, instruction manuals, newsletters, or putting up notices on boards. Companies also hold meetings and use participative systems to share information. Regular and clear communication helps everyone stay informed and involved.
In simple words: Employees learn about company news through circulars, manuals, newsletters, notice boards, meetings, and other ways to keep them updated.

🎯 Exam Tip: List various formal communication channels used by organizations to disseminate information effectively to employees.

IV. Long answer questions.

 

Question 1. Explain the various functions of management.
Answer: Management involves several key functions that help an organisation achieve its goals efficiently. These functions are often grouped into main and subsidiary categories.
Main Functions:
1. Planning: This is the first and most important job. It means looking ahead to future needs and deciding how current actions should be adjusted to reach set goals. No task can begin without a clear plan.
2. Organising: This involves creating good relationships among the people in an organisation and building a network of connections between them. It structures how resources and tasks are arranged.
3. Staffing: This function includes activities like choosing and placing suitable people for specific jobs. It is about building and maintaining the right team.
4. Directing: This means motivating, leading, guiding, and talking to employees regularly to help them achieve the set goals. It is about guiding the team towards success.
5. Controlling: This job checks how employees are performing and helps make decisions about promotions and pay increases. It ensures actual performance matches planned standards.
6. Co-ordination: This is about making sure all the actions of different people working in various roles within the company work together. It brings harmony to different activities.
7. Motivating: This function helps achieve goals by increasing how fast work is done and making sure workers are willing to do their jobs. It encourages better performance.
Subsidiary Functions:
1. Innovation: This involves creating new materials, products, production methods, packaging designs, product designs, and finding ways to reduce costs. It keeps the company fresh and competitive.
2. Representation: A manager acts on behalf of the company. It is their job to maintain good relationships with others outside the organisation. This involves building a positive image.
3. Decision-making: Every employee makes many decisions daily. This function helps the organisation run smoothly by ensuring good choices are made regularly. It guides actions.
4. Communication: This is about sharing thoughts, ideas, or opinions from one person to another. Good communication helps manage jobs and coordinate activities effectively.
In simple words: Management functions include main tasks like planning, organising, staffing, directing, controlling, coordinating, and motivating. Supporting tasks are innovation, representation, decision-making, and communication. These jobs help companies run well and reach their goals.

🎯 Exam Tip: For comprehensive answers, explain both the main and subsidiary functions of management, providing a clear and concise description for each to demonstrate a thorough understanding.

12th Commerce Guide Functions of Management Additional Important Questions and Answers

I. Choose the correct answer.

 

Question 1. Which is the Secondary Function of Management?
(a) Innovation
(b) Planning
(c) Motivation
(d) Controlling
Answer: (a) Innovation
In simple words: Innovation is a supporting function of management, while planning, motivation, and controlling are main functions.

🎯 Exam Tip: Remember that secondary functions often support or enhance the primary functions rather than being core process steps themselves.

 

Question 2. "Look Before you Leap" is a usual traditional proverb which provides a basis or logic for
(a) Organising
(b) Planning
(c) Controlling
(d) Decision Making
Answer: (b) Planning
In simple words: The proverb "Look Before you Leap" means to think carefully before acting, which is the basic idea of planning.

🎯 Exam Tip: Connect proverbs or idioms directly to the management function they best represent by focusing on the core meaning of the saying.

 

Question 3. Choose the odd one out.
(a) Directing
(b) Motivating
(c) Staffing
(d) Decision-making
Answer: (d) Decision-making
In simple words: Directing, motivating, and staffing are primary functions of management, while decision-making is an activity that happens within all functions, not a separate primary function itself.

🎯 Exam Tip: When identifying the "odd one out," classify the given options into main functions and other managerial activities.

 

Question 4. Selection and placement of competent personnel is known as ..........
(a) Communicating
(b) Innovating
(c) Motivating
(d) Staffing
Answer: (d) Staffing
In simple words: The process of choosing the right people for jobs and putting them in those jobs is called staffing.

🎯 Exam Tip: Clearly link the definition of "selection and placement" to the management function of staffing.

 

Question 5. ............ is performed to evaluate the performance of employees.
(a) Staffing
(b) Controlling
(c) Selecting
(d) Training
Answer: (b) Controlling
In simple words: Controlling is the management task that checks how well employees are working.

🎯 Exam Tip: Understand that controlling is the function focused on measurement and evaluation of performance against standards.

 

Question 6. There are .......... subsidiary functions of management.
(a) Four
(b) Three
(c) Seven
(d) Six
Answer: (a) Four
In simple words: There are four main subsidiary functions of management: innovation, representation, decision-making, and communication.

🎯 Exam Tip: Memorize the specific number and names of the subsidiary functions for quick recall.

 

Question 7. Nothing can be performed without.............
(a) Planning
(b) Motivating
(c) Controlling
(d) Co-ordination
Answer: (a) Planning
In simple words: Planning is the first and most important step; without it, no other management activities can take place.

🎯 Exam Tip: Recognize planning as the foundational and prerequisite function for all other management activities.

 

Question 8. Which one of the following is correctly matched?
(a) Planning - Work assigned
(b) Representation - Right man for the right job
(c) Motivation - Fair treatment
(d) Co-ordination - Communication
Answer: (c) Motivation - Fair treatment
In simple words: Giving employees fair treatment can motivate them to work better. The other options are not correctly matched with their main ideas.

🎯 Exam Tip: Carefully review each pair and identify the option where the function and its key aspect are accurately connected.

 

Question 9. Which one of the following is correctly matched?
(a) Controlling - Remedial Training
(b) Innovation - New Techniques
(c) Communication - Representative
(d) Staffing - Selection
Answer: (b) Innovation - New Techniques
In simple words: Innovation is strongly linked with developing and using new methods or techniques to improve processes or products.

🎯 Exam Tip: Focus on the direct and most significant association between the function and the concept provided in the options.

 

Question 10. Distribution of work in GroupWise or sections is called as ...........
(a) Co-ordinating
(b) Controlling
(c) Staffing
(d) Organising
Answer: (d) Organising
In simple words: Organising means putting tasks and people into groups or sections so that work can be done efficiently.

🎯 Exam Tip: Remember that organising involves structuring tasks, grouping activities, and assigning responsibilities to achieve goals.

 

Question 11. Find the odd one out:
(a) Primary Function
(b) Harmonious Relationship
(c) Evaluate the performance
(d) Developing new materials
Answer: (a) Primary Function
In simple words: "Primary Function" is a category of functions, while the others are specific aspects or outcomes of different management functions (like harmonious relationships from organising, evaluating performance from controlling, and developing new materials from innovation).

🎯 Exam Tip: Identify terms that describe a broad category versus specific activities or outcomes when looking for the odd one out.

 

Question 12. Find the odd one out:
(a) Representative of a company
(b) Opinion from one person to another
(c) Synchronization of the actions of all individuals
(d) Decision makings
Answer: (b) Opinion from one person to another
In simple words: "Opinion from one person to another" directly describes communication, which is a subsidiary function. The others are broader descriptions of other subsidiary functions or their goals.

🎯 Exam Tip: Relate each phrase to a specific management function to determine which one stands apart in its description.

II. Match the following

 

Question 1. Match List I with List II

(a) i-4, ii-3, iii-2, iv-1
(b) i-4, ii-1, iii-3, iv-2
(c) i-4, ii-2, iii-1, iv-3
(d) i-4, ii-3, iii-2, iv-1
Answer: (a) i-4, ii-3, iii-2, iv-1
In simple words: Planning means thinking before acting (4), innovation involves facing changes (3), controlling evaluates employee performance (2), and directing involves guiding and communicating (1).

🎯 Exam Tip: Match each management function with its most descriptive characteristic or key activity provided in the second list.

 

Question 2. Match List I with List II

(a) i-4, ii-3, iii-2, iv-1
(b) i-1, ii-2, iii-4, iv-2
(c) i-2, ii-3, iii-4, iv-1
(d) i-3, ii-4, iii-1, iv-2
Answer: (a) i-4, ii-3, iii-2, iv-1
In simple words: Organising is about placing personnel (4), co-ordination integrates actions (3), representation means acting as a company representative (2), and communication transmits human thoughts (1).

🎯 Exam Tip: Carefully align each management function with its primary objective or a key activity from the provided list.

 

Question 3. Match List I with List II

(a) i-1, ii-3, iii-2, iv-4
(b) i-4, ii-3, iii-2, iv-1
(c) i-4, ii-2, iii-1, iv-3
Answer: (b) i-4, ii-3, iii-2, iv-1
In simple words: Decision making helps smooth functioning (4), motivating provides incentives (3), staffing involves selection (2), and planning ensures writing a proper framework for action (1).

🎯 Exam Tip: Match each managerial activity to its direct outcome or related concept. For example, incentives are a common tool for motivation.

III. Assertion and Reason

 

Question 1. Assertion (A): Placement of the right person in the right jobs. Reason (R): The success of any enterprise depends on the performance of staffing.
(a) (A) is true (R) is False
(b) (A) is False (R) is True
(c) Both (A) and (R) are True
(d) Both (A) and (R) are False
Answer: (c) Both (A) and (R) are True
In simple words: The assertion is true because placing the right person in the right job is exactly what staffing aims to do. The reason is also true because a company's success truly depends on how well its staffing is done.

🎯 Exam Tip: For Assertion-Reason questions, first check if each statement is individually true, then evaluate if the reason correctly explains the assertion.

 

Question 2. Assertion (A) : Planning is a function of management. Reason (R): Anything can be performed without planning.
(a) (A) is true (R) is False
(b) (A) is False (R) is True
(c) Both (A) and (R) are True
(d) Both (A) and (R) are False
Answer: (a) (A) is true (R) is False
In simple words: The assertion is true because planning is indeed a main function of management. However, the reason is false because nothing can be done effectively without proper planning.

🎯 Exam Tip: Remember that planning is a prerequisite for all other functions, making the statement "anything can be performed without planning" inherently false.

IV. Very Short Answer

 

Question 1. How the functions of management can be classified?
Answer: Management functions are divided into two main categories. These include the main or primary tasks of management and the secondary or supporting tasks. Understanding these categories helps in organizing and streamlining all work effectively.
In simple words: Management tasks are put into two big groups: main functions and smaller, supporting functions.

🎯 Exam Tip: Clearly state that management functions are classified into two categories and name both the main and subsidiary functions.

V. Short Answer

 

Question 1. State the importance of Motivation.
Answer: Motivation is very important for many reasons. It helps the organization achieve its goals and makes employees work faster with greater willingness. Motivation can be offered as cash (monetary) or as non-cash rewards (non-monetary). Often, a skilled leader is needed to motivate the team. Employees also hope for good working conditions, fair treatment, extra incentives, clear communication, and a respectful approach from their leaders, all of which contribute to better performance.
In simple words: Motivation helps reach goals, makes workers eager, and can be cash or non-cash. Good leaders and fair conditions are also important for motivation.

🎯 Exam Tip: When explaining the importance of motivation, remember to include its impact on goal achievement, employee willingness, and the different types of motivation (monetary and non-monetary).

 

Question 2. Bring out the subsidiary functions of management.
Answer: The subsidiary functions of management are supporting activities that help the main functions of management work effectively. These functions include:

• Innovation
• Representation
• Decision-making
• Communication

These roles ensure that the organization stays updated, manages its image, makes informed choices, and maintains clear information flow.
In simple words: Subsidiary functions are extra jobs that help management. These include making new ideas (innovation), acting for the company (representation), choosing what to do (decision-making), and sharing information (communication).

🎯 Exam Tip: When asked about subsidiary functions, ensure you list all four: innovation, representation, decision-making, and communication. A diagram can also help visualize these relationships.

 

Question 1. What do you mean by communication?
Answer: Communication is the process of sharing human thoughts, views, or opinions from one person to another. Through communication, workers learn exactly what they need to do, where to do it, how to do it, and when to complete it. It plays a vital role in regulating job activities and coordinating them effectively within a business.
In simple words: Communication means sharing ideas and thoughts between people. It tells workers what to do, how to do it, and when, helping to keep work organized.

🎯 Exam Tip: A good answer on communication defines it as the transfer of thoughts and highlights its importance in giving clear instructions and coordinating activities.