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

Read and download free pdf of CBSE Class 12 Business Studies Nature And Significance Of Management Worksheet Set A. 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

Characteristics/Features of Management
a) Management is Goal oriented
b) Management is Pervasive
c ) Management is Multidimensional-Management of Work, Management of people, Management of Operation
d) Management is Continuous process
e) Management is Group activity
f) Management is Dynamic function
g) Management is Intangible.

Functions of Management:
a) Planning - Setting objectives and targets and formulating an action plan of what is to be done, how to be done and when to do it
b) Organising - Assignment of duties, task, establishment of authority and responsibility Relationship, allocating the resource required to perform the planned task.
c) Staffing-Finding and placing the right person at the right job at the right time.
d) Directing - Leading, influencing, and motivating the staff chosen to perform the assigned task efficiently and effectively.
f) Controlling - Ensuring/Monitoring the activities in an organisation are performed as per the plan.

Objectives of Management
Organisational Objectives: -
a) Survival: - Ensure that the organization survives and exists in the future.
b) Profitability: - Earning adequate profit in order to survive and grow.
c) Growth: - Growth indicates how well it exploits the potential opportunities.

Social Objectives:
Supply of quality products at reasonable rates, generating employment opportunities, Contribution toward desirable civic activities, Using environmental friendly methods of production.

Personal Objectives:
Meeting the Financial needs like competitive salaries & perks, Peer recognition like self-respect etc. Good & healthy working conditions for safety of employees, Promotion, training personal growth of employees.

Importance of Management
1. Helps in achieving Group Goals
2. Creates a dynamic organization
3. Helps in achieving Personal objectives
4. Increases efficiency
5. Helps in development of society facilitate changes

Levels of Management-
The levels of management denote a demarcation between various positions in an organization on the basis of the responsibility, authority and status. These are–

Top Level Management - Ex- CEO, Board of directors, MD, President & Chairman.

Functions of Top-Level Management: -
a) Decide overall objectives of the organization.
b) Responsible for the welfare and survival of the organization.
c) Analyse the business environment and its implications for the survival of the firm
d) Formulate overall organisational goals and strategies
Middle Level Management – For eg.- Departmental heads such as purchase manager, Operations manager, Production manager, Marketing manager, Divisional heads & Plant superintendent etc.

Functions of Middle Level Management: -
a) To implement plan and policies to assist top management.
b) To assign job to subordinates.
c) To recruit employees for their respective departments

Lower level Management –For eg.- Foramen, Inspectors, Supervisors etc.
Functions of Lower-level Management: -
a. interpret the policies framed by top management
b. ensure that their department has the necessary personnel
c. assign necessary duties and responsibilities to them
d. motivate them to achieve desired objectives
e. cooperate with other departments

Nature of Management: -
Management as a Science:
a) Universal validity
b) Arranged, organized systematic body of knowledge
c) Principles arrived after experimentation.

Management as s an Art: -
a) Based on practice and creativity
b) Personalised Application
c) Existence of Theoretical knowledge.

Management as a Profession:
a) Well defined body of knowledge.
b) Existence of code of conduct
c) Professional association
d) Restricted entry
e) Fees as remuneration for their services.

Coordination: -
It is the synchronization of various activities and efforts in an organization providing the required amount of quality, timing and sequence; thus, ensuring the achievement of the planned goal with minimum resources.

Features of coordination:
1. Integrates Group Effort:
2. Ensures unity of action
3. It is a Continuous Process
4. It remains the function and responsibility of every manager

Importance of coordination
1. Ensures unity of action
2. Erases interdepartmental conflicts Promotes harmonious implementation of plans
3. Helps in maintaining a high degree of morale amongst employees

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

Question. Managers apply management principles by using creativity. This is related to
(a) Management as Science
(b) Management as an Art
(c) Management as both Science and Art
(d) Management as a profession

Answer : B

Question. “Deciding in advance what is to be done, how it is to be done, when it is to be done”, highlights which function of the management?
(a) Organising
(b) Planning
(c) Directing
(d) Controllin

Answer : B

 

Question. ............... helps in achieving group goals by giving proper direction to the efforts of all individuals.
(a) Work
(b) Management
(c) Society
(d) None of these

Answer : B

Question. Solutions Ltd. is a MNC which produces cellphones. Currently Solutions Ltd. is under huge losses due to the failure of its much hyped product in the market R and D department and marketing department are blaming each other for this failure. In your opinion Solutions Ltd. is lacking which quality of management?
(a) Planning
(b) Controlling
(c) Co-ordination
(d) Directing

Answer : C

Question. Which of the following statements is incorrect?
(a) Every individual who is working in an organisation desires handsome salary, peer recognition, etc.
(b) Every organisation has a set of goals to be achieved.
(c) Management has some social responsibilities towards society.
(d) None of the above

Answer : D

Question. Amit has recently joined RAC Limited, a company manufacturing automobile products. He found that his department was under-staffed and other departments were not cooperating with his department for smooth functioning of the organisation.
Therefore, he ensured that his department has the required number of employees and its cooperation with other departments is improved. Identify the level at which Amit was working.
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) None of these

Answer : B

Question. Identify the nature of management when it is practiced as personal application of existing knowledge to achieve desired results.
(a) Management as a science
(b) Management as an art
(c) Management as a profession
(d) All of these

Answer : B

Question. Which of the following is a cost benefit analysis?
(a) Effectiveness
(b) Efficiency
(c) Both
(d) None of the above

Answer : B

Question. Mr. Anil, who was an employee in Zebra Cosmetics Limited was able to produce the goods in time but at higher cost. Mr. Anil was
(a) effective only
(b) efficient only
(c) effective but inefficient
(d) neither effective nor efficient

Answer : C

Question. “The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied”. Which characteristic of management is highlighted in the above statement?
(a) Group activity
(b) Dynamic function
(c) Intangible force
(d) Continuous process

Answer : C

Question. “An organisation is a collection of diverse individuals having different needs who work in team with coordination in common direction.” Which feature of management has been highlighted here?
(a) Management is goal oriented
(b) Management is a group activity
(c) Management is a pervasive function
(d) Management is a continuous process

Answer : B

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. A Manager has to perform five interrelated functions in the process of managing an organisation which is a system made up of different interlinked and interdependent subsystems. Which concept of the management is highlighted here?
(a) Organisational structure
(b) Efficiency and effectiveness
(c) Hierarchy of management
(d) Coordination

Answer : D

Question. At what level Kavita Mendiratta is working?
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) Supervisory Level

Answer : A

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

Answer : B

Question. Kotak Mahindra believes in harnessing the potentials of the individuals working in their company by doing so, the company wants to achieve ______.
(a) Social objective
(b) Personnel objective
(c) Organisational objective
(d) Economic objective

Answer : B

Question. Liaison with the outside world is the function of
(a) Top Level
(b) Supervisory Level
(c) Middle Level
(d) All of the above

Answer : A

Question. Providing good working conditions and ensuring quality work is the function of
(a) Top Level
(b) Middle Level .
(c) Supervisory Level
(d) All of the above

Answer : C

Question. Google and Microsoft make the provision of crèche, laundry, gym, and entertainment facilities for their employees, which objective of management is achieved by the management?
(a) Social objective
(b) Personnel objective
(c) Organisational objective
(d) Economic objective

Answer : B

Question. Nestle manufactures its products by using environment friendly methods of production. It is referred to ______ of the management.
(a) Individual objective
(b) Organisational objective
(c) Social objective
(d) Economic objective

Answer : C

Question. Which concept of management requires balancing, timing and integration of activities to ensure planned objectives are achieved with minimum of conflicts?
(a) Cooperation
(b) Coordination
(c) Management
(d) Planning

Answer : B

Fill in the Blanks :

1.Management is an activity which is necessary wherever there is a group of people working in an organisation.
2. Management has been defined as a process of getting things done with the aim of achieving goals effectively and efficiently.
3. Effectiveness and efficiency are two sides of the same coin.
4. The process of management is a series of continuous, composite, but separate functions.
5.The effect of management is noticeable in an organisation when the employees are happy and there is orderliness instead of chaos.
6. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organisation.
7. The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling.
8. Management has to see that tasks are completed and goals are achieved effectively/ with the least amount of resources at a minimum cost efficiently.
9. Management increases efficiency by reducing costs to increase productivity.
10. Functions of management are performed one after another as well as simultaneously by all managers all the time.
11. An organisation is a collection of diverse Individuals with different needs.
12. The effect of management is noticeable in an organization where targets are met according to plans.
13. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.
14. Management is a dynamic function as it adapts itself according to the changing environment.
15. Management helps its people adapt to the changes in the environment.

 Very Short Answer Questions :

Question. Name that intangible force which creates productive relationships among resources of an organisation.
Answer : Management.

Question. Name the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.
Answer : Management.

Question. “Successful organizations do not achieve their goals by chance but by following a deliberate process”. Identify the process highlighted here. 
Answer :  Management

Question. Name the process of working with and through others to effectively achieve organisational objectives by efficiently using its limited resources in the changing environment.
Answer : Management

Question. Planning, Organising, Staffing, Directing and Controlling is the sequence of functions in a process. Name it.
Answer : Management

Question. Name the intangible force which creates productive relationships among resources of an organisation.
Answer : Management

Question. Name the function of management which is undertaken in the development, promotion and performance appraisal of subordinates.
Answer : Staffing

Question. Name the function of management which is undertaken to measure the performance and follow-up actions.
Answer : Controlling

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

Question. “The principles of management can be applied to all types of activities.” Which characteristic of management is highlighted by this statement?
Answer :  Management is all pervasive.

Question. ‘‘In an organisation, employees are happy and satisfied, there is no chaos and the effects of management are noticeable.’’ Which characteristic of management is highlighted by this statement?
Answer : Management is intangible

Question. ‘Management consists of an on-going series of functions.’ Which characteristic of management is highlighted by this statement?
Answer : Management is a continuous process.

Question. Rahul is of the opinion that management is needed in all types of organisations whether working for earning profits or for any social purpose. Which characteristic of management he holds in his view?
Answer : Management is universal/all pervasive

Question. Departmental manages are included at which level of management?
Answer : At middle management

Question. Which function of management is bridges the gap between where we stand today and where we want to reach
Answer : Planning

Question. ‘ In order to be successful , an organization must change its goals according to the needs of the environment. Whish characteristics of management are highlighted in this statement.
Answer : “Management is dynamic functioning”

Question. What is PODSCORB?
Answer : Luther Gullick gave the keyword PODSCORB which stands for Planning, Directing, Staffing, Co-coordinating, Reporting and budgeting.

Question. ‘Doing the task with minimum cost” name the term associated with management?
Answer : Efficiency

Question. Anything (-) management is equal to what?
Answer : Zero / failure / Nothing

Question. ‘Every organization whether it is business or non-business should use environmental methods of production, give employment opportunities and provide basic amenities like schools and crèches to employees’ name the objective of management indicated here?
Answer : Social Objectives

Question. Name the function of management which establishes organization structure and establishes authority and responsibility relations?
Answer : Organizing

Question. Which force is consisted as the essence of management?
Answer : Co-Ordination 

Question. Why Mgt is considered as Multi dimensional function?
Answer : Mgt of work
Mgt of people
Mgt of operation

Question. ‘Survival profit and growth are essential target of any business’ which objectives of management is referred here?
Answer : Organizational objectives

Question. In which functions of management standards are compared with actual, deviations are find out and corrective steps are taken?
Answer : 6. Controlling

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


Short Answer Questions :

Question. Father of Mr. ‘Y’ acts as Vice President in ABC Ltd. Name the level of Management he is working? Explain Any two functions performed by him?
Answer : Top level of Management Functions:
1. Determining the objectives of the enterprise
2. Assembling all the resources such as finance, fixed

Question. “Management is critical ingredient of a nation’s growth” Comment.
Answer : Mgt Helps in creating employment opportunities Mgt insists providing Quality goods.
Mgt helps in increasing GDP and leads to growth of Nation.

Question. Mr. Anil working as a ‘Sales department Head in XYZ Ltd. Name the level of Management he is working? Explain Any two functions performed by him?
Answer : Middle level of management Functions:
1. Interpretation of policies framed by top Management to lower level.
2. Recruiting & Selecting the employees for their department
3. Motivation the persons to perform to their best ability

Question. “Mgt is Science as well as act”. Explain this statement.
Answer : Mgt as a science
i. Systematic body of Knowledge
ii. Principles are based on repeated experiments
Mgt as an Art
i. Existence of theoretical Knowledge
ii. Application of Knowledge

Question. How Management is an intangible force?
Answer : The presence of management can be felt by seeking the orderliness and co-ordination in the working environment.
e.g. if the inventory of finished products is increasing day by day it clearly indicates mismanagement of marketing and sales.

Question. “Management is essential for successful running of an enterprise”, How?
Answer : Management increases efficiency.
Ensures optimum utilization of resources
Management creates dynamic organization

Question. Name the level of management the following parts belongs to.
1. Purchase managers.
2. CEO
3. Superintendent.
Answer : i) middle Level
ii) Top level
iii) Supervisory Level

Question. Explain any 3 functions performed by operational Level?
Answer : 1. Looking to safety of workers.
2. to boost morale of workers.
3. Representing the problems of workers before the middle level management

Question. ‘Co-ordination’ is the essence of Management’ Explain.
Answer : Co-ordination is needed to perform all the functions of management
Co-ordination is required at all the levels
Co-ordination is the most important function of an organization.

 REASON AND ASSERTION


Question. Assertion (A): Coordination ensures unity of action.
Reason (R): It gives a common focus to the effort of people with diverse interest.
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 coordination acts as a binding force between departments in the realization of a common purpose.

Question. Assertion (A): Management does not meet the exact criteria of a profession. However, it does have some of the features of profession.
Reason (R): The entry in the management profession is restricted through acquiring a degree of
MBA from any institute but there is no professional association to regulate the managers.
(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 : (c) A is true but R is false
Explanation: Anyone can be called as manager irrespective of the educational qualifications possessed. There are several associations for practicing managers like the All India
Management Association however these associations can not enforce code of conduct.

Question. Assertion (A): 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.
Reason (R): Every member of the organisation has a different purpose for joining the organisation and each member works towards his personal goal.
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 : (c) A is true but R is false
Explanation: A is correct and the reason behind is that Management is an intangible force. R is not a correct statement as the members of the organisation work towards fulfilling their common organisational goals.

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: 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 as management in an art so a manager applies his acquired knowledge in a personalised and skillful manner.

Key points to remember for Chapter 01 Nature and Significance of Management

MANAGEMENT : Management is a process of planning, organising, staffing, directing and controlling the resources of an enterprises efficiently and effectively for achieving the organisational goals.

EFFECTIVENESS VS. EFFICIENCY : Effectiveness means doing right things on time, whereas efficiency means doing right things with the least cost.

• CHARACTERISTICS OF MANAGEMENT :
(i) Goal Oriented Process : Management integrates the efforts of different individuals to achieve organisational goals.
(ii) Dynamic : Management has to adapt itself and its goals according to the changing needs of the business environment.
(iii) Intangible : Management cannot be seen but its presence can be felt in the way the organisation functions.
(iv) Group Activity : Diverse members of management work towards fulfilling the common organisational goals.
(v) All Pervasive : Managerial activities are performed in all types of organisations, in all departments and at all levels.
(vi) Multi-dimensional : It has three dimensions viz. management of work, people and operations.
(vii) Continuous Process : It is a continuous process which includes performing various functions (viz.POSDCO) simultaneously.

• OBJECTIVES OF MANAGEMENT :
(i) Social Objectives : Create economic values consistently for various constituents of a society.
(ii) Organisational Objectives : Utilising human and material resources to the maximum possible advantage, which is to fulfil economic objectives of a business.
These are—survival, profit and growth.
(iii) Personal Objectives : Reconcile personal goals with organisational objectives so as to maintain harmony in the organisation.

• IMPORTANCE OF MANAGEMENT :
(i) Helps in achieving group goals : Gives a common direction to diverse individual efforts.
(ii) Increases efficiency : Reduces cost and increases productivity.
(iii) Creates a dynamic organisation : Helps people to adjust with the changing environment.
(iv) Helps in achieving personal objectives : Helps individuals to achieve personal goals along with overall organisational goals.
(v) Helps in the development of the society : Provides good quality products, generates employment, etc.

• Management as an Art F eatures of Art :
(i) Personalised application.
(ii) Based on practice and creativity.
(iii) Existence of theoretical knowledge. Management is an art as it satisfies all the features being an art.

• Management as a Science Features of Science :
(i) Systematised body of knowledge.
(ii) Principles based on experiments.
(iii) Universal validity Management is an inexact science as its principles have to be modified according to a given situation. It is a social science as it deals with human beings.

• Management as a Profession Features of Profession :
(i) Well-defined body of knowledge.
(ii) Professional association.
(iii) Restricted entry.
(iv) Ethical code of conduct.
(v) Service motive. Management is on the path of becoming a profession but not a full fledged profession. Management is a well-defined body of knowledge but all other features are desirable and not compulsory for a manager.

• Meaning : Levels of management means different categories of managers, the lowest to the highest on the basis of their responsibilities, authority and status.
• Three levels of Management :
(i) Top Level Management : Consists of Board of Directors, Chairman, Managing Directors, Chief Executives, etc.
(ii) Middle Level Management : Consists of Departmental Heads, e.g., Finance Manager, Production Manager, etc.
(iii) Lower/Supervisory/Operation Level Management : Consists of Foremen, Supervisors, Superintendents, etc. 
cbse-class-12-business-studies-nature-and-significance-of-management-worksheet-set-a

• Functions of Management
(i) Planning : Planning is the function of determining in advance what to do, when do to, how to do and who is going to do it.
(ii) Organising : Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources to carry out a specific plan.
(iii) Staffing : This function is concerned with finding the right person for the right job.
(iv) Directing : Directing is the process of supervising, motivating, leading and communicating with the subordinates to achieve the organisational objectives.
(v) Controlling : The task of controlling involves establishing standards of performance, measuring current performance, comparing it with established standards and taking corrective actions, if there is any significant deviation between actual and planned performance is found.

• Meaning : Coordination is a process by which a manager synchronises the activities of different departments to achieve the common organisational goals. It is the force that binds all other functions of the management.
• Nature/Features of Coordination :
(i) All pervasive.
(ii) Integrates group efforts.
(iii) Continuous process.
(iv) Ensures unity of action.
(v) Responsibility of all managers.
(vi) Deliberate function.

• Importance of Coordination :
(i) Functional differentiation.
(ii) Growth in size.
(iii) Specialisation.

• Coordination is the essence of management.
(i) N Needed in all Management functions :
(a) Planning : Coordination between organisational plan and departmental plan.
(b) Organising : Required between authority, responsibility and accountability.
(c) Staffing : To achieve balance between job requirement and qualities of personnel.
(d) Directing : Required between supervision, motivation and leadership.
(e) Controlling : Ensure actual result conform to expected results.
(ii) Needed at all levels of management :
(a) Top level: Needs Coordination to integrate activities of the organisation for accomplishing the organisational goals.
(b) Middle level: Coordination of the efforts of different sections and sub-sections.
(c) Lower level: Coordination of the activities of workers to ensure the progress of work.

Meaning/Concept of Management:
Management is the process of getting things done with the aim of achieving goals effectively and efficiently.
Effectiveness: means completing the right task to achieve the goal within time.
Efficiency: means completion of task using minimum resources

 

MCQs Questions for NCERT Class 12 Business Studies Nature and Significance of Management
Question. What is the name of the management institute established in India?
(a) IIT
(b) AIMA
(c) IIM
(d) ICICI

Answer: B

Question. Your Grandmother is retired as the Medical Superintendent of a firm. At which level of management was she working:
(a) Top Level Management
(b) Middle Level Management
(c) Lower Level Management
(d) None of these

Answer : B

Question. On introduction of any changes in the firm, all employees hesitate to accept the changes, Managers convince the employees and guide them to adopt the changes willingly.
This is related to which importance of management.
(a) Management help in achieving group goal
(b) Management increases efficiency
(c) Management creates a dynamic organisation
(d) Management helps in achieving personal objectives

Answer : C

Question. Indus Ltd. has decided to contribute to Swaach Bharat Abhiyan by cleaning all plastics from Ganga river. Which objective of management is highlighted by this act of the Indus Ltd. Company?
(a) Organisational Objective
(c) Personal Objective
(d) None of these
(d) Social Objective

Answer : D

Question. “When all the departments have their own objectives, policies and their own style of working.”
Identify the importance of coordination in the given context.
(a) Growth in size
(b) Functional Differentiation
(c) Specialisation
(d) None of these

Answer : B

Question. In which characteristic of management, a manager replaces ‘I’ with ‘We’.
(a) Management is a Continuous Process
(b) Management is a Group Activity
(c) Management is a Dynamic Function
(d) None of these

Answer : B

Question. “There are many qualified singers and cricketers but Lata Mangeshkar and Sachin Tendulkar has achieved the highest degree of success.”
In the above lines, Identify the characteristics of an Art?
(a) Existence of Theoretical knowledge
(b) Creativity
(c) Based on Practice and Creativity
(d) Personalised Application

Answer : D

Question. “Doctors have to get themselves registered with Medical Council of India and lawyers with Bar Council of India.”
In the above context, Which feature of profession is highlighted?
(a) Restricted Entry
(b) Existence of ethical code
(c) Professional Associations
(d) Service Motive

Answer : C

Question. _________, is not a separate function of management, but its essence.
(a) Controlling
(b) Planning
(c) Coordination
(d) None of these

Answer : C

Question. What type of power management is?
(a) Visible
(b) Invisible
(c) Separate
(d) Collective

Answer: B

Question. Management is a/an
(a) Art
(b) Science
(c) Profession
(d) All of the above

Answer: D

Question. For which of following minimum qualification has not been prescribed?
(a) Manager
(b) Doctor
(c) Lawyer
(d) Chartered Accountant

Answer: A

Question. To which level of management do the managers of first-line belong?
(a) Lower-level
(b) Middle - level
(c) Top-level
(d) None of these

Answer: A

Question. By evaluating results what does management try to find out and then takes corrective action.
(a) Profit
(b) Loss
(c) Deviations
(d) None of these

Answer: C

Question. Coordination is needed where the efforts of ________ persons are required?
(a) One person
(b) Two persons
(c) Three persons
(d) Many persons

Answer: D


Assertion Reason Based Question :

Question. Assertion (A): The outcomes of scientific experiments are not capable of being accurately predicted or replicated.
Reason (R): Management deals with human beings and human behaviour.
(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
Explanation: Both the statements i.e. Assertion and Reason are correct and R is the correct explanation of A. As management is dealing with human beings and the human behaviour can’t be predicted, the outcomes of experiments done on these humans definitely cannot be accurately predicted.

Question. Assertion (A): Management entails the flow of input material and technology for transforming this input into the desired output for consumption.
Reason (R): Management as a multidimensional activity requires a production process and is not
interlinked with management of work and people.
(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 :  (c) A is true but R is false
Explanation: The assertion is true but second statement is not true. Management as a multidimensional activity requires a production process and is interlinked with management of work and people.

Question. Assertion (A): There is need of coordination because of functional differentiations.
Reason (R): All individuals differ in their habits of work, background, approaches to situations and relationships and they have their individual goals.
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 in an organisation there are different departments based on the functions for example, department of finance, marketing,
human resource department etc. All these departments are performing their activities in isolation with their own objectives, hence coordination is required.

Question. Assertion (A): Coordination is a voluntary binding force between individuals and departments.
Reason (R): Coordination gives a direction to the willing spirit.
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: Coordination is a deliberate binding force between individuals and departments.

Meaning/concept of management:

Management is the process of getting things done with the aim of achieving goals effectively and efficiently.

Effectiveness : means completing the right task to achieve the goal within time.

Efficiency: means completion of task using minimum resources

Features of management

1. Goal oriented

2. Group activity

3. Intangible force

4. All pervasive

5. Multidimensional - Management of Work, Management of People, Management of Operation

6. Continuous process 7. Dynamic

Functions of management:

1. Planning - Setting objectives and targets and formulating an action plan of what is to be done, how to be done and when to do it

2. Organising - Assignment of duties, task, establishment of authority and responsibility Relationship, allocating the resources required to perform the planned task.

3. Staffing - Finding and placing the right person at the right job at the right time.

4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned task efficiently and effectively.

 Ensuring/Monitoring the activities in an organisation are performed as per the plan.

Management objectives

Organisational objectives:

Survival:- Ensure that the organisation survives and exists in the future.

Profitability:- Earning adequate profit in order to survive and grow.

Growth:- Growth indicates how well it exploits the potential opportunities. 

Social objectives:

• Producing quality products at reasonable rates,

• Generating employment opportunities

• Environmental friendly methods of production.

Personal objectives:

• Meeting the Financial needs like competitive salaries and perks

• Social and safety needs of the employee like peer

• Providing healthy working conditions

• More opportunities for growth and development

Importance of management

• Increases efficiency

• Enhances optimum utilization of resources

• Development of society facilitate changes

Levels of Management-

The levels of management denote a demarcation between various position in an organization on the basis of their responsibility, authority and status. These are –
Top management - Ex- CEO, Board of directors, MD, President & chairman.
Functions:
a) Decide overall objectives of the organization.
b) To make plan.
c) Provide various resources
d) Decide policies

Middle Management - Ex- Departmental heads such as purchase manager, Operations manager, production manager, marketing manager & plan superintendent etc. Divisional heads
Functions:
a) To implement plan and policies.
b) To assist top management.
c) To assign job to subordinates.
d) To recruit employees for their respective departments

Lower level Management - eg- Foremen, Inspectors, supervisors etc.
Functions:
1. To arrange raw materials, tools and other facilities.
2. To ensure about the performance of workers
3. To ensure safety and security of workers
Nature of management

As an art:
• Existence of theoretical knowledge.
• Developed through Practical and creative process.
• Personalised application and skill

As a Science:
• Arranged, organized systematic body of knowledge
• Universal validity
• Principles arrived after experimentation

As a Profession:
• Well defined body of knowledge.
• Existence of code of conduct
• Professional association (AIMA)
• Restricted entry
• Fees as remuneration for their services

Coordination
It is the synchronization of various activities and efforts in an organization providing the Required amount of quality, timing and sequence; thus ensuring the achievement of the planned goal with minimum content.

Features of coordination:
• Integrates Group Effort:
• Ensures unity of action
• It is a Continuous Process
• It remains the function and responsibility of every manager

Importance of coordination
• Ensures unity of action
• Erases interdepartmental conflicts
• Promotes harmonious implementation of plans
• Helps in maintaining a high degree of morale amongst employees

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

Question. What, out of the following, does not fall under directing?     
(a) Planning
(b) Supervision
(c) Leadership
(d) Motivation

Answer :   A

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

Answer :  B

Question. Which degree is essential to become a manager?   
(a) B.Com.
(b) M.Com.
(c) M.B.A.
(d) None of these

Answer :  D

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. ‘Thinking before doing’, under which function of management is this performed?    
(a) Controlling
(b) Directing
(c) Organising
(d) Planning

Answer : D

Fill in the Blanks

1. Supervisory/operational level is also known as first line managers.
2. Divisional heads belong to top level and department heads belongs to middle level of management.
3. The policies framed by the top management are interpreted by middle level of management.
4. Coordination with various departments for smooth functioning of organization is done by middle level of management.
5. Quality of output and safety standards are maintained by lower level of management.
6. Supervisory level of management passes on the instructions of management to the workers.
7. Coordination is a deliberate function of management.
8. Coordination act as a binding force between various departments to ensure unity of action.
9. In the absence of coordination what results is chaos.

 

ONE WORD ANSWER QUESTIONS

Question. “The production department is not producing the goods as referred by the marketing department of an organisation.” What is lacking in the organisation?
Answer :  Coordination

Question. The success of ‘Dabbawallas’ (who deliver tiffin boxes to offices) in Mumbai is an example of which aspect of management?
Answer :  Coordination

Question. In order to achieve target production of 12,000 units per month, the production manager of a company has to operate on double shifts due to power failure. This leads to achievement of the target of purifiers at a higher production cost. In your opinion, what is lacking in management?
Answer :  Efficiency

Question. Ashutosh Goenka was working in ‘Axe Limited’, a company manufacturing air purifie. He found that the profits had started declining from last six months. Profit has an implication for the survival of the firm, so he analysed the business environment to find out the reasons for this decline. Identify the level of management at which Ashutosh Goenka was working. 
Answer :   Top Level

Question. A company manufacturing chemicals emits air pollutants, which affect the health of the employees adversely. For this purpose, the company decided to provide medical facilities for regular health check-ups which benefitted the employees a lot. Identify the objectives being attained by the company.
Answer :   Personnel objectives

Question. Indian Railways has launched a new broad-gauge solar power train which is going to be a path breaking leap towards making trains greener and more environment friendly. Name the objective of management achieved by Indian Railways in the above case.
Answer :  Social Objective

Question. Rishitosh Mukerjee has recently joined AMV Limited, a company manufacturing refrigerator. He found that his department was under-staffed and other departments were not cooperating with his department for smooth functioning of the organisation. Therefore, he ensured that his department has the required number of employees and its cooperation with other departments is improved. Identify the level at which Rishitosh Mukerjee was working. 
Answer :   Middle Level

Question. The marketing manager of ‘Informatics 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?
Answer :  Management is dynamic.

Question. The purchase, production and sales managers at Sharda Ltd. a firm manufacturing readymade garments are generally at a conflict, as they have their own objectives. Usually each thinks that only they are qualified to evaluate, judge and decide on any matter, according to their professional criteria. Name the concept, which will be required by the CEO Mr. Raman, to reconcile the differences in approach, interest or opinion in the organisation.
Answer :   Coordination.

Very Short Answer Questions

Question. Name the process of designing andmaintaining an environment inwhich individual working together in groups efficiently accomplish selected aims.
Answer: Management

Question. Which function of management is concerned with finding the right people for the right job ?
Answer: Staffing

Question. The productionmanager of a company is trying to produce goods withminimum cost. Name the concept which is being focused by management.
Answer: Efficiency.

Question. 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.
Answer: It is trying to achieve “Social objectives’.

Question. MissAnanya is associated with Sagar Ltd. She told you that her workers have good relations with her. At what level of management is she?
Answer: Operational management.

Question. Apetrol pump needs to bemanaged asmuch as a school or a hospital.”Which Characteristic of management has been highlighted here?
Answer: Management is all pervasive.

Question. Surya Enterprise Ltd. manufactures toys. The production department produces more of toys than required and sales department is not able to sell the total production. What quality of management do you think the company is lacking?
Answer: Co-ordination.

Question. How doesmanagement help individual to develop teamspirit, cooperation and commitment to group success
Answer: Through motivation and leadership

Question. At which level of management the managers are responsible for the welfare and survival of the organization?
Answer: Top management

Question. Mc.Donalds, the fast food giant, made major changes in its menu to be able to survive in the Indian market. Which characteristic of management is highlighted?
Answer: Management is a dynamic function.

Question. There is no restriction in anyone being appointed or designated as amanager of any business enterprise.What aspect of management as a profession does this statement indicate?
Answer: It is a profession but not a full-fledged profession like medicine or law.

Short Answer Questions

Question. Explain in brief “Management as an activity”.
Answer: Management is an activity conducted in a group through cooperation and collaboration among individuals with different skills, capabilities and experiences.

Question. How is “Management a goal-oriented process?
Answer: Management aims at ensuring timely completion of work, achieving production and sales targets, or obtaining fair returns from investments by using their imaginative and intuitive skills to utilise resources optimally.

Question. Management is a systematized body of knowledge that explains certain general truths. Explain.
Answer: Management is a science, which is a systematized or arranged as per a system set for an organization by management developed by management practitioners, thinkers and philosophers over a period of years. This knowledge is scientific in nature and is useful for understanding and applying the truths related to management that ensures efficiency and effectiveness in operations of a business.

Question. Explain how management increases efficiency and helps in the development of society.
Answer: Management directs organizational goal towards utilizing the physical and human resurces provided by the society in an optimal manner. Management uses functions like planning, organizing, staffing, directing and controlling to achieve organizational goals that further leads to good quality and environment friendly products / services and improves overall standard of living of the society.

Question. Explain the features of management that do not establish it as a profession.
Answer: The features of management that do not establish it as a profession are:
(1) Restricted entry - The entry to a profession is restricted through a prescribed qualification.But there is no restriction on any one being appointed as a manager in any business enterprise.
(2) Professional association - All profession are affiliated to professional association which regulates entry, and grants certificate of practice. There is no compulsion for managers to be members of such an association.
(3) Ethical code of conduct- All professions are bound by a code of conduct which guides the behavior of its members. AIMA has devised a code of conduct for Indian manager but there is no statutory backing for this code.
(4) Service motive - The motive of a profession is service to their client’s interests by rendering dedicated and committed service.
The basic purpose of management is to help the organization achieve stated goal which may be profit maximization. However, profit maximization as the objective of management does not hold true and is fast changing. So, presently this feature of profession is not fully present in management.

Question. Sulekha is working as ‘Operations Manager’ in ParagLtd. Name the managerial level at which she is working. State any three functions she will perform ‘Operations Manager’ in this company.
Answer: Sulekha is working at middle level management Functions : The main task of Sulekha is to carry out the plans formulated by the top managers. For this she need to :
• Interpret the policies framed by the top management,
• Ensure that her department has the necessary personnel, assign necessary duties and responsibilities to them,
• Motivate them for higher productivity to achieve the desired objectives, and • Cooperate with the other departments for smooth functioning of the organization.

Question. “Management is a science like physics or chemistry”. Do you agree with this statement?
Give three reasons in support of your answer.
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) Principles Based on Experiments: After applying this characteristics of science to management, we find that development of management, took years for the collection of facts, their analysis and experiment .
(iii) Universal validity- Scientific principles are based on truth and they can be applied every time and in every situation. In the field of management the 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 behavior. So the management cannot be called a pure science, it is an applied Science or social science because it deals with human behavior.

Question. Give the meaning of Management and explain how it ‘creates a dynamic organization’ and ‘helps in the development of society’.
Answer: Management is the process of getting things done with the aim of achieving goals effectively and efficiently.
Management creates a dynamic organization. In order to be successful, an organisation must change itself and its goals according to the needs of the environment. But people in an organisation resist change as it often means moving from a familiar, secure environment into a newer and more challenging one. Management helps people adapt to these changes so that the organisation is able to maintain its competitive edge.
Management helps in the development of society by
• Providing good quality products and services at reasonable prices,
• Creating employment opportunities, Adopting new technology, etc.

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 service
(ii) Providing basic amenities to the employees like schools and crèches 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 the 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 Question

Question. State any 5 characteristics of management.
Answer: Following are the features of management:
(i) Management is a group activity
Management consists of a number of persons who work as a group. Their efforts are directed towards the common goals. Members initiate, communicate, coordinate
and join their hands for the achievement of organisational objectives.
(ii) Management is a goal-oriented process
Management aims at common goals through a process of series of continuous Functions viz planning, organizing, directing, staffing and controlling. These
composite functions of management are separately performed by all managers all the time simultaneously to realize organizational goals.
(iii) Management is all pervasive
Whether it is a commercial organisation or non commercial organisation, big or small all require management to handle their operations effectively and efficiently.
(iv) Management is a continuous process
Management is a continuous process consisting of a series of functions viz.,planning, organising, directing and controlling. All the managers perform these functions
regularly.
(v) Management is a dynamic function
The environment in which a business exists keeps on changing. Thus in order to be successful, management must change its goals, plans and politics according to the needs of its environment.

Question. “Coordination is needed at all level of management and it is the responsibility of all managers.” Explain how.
Answer: Coordination is needed at all levels of management and in all departments. It integrates the efforts of different departments and different levels. The purchase, production, finance, and sales departmental efforts must be coordinated for achieving organizational objectives harmoniously.
Coordination is a responsibility of all managers:
Top level managers need to coordinate with their subordinates to ensure that the overall policies of the organisation are duly carried out.
Middle level management coordinates with both the top level and first line managers Operational level management coordinates the activities of its workers to ensure that work proceeds according to plans.

Question. Explain the organizational objectives of management.
Answer: The organizational objectives of management refer to the main objectives required to fulfill the economic goals of the business organization.
(a) Survival: The basic objective of every business is to survive for a longer period in the market. The management must ensure survival of the organization by earning enough revenue to cover its costs.
(b) Profit : Only survival is not sufficient for business. Profit earning is essential for meeting the expenses and for the successful operation of the business. Thus management must ensure earning of sufficient profit.
(c) Growth : The next important objective of the management is to ensure future growth and development of the business.

Question. Describe any five reasons which clarify that management is gaining importance day -by day.
Answer: (a) Multidisciplinary: Management uses multidisciplinary or several disciplines /subjects like economics, physiology, mathematics, etc. Simultaneously that benefits an organization.
(b) Goal oriented: An effective management aims at attaining goal of an organization.
Accordingly, all functions and efforts by the management are directed towards achieving these goals.
(c) All Pervasive: Management is pervasive or involves human activity across different course of action and level of business.
(d) Dynamic function: As a business keeps changing continuously under varying trends, tast, preferences, etc. Management is also characterized by continuous changes, activities and vigour that creates energy among individuals in an organization to work suitably
(e) Continuous process: Activities under management are conducted as a continuous process with distinguishable and specific activities, techniques and procedures which
cannot be performed simultaneously.

Question. Sameera is a manager of a large company manufacturing toys for kids. She plans her new winter collection of toys in the month of August. Then, she ensures that there is adequate workforce. She continuously monitors whether production is proceeding according to the plans. She asks the marketing department to prepare their promotional and advertising campaigns also.
(a) Identify and explain the concept of management in the above para.
(b) What characteristics does the above para highlight? State.
Answer: (a) Coordination :- It is the force that binds all the functions of management. It is the common thread that runs through all activities such as purchase, production, sales,
finance, etc. to ensure continuity in the working of the organization.
Coordination is not a separate function of management. It is the essence of management.
It is implicit and inherent in all functions of management
• Top management plans for the entire organization.
• According to these plans, the organizational structure is developed and staffed.
• In order to ensure that these plans are executed according to plans, directing is required.
• Any deviation between the actual and the standard performance is corrected at the stage of controlling.
(b) Coordination is a continuous process. It begins at the planning stage and continues till controlling.

Question. High Tech. Ltd. is a company producing IT services. The company’s profits are enough for the survival and growth. The management of the company believes that a satisfied employee creates a satisfied customer, who in turn creates profits that leads to satisfied shareholders. So, it pays competitive salaries and perks to all its employees. All the employees are happy working in the organization because of personal growth and development.
The company has a strong sense of social responsibility. It has set up an Engineering College in which one-third of the students are girls to whom the company gives 50% scholarship. Is the management of High Tech. Ltd. fulfilling its objectives? Justify your answer by giving reasons.
Answer: Yes, the management of High Tech Ltd. is fulfilling all the objectives – organisational objectives, social objectives and personal objectives.
(i) Organisational objectives are the economic objectives of a business. These are survival, profit and growth.
‘Profit of High. tech Ltd. are enough for the survival and growth.’
(ii) Social objectives involve creation of benefits or economic value for the society.
‘H. Tech. Ltd. has a strong sense of responsibility. It has set up an Engineering College in which one-third of students are girls to whom the company gives 50% scholarship’.
(iii) Personal objectives are related to the employees.
‘The management of High Tech Ltd. satisfies the financial needs of its employees by giving them competitive salary and perks. It also satisfies their higher level needs
such as personal growth and development.

Question. Ganesh Ltd. is a highly reputed company. Different functions are performed by different individuals in this company, who are bound together in a hierarchy of relationships. Every individual in the hierarchy is responsible for successful completion of a particular task.
Mr. Sagar responsible for the welfare and survival of the organisation. He formulates overall organization goals and strategies for their achievement. Mr. Bharat ensures that quality of output is maintained, wastage of materials is minimized and safety standards are maintained. Mr. Nagar assigns necessary duties and responsibilities to the personnel and motivates them to achieve desired objects.
At what levels of management are Mr. Sagar, Mr. Bharat and Mr. Nagar working in Ganesh Ltd. ? Justify your answer.
Answer: (i) Mr. Sagar is working at the top level management.
He is responsible for the welfare and survival of the organisation. He formulates overall organizational goals and strategies for their achievement.
(ii) Mr. Bharat is working at lower level of management.
(iii) He ensures that quality of output is maintained, wastage of materials is minimized and safety standards are maintained.
(iv) Mr. Nagar is working at middle level management He assigns necessary duties and responsibilities to the personnel and motivates them to achieve desired objectives.

Question. ABC handlooms Ltd. Set up a factory for manufacturing jute bags in a remote village as there was no raw materials available. The revenue earned by the company was sufficient to cover the costs and the risks. The demand of bags was increasing day by day, so the company decided to increase production to generate higher sales. For this they decided to employ people from the nearby villages as very few job opportunities were available in that area. The company also decided to open schools and creches for the children of its employees 1. Identify and explain the objectives of management discussed above.
2. State any two values which the company wanted to communicate to the society.
Answer: (i) The Company is fulfilling the organizational and social objectives of management.
Organisational objectives include survival, profit and growth.
• In order to survive, ABC handlooms Ltd. earns enough revenues.
• Company’s profits are sufficient to the cover the cost and the risks.
• Since demand for bags was increasing day by day and so the company decided to increase production to generate higher sales, it implies that the company
exploits fully its growth potential.
Social objectives involve the creation of benefits for the society.
‘The company decided to employ people from the nearby villages as very few job opportunities were available in that area. It also decided to open schools and crèches
for the children of its employees’
(ii) Values:
• Providing employment opportunities in rural areas
• Concern for the environment
• Socially responsible behaviour
• Community development by opening schools and crèches for children

 

Question. List any two social objectives of Management. 
Answer: i. To save environment from getting polluted.
ii. To contribute in improving living standard.

Question. Mr. Prabal is working at the post of sales manager in Surabhi tel. ltd. last year, the targeted sales increased to 20,000 units from earlier target of 18,000 units. This he achieved very easily. To achieve this, He increased the expenditure on advertisement to almost double.
i. Did sales manager perform his duty efficiently and effectively?

ii. If not, then How?

Answer: Mr. Prabal is effective as he gets his job done but not efficient as the job is done at a very high cost.

Question. Volvo ltd. target to produce 10,000 shirts per month at a cost of Rs. 100 per shirt. The production manager achieved this target at a cost of Rs.90 per shirt. Do you think the ‘Production manager’ is effective? Give reason to support your answer.
Answer: Yes, because he has achieved the target.

Question. Your Grandfather has retired as the director of a manufacturing company. At which level of management was he working? Differentiate type of functions are performed at this level. State any one function.
Answer: (i) Top level Management, (ii) Determining objectives.

Question. “Management is both Science and Art.” Explain this statement in brief. 
Answer: ​​​​​​ Management as Science:
Management contains all the features of science. But it cannot be called a 
perfect Science like Physics and Chemistry. The reason for this is that the subject matter of management is the human being whose behavior is continuously changing. Because of this feature, no permanent principles like the principles of Physics and Chemistry can be enunciated for it. Therefore, management is known as social science and not the perfect or physical Science.
Management as an Art:
In simple words, an art means to apply the available skills to bring the desired results. The same thing is also available in management. A Manager tries to achieve the objectives through the application of his/her skill. On the basis, it can said that management is an art.

Question. Is there any difference in planning, organizing, staffing, directing and controlling of various organizations such as schools, a club, a restaurant and a steel plant?
To which characteristics of management in this case related?
Answer: No, there is no difference as far as the functions of management are performed by various organizations. In other words, all the functions of management are performed in a similar manner in all types of organizations i.e business or non-business.
This case is related with the characteristics of management, namely, management is all pervasive.

Question. Ritu is the manager of the northern division of a large corporate house. At which level does she work in the organization? What is her basic functions?
Answer: Ritu is working at the middle level of management in the organization. She is performing following functions:
I. Interpreting Policies: At this level, policies framed by top level management are interpreted. Like the marketing manager introduces his salesman to the sales policy of the company that at no cost credit sales will be made.
II. Preparing Organizational Set-up: Every middle level manager prepares outline of his respective department in accordance with the objectives of the organization.

Question. Mr. Sourabh, who is an M.B.A has appointed at the post of general manager in Sa-re-ga-ma Ltd. Company. Just after his appointed, he took a decision to set up a chemical plant near a residential colony. (The chosen location to set up the plant was favorable for many reason to the company). After some time, another important decision to the amount of charity been given annually to educational institution and religion institutions was withdrawn giving the justification that it was an unnecessary burden on the company. More emphasis was Given to the share of company in the market and in search of modern procedures. A part from this, a long time labour-dispule was resolved by taking a balanced decision.
i. Tell whether Mr. Sourabh is at fault?
Ii If yes, the fault is in which content?
iii. How can the mistake be amended?
Answer: Yes Mr. Sourabh is a fault. He is avoiding the social objectives of
management. There is a need of rethinking on two issues:
i. establishing chemical plant near a residential colony.
ii. Giving Charity.

Question. Mega ltd. Was manufacturing water heaters. In first year of its operation he revenue earned by the company was just sufficient to meet its costs. To increase the revenue the company analyzed the reason of less revenues. After analysis the company decided:
i. To reduce the labour cost by shifting the manufacturing unit to a backward area where labour available at a very low rate.
ii. to start manufacturing solar water heaters and reduce the production of electric water heater slowly. This will not only help in covering the risk but also help in meeting other objectives too.
(a) Identify and explain the objectives of management discussed above.
(b) State any two values which the company wanted to communicate to the society.
Answer: (a) The objectives of management referred to are:
i. organizational objective: It refers to the utilization of human and material resources considering the interest of all stake holders.
ii. Social Objectives: it refers to the consideration of the interest of the society during managerial activities.
(b) Values:
i. Providing employment opportunities.
ii. Development of backward region.

Question. The marketing manager of ‘Surya bulb Ltd.’ Fixed the target of all his sales executives and gave them all the possible authorities to achieve it. They were asked to submit to him their performance report at the end of the month. All of them did the same. On the receipt of report the expected and actual result of the sales executives were compared. On this basis planning for future is done.
The sales executive also wrote in their report what the expectations of the customer from the company were. Majority of them had written that they (customer) wanted the company to co-operate in the construction of the Dharmshaala going in the city at that time. The marketing manager placed this demand of the customer before the board of directors. This was happily accepted.
i. identify the two functions of management describe above by quoting the relevant lines.
ii. which two values are being given to the society.
Answer:
i. (a) the market manager of surya _________________ rights to achieve it.
Organizing.
(b) on the receipt ________________ sales executive were compared.
Controlling.
ii. (a) Community Development.
(b) Accomplishment of social responsibility.

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

Question. How does a manager want to achieve his objectives?  
(a) Efficiently
(b) Effectively
(c) Efficiently and effectively
(d) None of the above

Answer :  C

Question. What happens when the management of an organisation gets weakened?  
(a) Organisation progresses
(b) Production increases
(c) Profit increases
(d) Organisation faces heavy loss

Answer :  D

Question. Who said that management is a soft science?  
(a) Ernest Dale
(b) G.R. Terry
(c) Keynes
(d) Fayol

Answer :  A

Question. Which among the following is not a function of Management?
(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. Management ensures -----------------------.
(a) Providing employment opportunities
(b) Maintaining profit
(c) Ensuring maximum utilization of resources
(d) Control on cost

Answer : C

Question. Unlike professions such as medicine or law which require a practicing doctor or lawyer to possess valid degrees, nowhere in the world is it mandatory for a manager to possess any such professional degree. Identify the characteristic of the profession being discussed above which is not being strictly met by management.
(a) Well defined body of knowledge
(b) Restricted Entry
(c) Professional Association
(d) Ethical code of conduct

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

Answer : B

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

Answer : C

Question. The Topper group is looking to make a foray into manufacturing of semiconductors and it has set up a business to seize the business opportunity and add to its prospects in the long run. The company has already pivoted into a number of new projects like electronics, 5G network equipment, as well as semiconductors. Which economic objective of management does the business seek to fulfill?
(a) Survival
(b) Growth
(c) Profit
(d) Efficiency

Answer : B

Question. “A manager in a conscious manner has to ensure that even where members of a department willingly cooperate, coordination gives direction to the willing spirit.” The characteristic of coordination being highlighted above is :
(a) Coordination is the responsibility of all managers.
(b) Coordination is a deliberate function.
(c) Coordination integrates group efforts.
(d) Coordination is a continuous process

Answer : B

Question. Under what function of management does the determining of structure of roles fall?  
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Answer :   B

Question. Under what function of management does the work of filling posts with people fall?  
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Answer :  C

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

TRUE AND FALSE

1. Goals of an organisation are the basic reason for its existence.   True 
2. Provision of crèche for the children of employees refers to the social objective of a business.  False
3. Social objectives are set for the welfare of employees.  False
4. Management is considered a multi-faceted concept.   True 
5. Management is not a full-fledged profession.   True 
6. Supervisory level managers are also known as divisional heads.  False
7. In order to be considered a manager, an individual must coordinate the work of others.  True 
8. Co-operation in absence of co-ordination leads to waste of efforts.   True 
9. Co-ordination without Co-operation may lead to dissatisfaction among employees.   True 
10. Coordination without cooperation has not roots and cooperation without coordination bears no fruits.  True 
11. Co-ordination is a separate function of management.   False
12. Coordination is called the essence of management. True 
13. Integration, balancing and timing are the three elements of coordination.  True 
14. Coordination is the root of cooperation.   False

15. Cooperation is the root of coordination.   True 

CORRECT THE INCORRECT STATEMENT

Question. Scientific principles are first tested through repeated experimentation under controlled conditions and then observed and developed.
Answer : Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions.

Question. The process of management is a series of exclusive functions, performed by all the managers back to back.
Answer : The process of management is a series of composite functions, performed by all the managers simultaneously.

Question. All management practices are based on same set of principles. What distinguishes a successful manager from a less successful one is the ability to learn these principles.
Answer : All management practices are based on same set of principles. What distinguishes a successful manager from a less successful one is the ability to apply these principles.

Question. Staffing function decides who will do a particular task, where it will be done, and when it will be done.
Answer : Organising function decides who will do a particular task, where it will be done, and when it will be done.

Question. Plant Superintendent and Superintendent are middle level managers.
Answer : Plant Superintendent is a middle level manager but Superintendent is a lower level manager.

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