CLASS 12 BUSINESS STUDIES
UNIT - 1
NATURE AND SIGNIFICANCE OF MANAGEMENT
Very Short Answer & Questions (Mark-1)
1. Define Management.
Ans. According to Henry Fayol, To manage is to forecast, to plan, to organise, to command, to co-ordinate and to control"
2. Anything minus management is nothing. What does this statement tell?
Ans. Anything minus management is nothing.' This statement states that all the activities - business or non-business, if we deduct management out of theseactivities, the result will be failure or nothing.
3.Is management a goal oriented process?
Ans. Yes, management is a goal oriented process as it always aims at achieving the organisational objectives.
4. Management is an art or science or both.
Ans:- Management is both science as well as art Like science it has systematic and well-organised body of knowledge and like art it requires personal skill Creativity and practice to apply such knowledge in the best possible way
5. Management is multi dimensional. Write one dimension.
Ans. The one dimension of management is management of work
6.Do you think management is a continuous process? Comment.
Ans. Yes, management is a continuous or never ending process as it comprises a series of functions. All the functions of management are performed continuously, for example planning, organising, staffing, directing and controlling
7. Why it is said that management is all pervasive?
Ans. Management is an universal phenomenon The use of management is applicable to all types of organisations whether profit making or non-profit making That is why it is said to be all pervasive.
8.Is management a dynamic function?
Ans:-Yes, management is a dynamic function as it constantly engaged in the moulding of an ever changing business environment.
Management of any organisation strives to attain different objectives.
9.Mentiony two such objectives.
Ans. Any two objectives are:
(1) Organisational objectives (1) Social objectives.
10. Why it is said management principles are Universal?
Ans. Management principles are not restricted to business firms only, it is application in profit making, non-profit making, business or non-business organisations. That is why it is said to be universal.
11. Name the level of management the following posts belong to: (i) Purchase
Manager (ii) Superintendent.
Ans. (i) Purchase Manager-Middle Level Management.
(ii) Superintendent- Lower level Management.
12. At which level business policy is formed?
Ans. Top Level Management.
13. Do you think co-ordination is not the function of management.
Ans. Co-ordination is not only a function of management but it is an essence of management as it brings unity of action and integrates different activities of organisation.
14. What do you mean by 'efficiency'?
Ans. It refers to efficient utilisation of resources to accomplish goals and objectives.
15.Which function of management ensures that actual activities conform to planned activities?
Ans. Controlling.
Short Answer Questions: Type I (Marks-3)
1. Management is a goal oriented process. Explain. Ans. Management always aims at achieving the organisational objectives without having a goal or an aim I cannot run a business. The functions and activities of manager lead to the achievement of organisational objectives, for example, if the objective of a company is to sell 1000 computers then the manager will plan the course of action, motivate all the employees and organise all the resources keeping in mind the main target of selling 1000 computers.
2.Discuss three basic feature of management as a profession.
Ans. The three basic feature of management as a profession are as follows:
(i) Well defined body of knowledge: In every profession there is practice of systematic body of knowledge which helps the professionals to gain specialised knowledge of that profession.
(ii) Restricted entry: The entry to a profession is restricted through an examination or degree. For eg, a person can practice as doctor only when he is having a MBBS degree.
(iii) Presence of professional associations : For all the professions, special associations are established and every professional has to get himself registered with his association before practicing that profession. For eg., doctor have to get themselves registered with Medical Council of India to start their practice.
3.Distinguish between Co-ordination and Co-operation.
Ans:-
4. Ramen is the manager of the North-East Division of a large corporate house dealing with electrical goods. At what level he works in the organisation? What is his basic functions?
Ans. Ramen is working at the Middle Level. His basic functions are as follows
(i) Interpreting the policies formed by the top level management and acting as a link between the top level management and operative management
(ii) Assigning necessary duties to the employees.
5. State three functions of top level management.
Ans. The three functions of top level management are
(i) Determining the objectives of the enterprise : The top level managers formulate the main objectives of the organisation. They form long term as well as short term objectives.
(ii) Framing of plans and policies: The top level managers form the plans and policies to achieve the set objectives:
(iii) Responsible for welfare and survival of the organisation: The top level managers are responsible for welfare and survival of the organisation. They make plans to run the organisation smoothly and successfully
4.State any three functions of lower level management.
Ans. The three functions of lower level management are__
(i) Looking for safety of workers: Lower level managers provide safe and secure work environment for workers.
(ii) Communicating with workers and welcoming their suggestions: The lower level managers encourage the workers to take initiative. They welcome their suggestions and reward them for good suggestions.
(iii) They try to maintain precise standard of quality and ensure steady flow of output The lower level managers make sure that quality standards are maintained by the workers.
7.Why is management regarded as science? Give three reasons.
Ans. The three reasons why management is regarded as a science are as follows:
(i) Systematic body of knowledge: In science organised and systematic study material is available which is used to acquire the knowledge of science Like science in management also there is availability of systematic and organised study material. So first feature of science is present in management.
(ii) Principles are based on repeated experiments: Before developing scientific principles scientists test these principles under different conditions. Similarly. managers also test & experiment managerial principles under different conditions in different organisations. That is why management is regarded as science.
(ii) Cause and Effect Relationship : Principles of science lay down cause and effect relationship between various variables. The same is true for management, therefore it also establishes cause and effect relationship.
8. What is management by Objectives? Explain.
Ans. Management by Objectives (MBO) refers to the system in which the objectives of an organization are agreed upon so that management and employees understand a common way to forward. The term "management by objectives" was first popularized by Peter Drucker. Management by objectives is also known as management by results (MBR). The essence of MBO is participative goal setting, choosing course of actions and decision making.
9.Why is management considered as inexact science? Give three reasons.
Ans. Science can be defined as a systematic and organised body of knowledge based on logical observed findings, facts and events. The three reasons why management is considered as mexact science are as follows:
(i) Science is a systematised body of knowledge. Its principles are based on cause and effect relationship eg, water evaporates on being heated Same way. management is a body stigmatised knowledge. All managerial principles have cause and effect relationship.
(ii) Scientific principles are first developed through observation and then tested through repeated experimentation. Same way management principles are also propounded after observation and repeated experimentation
(iii) All scientific principles have universal validity. They give similar results whenever applied Whereas principles of management do not have universal validity. They have to be adjusted and applied according to the need of the situation.
Thus, management is considered as an inexact science.
10. Explain in brief management as a process.
Ans. As a process, management refers to a series of inter-related functions. It is the process by which management creates, operates and directs purposive organisation through systematic coordinated and co-operated human efforts Management is a distinct process consisting of planning, organising, staffing, directing and controlling. As a process, management consists of
(i) Management is a social process: Since human factors is most important among other factors, therefore management is concerned with developing relationship among people.
(ii) Management is an integrating process: Management undertakes the job of bringing together human, physical and financial resources so as to achieve organizational purpose.
(iii) Management is a continuous process: It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps
Short Answer Questions: Type-II (Marks-4)
1. Explain briefly nature of management.
Ans. According to the Modem concept 'management is a process of getting things done with the aim of achieving goals effectively and efficiently." Management reveals the following nature or characteristics
(i) Management is Pervasive : Management is a universal phenomenon. The use of management is not restricted to business firms only; it is applicable in profit making, non-profit making, business or non-business organisations.
(ii) Management is a continuous process: Management is a continuous or never ending process. All the functions of management are performed continuously, for eg planning, organising, staffing, directing and controlling are performed by the managers continuously.
(iii) Management is a group activity: Management always refers to a group of people involved in managerial activities. The goals and objectives of an organisation can be effectively attained by a group rather than by an individual.
(iv) Management is intangible : Management function is intangible in its nature. It cannot be physically seen but its presence can be felt.
2. Explain in brief four importance of management.
Ans. In the absence of management, no organisation can run smoothly. The major importance of management are
(i) Management helps in achieving group goals: Management tries to integrates the objectives of individuals along with organisational goal. It directs the efforts of all individuals in the common direction towards achieving an organisational objective
(ii) Management helps in increasing productivity: The main objective of an organisation is to maximise profit by reducing the cost. The management must supervise the people working in the organisation and motivate them to work so that the productivity increases
(iii) Management improves efficiency : Managers try to reduce the cost and improve productivity with minimum wastage of resources Management insists on being efficient and effective in the work through planning, organising, staffing, directing and controlling.
(iv) Management brings harmony in work: In an organisation employees from different backgrounds come, they have different styles and attitudes of working and if everyone starts following his own style, it can lead to chaose and confusion in the organisation. The management can bring uniformity by giving directions to the employees.
3.Distinguish between co-ordination and co-operation.
Ans:-
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Long Answer Questions: Type-1 (Marks-5)
1.Explain in details the levels of management.
Ans. The term 'levels of management' refers to a line of demarcation, between various managenial positions in an organisation. This line is divided into three levels which are as follows
1.Top level management
2.Middle level management
3.Supervisory level or lower level of management
The above mentioned levels are discussed below__
1.Top level management: The top level of management consists of ma at the highest level in the management hierarchy Top level management con of chairman Board of Directors, General Manager, President, Vice-President etc. The activities at this level centres round establishing overall goals, pla strategies and guidelines of the organisation Some of the important functions of top level management are
(i) Framing plans and policies: The top level managers also frame the plans and policies to achieve the set objectives.
(ii) Determining the objectives of the enterprise: The top level managers formulate the main objectives of the organisation
(iii) Responsible for welfare and survival of the organisation : Top level is responsible for the survival and growth of the organisation.
2. Middle Level Management : Middle level management is regarded as the most important management level because it is at the centre of the organisational structure. This level of management consists of departmental heads such as purchase department head, finance manager, marketing manager etc. The main functions performed by this level of managers consists of linking the top and lower levels of management. Functions of middle level management are__
(i) Motivating the persons to perform their best ability: The middle level
managers offer various incentives to employees so that they get motivated and perform to their best ability.
(ii) Implementing the plans framed by top level: Middle level makes sense that plans which are made by top level are implemented
(iii) Cooperate with other departments for smooth functioning.
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3. Supervisory Level / Lower Level Management: The lower level of management consists of first line managers. This level consists of supervisors. foreman, clerk, superintendent ete First line managers are directly in touch with the operative employees or the rank and file. There are no managers below this level. The main functions of lower level management are
(i) Looking to safety of workers: Supervisory level managers provide safe and secure work environment for workers.
(ii) They are responsible for boosting the morale of the workers and developing the team spirit in them.
(iii) Minimising the wastage of materials.
2. Management is a series of continuous inter related function. Explain fully.
Ans. Management is a set of continuous or never ending function. All the functions of management are inter related. For example, planning, organising, staffing, directing and controlling are performed by the managers at a time. Each of the functions of management are inter related. In management process managers create, direct, maintain and operate purposive organisation through systematic, co-ordinated and co-operative human efforts. The various managerial activities cannot be performed once for all, but is a continuous process. A manager is busy sometimes in doing one managerial activity and at other times some other activity.
4. Your father has retired as the purchase manager of a company. At what level of management was he working? What functions do you think be was performing at that level of management?
Ans. My father was working in the middle level of management. His basic functions were as follows -
(i) Linking the top and supervisory level of management.
(ii) Taking departmental decisions
(iii) Inspiring lower level managers towards better performance.
(iv) Transmitting orders, suggestions and decisions downwards.
(v) Issuing detailed instructions to lower level of management
4. Do you think management has the characteristics of a full-fledged profession?
Ans. Management has the characteristics of a full-fledged profession if it satisfies the conditions below
(i)Well defined body of knowledge: All professions are based on a well defined body of knowledge that can be acquired by teaching-learning process. This feature of a profession is possessed by management as well. There is vast knowledge available on management in the form of definations, concepts etc..
(ii) Restricted entry: All professions have a restrictions on the entry of its practitioners They have to acquire a specific degree to be a professional. Eg. LLB degree for a lawyer, MBBS degree for a doctor etc. But a manager can be a MBA qualified or not
(iii)Professional Association : All professions are affiliated to a professional association which regulates entry, grants certificate of practice etc eg. All lawyers have to be a member of Bar council to practice law It is not compulsory for all managers to be a member of AIMA.
(iv)Ethical Code of Conduct : All professions are bound by an ethical code of conduct which guides the behaviour of its members. However, it is not compulsory for all the managers to be members of AIMA.
(v) Service Motive: The basic motive of all professionals is to serve their clients interest. Eg., lawyers to get justice for their clients, doctors to treat their patients etc. All managers also work in a manner whereby they show their effectiveness and efficiency in the form of good quality, provided to the customer at a reasonable price,
5."A successful enterprise has to achieve its goals effectively and efficiently". Elucidate the statement.
Ans. Management has been defined as a process of getting things done with the aim of achieving goals effectively and efficiently. Being effective or doing work effectively means finishing the given task Effectiveness in management is concerned with doing the right task, completing activities and achieving goals. But it is not enough to just complete the tasks. Completing task efficiently is also important. Efficiency means doing the task correctly and with minimum cost. If by using less resources more benefits are derived then efficiency has increased. For management, it is important to be both effective and efficient. Effectiveness and efficiency are two sides of the same coin. Usually high efficiency is associated with high effectiveness which is the aim of all managers.
6 "Management is considered an Art or Science or both". Elucidate the statement.
Ans:-Management as a Science : Science is a systematized body of knowledge pertaining to a specific field of study and contains general facts that explain a phenomenon. The principles are absolute facts having universal application. As such science is characterized by the following features:
(i) Existence of systematised body of knowledge.
(ii) Principle based on experiments.
(iii) Universal validity of principles.
On examination we find that management has some of these features and it does not have others. For instance, management is a systematised body of knowledge. - The management principles are flexible and can be used in different situations with modification. So, these principles have universal applicability Thus, management can be called as an inexact science.
Management as an Art: Art is concerned with the application of knowledge and skills. Desired results are achieved through the application of skills. Thus, an art has the following characteristics__
(i) It signifies practical knowledge.
(ii) It is creative in nature
(iii) It signifies personal skills in particular field of human activity. Management is known as an art since it involves application of knowledge and personal skills to achieve desired results. As an act management calls for a combination of abilities, skills and judgement
Management: Both science and an art: Management is a combination of an organized body of knowledge and skillful application of this knowledge. Effective performance of various management functions necessarily needs an adequate basis of knowledge and a scientific approach. Thus, management is both a science and an art.
Long Answer Questions: Type-II (Marks-6)
1. 'Co-ordination is the essence of management'. Do you agree? Give reasons.
Ans. Co-ordination is regarded as the essence of management because each of the managerial function contributes to co-ordination. Co-ordination as an essence of management is discussed below
(i) In planning co-ordination is required between the main plan and supportive plans of different departments.
(ii) In organising co-ordination is required between different resources of organization and also between authority, responsibility and accountability.
(iii) In staffing co-ordination is required between skill of a person and job assigned to him, between efficiency and compensation etc an
(iv) In directing function, co-ordination is required between superior and sub-ordinates, between order, guidelines etc
(v) In controlling function, co-ordination is required between standards and actual performance It is clear from the above discussion that co-ordination is regarded as an essence of management rather than separate function of management.
2.What are the functions of management? Explain in detail.
Ans. Following are the functions of management
(i)Planning Planning is the first and foremost function of management. It is deciding in advance what to do, how to do, when to do and who is to do. Planning makes it possible for things to occur which would otherwise not happen It is needed for all functions and at all levels of management
(ii)Organising: Organising refers to the process of bringing together physical. financial and human resources and establishing productive relations among them for the achievement of pre-determined goals. The main aim of organising is to enable the people to relate to each other to work together for a common purpose.
(iii) Staffing: The staffing may be defined as the managerial function of hiring and developing the required personnel to fill in various positions in the organization. It is also concerned with employing the right people and developing their skills through training.
(iv) Directing. It is the function of managements concerned with instructing, guiding supervising, motivating and leading the subordinates to contribute to the best of their abilities for the achievement of organisational objectives.
(v) Controlling: Controlling is the process of verifying actual performance is in conformity with planned performance and taking corrective action where necessary It enables managers to detect deviations in performance if any and rectify them to prevent their repetition in future.
3. What are the characteristics of management? Explain in details.
Ans. The characteristics of management are
(i) Management is a goal oriented process Management always aims at achieving the organisational goals or objectives. The functions and objectives of a manager lead to the achievement of organisational objectives.
(ii) Management is Pervasive : Management is a universal phenomenon. The use of management is not restricted to business firms only, it is applicable in profit. making, non-profit making, business or non-business organisation.
(iii) Management is a group activity: Management always refers to a group of people, involved in managerial activities. The management function cannot be performed in isolation. Each individual performs his/her role at his/her status and department, then only management function can be isolated (iv) Management is a dynamic function: Management has to make changes in goal, objectives and other activities according to the changes taking place in the environment. The external environment such as social, economical, technical and political environment has a great influence over the management.
(v) Management is intangible: Management function cannot be physically seen but its presence can be felt. The presence of management can be felt by seeing the orderliness and co-ordination in the working environment.
(vi) Composite Process: Management consists of a series of functions which must be performed in a proper sequence. As the main function of management is planning, organising, staffing, directing and controlling, organising cannot be done without planning, directing function cannot be executed without staffing. All the functions are inter-dependent and that is why it is said to be a composite process
4.What are the objectives of management? Explain in details.
Ans. Management objectives can be classified into three major categories
(i) Organisational objectives
(ii) Social objectives
(iii) Personal Individual objectives
A brief description about each objective is given below:
(i) Organisational objectives: Management should be basically concerned with utilizing human and material resources available to an enterprise for deriving best results. This leads to reduction in cost and maximum prosperity for the organization by generating high profits.
The main organizational objectives are:
(a) Survival: The basic objectives of any business is survival. In order to survive, an organisation must earn enough revenues to cover costs.
(b) Profit: Management has to ensure that the organisation makes a profit. Profit provides a vital incentive for the successful continuation of operations in an enterprise.
(c) Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow. An organization can grow and expand only af it moves in the pre-determined direction
(ii) Social objectives: Social objectives deal with the commitment of an organization towards society Such objectives may be pertaining to health, safety, labour practices etc. It should be noted that most business houses in achieving their primary goals also contribute to their respective communities by creating needed economic wealth, employment and financial support to the community.
(iii) Personal/Individual objectives : Individual objectives are pertinent to the employees of the organization. Each employee joins an organization to satisfy his needs by working in the firm These objectives may include competitive salary. personal growth and development, peer recognition etc
5 Discuss the significance of management to a modern industrial enterprise?
Ans. The significance of management to a modern industrial enterprise has increased tremendously due to the following challenges:
(i) Growing size and complexity of business (ii) Increasing specialization of work
(iii) Growing unionization of labour
(iv) Increasing complexity of business decisions.
(v) Need for optimum utilization of scarce resources. In a developing country like India, the significance of management can hardly be over emphasized. Higher efficiency and higher productivity is the only hope of the people.
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AHSEC Class 12 Business Studies 2023-2024 Edition Question Answers
Nature and Significance of Management
Chapter: 1 (PART – A)
VERY SHORT TYPE QUESTIONS ANSWERS (1 MARK EACH)
1. Define Management.
Ans: “Management is the process of working with and through others. to effectively achieve organisational objectives by efficiently utilising the limited resources in the changing environment.”
2. Management is all pervasive comment.
Ans: Management is all pervasive or universal because management is essential for effective performance of any organised activity. The principles and techniques of management have universal application. They can be applied to all types of organised activities-business, social, educational etc. Thus, it is all pervasive in nature.
3. Is management a goal oriented process ?
Ans: Yes, management is goal-oriented process because the purpose of management is to achieve the goals of the organisation. The success of management is judged by the extent to which organisational goals are achieved.
4. Management is an art or science or both.
Ans: Management is both science and an art, management is science because s developed certain principles which are of universal application. But the results of management depend upon the personal skills of managers and in this sense management is art.
5. Management is multi dimensional. Write one dimension.
Ans: Management can be defined as multidimensional as because it has many dimensions which can be classified mainly into three categories, such as management of work, management of people and management of operations.
6. Do you think management is a continuous process? Comment.
Ans: Management is a continuous process because it is started right from the time of establishment of the business till its dissolution So, every management system is to be done in continuous mode.
7. Earning profit is not the objective of management. Say Yes or No.
Ans: No, profit earning is also the objective of management because profit is the reward for risk bearing by a businessman and profit also essential for survival, growth and expansion.
8. Is management a dynamic function ?
Ans: Yes, management is a dynamic function because according i changing of inputs the process of management will be also changed.
9. Principles of management are not right as pure science Comment.
Ans: Principles of management are not right as pure science because of the following reasons:
(a) Management principles are flexible where as principles of pl science like physics are rigid.
(b) Management principles are applied as per situation as they influence the behaviour of human beings whereas principles of pure science. are applied in absolute sense.
(c) Management principles have to keep pace with the changing business environment. But principles of pure science do not change with time, they remain static.
10. Why is it said management principles are universal ?
Ans: The principles of management are universal in nature because they are applicable to all kinds of organisations and situations.
11. Planning eliminates changes and uncertainties. Do you agree ? Give reason.
Ans: Yes, I agree with this statement, because planning involves forecasting or anticipation of future events and this helps to reduce or eliminates changes and uncertainties.
12. At which level business policy is framed ?
Ans: At top level business policies are framed.
13. Do you think coordination is not the functions of management ?
Ans: No, coordination is not a separate function of management, but it is the essence of management.
14. “Anything minus management is nothing”. What does this statement tell ?
Ans: This statement tells that nothing is possible without management.
15. Management of any organisation strives to attain different objectives. Mention any two such objectives.
Ans: (a) Supply of quality goods at reasonable prices.
(b) The basic objective of any business is survival.
16. Name the level of management the following posts belong to:
(i) Purchase Manager.
(ii) Superintendent.
Ans: (i) Top management.
(ii) Middle management.
17. What do you mean by “efficiency”.
Ans: Efficiency means achieving the predetermined goals at the minimum cost (i.e. optimum use of resources).
18. Which function of management ensures that actual activities conform to planned activities ?
Ans: Controlling.
19. Who are regarded as middle management in a business. Organisation ?
Ans: Divisional heads, regional managers, production or operations managers, plant superintendents etc. are regarded as middle management in a business organisation.
20. List two social objectives of management.
Ans: (a) Supply of quality goods at reasonable projects.
(b) Generation of employment opportunities.
B. SHORT TYPE QUESTIONS ANSWERS TYPE-1 (3 MARKS EACH)
21. Explain in brief ‘management as a process’.
Ans: Management is called as a process because it comprises a series of functions that lead to the achievement of certain objectives. Management process involves planning, Organising, staffing, directing and controlling. These are the basic functions which every manager performs for the achievement of certain goals. The manager draws plans to translate these goals into reality.
22. State any three functions of top level management.
Ans: Three functions of top level management are –
(i) It prepares strategic plans and policies for the enterprise.
(ii) It appoints the executives for the middle level.
(iii) It determines the objectives of the enterprise.
3. State any three functions of lower level management.
Ans: Three functions of Lower level management are –
(i) To plan and organise the activities of their units.
(ii) They provide training to the workers under their charge.
(iii) To supervise and guide the subordinates and also solve their problems.
24. Why is management regarded as science? Give three reasons.
Ans: Same as Q.No 42
25. Management is a goal-oriented process. Explain.
Ans: Management is an essential part of a group activity. As no individual can satisfy all his desires himself, he unites with his fellow-beings. and work in an organised group to achieve what he cannot achieve individually. Wherever, there is an organised group of people working towards a common goal, some type of management becomes essential. Management makes the people realise the objectives of the group and directs their efforts towards the achievement of these objectives.
26. Discuss the basic features of management as a profession.
Ans: Management can be considered a profession because of the following reasons:
(a) The field of management is supported by a well-defined body of knowledge that can be taught and learnt.
(b) Management of modern organisations requires competent application of management principles, skills and techniques. Thus, there is a need of formal education and training in management.
(c) Certain associations of managers have been formed in different countries of the world. These associations have prescribed standards of education and training for their members.
(d) Several associations of Manager such as All India Management
Association (AIMA) have prescribed codes of conduct for their members.
(e) Managers are aware of their social responsibilities towards various groups of the society.
27. Management is a profession like accountancy, medicine and law. Give reasons.
Ans: Yes, management is a profession like accountancy, medicine and law.
Management can be defined as profession on the following grounds:
(a) The field of management is supported by a well defined body of knowledge that can be taught and learnt.
(b) Management of modern organisations requires competent application of management principles, techniques and skills.
(c) Certain associations of manager have been formed in different countries of the world. These associations have prescribed. standards of education and training and also code of conduct for their members.
(d) Managers are guided by the motive of service to others rather thar making money. That is why, managers enjoy a respectable status in the society as is the case with doctors, chartered accountants etc.
28. Distinguish between coordination and co-operating management.
Ans: Distinction between Coordination and cooperating management:
29. What are the characteristics of a profession ?
Ans: See Answer to Question No. 39.
30. What is management by objectives ? Explain.
Ans: Management by objectives (MBO) is one of the new techniques of management developed in the recent past years. MBO is also known as Management by Motivation, Management by Results etc. The system of MOB can be described as a process whereby the superior and the subordinate of an organisation jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.
31. Remen is the manager of the North East Division of a Large corporate House dealing with electrical goods. At what Level he works in the organisation? What is his basic function ?
Ans: At middle level he works in the organisation.
Generally, he perform the following roles or functions:
(i) He execute the policies framed by the top management.
(ii) He make plan and budgets for their departments.
(iii) He participate in the employment and training of junior managers.
(iv) He assign duties among the junior managers and give them necessary instructions.
(v) He evaluate the performance of junior managers and also motivate them.
(vi) He attempt to achieve coordination within their departments..
C. SHORT TYPE QUESTIONS ANSWERS TYPE-11 (3 MARKS EACH)
32. Why management is considered a multifaceted concept ?
Ans: Management is considered a multifaceted concept because management is multi-dimensional subject as because it has many dimensions which can be classified mainly into three categories, such as management of work, management of people and management
of operations. In other words, management is concerned with conversion of various inputs into desired outputs with the help of human resources or people working in the organisation. The interaction between work targets, operations and people with managerial functions of planning, organising, directing and controlling.
Management of work is concerned with the satisfaction of customers needs. Management of people involves dealing with people as
(i) individual (having diverse needs, perception and behaviour)
(ii) members of work groups in the anisation. Management of operations is concerned with the transformation of inputs into outputs efficiently to serve the customers better.
33. Explain briefly nature of management.
Ans: Nature of management are as follows:
(i) Management as a science: Management is not a perfect science as its principles are mostly situation based and do not produce the same results every time. Infact, management is a social science as it deals with humans whose behaviour is not fully predictable.
(ii) Management is an art: It is an art as every manager applies certain knowledge and skills to take decisions and put them into action. Management is a creative art of dealing with to people.
(iii) Management is proceeding towards professionalisation : Management has a wide body of knowledge which requires competent application. Modern managers recognise their social obligations and have high status in the society. But the element of self control is missing. There is no controlling authority of the managers to implement a code of conduct for them.
34. Explain in brief importance of management.
Ans: The importance or benefits of management are :
(i) Helps in achieving business objectives: Management brings human and material resources together and mobilises people to help in reaching business goals:
(ii) Management increasès efficiency: The aim of a manager is to reduce costs and increases productivity through better planning, organising, staffing and controlling the activities of the organisation.
(iii) Management helps in achieving personal objectives: A manager motivates and lead his team in such a manner that individual member are able to achieve personal goals while contributing to the organisation.
(iv) Better quality goods: A good management helps in producing better quality goods at minimum of cost.
(v) Social benefits: Management help in raising standard of living of the people by providing them with quality goods and services at the lowest possible cost.
(vi) Minimising the element of risk: Risk is an integral part of every business but an efficient management always tries to control or minimise it.
35. Do you think management is a profession ? Explain.
Ans: See Answer to Question No. 39.
36. Distinguish between coordination and control.
Ans: Coordination is the achievement of orderly group efforts and unit of action in the pursuit of a common purpose. It is the orderly synchronisation of the efforts of the subordinates for the achievement of the goals of the organisation. Synchronisation of the efforts of all the groups and individuals is necessary for the accomplishment of organisational objectives. Whereas controlling is a basic managerial function which impl measurement and correction of performance of subordinates ensure the predetermined objectives are accomplished. Control consists of those activities which are necessary to ensure that performances takes place in accordance with the targets laid down by the management. It also involves taking corrective actions in case the performance is not satisfactory.
37. What significant role management has played in Business ?
Ans: See Answer to Question No. 45.
38. Explain briefly nature of coordination.
Ans: The various nature of coordination are as follows:
(i) Part of every function: Coordination is not a separate function. but is inherent in every function. The activities of every function need coordination to complete them.
(ii) Responsibility of every manager: Every manager in the organisation has to perform coordination function. Manager have to synchronise the activities of every subordinates for achieving departmental goals.
(iii) Coordination is a process: As a process, coordination involves a number of efforts to ensure harmony at every level for achieving common objectives.
(iv) Continuous activity: Coordination is an activity carried on by every manager at all the times. It is not an activity which is to be undertaken at certain point of time, rather it is carried out continuously.
(v) Involve Cooperation: Coordination involves synchronisation of activities of various persons so it can be achieved only with their cooperation.
Group effort: Coordination applies to group effort. When there are more persons working then their activities will be coordinated.
D. LONG TYPE QUESTIONS ANSWERS TYPE-1 (5 MARKS EACH)
39. Do you think management has the characteristics of a full fledged profession ?
Ans: The term ‘profession may be defined as an occupation backed by specialised body of knowledge and training and to which entry is regulated by a representative body.
Yes, management has the characteristics of a full fledged profession for the following reason:
(i) Specialised knowledge: There exists a specialised body of knowledge underlying the field of management. It has well defined concepts, theories and techniques which can be put into practice by the managers.
(ii) Formal education and training: There exists a large no. of colleges, universities and institutions for imparting formal training and education in the field of management.
(iii) Professional association: For the development and regulation of any profession the existence of a professional body or association is must.
(iv) Code of conduct: Management associations have been set up in India and abroad. All India Management Association has devised a code of conduct for Indian managers.
40. Explain in details the Levels of management. management.
Ans: An organisation may have various levels of manager term ‘level’ involves person arranged in a series.
Thus, level of management are of three types:
(i) Top level management: Top management, which consists of owners, Board of Director, Managing Director, Chief Executive and General Manager and establishes policies, plan and objectives.
It requires more of conceptual innovative, decision-making and human skills as compared to technical skills.
The main functions of top management are:
(a) Determining the objectives or goals of an enterprise.
(b) Framing policies and making plans to achieve the objectives laid down.
(c) Providing overall leadership.
(d) Assembling the resources of men, money, machines and materials.
(e) Setting up an organisational framework.
(ii) Middle Management: This level of management is basically concerned with the task of implementing the policies and plans laid down by the top management. It works as a necessary link between the top management and the lower level of management. It consists of functional heads, production, finance, marketing manager, and the divisional and sectional officers.
The functions of middle management are:
(a) Interpreting the policies framed by top management.
(b) Collecting information and reports on performance etc.
(iii) Lower or operating management: It is the lowest level in the hierarchy of management and actual operations are the responsibility of this level of management. It consists of superintendent, supervisors and foremen who are in direct touch with the rank of file of workers. They have to get the work done through the workers. The functions of operating management:
(a) To plan day to day work within the goals.
(b) To issue orders and instructions for executing the work.
(c) Providing on the job training to workers etc.
41. What is effectiveness versus efficiency ?
Ans: Distinction between effectiveness and efficiency or effectiveness vs. efficiency.
42. “Management is considered an Art or Science or both.” Elucidate the statement.
Ans: The nature of management is both art as well as science. Art is the practical technique and skill of applying knowledge to achieve desired goals.
Management can be defined as an art because of the following reasons:
(i) Every manager is to apply his knowledge, skill and rules in day to day job of the company to manage the operations.
(ii) There are various theories, principles under which every manager is to do his work by studies the present situation to market, economy, business etc.
(iii) Every manager is required to apply his some personal skill in a given situation.Considering all of the above factors, the features of management can be defined as an art.
Management is also called science because of the following reasons:
(i) Management is a systematised body of knowledge. Management has own principles and rules.
(ii) In order to modify the principles of management every manager is to maintain certain standardised tech iques which can be applied in different situations.
(iii) Scientific principles are evolved through observation and tested by repeated experimentation..
43. “A successful enterprise has to achieve its goods efficiently and effectively.” Elucidate the statement.
Ans: See Answer to Question No. 41.
44. Management is a series of a continuous inter related function. Explain fully.
Ans: There are basically five primary function of management. There are interrelationship in between these fair functions moreover these five functions are to be performed continuously.
These functions are discussed below:
(i) Planning: Planning is a basic managerial function. It is a decision in advance, what to do, how to do, and who will do a particular task. It helps in determining the course of action to be followed for achieving various organisational objectives. It involves the ability to foresee the effects of current action in the long run in the future.
(ii) Organising: It is the process of identifying and grouping work to be performed. It also helps in assigning the task to individuals, delegation of authority and fixing responsibility etc.
(iii) Staffing: Staffing is the function of hiring and retaining a suitable workforce for the enterprise. It involve the process of recruiting. training, developing, compensating and evaluating employees and maintaining this workforce with proper incentives and motivation.
(iv) Directing: Directing involves bading, influencing and motivating employees to perform the task assigned to them. Directing is concerned with giving instruction to the employees to carry out the desired goals.
(v) Controlling: Control is the process which enables management to get its policies implemented and take corrective actions if performance is not according to predetermined standards.
E. LONG TYPE QUESTIONS ANSWERS TYPE- II (6 MARKS EACH)
45. Discuss the significance of management to modern industrial enterprise ?
Ans: The importance of management to a mor business is discussed below:
(i) Accomplishment of Organisational Goals: It is the management which determines the goals of the organisation and of various departments and functional groups. The goals are communicated to the employees to seek their cooperation. All organisational activities are directed towards the organisational objectives. Clear-cut definition of goals is essential for the success of any organisation.
(ii) Efficient Utilisation of Resources: Ma Mangement ensures optimum utilisation of resources. Through planning and organisation, management eliminates all types of wastages and achieves. efficiency in all business operations Management motivates workers to put in their best performance This would lead to the effective working of the business.
(iii) Sound Organisation: Management establishes sound organisation for the accomplishment of the desired objectives. It clarifies authority-responsibility relationships among vario. Positions in the enterprise. It fills various positions with persons having the right qualifications and training. Management also provides the workers with proper environment and encourages the spirit of cooperation.
(iv) Integration of Endeavours or Efforts: Management deals with integration of human and non-human resources in order to achieve organisational objectives. It directs and coordinates the activities of individuals and groups in the use of materials, methods and machines. It, thus, brings order to endeavours of different groups.
(v) Vision and Foresight: Management keeps itself in touch with the external environment and provides vision and foresight to the enterprise. It helps in predicting what is going to happen in future which will influence the working of the enterprise. It also takes steps to ensure that the enterprise is able to meet the demands of changing environment.
(vi) Accomplishment of Personal Objectives: Management leads the group members to inspire them to achieve their personal, objectives while working for the organisational objectives. Management helps them to satisfy their physical, social, status and self realisation needs so as to develop a cooperative and committed team.
46. What are the functions of Management ? Explain in details.
Ans: See Answer to Question No. 44.
47. “Coordination is the essence of management.” Do you agree ? Give reasons.
Ans: Yes, I am agree with this statement because of the following reasons:
(i) There are mainly five functions of management, such as planning. organising, staffing, directing and controlling. But the coordination . is the force that builds all the functions of management together. Moreover, coordination is also considered as a separate function. of management. It is the essence of management for achieving harmony among individual efforts towards the accomplishment of group goals.
(iii) Coordination is implicit and inherent in all functions of an organisation.
48. What are the objectives of management ? Explain in details.
Ans: Objectives are the goals or ends toward which the activities of a business are directed. From the point of view of management, objectives may be grouped under three heading namely
(i) organisational.
(ii) social and.
(iii) individual.
(i) Organisational objectives: The main purpose of any organisation is to utilise human and material resources to fulfil its economic objectives.
The economic objectives of a business are survival, profit and growth as discussed below:
(a) Survival: The basic objective of any business is survival. In order to survive an organisation must earn enough revenues to cover cost of operation.
(b) Profit: Mere survival is not enough for business. The management must earn sufficient profit to meet the various cost of business and also cover the various business risks.
(c) Growth: It is very important for the business to grow. To remain in the market, management must exploit fully the growth potential of the organisation.
(ii) Social objectives: Management is an organ of the society so it must have social objectives.
Social objectives include the following:
(a) Supply of quality goods at reasonable prices.
(b) Generation of employment opportunities.
(c) Providing financial support to community projects.
(d) Controlling environment pollution.
(e) Using environment friendly methods of production.
(iii) Personal objectives: Personal objectives relate to the employees. Every employee has some aspirations when he joins a job.
He expects these aspirations to be fulfilled by the organisation :
(a) Good salary and other benefit.
(b) Opportunities for training, promotion etc.
(c) Good and healthy condition.
(d) Recognition of meritorious Tous work.
(e) Treat employees as a part of business.
49. What are the characteristics of management ? Explain in details.
Ans: To understand the nature of management, it is essential to know the features or characteristics of management.
The basic features or characteristics of management are as follows:
(i) Management is goal-oriented: Management is always goal oriented. In the first function of management i.e. planning. The desired goal of the business is determined. Thereafter, through proper organising, staffing, directing and controlling the goal are achieved.
(ii) Group activity: Management is an essential part of a group activity. Whenever, there is an organised group of people working towards a common goal, some type of management becomes essential. Management makes the people realise the objectives of the group and directs their effects towards the achievement of these activities.
(iii) Management is universal in character: Management is applicable in all types of organisation. The basic principles of management are of universal application and can be applied in all organisation whether they are business, social, religious, cultural, sports etc.
(iv) Multidimensional: Management can be defined as multidimensional as because it has many dimensions which can be classified mainly into three categories, such as management of work, management of people and management of operations.
(v) Management is a continuous process: Management is a continuous process i.e. its functions are repeated time and again.Management does not stop anywhere. It is started right from the time of establishment of the business till its dissolution.
(vi) Dynamic function: Management is a dynamic function. According to changing of input the process of management will be also “d dynamic function. changed. So, management is called dynamic function.
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