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Assignment for Class 12 Business Studies Chapter 1 Nature And Significance Of Management
Class 12 Business Studies students should refer to the following printable assignment in Pdf for Chapter 1 Nature And Significance Of Management in Class 12. This test paper with questions and answers for Class 12 Business Studies will be very useful for exams and help you to score good marks
Chapter 1 Nature And Significance Of Management Class 12 Business Studies Assignment
Efficiency and Effectiveness
Efficiency means doing the task correctly at minimum cost while effectiveness means completing the task correctly. Although Efficiency and effectiveness are different but they are interrelated. It is important for management to be both i.e. effective and efficient.
Example : A business produces targeted 1000 units but at a higher cost is effecitive but not efficient. Therefore if the business has to be effective and efficient then it has to produce 1000 units within cost.
Characteristics of Management
1. Goal oriented Process : It is a goal oriented process, which is undertaken to achieve already specified and desired objectives.
2. Pervasive : Management is pervasive in nature. It is used in all types of organizations whether economic, social or political and at every level.
3. Multidimensional : It is multidimensional as it involves management of Work, People and operations.
4. Continuous : It is a continuous process i.e. its functions are being performed by all managers simultaneously. The process of management continue till an organisation exist for attaining its objectives.
5. Group Activity : It is a group activity since it involves managing and coordinating activities of different people as a team to attain the desired objectives.
changing environment.
7. Intangible Force : It is an intagible force as it cannot be seen but its effect are felt in the form of results like whether the objectives are met and whether people are motivated or not.
Objectives of management
(A) Organizational objectives of Survival (Earning enough revenues to cover cost); Profit (To Cover cost and risk); & Growth (To improve its future Prospects).
(B) Social Objectives of giving benefits to society like using environmental friendly practices and giving employment to disadvantaged sections of society etc.
(C) Personal Objectives because diverse personal objectives of people working in the organization have to be reconciled with organizational objectives.
Importance of management
(1) Achieving Group Goals : Management helps in achieving group goals.
Manager give common direction to the individual effort in achieving the overall goal of the organisation.
(2) Increases Efficiency : Management increases efficiency by using resources in the best possible manner to reduce cost and increase productivity.
(3) Creates Dynamic Organisation : Management helps in creating Dynamic organisation which could adopt changing situations easily.
(4) Achieving Personal Objectives : Management helps in achieving objectives of individuals working in the organisation.
(5) Development of Society : Management helps in the development of society by producing good quality products, creating employment
opportunities and adopting new technology.
Management as an Art
1. Art refers to skillful and personal application of existing knowledge to achieve desired results. It can be acquired through study, observation and experience. The features of art are as follows.
(2) Existence of theoretical knowledge : In every art systematic & organised study material should be available compulsorily to acquire theoretical knowledge.
(2) Personalised application : The use of basic knowledge differ from person to person and thus, art is a very personalised concept.
(3) Based on practice and creativity : Art involves the creative practice of existing theoretical knowledge.
All the features of art are present in management so it can be called an art.
Management as a science
Science is a systematised body of knowledge that is based on general truths which can be tested anywhere, anytime. The features of science are as follows
(1) Systematized body of knowledge : Science has a systematised body of knowledge based on principles and experiments.
(2) Principles based on experiments & observation : Scientific principles are developed through experiments and observations.
(3) Universal Validity : Scientific principles have universal validity and application. Management has systematic body of knowledge and its principles are developed over a period of time based on repeated
experiments & observation, which are universally applicable.
As the principles of management are not as exact as the principles of pure science, so it may be called inexact science.
Management as a profession :
Profession means an occupation for which specialised knowledge and skills are required. The main features of profession are as follows.
(1) Well defined body of knowledge : All the professions are based on wellm defined body of knowledge.
(2) Restricted entry : The entry in every profession is restricted through examination or through some minimum educational qualification.
(3) Professional Associations : All professions are affiliated to a professional association which regulates entry and frame code of conduct relating to the profession.
(4) Ethical code of conduct : All professions are bound by a code of conduct which guides the behaviour of its members
(5) Service Motive : The main aim of a profession is to serve its clients.
Management does not fulfill all the features of a profession and thus it is not a full pledged profession.
Levels of Management : Top, Middle and operational levels.
Top Level
Consists of Chairperson, Chief Executive Officer, Chief Operating Officer or equivalent and their team.
Chief task is to integrate and to coordinate the various activities of the business, framing policies, formulating organisational goals & strategies.
Middle Level
Consists of divisional heads, Plant Superintendent and Operations Manager etc.
Main tasks are to interpret the policies of the top management, to ensure the availability of resources to implement Policies & to coordinate all activities, ensure availability of necessary personnel & assign duties & responsibilties to them.
Lower Level / Supervisory Level
Consists of Foremen and supervisors etc.
Main task is ensure actual implementation of the policies as per directions, bring workers grievances before the management & maintain discipline among the workers.
Functions of Management : Planning, Organizing, Staffing, Directing and Controlling.
Planning is deciding in advance what to do in future and how to do it.
Organizing is to assign duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.
Staffing is finding the right people for the right job.
Directing is leading, influencing and motivating employees to perform the tasks assigned to them.
Controlling is monitoring the organizational performance towards the attainment of organizational goals.
Coordination : The essence of Management : Coordination is the force which synchronizes all the functions of management and activities of different departments.
It integrates the group efforts.
It is a continuous process.
It is an all pervasive function.
It is a deliberate function.
It is the responsibility of all managers
1 Mark Questions (To be answered in one word or one sentence)
Question. In order to be successful an organization must change its goals according to the needs to the environment. Which characteristic of management is highlighted in the statement?
Answer: It is a dynamic function.
Question. To meet the objectives of the firm the Management of Angora Limited offers employment to Physically Challenged persons. Identify the organizational objective it is trying to achieve
Answer: Social Objective.
Question. Managerial activities are performed in all types of organizations in all departments at all levels. Which management character is highlighted here?
Answer: It is all pervasive
Question. Your grandfather has retired where he is responsible for implementing the plans developed by the top management at which level of management was he working? State one more function of this level of management.
Answer: Middle level management
Question. Your grandfather has retired as a Director of manufacturing company. At which level of management was he working? Different functions are performed at this level. State any one such function.
Answer: Top level of management) Write any one function of this level.
Important Notes and Questions for NCERT Class 12 Business Studies Nature and Significance of Management
MEANING OF MANAGMENT: -
Management is the process of planning organizing staffing directing and controlling the efforts of the organizational members by using all the other available resources to achieve the organizational goals.
DEFINATION OF MANAGEMENT: -
Management is an art of getting things done with and through others. Management can be defined as, the process of getting things done with the aim of achieving organizational goals effectively and efficiently.
Efficiency and Effectiveness
Efficiency (completing the work at low cost) means doing the task correctly at minimum cost through optimum utilization of resources while effectiveness (Completing the work on time) is concerned with end result means completing the task correctly within stipulated time. Although efficiency and effectiveness are different yet they are inter related. It is important for management to maintain a balance between the two.
Effectiveness Efficiency
Completion of work on time Completion of work with minimum cost
CHARACTERSTICS OF MANAGEMENT: -
The features or characteristics of management:
1. Management is a process (involves all the activities: planning, organizing, staffing, directing and controlling)
2. Management is all pervasive/universal-(it is applied and required everywhere not only in business activities)
3. Management is a group activity-(performed together by all the levels for different purpose.)
4. Management is continuous-(ongoing process, after completion of one plan ,planning continuous for future)
5. Management is Dynamic-(changes should be brought with changing environment)
6. Management is intangible-( cannot be seen but can be felt in the environment)
OBJECTIVES OF MANAGEMENT
IMPORTANCE OF MANAGEMENT
1) Achieving Group Goals: Management creates team work and coordination in the group. Managers give common direction to individual efforts in achieving the overall goals of the organization.
(2) Increases Efficiency: Management increases efficiency by using resources in the best possible manner to reduce cost and increase productivity.
(3) Creates Dynamic organization: Management helps the employees overcome their resistance to change and adapt as per changing situation to ensure its survival and growth.
(4) Achieving personal objectives: Management helps the individuals achieve their personal goals while working towards organizational objectives.
products, creating employment opportunities and adopting new technologies.
The Nature of management:
Management can be:
a) Regarded as Science (Systematic body of knowledge acquired through experimentation and observation)
b) Regarded as Art (Creativity and personal skills)
c) Regarded as Profession (Specialized Knowledge and training)
FUNCTIONS FOR DIFFERENT LEVELS OF MANAGERS.
Broadly there are three levels of managers in the organizational hierarchy of authority;
1. Top level managers 2. Middle level managers 3.Lower level managers
1. TOP LEVEL MANAGERS;- It consists of mangers a the highest level of hierarchy, e.g. chief executives, board of directors, etc. the main function of top-level managers are ;
a) To establish and describe the overall objectives of the organization.
b) To plan, organize and exercise control over the middle and lower level of management.
c) To decide about the overall budget of the organization and budgets of the different departments.
2.MIDDLE LEVEL MANAGEMENT;- It consists of departmental heads of the organization. The functions of middle level mangers are;
a) To perform policies, prescribe procedures and methods in different areas to achieve the medium terms, short term and departmental objectives.
b) To assist the top management by periodic submission of reports, data and other important information.
c) To assign jobs amongst the subordinates and decide the process of delegation of authority.
3.LOWER/SUPERVISORY LEVEL MANAGEMENT; - These managers rank at lowest level in the organizational hierarchy. It consists of foremen, supervisors, etc. the main function of lower level managers are;
a) To translate the intermediate plan of middle level management into day-to-day operating plans.
b) To direct the operating employees by assigning jobs, evaluating and correcting there work performance.
c) To arrange necessary raw material, tools and other facilities.
d) To ensure implementation of work as per instructions, orders and standards.
MEANING OF COORDINATION:-
Coordination is the integration, synchronization or orderly arrangement of group efforts to provide for unity of action directed towards the accomplishment of common objectives.
NATURE OF COORDINATION:
Coordination is the process of achieving unit of action among independent activities. This would be better achieved if the nature of coordination is understood clearly as discussed below:
(i) Essence of management: Coordination is an activity that is required at every level and every time in the organization. Since organizations are performing diversified activities to achieve common goals, therefore the integration of efforts at all levels is equally important,.
(ii) Continues process: A notion of coordination as a fixed entity, which either exits or does not exist, is unrealistic. Coordination is present in varying degrees. Executives must work continuously to achieve coordination.
(iii) Group efforts: Coordination is a concept that applies to group, not individual, effort. When a member of individuals seek to work together, orderliness becomes significant.
IMPORTANCE OF COORDINATION
1. Size of the organization 2. Functional differentiation 3. Specialization
Mind Map
MCQs for NCERT Class 12 Business Studies Nature and Significance of Management
Question. Management is a process because ---------------------.
(a) It involves series of steps
(b) It leads to systematic working
(c) It involves one single activity
(d) None of the above
Answer : A
Question. At which level of management, managers are responsible for maintaining the quality output and safety standards?
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) Both (b) and (c)
Answer : C
Question. An organisation is a collection of diverse activities and different individuals. Which characteristic of management is defined by this statement?
(a) Intangible force
(b) Group activity
(c) Goal oriented process
(d) All of these
Answer : B
Question. Assertion (A) In any organisation, coordination is required so that production and sales department can work hand in hand.
Reason (R) Coordination integrates group efforts.
Alternatives
(a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, butReason (R) is false
(d) Assertion (A) is false, butReason (R) is true
Answer : B
Question. Anil completes his task on the assigned time but is not able to complete it either at lesser cost or produce better results. What does it signify?
(a) Anil is an effective and efficient manager
(b) Anil is an effective but inefficient manager
(c) Anil is an efficient manager
(d) Anil is neither effective nor efficient manager
Answer : B
Question. ............... refers to the management of human resources, which are the most important assets for an organisation.
(a) Management of work
(b) Management of operations
(c) Management of people
(d) None of these
Answer : C
Question. “What distinguishes a successful manager from a less successful one is the ability to put the principles into practice.” Which aspect of the nature of management is highlighted in the above statement?
(a) Management as a science
(b) Management as an art
(c) Management as a profession
(d) Management is an intangible force.
Answer : B
Question. Silico Lt(d) has appointed the former Consulting executive of Shri Shakti Ltd Rajan Bahl as its President. What will be his basic task?
(a) To integrate diverse elements and coordinate activities of different departments.
(b) To carry out plans formulated by top managers.
(c) To oversee the efforts of the workforce.
(d) Help to maintain quality of output.
Answer : A
Question. Which among the following is not an objective of management?
(a) Earning profits
(b) growth of the organization
(c) providing employment
(d) policy making
Answer : D
Question. Under what function of management does the ‘corrective action’ fall?
(a) Planning
(b) Organizing
(c) Directing
(d) Controlling
Answer : D
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. The process by which a manager integrates and synchronizes the activities of different department is called ------------------.
(a) Management
(b) Controlling
(c) Planning
(d) Coordination
Answer : D
Question. Identify the dimension of the characteristic of management- “it is multidimensional”, which specifies that the task of management is to make the strengths of human resources effective and their weaknesses irrelevant towards achieving the organisation's objectives.
(a) Management of work
(b) Management of people
(c) Management of operations
(d) Management of goals
Answer : B
Question. Ravi joined a marketing firm as a Sales manager. On his first day in the company, during the orientation programme, the CEO of the company told Ravi that he will have to simultaneously perform the functions of management (planning, organizing, staffing, directing, controlling) all the time. Which characteristic of management was the CEO referring to?
(a) Management is a continuous process
(b) Management is all pervasive
(c) Management is multidimensional
(d) Management is goal oriented
Answer : A
Question. A manager obtains the required capital at 12% interest while the prevailing rate of interest in the market is 10%. How would you describe such a manager?
(a) Efficient
(b) Effective
(c) Efficient and Effective
(d) None of the above
Answer : A
Question. Which is not a function of management of the following?
a) Planning
b) Staffing
c) Co-operating
d) Controlling
Answer: C
Question. Co-ordination is:
a) Function of management
b) The essence of management
c) An Objective of management
d) All of these
Answer: B
Question. Efficiency means………….
(a) doing the tasks correctly
(b) doing the tasks with minimum cost
(c) deriving more benefits by using less resources
(d) All of the above
Answer: D
Question. Management is called a process because:
a) It is applicable to the manufacturing process
b) it is relevant for social organisations
c) it involves series of functions
d) none of the above.
Answer: C
Question. Through ………….. management helps individuals to develop team spirit ,co-operation and commitment to group success.
a) Coordination
b) Supervision
c) Controlling
d) Motivation & Leadership
Answer: A
Question. The functions performed by the top level management is the most important because they take care of……………..
a) Overall organization
b) specific problems
c) routine problems
d) extra ordinary problems
Answer: A
Question. Coordination is one of the five functions of management. (True/False)
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. Radhika is engaged in manufacturing earthen coolers by using environment friendly methods of productions. Which management objective is discussed?
a) Social Objective
b) Organisational objective
c) Individual objective
d) Economic objective
Answer: A
Question. Alliance Limited is engaged in manufacturing plastic buckets. The objective of the company is to manufacture 100 buckets a day to achieve this. The efforts of all departments are coordinated and interlined, and authority-responsibility relationship is established among various job positions. There is clarity on who is to report to whom. Name the function of management discussed above.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Answer. B
Question. “The role of managers working at different levels is to divert the attention of their respective subordinates from their personal goals to the goals of the organisation”
Identify the point of importance of management.
(a) Management creates a dynamic organization
(b) Management helps in achieving personal objectives
(c) Management increases efficiency
(d) Management helps in achieving group goals
Answer. D
Question. To make the annual function of a school successful, the principal divided all the activities into task groups, each dealing with a specific area like rehearsals, decoration, stage management, refreshments, etc. Each group was placed under the overall supervision of a senior teacher. Identify the function of management performed by the principal in doing so?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Answer. B
Question. A senior manager suggested his subordinate that you can not learn management from books alone. Do you agree with the view of senior manager? Also identify the nature of managment you understand from the above statement.
(a) No, Management is profession
(b) Yes, Management is profession
(c) No, Management is science
(d) Yes, Management is an art
Answer. D
Question. Romil works in Cello Limited. He is responsible for defining objectives of the company. At what level of management Romil is working.
(a) Top level
(b) Middle level
(c) Supervisory level
(d) None of these
Answer. B
Question. Identify the level at which the directing function takes place in an organisation?
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) All of these
Answer. D
Question. Which one of the following sequence of process of management is correct:
(a) Planning, Controlling, Organising, Staffing
(b) Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Controlling
(d) Organising, Planning, Staffing, Controlling
Answer. C
Question. Which aspect of management involves cost-benefit analysis and the relationship between inputs and outputs?
(a) Effectiveness
(b) Efficiency
(c) Coordination
(d) Controlling
Answer. B
Question. Which essence of management affects planning, organising, staffing, directing and controlling?
(a) Cooperation
(b) Coordination
(c) Corporation
(d) Delegation
Answer. B
Question. Only increase in labour cost beyond 2% should be brought to the notice of the management. Which principle of control is highlighted by this statement?
(a) Principle of management by exception
(b) Need for action
(c) Principle of critical point control
(d) All of these
Answer. C
Question. National Vritech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, the CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed above.
(a) Decentralisation
(b) Delegation
(c) Authority
(d) Diversification
Answer. A
Question. Keeping in view the changes in the consumer demands and preferences ‘Rama Bakery’ has reduced the sugar and fat content in its products. This approach of business shows that management is:
(a) An intangible force
(b) A group activity
(c) A dynamic function
(d) A multidimensional activity
Answer. C
Question. Which of the following is not a function of management?
(a) Management is all pervasive
(b) Management is multi-dimensional
(c) Management is a group activity
(d) Location of business
Answer. D
Question. Which of the following statements is not true about management?
(a) Management is not visible, it can only be felt.
(b) The effects of management can be realised over a period of time through positivity or negativity created among stakeholders.
(c) The effects of management can be seen and felt.
(d) None of the above
Answer. C
Question. Akash is trying to reduce wastage of resources in his company. He is trying to do it in the best possible manner. He has set standards for performance of different types of activities and is doing his level best to perform according to these set standards to minimize wastage of resources. Things are not going to be over for him as he will have to look into other aspects too. He has set up a good monitoring system which helps him know how to employees are performing according to set standards as when the employees meet these standards, they will be given incentives. He is hoping to pull out a good performance from his team this year. Identify the function of management here.
(a) Planning
(b) Staffing
(c) Controlling
(d) Directing
Answer. C
Question. Management of Mukta Ltd.using environment friendly methods of production and disposes off the waste material by either recycling it or using the same for landfill in such a manner that the aquatic life is not disturbed. In the above statement which objective of management fulfill by Mukta Ltd.
(a) Personal
(b) Organisational
(c) Social
(d) None of above
Answer. C
Question. Mr. Shyam is an employee in a company.He is responsible for implementing and controlling plans and strategies developed by top management at the same time he is responsible for all the activities of first line managers. Mr. Shyam is working at.
(a) Top Level
(b) Middle Level
(c) Lower level
(d) None of these
Answer. B
Question. Amit, the General Manager of Focus Ltd, performs the managerial functions of planning, organising, staffing, directing, controlling, as an ongoing process. Which management feature is highlighted here?
(a) Management is multi-dimensional
(b) Management is a dynamic function
(c) Management is all- pervasive
(d) Management is a continuous process.
Answer. D
Question. Rakesh works as a production manager in Vocal Enterprises Limited. He has been given the task of getting 500 units of hand woven saree manufactured at the cost of `100 per unit within 8 days. In order to be acknowledged as an effective manager, he must ensure that.
(a) The cost of production does not exceed `150 per unit
(b) The work is completed within 8 days even at higher cost per unit
(c) The cost of production is less than `150 per unit
(d) All of the above
Answer. B
Question. Dominos Pizza’s keep introducing new variety of pizzas in its menu. Which characteristics of management is highlighted in the above case.
(a) Management is dynamic
(b) Management is static
(c) Management is Pervasive
(d) None of these
Answer. C
Question. Bhuvan is the manager of northen division of a large coperate house. At what level does he work in organisation:
(a) Middle level
(b) Lower level
(c) Top level
(d) None of these
Answer. D
Question. Prakash Ltd. setup a factory in rural area for manufacturing tube lights. The revenue earned by the company was sufficient to cover the cost and the risks. It sold its products at wholesale price so that it can be affordable to the poor people also. Policy of the factory regarding the production was that daily 25% of the last day production will be produced. It also provided after sale services to the customer, i.e., customer assistance to poor people, such as how to use the product. On 31-10-2016, 200 tube lights were manufactured. At the end of the week it is checked whether the actual production was made or not. After scrutinizing, if differences were there then, remedial actions were taken. Identify the function of management.
(a) Planning
(b) Organizing
(c) Staffing
(d) Controlling
Answer. D
Question. Aruna joined in Afsa Ltd. as personnel manager, she observed lots of chaos and misunderstandings in the organisation she found that there is highly centralised pattern , people are not be encouraged to have free communication. If they want to communicate then they have to follow prescribed channel, which results in delays. Other than this there are number of managerial levels, communication gets delayed and distorted as number of filtering points are more. So she found that something is wrong with one of the element of one of the function of management. Identify the element of that function which is missing in the above case according to Aruna:
(a) Motivation element in Directing function.
(b) Communication element in Directing function.
(c) Supervision
(d) Training in Staffing function.
Answer. D
Question. ‘Rats & Fleas’ is a pesticide producing company. The company identifies the various types of activities to be done. For this it divides the work into various departments. The company then gets involved in its business with a lot of zeal.
After one year of successful run the company decides to transfer the decision making authority to the lower most level of the employees. For this a major policy decision is taken. Which function of management is highlighted in this case?
(a) Planning
(b) Functional organisation
(c) Staffing
(d) Decentralisation
Answer. B
Question. McDonalds, 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?
(a) Dynamic function
(b) Practical knowledge
(c) Group activity
(d) Goal oriented
Answer. D
Question. Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing refrigerators. 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. At which level he is working.
(a) Middle level
(b) Lower level
(c) Top Level
(d) All of these
Answer. A
Question. Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that the profits have started declining from the 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.
(a) Top level
(b) Middle level
(c) Lower level
(d) All of these
Answer. A
Question. A company, FIL Ltd.’s target production is 5000 units in a year. To achieve this target the manager has to operate on double shift due to power failure most of the time. The manager is able to produce 5000 units but at a higher production cost. Which aspect of management is ignored by manager?
(a) Effectiveness
(b) Efficiency
(c) Coordination
(d) Planning
Answer. B
Question. Which of the following statements is not relevant to the concept of “Management as an inexact science”?
(a) The principles of management lack universal validity
(b) The principles of managment lack universal applicability
(c) The principles of management have to be modified according to the given situation
(d) Management involves dealing with human behaviour and outcomes cannot be predicted with at most accuracy.
Answer. B
Short Answer Type Question
Question. Mega Ltd. manufactures water heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its costs. To increase the revenue, the company decided:
• To reduce the labour costs by shifting the manufacturing unit to a backward area where labour was available at a very low rate;
• To start manufacturing solar water-heaters and reduce the production of electric water heaters slowly. This will not only help in covering the risks but also help in meeting other objectives.
Identify and explain the objectives of management discussed above.
Answer : Organizational and social objectives.
Question. In order to achieve target production of 50,000 units per month, the Production Manager of Action Shoes Ltd had to operate on double shifts. Even though there was power failure most of the time, the manager was able to achieve the target, but at a higher cost. In your point of view, what is lacking in management? Explain.
Answer : Efficiency is lacking. Explain the concept.
Question. Unique Ltd. is engaged in manufacturing electrical appliances. The company has been facing a lot of problems for the last few months because of conflict between two departments i.e., Production department and Sales department. The sales department blames production department for delayed production. However, the production department blames sales department for poor sales. The force that integrates the two departments is missing.
Identify the missing force in the above case and list its three characteristics.
Answer : Coordination. Explain three characteristics of coordination.
Question. Why is management considered as a multidimensional concept?
Answer : Management is multidimensional: management of work; management of people and management of operations.
Question. Sooraj works as a salesman in a company selling pet accessories and food. He has been given a target of selling 1200 units of the food packets in a month by offering a maximum of 10% discount to his customers. In order to meet his monthly sales target, on the last two days of the months, he offers 15% discount to his customers.
In the context of the above case:
Is Sooraj effective in his work? Explain by giving a suitable reason in support of your answer.
Answer : Yes, Sooraj is effective in his work as he has been able to meet his monthly sales target of selling 1200 units of the food packets.
Question. Bhuvan argues that management is required in all kinds of organizations where as Piyush feels that management is not required in non-business organizations such as school, club, hospitals, etc. who is correct?
Answer : Bhuvan, because management is pervasive.
Question. Sonu Nigam‟ the famous playback singer always spends time for practice and adds his creativity in his singing.
Like Sonu Nigam, Mr. Rajiv, manager of Headlines Ltd. uses his creativity and practice management principles under different situations to manage the business. The employees are happy and satisfied as he every day reward employees for their punctuality and efficiency.
1. Identify the nature of management highlighted above.
2. Name other two aspects of nature of management.
Answer : 1. Nature of management highlighted above is “Management as an Art”
2.The other two aspects of nature of management are:
a. Management as Science.
b. Management as Profession.
Question. Dheerj is working as “Operations Manager” in Tifco Ltd. Name the managerial level at which he is working. State any four functions he will perform as “Operations Manager” in this company.
Answer : Dheeraj is working at middle level management.
Functions: The main task of Dheeraj is to carry out the plans formulated by the top managers. For this he need to:
1. Interest the policies framed by top management,
2. Ensure that his department has the necessary personnel, assign necessary duties and responsibilities to them.
3. Motivate them for higher productivity to achieve desired objectives, and
4. Cooperate with other departments for smooth functioning of the organization.
Question. Yash Ltd. is facing a lot of problems these days. It manufactures electronic goods like washing machines, microwave ovens, refrigeration and air-conditioners. The company‟s margins are under pressure and the profits and market marketing department blames production department for producing goods, which are not of good quality to meet customers‟ expectations. The finance department blames both production and marketing departments for declining return on investment and bad marketing.
1. What quality of management do you think the company is lacking? Justify your answer.
2. State the importance of the concept identified in (a).
Answer :1. Coordination: because production, marketing and finance departmental efforts are not coordinated for achieving organizational objectives harmoniously. As a result, the company‟s profits and market share are declining.
2. Importance of Coordination
1. Growth in size:
2. Functional differentiation:
3. Specialization:
Question. Anju and Manju are good friends. Considering the cast that the activities involved in managing an enterprise are common to all organizations, after completing their masters in business management, both of them take up a job at managerial level in different organizations as per their individual areas of interest. Anju tales up a marketing job in a retail company and strives to increase sales where as Manju joins an NGO and works diligently to realize its objective related to providing employment to specially abled persons. Both of them have to perform a series of continuous, composite, but separate functions. On some days, Anju may spend more time in planning a future display layout and on another day, she may spend time in sorting out an employee‟s problem. Both Anju and Manju make conscious efforts to build a feeling of team spirit and coordination among diverse individuals with different needs who work under them. The effect of their management is noticeable in their respective departments as the targets are met according to plans, employees are happy and satisfied, and there is orderliness in its functioning rather than chaos.
In context of the above case : Identify the various features of management highlighted in the above paragraph by quoting lines form it.
Answer : The various features of management highlighted in the above paragraph are stated below:
1. Management is all pervasive:,
2. Management is a goal-oriented process: ,
3. Management is a continuous process:,
4. Management is a group activity:,
5. Management is an intangible force:
Question. State any four functions of middle level management.
Answer : (i) interpret the policies framed by top management,
(ii) Ensure that their department has the necessary personnel,
(iii) Assign necessary duties and responsibilities to them,
(iv) Motivate them to achieve desired objectives.
Question. Management of Alpha Ltd. has installed a special recycling plant to recycle the waste instead of dumping the waste in the environment. It is also providing employment opportunities to local residents. Company started a school nearby for the children of their employees.
i.Identify the Objectives company is fulfilling.
ii.Quote the lines from above para which indicate those objectives.
Answer : (i) Social and Personal Objectives.
(ii) Installed a recycle plant; It is also providing employment opportunities to local residents. - Social Objective.
Company started a school nearby for the children of their employees. - Personal Objectives.
Question. Mr. Nithin father runs a business enterprise manufacturing iron and steel. Mr. Nithin’s ambition is to become a professional and he wants to go to USA for his MBA as he thinks management is a profession. But his father said to him that management is not a profession and anybody can run a business and insisted that he should join the family business. Who do you think is correct in their view? Give any three reasons in support of your answer.
Answer : Nithin’s father is right. Explain three features of profession not met by management.
Question. Ajay and Sanjay are childhood friends. They met after a long time in a restaurant. On being asked, Sanjay told Ajay that he feels very discontented in managing his family business as it did not match with his area of interest. Ajay knows that Sanjay possesses extraordinary skills in management although he hasn’t acquired any professional degree in management. Therefore, he asks Sanjay to wind up his business in India and join him in his hotel business in Dubai as an Assistant Manager in Sales and Marketing Division.
In context of the above case:
Can Sanjay be employed as Assistant Manager in Sales and Marketing Division though he hasn’t acquired any professional degree in management? Explain by giving suitable justifications in support of your answer.
Answer : Sanjay can be employed as Assistant Manager in Sales and Marketing Division though he hasn’t acquired any professional degree in management because management does not meet the exact criteria of a profession. Explain the features of profession not met by management.
Question. Jayant is working as Head Relationship Manager in the wealth management division of a private sector bank. He has created an internal environment which is conductive to an effective and efficient performance of his team of ten relationship management executives. A typical day at work in Jayant’s life consists of a series of interrelated and continuous functions. He decides the targets for his department which are in line with the objectives of the organization. The future course of action for his team members is laid out well in advance.
The various resources required by the relationship managers like and IPad with GPS system, account opening forms, brochures, details of account holders etc. are made readily available to them. The executives are given sufficient authority to carry out the work assigned to them. Jayant works in close coordination with the Human Resource Manager in order to ensure that he can create and maintain a satisfactory and satisfied workforce in his department. Through constant guidance and motivation, Jayant inspires them to realize their full potential. He offers them various types of incentives from time to time keeping in view their diverse individual needs. Moreover, he keeps a close watch on their individual performance in order to ensure that they are in accordance with the standard set and takes corrective actions whenever needed.
In context of the above case:
a. Identify the concept being referred to in the following line, “He has created an internal environment which is conductive to an effective and efficient performance of his team of ten relationship management executives.”
b. Identify and describe the various functions of the concept as identified in part (a) of the question by quoting lines from the paragraph.
Answer : The concept of management is being referred to in the following line, ―He has created an internal environment which is conducive to an effective and efficient performance of his team of ten relationship management executives.
The various functions of the management concept mentioned in the above paragraph are planning, organizing, staffing, directing and controlling. Explain the functions briefly.
Question. Anju and Manju are good friends. After completing their masters in business management, both of them took up jobs at managerial level in different organisations as per their individual areas of interest, considering the fact that the activities involved in managing an enterprise are common to all organisations. Anju took up a marketing job in a retail company and strives to increase sales whereas Manju joined an NGO and works diligently to realise its objective related to providing employment to specially abled persons. Both have to perform a series of continuous, composite, but separate functions. On some days, Anju may spend more time in planning a future display layout and on another day, she may spend time in sorting out an employee ‘s problem. Both Anju and Manju make conscious efforts to build team spirit and coordination among diverse individuals with different needs who work under them. The effect of their management is noticeable in their respective departments as the targets are met according to plans, employees are happy and satisfied, and there is orderliness in its functioning rather than chaos.
In context of the above case:
Identify the various features of management highlighted in the above paragraph by quoting lines from it.
Answer : The various features of management highlighted in the above paragraph are stated below:
1. Management is all pervasive: ―After completing their masters in business management, both of them took up jobs at managerial level in different organizations as per their individual areas of interest, considering the fact that the activities involved in managing an enterprise are common to all organizations.
2. Management is a goal-oriented process: ―Anju took up a marketing job in a retail company and strives to increase sales whereas Manju joins an NGO and works diligently to realize its objective related to providing employment to differently abled persons.
3. Management is a continuous process: ―Both of them have to perform a series of continuous, composite, but separate functions. Like on some days, Anju may spend more time in planning a future display layout and on another day, she may spend time in sorting out an employee ‘s problem.
4. Management is a group activity: ―Both Anju and Manju make conscious efforts to build a feeling of team spirit and coordination among diverse individuals with different needs who work under them.
5. Management is an intangible force: ―The effect of their management is noticeable in their respective departments as the targets are met according to plans, employees are happy and satisfied, and there is orderliness in its functioning rather than chaos.
Long Answer Type Question
Question. Real Alliance Ltd was a well-known cement company in India. It was able to earn adequate revenues to cover costs. Its capital base, number of employees and production turnover have increased manifold over the years. The rate of profitability of the business was also creditable. The employees of the company are happy and satisfied with their remuneration, working conditions, promotion policy etc. As a part of its moral obligation, the company has taken many initiatives for providing employment to differently abled persons and promoting literacy in the villages adopted by it. In the context of the above case:
Identify and explain the various types of objectives of management being fulfilled by Real Alliance Ltd by quoting lines from the paragraph.
Answer : It was able to earn adequate revenues to cover costs – organizational objectives.
The employees of the company are happy and satisfied with their remuneration, working conditions, promotion policy etc. – personal objectives As a part of its moral obligation, the company has taken many initiatives for providing employment to differently abled persons – social objectives
Explain the different types of objectives.
Question. Ramanuja joins an IT firm as a system analyst after completing his masters in Computer Science. As the nature of his work demands he must work in very close coordination with all the departmental heads in the firm, very soon Ramanuja realizes that each departmental head has its own individual style of working. They differ greatly in their day-to-day approach to work. They tend to deal with a given situation, an issue, or a problem through a combination of their own experience, creativity, imagination, initiative and innovation.
In the context of the above case:
Identify and explain the nature of management highlighted in the above case
Answer : Management as an art. Explain the nature of management as an art.
Question. “In the absence of management, all the resources of an organization remain only as resources and never become production.” Explain the importance of management in the light of this statement.
Answer : Importance of management: Management helps in achieving group goals; Management increases efficiency Management creates a dynamic organization; Management helps in achieving personal objectives; Management helps in the development of society.
Explain each of the points.
Important Questions for NCERT Class 12 Business Studies Nature and Significance of Management
Question. Management is:
(a) An Activity
(b) A process
(c) A Tradition
(d) An Illusion
Answer : B
Question. Whose speciality happens to be ‘personal skill’?
(a) Profession
(b) Art
(c) Science
(d) None of these
Answer : B
Question. Management may be called which of the following science?
(a) Perfect Science
(b) Physics
(c) Applied Science
(d) Chemistry
Answer : C
Question. Which of the following has formalised methods of acquiring training and experience?
(a) Management
(b) Law
(c) Medical
(d) All of these
Answer : D
Question. What is that area called where the non-managerial members work?
(a) Shopping Area
(b) Showroom Area
(c) Platform Area
(d) Factory Area
Answer : C
Question. Policy formulation is the function of
(a) top level managers
(b) middle level managers
(c) operational management
(d) all of the above
Answer : A
Question. To what function of management is coordination associated with?
(a) Planning
(b) Organising
(c) Staffing, directing and controlling
(d) All of these
Answer : D
Question. KTX Group is rolling out an initiative to help create wealth for its employees through the implementation of Employee Stock option. Through motivation and leadership the management will help individuals to develop team spirit, cooperation and commitment to the success of the group. The following importance of management is highlighted above:
(a) Management helps in achieving personal objectives
(b) Management helps in the development of society
(c) Management creates a dynamic organization
(d) Management increases efficiency
Answer : B
Read the following and answer questions from 22 to 25 based on the same:
Alcargo Lt(d) is operating its business on a large scale. The Company realizes that human resources are the most important assets of its business, so the HRM Department is set up to develop the employees through proper training modules and job enrichment. Time to time incentives and awards are given to employees based on their performance and it keeps the employees highly motivate(d) Ravi, a graduate in humanities is appointed as the Plant superintendent in the company. Ravi knew that there are certain theories and principles of management formed based on deep observation and experimentation. So, he studied various theories and principles of management before joining the Company. He could complete the work assigned to him well before the deadline and the quality of output was also very goo(d) However, his boss was dissatisfied because the expenses incurred by his team to complete the project exceeded the upper limit norms.
Question. Which aspect of management is violated by Ravi in the above case?
(a) Planning
(b) Efficiency
(c) Effectiveness
(d) Controlling
Answer : B
Question. Which objective of management is pursued by management of Alcargo Ltd.:
(a) Organizational objectives
(b) Social objectives
(c) Personal objectives
(d) None of these
Answer : C
Question. Identify the nature of management highlighted in this line- “Ravi knew that there are certain theories and principles of management based on deep observation and experimentation.”
(a) Management as Profession
(b) Management as Science
(c) Management as an Art
(d) None of the above
Answer : B
Question. Identify the feature of the profession which is not applicable here - “Ravi, a graduate in humanities, is appointed as the Plant superintendent in the company.’
(a) Well defined body of knowledge
(b) Restricted Entry
(c) Ethical code of conduct
(d) Service Motive
Answer : B
| CBSE Class 12 Business Studies Nature and Significance of Management Assignment |
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| CBSE Class 12 Business Studies Financial Management Assignment |
| CBSE Class 12 Business Studies Financial Markets Assignment |
| CBSE Class 12 Business Studies Marketing Management Assignment |
| CBSE Class 12 Business Studies Consumer Protection Assignment |
CBSE Class 12 Business Studies Chapter 1 Nature And Significance Of Management Assignment
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