NCERT Solutions Class 12 Business Studies Chapter 1 Nature and Significance of management

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management Short Answer Type Questions

Question. Define management.
Answer: According to Harold Koontz, "Management is an art of getting things done through others and with formally organised groups." Management is the coordination of all resources through the process of planning, organising, directing, staffing and controlling in order to attain stated objectives effectively and efficiently.

Question. Name any two important characteristics of management.
Answer: Characteristics of management are as follows:

1. Goal Oriented: Management aims at achieving organisational objectives by uniting the efforts of different individuals in an organisation towards common goal.
2. Pervasive: Management is universal. It is applicable in profit making, non-profit making, business or non-business organisations.

Question. Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organisation? What are her basic functions?
Answer: Ritu works at ‘Middle level’. She is a link between top and lower level managers. Her primary role is to implement and control plans and strategies developed by top management. Her basic functions are:

1. Interpretation of policies framed by top level management.
2. Organising the activities of her department for executing the plans and policies.
3. Recruiting/selecting and appointing the required employees for her department.
4. Assigning necessary duties and responsibilities to the employees.
5. Motivating employees to perform the best of their ability.

Question. Why management is considered a multi-faceted concept?
Answer: Management is a complex activity that has three main dimensions namely management of work, management of people and management of operations.

1. Management of work: Management translates the work in terms of goals to be achieved and assigns the means to achieve it.
2. Management of people: Managing people has two dimensions, dealing with employees as individuals with diverse needs and behaviour and dealing with individuals as group of people.
3. Management of operations: It is interlinked with both management of work and management of people.

Question. Discuss the basic features of management as a profession.
Answer: Features of management as a profession are:

1. Management is based on a systematic body of knowledge comprising well defined principles based on variety of business situations.
2. No restriction on anyone being designated or appointed as manger in any business enterprise.

A profession has following characteristics:

1. Well defined body of knowledge.
2. Restricted entry.
3. Professional association.
4. Ethical code of conduct.
5. Service motive.

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management Long Answer Type Questions

Question. Management is considered to be both art and science. Explain.
Answer: Art means personal application of knowledge and skills for the achievement of desired goals. Management can be regarded as an art if it fulfils following characteristics of art:

1. Theoretical body of knowledge: Systematic theoretical knowledge is required for every art. Every artist has to follow certain principles and guidelines at the time of performance.
2. Personal Skills: In art every artist has his own styles and ways of performing. Similarly, every manager has his own ways of decision making and getting the work done.
3. Practice and creativity based: For being a good artist a person has to practice a lot and for becoming different from others he has to be more creative and innovative in his expressions.

Science is a systematic body of knowledge pertaining to a specific field of study which establishes cause and effect relationship. Management to be regarded as science needs to satisfy following characteristics of science:

1. Existence of systematised body of knowledge: In science, organised and systematic study is available which is used to acquire the knowledge of science. Similarly, in management also there is availability of systematic and organised study material. It has its own set of basic principles and concepts.
2. Use of scientific methods of observation: Science performs logical observation before deriving any principle or theory. Continuous observations and experiments have helped in development of management knowledge.
3. Cause and effect relation: Scientific principles are based on cause and effect relationship. Similarly, management principles establish a cause and effect relationship between various factors.
4. Universal validity of principles: Scientific principles have universal application and validity. Fundamental principles of management have universal applicability, but unlike science the degree of their applicability differs as they deal with human beings.

Question. Do you think management has the characteristics of a full-fledged profession?
Answer: A profession has the following characteristics:

1. Well defined body of knowledge.
2. Restricted entry.
3. Professional association.
4. Ethical code of conduct.
5. Service motive.

Management does not meet the exact criteria of a profession. However it does have some of the features of management:

1. Management is based on a systematic body of knowledge comprising well defined principles based on variety of business situations.
2. No restriction on anyone being designated or appointed as manger in any business enterprise. But professional knowledge and training is considered to be a desirable qualification.
3. There are several associations of practicing managers such as AIMA that has laid down a code of conduct to regulate activities of their members.
4. Service motive: Like other professional managers are expected to serve the society rather than simply earning profits for the owners.

Question. Coordination is the essence of management. Do you agree? Give reasons.
Answer: Yes, coordination is indeed the essence of management. Coordination is the process by which a manager synchronises the activities of different departments. It is the force that binds all the other functions of management. It begins right from the stage of planning where we goals and objectives are set for the organisation. It is then required between stage of planning and staffing so that right kind of people are hired for the execution of plan. The function of directing and controlling must be coordinated with each other so as to realise the achievement of desired goals.

The importance of coordination can be highlighted from following points:

1. Integrates group activity: Coordination gives a focus to group effort to ensure that performance is as it was planned and scheduled.
2. All pervasive function: It is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
3. Responsibility of all managers: It is a function which is performed by every manager as a responsibility.
4. Promotes unity of action: Coordination acts as a binding force among departments and ensures that all action is aimed at achieving the goals of the organisation.
5. Continuous process: Coordination is not a one-time function but a continuous process. It starts at the time of planning and continues till controlling.

Question. “A successful enterprise has to achieve its goals effectively and efficiently.” Explain.
Answer: Effectiveness means completing the given task in the required time. In other words, it means doing the right things with focus on the end result. It is very important as it helps in reaching the goals. Efficiency on the other hand, means completing the task with minimum possible cost and resources. Efficiency is said to increase if greater benefits are achieved using lesser resources or even same benefits can be derived on cutting down on resources. For an organisation, both effectiveness and efficiency is required to achieve desired goals. Being effective means achieving goals whereas being efficient will reduce the cost. For example, to complete the given task if manager employs more people, then the cost of completion will be more but the work will be completed on time. On the other hand if the work is continued to be done by existing people, than it may not be completed in the given time frame. Therefore, it is necessary to maintain a balance between effectiveness and efficiency.

Question. Management is a series of continuous interrelated functions. Comment.
Answer: Management is defined as the process of planning, organising, actuating, and controlling an organisation’s operations to achieve coordination of human and material resources essential in effective and efficient attainment of objectives. Various functions of management are:

1. Planning: It involves thinking in advance what and how the work is to be done in future. It anticipates opportunities and threats in the environment.
2. Organising: It is a process of bringing together physical, financial and human resources and establishing productive relations among them for the achievement of specific goals.
3. Directing: It is regarded as the management in action because it puts plans into action for the achievement of organisational objectives.
4. Staffing: It may be defined as the managerial function of hiring and developing the required personnel to fill in various positions in the organisation. Staffing injects into the organisation which is otherwise an empty shell of job positions
5. Controlling: It is the process of comparing the actual performance with the standards and taking corrective action, if required.

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management Objective Type Questions

Question. Which is not the function of management of the following?
Answer: C

Question. Management is

1. An art.
2. A science.
3. Both art and science.
4. Neither

Answer: C

Question. The following is not an objective of management

1. Earning profits.
2. growth of the organisation
3. Providing employment.
4. Policy making.

Answer: D

Question. Policy formulation is the function of

1. Top managers.
2. Middle level managers.
3. Operational managers.
4. All of the above.

Answer: A

Question. Coordination is

1. Function of management.
2. The essence of management.
3. An objective of management.
4. None of the above.

Answer: B

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management Case Studies

Question. Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining return on investment and bad marketing. What quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?

Answer: The quality that is lacking in management is coordination. Various departments blame each other for declining profits and market share. Coordination is the force that binds all the other functions of management. It is required at every stage of management. Steps the management should take to bring the company back on track are:

1. Production department should focus on quality of the goods.
2. Sales department should focus more on customer satisfaction.
3. All the departments shall be motivated to focus on organisational goals.
4. All the departments shall cooperate and coordinate for achieving the objectives effectively and efficiently.

Question. A company wants to modify its existing product in the market due to decreasing sales. You can imagine any product about which you are familiar. What decisions/ steps should each level of management take to give effect to this decision?

Answer: To modify the existing product line, different levels of management are required to take different decisions. These are:

1. Top level management: It consists of CEO, CFO, president and vice president. They are required to formulate overall organisational goals and strategies, formulate policies and procedures.
2. b) Middle level management: They are responsible for implementing the policies framed by top management, interpret the policies, ensure that departments has the necessary personnel, etc.
3. Operational level management: Their responsibility is limited according to the policies drawn by top management. They must give proper instructions to workers, ensure the right quality in work, and motivate workers to work towards achievement of common objectives.

Question. A firm plans in advance and has a sound organisation structure with efficient supervisory staff and control system. On several occasion it finds that plans are not being adhered to. It leads to confusion and duplication of work. Advise remedy.

Answer: The aspect that is missing in the firm is coordination. Coordination is the force that binds all the other functions of management. .

1. It begins right from the stage of planning where we goals and objectives are set for the organisation till controlling to realise the achievement of desired goals.
2. Inter department conflicts must be avoided and proper direction must be provided to all the departments.
3. Coordination is the main requirement to avoid confusion and duplication of work.

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management Objective Type Questions

Question. Which of the following comes under the top management ?
(a) chief executive officer
(b) operations manager
(c) foremen
(d) supervisors 
Answer: A

Question. Which of the following is the function of low level management ?
(a) To integrate diverse elements and coordinate the activities of different departments.
(b) To the business environment and its implications for the survival of the firm.
(c) To be responsible for implementing and controlling plans and strategies developed by top management.
(d) To interact with the actual work force and pass on instructions of the middle management to the workers. 
Answer: D

Question. Which of the following function of management helps in assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan?
(a) Planning
(b) Directing
(c) Staffing
(d) O rganizing.
Answer: D

Question. Which of the following is used extensively for all types of activities and mainly for taking charge of different activities in any enterprise.
(a) Planning
(b) Management
(c) Coordination
(d) Staffing 
Answer: B

Question. Which of the following statements is false with respect to coordination ?
(a) Coordination unifies unrelated or diverse interests into purposeful work activity.
(b) The purpose of coordination is to secure unity of action in the realisation of a common purpose.
(c) Coordination is not a one-time function but a continuous process.
(d) None of these.
Answer: D

Question. Coordination is needed at :
(a) Lower level of management
(b) Middle level of management
(c) Top level of management
(d) All of the above 
Answer: D

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management One Word Answer 

Question. Identify the basic characteristic of management involved in the statement. “The activities involved in managing an organisation are common to all organisations, whether financial economical, social or political.” 
Answer: Management is "All Pervasive".

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

Question. Name the level of management at which the managers are responsible for implementing and controlling the plans and strategies of the organisation.
Answer: Middle Level Management.

Question. "Management is a force that cannot be seen but its presence can be felt in the way the organisation functions.'' Which feature has been explained in this statement of Management ?
Answer: Management is an intangible force.

Question. Identify the nature of management, when it is said to be systematic body of knowledge which explains certain general truths.
Answer: Management as a Science.

Question. Identify the nature of management when it is practised as personal application of existing knowledge to achieve desired results. 
Answer: Management as an Art.

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

Question. Which level of managers are responsible for Coordination ? State.
Answer: All levels.

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management Short Answer Type Questions

Question. Explain any three points of importance of Coordination.
Answer: The importance of Coordination may be explained through the following points :
(i) Growth in size : As organisations grow in size, the number of people employed by the organisation also increases. At times, it may become difficult to integrate their efforts and activities. All individuals differ in their habits of work, background, approaches to situations and relationships with others. It becomes necessary to ensure that all individuals work towards achieving the common goals of the organisation. But employees may have their own individual goals also. Therefore,
for organisational efficiency, it is important to harmonise individual goals and organisational goals through coordination.
(ii) Functional differentiation : Functions of an organisation are divided into departments, divisions and sections. In an organisation there may be separate departments of finance, production, marketing or human resources. All these departments may have their own objectives, policies and their own style of working. For example, the marketing department’s objective may be to increase sales by 10 percent by offering discounts.
(iii) Specialisation : Complexity of modern business requires various functions to be performed by specialists. Specialisation, in turn, brings out the need for greater Coordination because of the diversity of activities of different specialists.

Question. State any three points of importance of Management.
Answer: Importance of Management :
(i) It helps in achieving group goals by giving a common direction to individual efforts.
(ii) It increases efficiency by reducing costs and increasing productivity.
(iii) It creates a dynamic organisation by making the organisation adapt itself to the changing environment.
(iv) It helps in achieving personal objectives by motivating and leading in such a way that both personal goals and organisational objectives are accomplished.
(v) Management helps in the development of society by providing good quality products and services, creating employment and adopting new technology, etc.

Question. Briefly describe the organisational objectives of Management.
OR
State any three organisational objectives of Management. 
Answer: The organisational objectives of management are : (i) Survival (ii) Profit (iii) Growth.
(i) Survival : Management must strive to ensure the survival of the organisation by earning adequate revenues to cover its costs, produce or sell standardised goods or services, keeping the motivation level of the employees high.
(ii) Profit : Management should make every effort to minimise the cost and maximise profits and production. Profit provides a vital incentive for the continuous successful operations of the enterprise.
(iii) Growth : To grow in the industry, the management of an organisation must optimally utilise its all scarce resources.

Question. Is it important for Management to achieve its objectives effectively and efficiently ?
OR
"Management should achieve its objectives effectively and efficiently." Are you agree with this statement ? If yes, present a comment is favour of your answer. 
Answer: Yes, it is important for the management to achieve its objectives effectively and efficiently. Effectiveness and Efficiency are two sides of the same coin.
(i) Efficiency : It means performing the tasks correctly with the minimum cost. It involves an input-output relationship.
(ii) Effectiveness : It means finishing the tasks on time. It involves doing the required tasks, completing activities and achieving goals on time. A management has to balance these two aspects. It has to achieve goals effectively on time with optimum utilisation of scarce resources.

Question. State any four functions of Operational Management.
Answer: Four functions of operational management are as follows :
(i) To oversee the efforts of the workforce..
(ii) To interact with the actual workforce and pass on the instructions of the middle management to the workers.
(iii) To ensure that the quality of output is maintained and wastage of material is minimised.
(iv) To ensure safety standards are maintained.

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.
(i) Identify the level at which Rishitosh Mukerjee was working.
(ii) Also, state three more functions required to be performed by Rishitosh Mukerjee at this level.
Answer: Middle level Functions required to be performed by Rishitosh Mukerjee: 
(i) To interpret the policies framed by the top management.
(ii) To ensure that their department has the necessary personnel.
(iii) To assign necessary duties and responsibilities to the employees of their respective departments for implementation of the plan.
(iv) To motivate employees of their respective departments to achieve the desired objectives.
(v) To co-operate with other departments for smooth functioning of the organisation.

Question. Chandrika Bhattacharya is working in Olax Ltd., a company manufacturing room heaters. She is responsible for all the activities of the business and for its impact on the society. Her job demands long hours and commitment to the organisation.
(i) Identify the level at which Chandrika Bhattacharya is working.
(ii) S State three more functions required to be performed by Chandrika Bhattacharya at this level.
Answer: (i) Top level.
(ii) Functions of the top level of management :
(a) To co-ordinate the activities of different departments.
(b) To be responsible for welfare and survival of the organisation.
(c) To formulate overall organisational goals and strategies for their achievement.
(d) To be responsible for all the activities of the business and for its impact on the society.

Question. Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that the profits had 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.
(i) Identify the level of management at which Ashutosh Goenka was working.
Answer: Ashutosh Goenka was working at Top Level Management, consisting of senior-most executives of the organisation and their team.

Question. ‘Science is a systematised body of knowledge that explains certain general truths or the operation of general laws’. Based on the statement, identify and state the characteristics of management that establish it as a science.
Answer: The characteristics of management that establish it as a science are :
(i) Systematised body of knowledge : Like science, management is a systematic body of knowledge with its own theories and principles that have developed over a period of time. So, this feature of science is present in management.
(ii) Principles based on experiments : Like science, Management principles are derived through observation and repeated experimentation. So, this feature of science is present in management. However, since management deals with human beings the outcome of these experiments are not capable of being accurately predicted.
(iii) Universal Validity : Principles of management like principles of pure science provide managers with certain standardised techniques that can be used in different situations. Since they have to be modified according to a given situation, their application and use is not universal. So, this feature of science is not fully present in management.

Question. ‘Art is the skilful and personalized applications of existing knowledge to achieve desired results and some kind of ingenuity and creativity is required to practice its basic principles learnt.’ Pick up points from the statements and explain the same to prove that management is an art.
Answer: Management is an art as it has the following features :
(i) E Existence of theoretical knowledge : As in art, in management too, there is a lot of literature available in various areas of management which the manager has to specialise in. (ii) Personalised application : Like in any art, in management too, a manager applies his acquired knowledge in a personalised and unique manner. This gives rise to different styles of management.
(iii) B Based on practice and creativity : Management satisfies this criteria as a manager gains experience through regular practice and becomes more effective.

Question. What is meant by ‘Management’? Explain its any three features that establish it as an art.
Answer: Management is the process of getting things done with the aim of achieving goals effectively and efficiently. (or any other correct meaning) Three features that establish it as an art are :
(i) E Existence of theoretical knowledge : As in art, in management too, there is a lot of literature available in various areas of management which the manager has to specialise in.
(ii) Personalised application : Like in any art, in management too, a manager applies his acquired knowledge in a personalised and unique manner. This gives rise to different styles of management.
(iii) B Based on practice and creativity : Management satisfies this criteria as a manager gains experience through regular practice and becomes more effective.

Question. Define Management. Explain the features that establish it as a Social Science.
Answer: Management is the process of getting things done with the aim of achieving goals effectively and efficiently. The features that establish management as a social science are : (i) Principles based on observation and experimentation : Like science, management principles are derived through observations and repeated experimentations. However, since management deals with human beings, the outcome of these experiments are not capable of being accurately predicted. (ii) Universal validity : Principles of management like principles of pure science, provide managers with certain standardised techniques that can be used in different situations. Since they have to be modified according to a given situation, their application and use is not universal. So, this feature of science is not fully present in management. Therefore, management is considered a social science.

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

Question. State any four characteristics of Profession.
Answer: Four characteristics of profession are given below:
(i) Restricted entry : The entry to a profession is restricted through a prescribed qualification. But there is no restriction on anyone being appointed as a manager in any business enterprise.
(ii) Professional association : All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct.
(iii) Ethical code of conduct : All professions are bound by a code of conduct which guides the behaviour of its members.
(iv) S Service motive : The motive of a profession is to serve their client's interests by rendering dedicated and committed services.
(v) Specialised knowledge : Profession requires specialised knowledge of a particular field, which must be well defined in a formal way and can be acquired through books in institutions.

Question. Is ‘Management a Science’ ? Give any three reasons in support of your answer.
Answer: Yes, Management is a Science. Here, it is important to apply the characteristics of science to the management in order to find out the validity of the answer. Following are the main points :
(i) Systematised Body of Knowledge: It is necessary for science to be a systematised body of knowledge. Management is also a systematised body of knowledge because it has its own theories and principles.
(ii) Principles based on observation and experimentation : Like science, management principles are derived through observation and repeated experiments. However, since management deals with human beings, the outcome of these experiments is not capable of being accurately predicted. So, this feature of science is not fully present in management.
(iii) Universal validity : Principles of management like principles of pure science provide managers with certain standardised techniques that can be applied in different situations. However, since the principles of management have to be modified according to a given situation, their application and use is not universal. So, this feature of science is not fully present in management. Thus management is a science but an inexact science.

Question. What is meant by ‘Management’ ? State any three objectives of Management.
Answer: Management is the process of getting things done through and with people in an effective and efficient manner. Objectives :
(i) Organisational Objectives : An organisation has to achieve its different objectives like— (a) Survival (b) Profit (c) Growth.
(ii) Social Objectives : An organisation has social objectives towards different groups of society like providing quality products at fair prices, generating employment opportunities, etc.
(iii) Personal Objectives : An organisation strives to fulfil personal objectives of its employees and also to reconcile their objectives with the organisational objectives. E.g., competitive salaries, personal growth etc.

Question. Explain any four points of importance of Management.
OR
State any four points of importance of Management.
Answer: (i) Management helps in achieving group goals : Management is required not for itself but for achieving the goals of an organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of an organisation.
(ii) Management increases efficiency : The aim of a manager is to reduce costs and increase productivity through better planning, organising, staffing, directing and controlling the activities of an organisation.
(iii) Management creates a dynamic organisation: All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change. Management helps people adapt to these changes so that the organisation is able to maintain its competitive edge.
(iv) Management helps in achieving personal objectives : A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective. Through motivation and leadership, management helps individuals to develop team spirit, co-operation and commitment to the group success.
(v) Management helps in the development of society : An organisation has multiple objectives to serve the purpose of the different groups that constitute it. In the process of fulfilling all these, management helps in the development of the organisation and through that it helps in the development of a society. It helps to provide good quality products and services, creates employment opportunities, adopts new technology and leads the path towards growth and development.

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management Long Answer Type Questions

Question. Give the meaning of Management and explain how it ‘creates a dynamic organisation’ and ‘helps in the development of society’.
OR
Explain how Management ‘increases efficiency’ and ‘helps in the development of society’.
Answer: According to Trewelly and Newport “Management is defined as the process of planning, organising, actuating and controlling an organisation’s operations in order to achieve Coordination of the human and material resources essential in the effective and efficient attainment of objectives.”
(i) Management creates a dynamic organisation : An organisation operates in a consistently changing environment. In order to survive and grow, the organisation has to adapt itself as per the environment. Employees generally resist to changes. Management helps in implementing such changes by convincing the employees that such changes will benefit their future prospects.
(ii) Management helps in the development of society : While achieving the development of organisation, management also aims to develop the society by giving due importance to social obligations. Efficient management improves living standard of people in the society by creating employment opportunities, by providing good quality products and by using latest technology. It leads the path towards growth and development through optimum utilisation of available resources.
(iii) Management increases Efficiency : Management always enhances the efficiency as the work is done in a systematic manner and decreases the cost of production.

Question. E Explain any four characteristics of management.
Answer: Characteristics of Management :
(i) Management is a goal-oriented process: An organisation has a set of basic goals which are the reason for its existence. These should be simple and clearly stated. Different organisations have different goals. For example, the goal of a retail store may be to increase sales, but the goal of the Spastics Society of India is to impart education to children with special needs. Management unites the efforts of different individuals in the organisation towards achieving these goals.
(ii) Management is all pervasive : The activities involved in managing an enterprise are common to all the organisations whether economic, social or political.
(iii) Management is multidimensional : Management is a complex activity that has three main dimensions. These are : (a) Management of work : All organisations exist for the performance of some work. In a factory, a product is manufactured; in a garment store a customer’s need is satisfied and in a hospital a patient is treated. Management translates this work in terms of goals to be achieved and assigns the means to achieve it. This is done in terms of problems to be solved, decisions to be made, plans to be established, budgets to be prepared, responsibilities to be assigned and authority to be delegated. (b) Management of people : Human resources or people are the organisation’s greatest asset. Managing people has two dimensions viz. dealing with employees as individuals with diverse needs and behaviour and dealing with individuals as a group of people. The task of
management is to make people work towards achieving the organisation’s goals, by making their strengths effective and their weaknesses irrelevant. (c) Management of operations : No matter which type of organisation it is, it has some basic products or services to provide in order to survive. This requires a production process which entails the flow of input material and the technology for transforming this input into the desired output for consumption. This is interlinked with both the management of work and the management of people.
(iv) Management is a continuous process : The process of management is a series of continuous, composite, but separate functions. These functions are simultaneously performed by all managers all the time. The task of a manager consists of an ongoing series of functions.
(v) Management is a group activity : An organisation is a collection of diverse individuals with different needs. Every member of the group has a different purpose for joining the organisation but as members of the organisation, they work towards fulfilling the common organisational goal. This requires team work and Coordination of individual efforts in a common direction. At the same time, management should enable all its members to grow and develop as needs and opportunities change.
(vi) Management is a dynamic function : Management is a dynamic function and has to adapt itself to the changing environment. An organisation interacts with its external environment which consists of various social, economic, political and legal factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.
(vii) Management is an intangible force : Management is an intangible force that cannot be seen but its presence can be felt in the way, an the organisation functions. The effect of management is noticeable in an organisation where targets are met according to the plans, employees are happy and satisfied, and there is orderliness instead of chaos.

Question. “Management is termed as an Art by some, as a Science or as an inexact Science by others. The truth seems to be somewhere in between.” In the light of this statement, explain the true nature of Management.
OR
Management is considered to be both an Art and a Science. Explain. 
Answer: (i) Management is an art as well as a science though an inexact science.
(ii) Art is the skillful and personal application of existing knowledge to achieve desired results. Management is an art because like any other art, it is existence of theoretical knowledge and personalised application based on continuous practice.
(iii) Science is a systematised body of knowledge that explains certain general truths. Like science, management principles are derived through observation and repeated experiments. Since management deals with human beings the outcome of these experiments cannot be accurately predicted. Moreover, they have to be modified according to the given situation. Hence, it is an inexact science.

Question. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy products in Maharashtra state. Aman is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Ahmad had done his post graduation in History and Ally in Dairy Farming. One day there was a serious discussion between Ahmad and Ally regarding the nature of management. Ahmad argued that management is a profession whereas Ally argued against it saying that the legal and medical profession are the only professions because they fulfill all the conditions of a profession. Aman, on the basis of his knowledge of business studies, explained the nature of management as a profession to Ahmad and Ally. E Explain, how Aman would have satisfied both Ahmad and Ally.
Answer: Aman would have satisfied both Ahmed and Ally by explaining the following features of Management as a Profession :
(i) Well-defined body of knowledge : All professions are based on a well-defined body of knowledge that can be acquired through instructions.
Management too is based on a systematic body of knowledge comprising well defined principles. This feature of profession is present in the management.
(ii) R Restricted entry : The entry to the above stated profession is restricted through a prescribed qualification. But there is no restriction on anyone being appointed as a manager in any business enterprise. So, presently this feature of profession is not present in the management.
(iii) Professional association : Legal and medical professions are affiliated to a professional association like bar council and medical council which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. There are several associations of practising managers in India, like the AIIMA that has laid down a code of conduct to regulate the activities of their members. There is, however, no compulsion for managers to be members of such an association. So, presently this feature of profession is not present in the management.
(iv) Ethical code of conduct : Legal and medical professions are bound by a code of conduct which guides the behaviour of its members. AIIMA has devised a code of conduct for Indian managers but there is no statutory backing for this code. So, presently this feature of profession is not present in the management.
(v) Service motive : The motive of legal and medical profession is to serve their client’s interests by rendering dedicated and committed service. The basic purpose of management to help the organisation achieve its goals by providing good quality products at reasonable prices, thereby serving the society is being increasingly recognised. So, presently this feature of profession is not fully present in the management. The above discussion shows that management satisfies some and not all the criteria of a profession. Through the above discussion Aman would have been able to satisfy both Ahmed and Ally by making them understand that management is a profession but not a full fledged or a true profession.

Question. Kamal, Khan and David are partners in a firm engaged in the distribution of dairy products in Madhya Pradesh. Kamal is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Khan had done his post-graduation in Hindi literature and David in Dairy Farming. One day there was a serious discussion between Khan and David regarding the nature of ‘Management as a Science’. Khan argued that Management was not a science whereas David was of the opinion that Management was a science. Kamal intervened and corrected both Khan and David about the nature of Management as a Science with the help of his knowledge of Business Studies. Explain, how Kamal would have been able to satisfy both Khan and David.
Answer: Kamal would have been able to satisfy both Khan and David by explaining the following features of Management as a Science :
(i) Systematised body of knowledge : Like science, management is a systematic body of knowledge with its own theories and principles that have been developed over a period of time. So, this feature of science is present in the management.
(ii) Principles based on observation and experimentation : Like science, management principles are derived through observation and repeated experimentation. So, this feature of science is present in management.
However since management deals with human beings the outcome of these experiments cannot be accurately predicted.
(iii) Universal validity : Principles of management like principles of pure science provide managers with certain standardised techniques that can be used in different situations. Since they have to be modified according to a given situation, their application and use is not universal. So, this feature of science is not fully present in the management. Through the above discussion Kamal would have been able to satisfy both Khan and David by making them understand that management is a science but not an exact science.

Question. State any five functions performed by the manager who is working at the middle level management
Answer: (i) Interpreting policies : At this level, policies framed by top-level managers are interpreted. Like the marketing manager introduces his salesman to the sales policy of the company.
(iii) Assigns duties and Responsibilities : Superior manager assigns the duties and responsibilities to various workers working under him/her.
(iv) Motivating Employees : Middle level managers motivate their employees by various means so that they work most efficiently to achieve organisational objectives.
(v) Creating Cooperation : Cooperation among different divisions is required to successfully achieve company's objectives and this is done by middle level manager.

Question. Management is a series of continuous interrelated functions. Comment.
OR
"Management includes number of functions which are interrelated." Are you agree with this statement ? Present comment for your answer.
Answer: Management is described as the process of planning, organising, staffing, directing and controlling the efforts of an organisation and utilisation of resources to achieve specific goals.
(i) Planning : Planning refers to deciding in advance what to do, how to do it, when to do it and who has to do it. Planning bridges the gap between where we are and where we want to go.
(ii) Organising : It is the process of defining and grouping the activities of an enterprise and to establish organisational authority relationships.
(iii) Staffing : Finding the right person for the right job is known as staffing. Staffing as a function of management pertains to recruitment, selection,
training, development, appraisal and remuneration.
(iv) Directing : Directing is telling people what to do and to monitor that they do it to the best of their abilities. There are four elements of directing : (a) Supervision, (b) Motivation, (c) Leadership, (d) Communication.
(v) Controlling : Management control implies the measurement of actual performance against the predetermined standards and correcting deviations, if any, to assure attainment of objectives according to the plans.

Question. What is meant by coordination ? State its any four features.
Answer: Coordination is the process by which a manager synchronises the activities of different departments towards the achievement of a common goal. Features of Coordination
(i) It integrates group efforts by unifying diverse interests into purposeful work activity.
(ii) It ensures unity of action by acting as a binding force between departments and ensuring that all action is aimed at achieving the goals of the organisation.
(iii) It is a continuous process as it starts at the planning stage and continues till controlling. (iv) It is a pervasive function as it is required in all types of organisation, in all the departments and at all levels. (v) It is the responsibility of all managers at the top, middle and lower level. (vi) It is a deliberate function as every manager has to coordinate the efforts of different people in a conscious and deliberate manner.

Question. What is meant by ‘Coordination’ ? How it ‘integrates group efforts’ and ‘ensures unity of actions’ ? Explain.
Answer: Coordination : Coordination refers to the orderly arrangement of group efforts to provide unity of actions in order to achieve common goals. It is known as the essence of Management process. C Coordination integrates group efforts : Coordination is an orderly arrangement of group efforts and not an individual effort. Coordination is not required when the entire job is performed by an individual. Thus, Coordination is needed when many individuals are working together, who came from different backgrounds and have different methods of working. Coordination unifies their diverse activities and gives a common focus to the group efforts. C Coordination ensures unity of action : The aim of Coordination is to achieve unity of actions of different individuals.
It acts as the binding force between the departments and ensures that all efforts are focused towards achieving common organisational objectives.

Question. ‘Coordination is the essence of management.’ Explain how.
Answer: Coordination is a function that is inherent and pervasive. Coordination is not a separate function of management. It is the essence of management. The Coordination is needed to perform all the functions of management.
(i) Coordination in Planning : In planning, Coordination is needed : (a) Between overall plan of the organisation and the departmental plans. (b) Between objectives and available physical and human resources, e.g., Coordination between production department and sales department targets.
(ii) Coordination in Organising : In organising, Coordination is required : (a) Between resources of an organisation and activities to be performed; and (b) Among authority, responsibility and accountability, e.g., If a supervisor is given a responsibility to get the work done, he should also be given the appropriate authority to divide the work among his subordinates.
(iii) Coordination in Staffing : In staffing, Coordination is needed : (a) Between the skills of the workers and the jobs assigned to them. (b) Between the efficiency of the workers and the compensation, etc. e.g., an employee at managerial post should get commensurate salary.
(iv) Coordination in Directing : In directing, co- ordination is required. (a) Among orders, instructions, guideline and, suggestions. (b) Between superiors and subordinates, e.g., a manager instructs the subordinates, motivates them and also supervises their work.
(v) Coordination in Controlling : In controlling, Coordination is required. (a) Between the standard and the actual performance. (b) Between correction in deviations and achievement of objectives. Thus coordination makes planning more purposeful, well knit coordination and the controlling makes it more effective. It is the key to the success of management.

Question. Describe any four characteristics of 'Coordination'.
Answer:
(i) Coordination integrates group efforts : Coordination unifies unrelated or diverse interests into purposeful work activity. It gives a common focus to the group efforts to ensure that performance is same as it was planned and scheduled.
(ii) Coordination ensures unity of action : The purpose of Coordination is to secure unity of action in the realisation of a common purpose. It acts as the binding force between different departments and ensures that all actions are aimed at achieving the goals of the organisation.
(iii) Coordination is a continuous process : Coordination is not a one-time function but a continuous process.
It begins at the planning stage and continues till controlling.
(iv) Coordination is an all pervasive function :
Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels.
(v) Coordination is the responsibility of all managers :
Coordination is the function of every manager in the organisation. Top level managers need to co- ordinate with their subordinates to ensure that the overall policies of the organisation are duly carried out. Middle level management coordinates with both the top level and the first line managers.
Operational level management coordinates the activities of its workers to ensure that work proceeds according to the plans.
(vi) Coordination is a deliberate function : A manager has to coordinates the efforts of different people in a conscious and deliberate manner. Even where members of a department willingly co-operate and work, coordination gives a direction to that willing spirit. Cooperation in the absence of Coordination may lead to a wasted effort and Coordination without co-operation may lead to dissatisfaction among employees.