CBSE Class 12 Business Studies Nature and Significance of Management Worksheet Set A

KEY CONCEPTS IN NUTSHELL

1. MEANING/CONCEPT OF MANAGEMENT:
Management is the process of getting things done with the aim of achieving goals effectively and efficiently.
• Process : refers to the primary function like planning, organising, staffing, directing and controlling performed by the management to get things done.
• Effectiveness : means completing the right task to achieve the deputed goal within the time frame.
• Efficiency: means completion of task using minimum resources

2. DEFINITION OF MANAGEMENT:
“Management is the process of working with and through others to effectively achieve the organisational objectives by efficiently using limited resources in the changing environment.” Kreitner.

3. FEATURES OF MANAGEMENT
1. Goal oriented - Management processes at every stage aim at achieving the Organisational goal as its fundamental objective.
2. Group activity - It unties the efforts of different individuals in an organisation towards achievement of a common goal.
3. Intangible force - It is a force that cannot be seen or heard but can be felt.
4. All pervasive- This function is applied necessarily at every organisation, every level irrespective of its size and purpose.
5. Multidimensional - Being a sequential set of activities It binds the 5 M‟s (men, material,money, machine and method)together. However, the Three main dimensions are-Management of Work: Every organisation exists to perform work Management of People: Management is all about getting work done through people and achieving the organisational goal/objectives. It implies dealing with diverse needs of the employees, and individuals as a group of people.
Management of Operations: An organization has to provide some service or product which entails production process having an input, transformation and output.
6. Continuous process - It comprises of series of interdependent, interconnected activities wherein one cannot be performed independent of the other.The functions of planning,
organizaing, directing , staffing and controlling are peformed by all managers all the time.
7. Dynamic - The processes are moulded and adapted as per the changing external nvironment which consists of social, political and Economic factors.

4. Functions of management: 

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

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

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

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

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

5. MANAGEMENT OBJECTIVES Organisational:
Survival:- Ensure that the organisation survives and exists in the future.
Profitability:- Earning adequate profit in order to survive and grow Growth:- Growth indicates how well it exploits the potential opportunities.
Social :
• Producing quality products at reasonable rates,
• generating employment opportunities,
• Community progress and development by providing schools and creches to employees Infact most of the firms have taken upon themselves the concept of social responsibility
as one of the basic element of business objectives.
• Environmental friendly method of production.

Personal :
• Meeting the Financial needs like competitive salaries and perks
• Social and safety needs of the employee like peer recognition, self respect and respect for colleagues
• Higher level needs like implementation and monitoring of policies for personal growth and survival
• Reconcile personal goals with organisational objectives for harmony in the organisation.

6. IMPORTANCE OF MANAGEMENT
• Aids in achievement of individual and organisational goals
• Increases efficiency
• Enhances optimum utilisation of resources
• Creates a dynamic organisation
• Promotes development of society

7. LEVELS OF MANAGEMENT 

Top level: -
• Comprises of CEO, Board of Directors, MD, GM, VP
• Conceptualising of organisational goal, policy and strategy formulation
• Organising , Controlling and Monitoring activities and resources
• Controlling the work performance
• Approving Budgets

Middle Level:-
• Comprises of Departmental, Sub-Departmental and Divisional heads.
• Execution of plans, policies framed by the top level management
• Preparing organisational set up & appointing employees
• Issuing instructions and motivating employees
• Ensuring interdepartmental cooperation
• Forwarding suggestions and feedback to the top level

Lower Level:-
• Comprise of Supervisors, Foremen and inspectors
• Maintain Morale, safety and discipline amongst the work force
• Oversee the work of the workers
• Assist the management in selection, training, placement & promotion of workers

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

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

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

9. COORDINATION
Meaning.
It is the synchronisation of various activities and efforts in an organisation providing the required amount of quality, timing and sequence; thus ensuring the achievement of the planned goal with minimum content.

10. FEATURES OF COORDINATION:
• Integrates Group Effort: It is an orderly arrangement of group effort and not individual effort
• Ensures unity of action: It is a binding force between departments and ensures that all efforts are focussed towards achieving the organisational goal
• It is a Continuous Process never ending process as its needs are felt at all levels and steps in the organisations. It begins at the planning stage and continues till controlling
• It remains the function and responsibility of every manager: the top level coordinates the overall plan, middle level coordinates the efforts of the different sections and subsections and lower level management coordinates the activities of the workers
• A Deliberate function : It does not occur spontaneously nor is it achieved by force it is a deliberate action taken.
• All pervasive function it is needed in all departments and at all levels. Lack of coordination can lead to overlapping of activities.

11. NEED FOR COORDINATION:
The reasons that bring out the importance or the necessity for coordination are
• Growth in the Size of the organisation results in the increase in varied quality of manpower too with varied individual aspirations. Coordination seeks to match the individual goal with the organisational goal.
• Functional Differentiation arising out of departmentalisation and division brings forth a motive for achievement of individual objectives, in isolation from other objectives
leading to departmental clashes. Coordination seeks to iron out these variations.
• Specialisation can give rise to feeling of superiority and prioritising of their zone of activities. Coordination seeks to sequence and integrate all the specialists of activities into a wholesome effort.

12. IMPORTANCE OF COORDINATION
• Ensures unity of action
• Erases interdepartmental conflicts
• Promotes harmonious implementation of plans
• Helps in maintaining a high degree of morale amongst employees

13. COORDINATION IS THE ESSENCE OF MANAGEMENT.
Coordination is the management function of correlating and integrating the diverse goals and activities in the organisational process. It is the essence of management because:
It is needed at all Management functions
Planning - Coordination between the master plan and departmental plan.
Organising - Requieed between authority, responsibility and accountability.
Staffing - Achieve balance between job requirement and qualities of personnel
Directing - Required between supervision, motivation and leadership.
Controlling - Ensures actual result conform to expected results.

• Needed at all levels of Management-
Top level - needs coordination to integrate activities of the organisation for accomplishing the organisational goal
Middle level - Coordination of the efforts of different sections and sub-sections
Lower level - Coordination in the activities of workers to ensure work progresses as per plans.

Question. What is meant by Manaement? 
Answer: Management is the process of conducting a set of functions (planning, Organising, staffing, directing and controlling) to get the work done in an efficient and effective manner.

Question. What is meant by 'Effectiveness in Management? 
Answer: It refers to completing the job on time, no matter whatever is the cost.

Question. What is meant by 'Management of Work'. 
Answer: It refers to translating work in terms of goals to be achieved and assigning the resources to achieve them.

Question. What is meant by 'Management of People'? 
Answer: Each organisation is established for doing some work and the same is conducted by people. Hence, it is necessary to manage the people so that the work can be accomplished in a better way.

Question. Why is management called a group activity"?
Answer: I mean that it is not a single person (manager) who consummates the whole process management but it is conducted by a group of persons (managers).

Question. “Planning, Oraganizing, Staffing, Directing and controlling” is the sequence of functions in a process. Name it.
Answer: Management

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

Question. What is the main objective of any organisation?
Answer: Main objective of any organisation is optimum utilisation of resources

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

Question. What do you mean by effectiveness?
Answer: It means completing the task or achieving the goals within stipulated time period.

Question. "Management is a group activity". Give reasons for statement.
Answer: An organisation is a collection of diverse individuals with needs and purposes but they work towards fulfilling the common organisational goals.

Question. In order to be successful, an organization must change its according to the needs of the environment. Which characteristic of management is highlighted in the statement ?
Answer: Management is a dynamic function.

Question. Give one designation each of top and middle level management?
Answer: Top - CEO
Middle - Divisional Manager

Question. Your Grand Father has retired as the director of a manufacturing company. At what level of management was he working.
Answer: Top management.

Question. Why is management called inexact science?
Answer: Management relates to human behaviour, whose cause and effect is not certain, that‟s why it is called and inexact science.

SHORT ANSWER TYPE QUESTIONS

Question. Explain the meaning of management. What do you mean by managers?
Answer: Management is a process of getting things done with the aim of achieving desired common goals effectively and efficiently persons engaged in performing the functions of the management are known as managers. In other words, those managing the organizational resources for releasing its goals are known as managers.

Question. „Management is a process‟ Explain ?
Answer: Management includes various steps such as planning, organising, staffing, directing and controlling. This process begins with those at the top of the organization and continues in varying degrees at almost every level of the organisation. These inter-related steps help to achieve organisational goals in effective manner. That is why management is known as process of employing and organising resources to accomplish predetermined objectives.

Question. „Management is multi-dimensional‟. Explain?
Answer: Management is a complex activity and involves following three main dimensions -
i) Management of works
In each and every organisation, certain type of work is to be performed. In school, overall development of a child is to be done; in hospitals, patients are treated etc. Management converts these works into goals and devises the means to achieve them.
ii) Management of People.
Management is concerned with “getting things done through people”, which is a very difficult task. All the employees have different personalities, needs backgrounds and methods of work. Thus, it becomes management‟s job to make them work as a group by giving common direction to their efforts.
iii) Management of operations.
In order to survive, each organisation has to provide certain goods or services. This involves production process thus, management of operations is inter linked with both the
above dimensions viz., management of work and the management of people.

Question. What are the personal objectives of the management?
Answer: Personal objectives refer to the objectives which are related to the employees of an organisation. They are as follows:
i) Financial needs like competitive salaries, incentives and other monetary benefits.
ii) Social needs like recognition in the organisation.
iii) Higher level need which includes personal growth and development.

Question. Enumerate the importance of management.
Answer: Following points are the importance of management.
i) Management help in achieving group goals.
ii) Management increase efficiency
iii) Management create a dynamic organisation.
iv) Management helps in achieving personal objectives.
v) Management helps in development of society.

Question. What do you mean by level of management?
Answer: Levels of management means the hierarchy of organisation representing the relationships among managers and subordinates on the basis of their relative authority, status and responsibility. There are three levels in the hierarchy of an organisation viz.
(i) Top management
(ii) Middle management and
(iii) Supervisory or operational management.

Question. Define co-ordination. Enumerate the features of co-ordination?
Answer: Coordination is an orderly arrangement of group efforts to maintain harmony among individuals‟ efforts towards the accomplishment of common goals of an organisation.
Features of co-ordination.
i) It integrates group efforts.
ii) It unifies the action.
iii) It is a continues process.
iv) It is an all perrasive function
v) It is the responsibility of all managers.
vi) It is a deliberate function.

LONG ANSWER TYPE QUESTIONS

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

Question. Explain the organisational objectives of management.
Answer: The organisational objectives of management refer to the main objectives required to fulfill the economic goals of the business organisation. The main objective of
management is to utilize the human and material resources in such a manner that it should give maximum advantage to the organization. Every management group strives to
accomplish these objectives for its organisation. These objectives of every organisation are survival, profit and growth.
(a) Survival: The basic objective of every business is to survive for a longer period in the market. The management must ensure survival of the organisation by earning enough revenue to cover its costs.
(b) Profit : Only survival is not sufficient for business. Profit earning is essential for meeting the expenses and for the successful operation of the bus' Thus management must ensure earning of sufficient profit.
(c) Growth : The next important objective of the management is to ensure future growth and development of the business.

Question. Explain the 'social objectives' of management.
Answer: Each organisation is a part of society and thus it has certain social obligations to fulfill.
Some of them are as follows:
(i) To supply quality goods and services
(ii) Providing basic amenities to the employees like schools and creches for their children, medical facilities etc.
(iii) To generate employment opportunities especially for the backward classes.
(iv) To provide environment friendly methods of production.
(v) To provide financial support to society by donating for noble causes.
(vi) To organize educational, health and vocational training programmes.
(vii) To participate in social service projects of Government and Non – Governmental Organisations (NGOs).

Question. Do you mean by' Personal Objectives' of management? Enumerate personal objectives of management.
Answer: Personal Objectives refer to the objectives which are related to the individual needs of the employees of an organisation. All organisations are made up of people with different values, experiences and objectives. People join an organisation to satisfy their different needs. These are as follows:
i) Financial needs like competitive salaries, incentives and other monetary benefits.
ii) Social needs like recognition in the organisation.
iii) Higher level need which includes personal growth and development.

Question. Explain five functions of top-management.
Answer: Top management performs the following functions.
i) Develops long-term objectives : Top-level managers develop the long - term objectives like expansion of business, manpower planning etc.
ii) Framing of policies : They lay down guidelines for departmental head i.e., policies relating to production, marketing, personnel, finance public relation etc.
iii) Organizing : Top management organizes the business into various sections and departments to achieve the desired organisational objectives.
iv) Key appointments : Top-level authorities appoint the departmental heads and some other key persons to develop the organisational structure for profitable growth of the enterprises.
v) Controlling : Top-level managers periodically review the work of executives at different levels to ensure that their performance is as per predetermined plans.

QUESTIONS WITH DIFFERENT DIFFICULTY LEVELS

Question. Give any one social objective of management. 
Answer: Either one of the following:
i) Desired quality of products at reasonable price.
ii) Using environment friendly methods of production
iii) Generation of employment opportunities.

Question. Name any two designations given to first line managers. 
Answer: Foremen and supervisors.

Question. Which force binds all other functions of management? 
Answer: Coordination

Question. What do you mean by Management Hierarchy? 
Answer: The chain of authority - responsibility relationships from top to bottom is called as management hierarchy.

Question. How is management all pervasive? 
Answer: Activities involved in management are applicable to every type of organisation whether economic, social or economic, social or political. For example, a cricket team needs to be managed as much as a club or a hospital. The activities of managers in India are similar to their activities in say U.K. or USA. Thus it can be said that management is all pervasive.

Question. „Management provides judgement and vision‟. Explain?
Answer: Management keeps adjusting to the complex and ever-changing external environment. It helps in decision making. As it visualizes the future and the right course of action for same, sound decisions become possible. Thus, its foresight provides judgment and vision.

Question. Why is management considered as a discipline? 
Answer: Discipline refers to a subject, the study of which can be organized and taught.
Management is considered as a discipline because it is being continuously researched and studied. Also, it emphasis on knowledge, diversification, theory and practice, just like
any other discipline.

Question. Mr. Kunal is working as the Finance Manager of XYZ Ltd. At what level of management is he working? State any two functions being performed by him?
Answer: He is working as a middle level manager. His functions are as follows.
i) Deciding various sources from which required funds can be raised.
ii) Negotiating with banks, brokers, under-writers etc. for raising finance.

Question. „Coordination is a continues activity‟. Explain? 
Answer: Coordination is a continuous activity carried out by all mangers at all times. It starts at the planning stage and continues with the other functions of management. It is a neverending process. It integrates all the activities and ensures the orderly arrangement of individual and group efforts to ensure unity of action in the realization of common
objectives.