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Class 12 Business Studies Chapter 1 Nature and Significance of Management
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Nature and Significance of Management
PART – A
VERY SHORT TYPE QUESTIONS ANSWERS (1 MARK EACH)
1. Define Management.
Ans: “Management is the process of working with and through others. to effectively achieve organisational objectives by efficiently utilising the limited resources in the changing environment.”
2. Management is all pervasive comment.
Ans: Management is all pervasive or universal because management is essential for effective performance of any organised activity. The principles and techniques of management have universal application. They can be applied to all types of organised activities-business, social, educational etc. Thus, it is all pervasive in nature.
3. Is management a goal oriented process ?
Ans: Yes, management is goal-oriented process because the purpose of management is to achieve the goals of the organisation. The success of management is judged by the extent to which organisational goals are achieved.
4. Management is an art or science or both.
Ans: Management is both science and an art, management is science because s developed certain principles which are of universal application. But the results of management depend upon the personal skills of managers and in this sense management is art.
5. Management is multi dimensional. Write one dimension.
Ans: Management can be defined as multidimensional as because it has many dimensions which can be classified mainly into three categories, such as management of work, management of people and management of operations.
6. Do you think management is a continuous process? Comment.
Ans: Management is a continuous process because it is started right from the time of establishment of the business till its dissolution So, every management system is to be done in continuous mode.
7. Earning profit is not the objective of management. Say Yes or No.
Ans: No, profit earning is also the objective of management because profit is the reward for risk bearing by a businessman and profit also essential for survival, growth and expansion.
8. Is management a dynamic function ?
Ans: Yes, management is a dynamic function because according i changing of inputs the process of management will be also changed.
9. Principles of management are not right as pure science Comment.
Ans: Principles of management are not right as pure science because of the following reasons:
(a) Management principles are flexible where as principles of pl science like physics are rigid.
(b) Management principles are applied as per situation as they influence the behaviour of human beings whereas principles of pure science. are applied in absolute sense.
(c) Management principles have to keep pace with the changing business environment. But principles of pure science do not change with time, they remain static.
10. Why is it said management principles are universal ?
Ans: The principles of management are universal in nature because they are applicable to all kinds of organisations and situations.
11. Planning eliminates changes and uncertainties. Do you agree ? Give reason.
Ans: Yes, I agree with this statement, because planning involves forecasting or anticipation of future events and this helps to reduce or eliminates changes and uncertainties.
12. At which level business policy is framed ?
Ans: At top level business policies are framed.
13. Do you think coordination is not the functions of management ?
Ans: No, coordination is not a separate function of management, but it is the essence of management.
14. “Anything minus management is nothing”. What does this statement tell ?
Ans: This statement tells that nothing is possible without management.
15. Management of any organisation strives to attain different objectives. Mention any two such objectives.
Ans: (a) Supply of quality goods at reasonable prices.
(b) The basic objective of any business is survival.
16. Name the level of management the following posts belong to:
(i) Purchase Manager.
Ans: (i) Top management.
(ii) Middle management.
17. What do you mean by “efficiency”.
Ans: Efficiency means achieving the predetermined goals at the minimum cost (i.e. optimum use of resources).
18. Which function of management ensures that actual activities conform to planned activities ?
19. Who are regarded as middle management in a business. Organisation ?
Ans: Divisional heads, regional managers, production or operations managers, plant superintendents etc. are regarded as middle management in a business organisation.
20. List two social objectives of management.
Ans: (a) Supply of quality goods at reasonable projects.
(b) Generation of employment opportunities.
B. SHORT TYPE QUESTIONS ANSWERS TYPE-1 (3 MARKS EACH)
21. Explain in brief ‘management as a process’.
Ans: Management is called as a process because it comprises a series of functions that lead to the achievement of certain objectives. Management process involves planning, Organising, staffing, directing and controlling. These are the basic functions which every manager performs for the achievement of certain goals. The manager draws plans to translate these goals into reality.
22. State any three functions of top level management.
Ans: Three functions of top level management are –
(i) It prepares strategic plans and policies for the enterprise.
(ii) It appoints the executives for the middle level.
(iii) It determines the objectives of the enterprise.
3. State any three functions of lower level management.
Ans: Three functions of Lower level management are –
(i) To plan and organise the activities of their units.
(ii) They provide training to the workers under their charge.
(iii) To supervise and guide the subordinates and also solve their problems.
24. Why is management regarded as science? Give three reasons.
Ans: Same as Q.No 42
25. Management is a goal-oriented process. Explain.
Ans: Management is an essential part of a group activity. As no individual can satisfy all his desires himself, he unites with his fellow-beings. and work in an organised group to achieve what he cannot achieve individually. Wherever, there is an organised group of people working towards a common goal, some type of management becomes essential. Management makes the people realise the objectives of the group and directs their efforts towards the achievement of these objectives.
26. Discuss the basic features of management as a profession.
Ans: Management can be considered a profession because of the following reasons:
(a) The field of management is supported by a well-defined body of knowledge that can be taught and learnt.
(b) Management of modern organisations requires competent application of management principles, skills and techniques. Thus, there is a need of formal education and training in management.
(c) Certain associations of managers have been formed in different countries of the world. These associations have prescribed standards of education and training for their members.
(d) Several associations of Manager such as All India Management
Association (AIMA) have prescribed codes of conduct for their members.
(e) Managers are aware of their social responsibilities towards various groups of the society.
27. Management is a profession like accountancy, medicine and law. Give reasons.
Ans: Yes, management is a profession like accountancy, medicine and law.
Management can be defined as profession on the following grounds:
(a) The field of management is supported by a well defined body of knowledge that can be taught and learnt.
(b) Management of modern organisations requires competent application of management principles, techniques and skills.
(c) Certain associations of manager have been formed in different countries of the world. These associations have prescribed. standards of education and training and also code of conduct for their members.
(d) Managers are guided by the motive of service to others rather thar making money. That is why, managers enjoy a respectable status in the society as is the case with doctors, chartered accountants etc.
28. Distinguish between coordination and co-operating management.
Ans: Distinction between Coordination and cooperating management:
|1||Meaning||Coordination is a deliberate effort by a manager||Cooperation is voluntary attitude of the organisational members.|
|2||Purpose||Coordination is an orderly arrangement of group efforts to provide unity of action in the pursuit of common objectives.||Cooperation denotes: collective efforts of the group contributed voluntarily to accomplish common objectives.|
|3||Relations||Coordination is achieved through both formal and informal relations.||Cooperation arises out of informal relations.|
29. What are the characteristics of a profession ?
Ans: See Answer to Question No. 39.
30. What is management by objectives ? Explain.
Ans: Management by objectives (MBO) is one of the new techniques of management developed in the recent past years. MBO is also known as Management by Motivation, Management by Results etc. The system of MOB can be described as a process whereby the superior and the subordinate of an organisation jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.
31. Remen is the manager of the North East Division of a Large corporate House dealing with electrical goods. At what Level he works in the organisation? What is his basic function ?
Ans: At middle level he works in the organisation.
Generally, he perform the following roles or functions:
(i) He execute the policies framed by the top management.
(ii) He make plan and budgets for their departments.
(iii) He participate in the employment and training of junior managers.
(iv) He assign duties among the junior managers and give them necessary instructions.
(v) He evaluate the performance of junior managers and also motivate them.
(vi) He attempt to achieve coordination within their departments..
C. SHORT TYPE QUESTIONS ANSWERS TYPE-11 (3 MARKS EACH)
32. Why management is considered a multifaceted concept ?
Ans: Management is considered a multifaceted concept because management is multi-dimensional subject as because it has many dimensions which can be classified mainly into three categories, such as management of work, management of people and management
of operations. In other words, management is concerned with conversion of various inputs into desired outputs with the help of human resources or people working in the organisation. The interaction between work targets, operations and people with managerial functions of planning, organising, directing and controlling.
Management of work is concerned with the satisfaction of customers needs. Management of people involves dealing with people as
(i) individual (having diverse needs, perception and behaviour)
(ii) members of work groups in the anisation. Management of operations is concerned with the transformation of inputs into outputs efficiently to serve the customers better.
33. Explain briefly nature of management.
Ans: Nature of management are as follows:
(i) Management as a science: Management is not a perfect science as its principles are mostly situation based and do not produce the same results every time. Infact, management is a social science as it deals with humans whose behaviour is not fully predictable.
(ii) Management is an art: It is an art as every manager applies certain knowledge and skills to take decisions and put them into action. Management is a creative art of dealing with to people.
(iii) Management is proceeding towards professionalisation : Management has a wide body of knowledge which requires competent application. Modern managers recognise their social obligations and have high status in the society. But the element of self control is missing. There is no controlling authority of the managers to implement a code of conduct for them.
34. Explain in brief importance of management.
Ans: The importance or benefits of management are :
(i) Helps in achieving business objectives: Management brings human and material resources together and mobilises people to help in reaching business goals:
(ii) Management increasès efficiency: The aim of a manager is to reduce costs and increases productivity through better planning, organising, staffing and controlling the activities of the organisation.
(iii) Management helps in achieving personal objectives: A manager motivates and lead his team in such a manner that individual member are able to achieve personal goals while contributing to the organisation.
(iv) Better quality goods: A good management helps in producing better quality goods at minimum of cost.
(v) Social benefits: Management help in raising standard of living of the people by providing them with quality goods and services at the lowest possible cost.
(vi) Minimising the element of risk: Risk is an integral part of every business but an efficient management always tries to control or minimise it.
35. Do you think management is a profession ? Explain.
Ans: See Answer to Question No. 39.
36. Distinguish between coordination and control.
Ans: Coordination is the achievement of orderly group efforts and unit of action in the pursuit of a common purpose. It is the orderly synchronisation of the efforts of the subordinates for the achievement of the goals of the organisation. Synchronisation of the efforts of all the groups and individuals is necessary for the accomplishment of organisational objectives. Whereas controlling is a basic managerial function which impl measurement and correction of performance of subordinates ensure the predetermined objectives are accomplished. Control consists of those activities which are necessary to ensure that performances takes place in accordance with the targets laid down by the management. It also involves taking corrective actions in case the performance is not satisfactory.
37. What significant role management has played in Business ?
Ans: See Answer to Question No. 45.
38. Explain briefly nature of coordination.
Ans: The various nature of coordination are as follows:
(i) Part of every function: Coordination is not a separate function. but is inherent in every function. The activities of every function need coordination to complete them.
(ii) Responsibility of every manager: Every manager in the organisation has to perform coordination function. Manager have to synchronise the activities of every subordinates for achieving departmental goals.
(iii) Coordination is a process: As a process, coordination involves a number of efforts to ensure harmony at every level for achieving common objectives.
(iv) Continuous activity: Coordination is an activity carried on by every manager at all the times. It is not an activity which is to be undertaken at certain point of time, rather it is carried out continuously.
(v) Involve Cooperation: Coordination involves synchronisation of activities of various persons so it can be achieved only with their cooperation.
Group effort: Coordination applies to group effort. When there are more persons working then their activities will be coordinated.
D. LONG TYPE QUESTIONS ANSWERS TYPE-1 (5 MARKS EACH)
39. Do you think management has the characteristics of a full fledged profession ?
Ans: The term ‘profession may be defined as an occupation backed by specialised body of knowledge and training and to which entry is regulated by a representative body.
Yes, management has the characteristics of a full fledged profession for the following reason:
(i) Specialised knowledge: There exists a specialised body of knowledge underlying the field of management. It has well defined concepts, theories and techniques which can be put into practice by the managers.
(ii) Formal education and training: There exists a large no. of colleges, universities and institutions for imparting formal training and education in the field of management.
(iii) Professional association: For the development and regulation of any profession the existence of a professional body or association is must.
(iv) Code of conduct: Management associations have been set up in India and abroad. All India Management Association has devised a code of conduct for Indian managers.
40. Explain in details the Levels of management. management.
Ans: An organisation may have various levels of manager term ‘level’ involves person arranged in a series.
Thus, level of management are of three types:
(i) Top level management: Top management, which consists of owners, Board of Director, Managing Director, Chief Executive and General Manager and establishes policies, plan and objectives.
It requires more of conceptual innovative, decision-making and human skills as compared to technical skills.
The main functions of top management are:
(a) Determining the objectives or goals of an enterprise.
(b) Framing policies and making plans to achieve the objectives laid down.
(c) Providing overall leadership.
(d) Assembling the resources of men, money, machines and materials.
(e) Setting up an organisational framework.
(ii) Middle Management: This level of management is basically concerned with the task of implementing the policies and plans laid down by the top management. It works as a necessary link between the top management and the lower level of management. It consists of functional heads, production, finance, marketing manager, and the divisional and sectional officers.
The functions of middle management are:
(a) Interpreting the policies framed by top management.
(b) Collecting information and reports on performance etc.
(iii) Lower or operating management: It is the lowest level in the hierarchy of management and actual operations are the responsibility of this level of management. It consists of superintendent, supervisors and foremen who are in direct touch with the rank of file of workers. They have to get the work done through the workers. The functions of operating management:
(a) To plan day to day work within the goals.
(b) To issue orders and instructions for executing the work.
(c) Providing on the job training to workers etc.
41. What is effectiveness versus efficiency ?
Ans: Distinction between effectiveness and efficiency or effectiveness vs. efficiency.
|(i) Effectiveness means achieving the predetermined goals or ends.||(i) Efficiency means achieving the predetermined goals at the minimum cost.|
|(ii) It refers to accomplishment of goals or end results.||(ii) It refers to efficient utilisation of resources to accomplish goals.|
|(iii) It focus is on end results.||(iii) It focus is an getting maximum output by using minimum of resources.|
|(iv) A manager is to be effective if he accomplishes the given task.||(iv) He is said to be efficient if he accomplishes the given task with the use of minimum inputs.|
|(v) It is a multi-dimensional concept. It is concerned with satisfaction of customers, employees, inves- tors and other stockholders of the business.||(v) It is uni-dimensional in nature. It is concerned with the efficient use of resources only.|
42. “Management is considered an Art or Science or both.” Elucidate the statement.
Ans: The nature of management is both art as well as science. Art is the practical technique and skill of applying knowledge to achieve desired goals.
Management can be defined as an art because of the following reasons:
(i) Every manager is to apply his knowledge, skill and rules in day to day job of the company to manage the operations.
(ii) There are various theories, principles under which every manager is to do his work by studies the present situation to market, economy, business etc.
(iii) Every manager is required to apply his some personal skill in a given situation.Considering all of the above factors, the features of management can be defined as an art.
Management is also called science because of the following reasons:
(i) Management is a systematised body of knowledge. Management has own principles and rules.
(ii) In order to modify the principles of management every manager is to maintain certain standardised tech iques which can be applied in different situations.
(iii) Scientific principles are evolved through observation and tested by repeated experimentation..
43. “A successful enterprise has to achieve its goods efficiently and effectively.” Elucidate the statement.
Ans: See Answer to Question No. 41.
44. Management is a series of a continuous inter related function. Explain fully.
Ans: There are basically five primary function of management. There are interrelationship in between these fair functions moreover these five functions are to be performed continuously.
These functions are discussed below:
(i) Planning: Planning is a basic managerial function. It is a decision in advance, what to do, how to do, and who will do a particular task. It helps in determining the course of action to be followed for achieving various organisational objectives. It involves the ability to foresee the effects of current action in the long run in the future.
(ii) Organising: It is the process of identifying and grouping work to be performed. It also helps in assigning the task to individuals, delegation of authority and fixing responsibility etc.
(iii) Staffing: Staffing is the function of hiring and retaining a suitable workforce for the enterprise. It involve the process of recruiting. training, developing, compensating and evaluating employees and maintaining this workforce with proper incentives and motivation.
(iv) Directing: Directing involves bading, influencing and motivating employees to perform the task assigned to them. Directing is concerned with giving instruction to the employees to carry out the desired goals.
(v) Controlling: Control is the process which enables management to get its policies implemented and take corrective actions if performance is not according to predetermined standards.
E. LONG TYPE QUESTIONS ANSWERS TYPE- II (6 MARKS EACH)
45. Discuss the significance of management to modern industrial enterprise ?
Ans: The importance of management to a mor business is discussed below:
(i) Accomplishment of Organisational Goals: It is the management which determines the goals of the organisation and of various departments and functional groups. The goals are communicated to the employees to seek their cooperation. All organisational activities are directed towards the organisational objectives. Clear-cut definition of goals is essential for the success of any organisation.
(ii) Efficient Utilisation of Resources: Ma Mangement ensures optimum utilisation of resources. Through planning and organisation, management eliminates all types of wastages and achieves. efficiency in all business operations Management motivates workers to put in their best performance This would lead to the effective working of the business.
(iii) Sound Organisation: Management establishes sound organisation for the accomplishment of the desired objectives. It clarifies authority-responsibility relationships among vario. Positions in the enterprise. It fills various positions with persons having the right qualifications and training. Management also provides the workers with proper environment and encourages the spirit of cooperation.
(iv) Integration of Endeavours or Efforts: Management deals with integration of human and non-human resources in order to achieve organisational objectives. It directs and coordinates the activities of individuals and groups in the use of materials, methods and machines. It, thus, brings order to endeavours of different groups.
(v) Vision and Foresight: Management keeps itself in touch with the external environment and provides vision and foresight to the enterprise. It helps in predicting what is going to happen in future which will influence the working of the enterprise. It also takes steps to ensure that the enterprise is able to meet the demands of changing environment.
(vi) Accomplishment of Personal Objectives: Management leads the group members to inspire them to achieve their personal, objectives while working for the organisational objectives. Management helps them to satisfy their physical, social, status and self realisation needs so as to develop a cooperative and committed team.
46. What are the functions of Management ? Explain in details.
Ans: See Answer to Question No. 44.
47. “Coordination is the essence of management.” Do you agree ? Give reasons.
Ans: Yes, I am agree with this statement because of the following reasons:
(i) There are mainly five functions of management, such as planning. organising, staffing, directing and controlling. But the coordination . is the force that builds all the functions of management together. Moreover, coordination is also considered as a separate function. of management. It is the essence of management for achieving harmony among individual efforts towards the accomplishment of group goals.
(iii) Coordination is implicit and inherent in all functions of an organisation.
48. What are the objectives of management ? Explain in details.
Ans: Objectives are the goals or ends toward which the activities of a business are directed. From the point of view of management, objectives may be grouped under three heading namely
(ii) social and.
(i) Organisational objectives: The main purpose of any organisation is to utilise human and material resources to fulfil its economic objectives.
The economic objectives of a business are survival, profit and growth as discussed below:
(a) Survival: The basic objective of any business is survival. In order to survive an organisation must earn enough revenues to cover cost of operation.
(b) Profit: Mere survival is not enough for business. The management must earn sufficient profit to meet the various cost of business and also cover the various business risks.
(c) Growth: It is very important for the business to grow. To remain in the market, management must exploit fully the growth potential of the organisation.
(ii) Social objectives: Management is an organ of the society so it must have social objectives.
Social objectives include the following:
(a) Supply of quality goods at reasonable prices.
(b) Generation of employment opportunities.
(c) Providing financial support to community projects.
(d) Controlling environment pollution.
(e) Using environment friendly methods of production.
(iii) Personal objectives: Personal objectives relate to the employees. Every employee has some aspirations when he joins a job.
He expects these aspirations to be fulfilled by the organisation :
(a) Good salary and other benefit.
(b) Opportunities for training, promotion etc.
(c) Good and healthy condition.
(d) Recognition of meritorious Tous work.
(e) Treat employees as a part of business.
49. What are the characteristics of management ? Explain in details.
Ans: To understand the nature of management, it is essential to know the features or characteristics of management.
The basic features or characteristics of management are as follows:
(i) Management is goal-oriented: Management is always goal oriented. In the first function of management i.e. planning. The desired goal of the business is determined. Thereafter, through proper organising, staffing, directing and controlling the goal are achieved.
(ii) Group activity: Management is an essential part of a group activity. Whenever, there is an organised group of people working towards a common goal, some type of management becomes essential. Management makes the people realise the objectives of the group and directs their effects towards the achievement of these activities.
(iii) Management is universal in character: Management is applicable in all types of organisation. The basic principles of management are of universal application and can be applied in all organisation whether they are business, social, religious, cultural, sports etc.
(iv) Multidimensional: Management can be defined as multidimensional as because it has many dimensions which can be classified mainly into three categories, such as management of work, management of people and management of operations.
(v) Management is a continuous process: Management is a continuous process i.e. its functions are repeated time and again.Management does not stop anywhere. It is started right from the time of establishment of the business till its dissolution.
(vi) Dynamic function: Management is a dynamic function. According to changing of input the process of management will be also “d dynamic function. changed. So, management is called dynamic function.
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