CBSE Class 12th | Business Studies | Chapter 1. Nature And Significance Of Management | Questions & Answers

Concept Mind Mapping

• Concept: Controlling the resources efficiently and effectively for achieving the organisational goals.
• Characteristics:
  1. Goal oriented process
  2. Pervasive
  3. Multidimensional
  4. Group activity
  5. Continuous process
  6. Dynamic function
  7. Intangible force
     
• Objective :
  1. Organisational
  2. Social
  3. Personal objectives
     
• Importance:
  1. Achieves group goals
  2. Increases efficiency
  3. Creates dynamic organization
  4. Helps achieve personal goals
  5. Development of society
• Management as Art: Theoretical knowledge, personal application, based on practice, creativity
• Management as a Science :
  (a) Systematic body of knowledge (b) principles based on application, (c) universal validity
• Management as a Profession:
  (a) well defined body of knowledge (b). restricted entry (c) professional association (d) ethical code of conduct Management fulfills some but not all of these requirements
• Levels of management:
  (a) Top Level management (b) Middle Level management (c) Supervisory or operational or lower level management
  
• Functions of Management: Planning, organising, staffing, directing and controlling
• Coordination: The process of achieving unity of action among interdependent activities and departments of an organisation. It is the essence of management as it is required in all managerial functions.

   (Compiled and adopted from Study /Support Material prepared by KVS )

VERY SHORT ANSWER TYPE QUESTIONS (1 MARK)

CBSE Class 12th | Business Studies | Chapter 1. Nature And Significance Of Management 

Question 1. What is meant by the term Management?
Answer. Management is the process of conducting a set of function (planning, organizing, staffing,directing and controlling) to get the work done in an efficient and effecting manner.

Question 2. Why is it said that management is all pervasive?
Answer. Because it is needed in all spheres say-business and non business organization.

Question 3. In an organization employees are happy and satisfied (there is no chaos and affect of management is noticeable .which characteristic of management is highlighted by this statement?
Answer. Management is an intangible force.

Question 4. Name the process of working with and through others to effectively achieve organization objectives by efficiently using its limited resources in the changing environment?
Answer. Management.

Question 5. In order to be successful an organization must change its goals according  to the needs of the environment. Which characteristic of Management is highlight in the statement?
Answer. Management is dynamic

Question 6. Give any two characteristics of Management?
Answer. (I) Management is goal – oriented process.
(II) Management is all pervasive.

Question 7. To meet the objectives of the firm the Management of BPL ltd. It offers employment to physically challenged person. Identify the organization and objective it is trying to achieve?
Answer. It is social objective.

Question 8. Management is a soft science. How?
Answer. Management is a soft science as its principles are not very rigid.

Question 9. Why is coordination known as essence of Management?
Answer. Because it is not a separate function of Management rather it forms a major part of all the other functions of Management.

Question 10. Name two features of profession which are not available in Management?
Answer. (I) Restricted entry (II) Ethical code of conduct.

Question 11. The Management principles can be applied to all types of activities? Which characteristic of Management is highlighted by this statement?
Answer. Management is all pervasive.

Question 12. “Planning, Oraganizing, Staffing, Directing and controlling” is the sequence of functions in a process. Name it.
Answer. Management

Question 13. Name that intangible force which creates productive relationships among resources of an organisation.
Answer. Management

Question 14. What is the main objective of any organisation?
Answer. Main objective of any organisation is optimum utilisation of resources

Question 15. Production manager tries to produce goods with minimum costs. Name the concept which is being focused by management?
Answer. Efficiency

Question 16. What do you mean by effectiveness?
Answer. It means completing the task or achieving the goals within stipulated time period.

Question 17. "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 18. In order to be successful, an organization must change its work culture according to the needs of the environment. Which characteristic of management is highlighted in the statement?
Answer. Management is a dynamic function.

Question 19. Give one designation each of top and middle level management?
Answer. Top - CEO, Middle - Divisional Manager

Question 20. Your Grand Father has retired as the director of a manufacturing company. At what level of management was he working.
Answer. Top management.

Question 21. 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.

Question 22. Give any one social objective of management.
Answer. Either one of the following:

1. Desired quality of products at reasonable price.
2. Using environment friendly methods of production
3. Generation of employment opportunities.

Question 23. Name any two designations given to first line managers.
Answer. Foremen and supervisors.

Question 24. Which force binds all other functions of management?
Answer. Coordination

Question 25. What do you mean by Management Hierarchy?
Answer. The chain of authority - responsibility relationships from top to bottom is called as management hierarchy.

SHORT ANSWER TYPE QUESTIONS (3 OR 4 MARKS)
 CBSE Class 12th | Business Studies | Chapter 1. Nature And Significance Of Management 

Question 1. 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 organisational resources for releasing its goals are known as managers.

Question 2. ‘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 3. ‘Management is multi-dimensional’. Explain?
Answer. Management is a complex activity and involves following three main dimensions -

1. 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.
2. 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.
3. 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 4. 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:

1. Financial needs like competitive salaries, incentives and other monetary benefits.
2. Social needs like recognition in the organisation.
3. Higher level need which includes personal growth and development.

Question 5. Enumerate the importance of management.
Answer. Following points are the importance of management.

1. Management helps in achieving group goals.
2. Management increase efficiency
3. Management creates a dynamic organisation.
4. Management helps in achieving personal objectives.
5. Management helps in development of society.

Question 6. 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.

1. Top management
2. Middle management and
3. Supervisory or operational management.

Question 7. 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

1. It integrates group efforts.
2. It unifies the action.
3. It is a continuous process.
4. It is an all pervasive function
5. It is the responsibility of all managers.
6. It is a deliberate function.

Question 8. Enumerate any three functions of top level Management?
Answer.

1. Determining objectives Top-level Management sets objectives for the organization. For ex. objective can be set that in the following year the sale of the company has to cross Rs.1000 crore.
2. Determining Polices: - Only at this level polices related to the realization of objectives are formed. For ex. It can be a sales policy of a company to just make cash sales.
3. Assembling Resources: - Needed resources are assembled for the realization of an objective like capital, raw-material, fixed assets, etc.

Question 9. Enlist any three functions of middle level Management
Answer.

1. (I) Interpreting Policies: - At this level, polices formed by top level mgt. are interpreted. Like the marketing managers introduces his salesman to the sales policy of the company that at no cost credit sales will be made.
2. Appointing Employees: - Every departmental manager appoints employees to fulfill the activities of his department.
3. Issuing Instructions: - Departmental managers direct their subordinates about what to do and how they have to do. Needful resources are made available to the subordinates so that they can do the assigned jobs intermittently.

Question 10. State any three functions of lower level Management?
Answer.

1. Submitting Workers Grievances: - Lower level Management is in direct contact with the workmen employees. They submit serious problems of workers to middle level management otherwise they sort out the ordinary problems themselves.
2. Ensuring safety of workers: - Probability to accidents can be annulled by building fences around machines.
3. Inviting suggestions: - They invite suggestions from their subordinates as to how the quality of work can be improved.

Question 11. Write short note on Management as a profession?
Answer. Under profession a man after training and long experience acquires proficiency with which he impartially serves different sections of society. As Management satisfies some of the conditions for being a profession like- profession like-body of specialized knowledge and techniques. formalized methods of acquiring training and experience, priority to the feeling of service but the other characteristic like representative profession association and code of conduct have still not developed adequately. Its recognisation as a profession will increase in accordance with the pace of its development

Question 12. Differentiate between Efficiency & Effectiveness:
Answer. Efficiency refers to the relationship between inputs and outputs. If we produce more from the given inputs, our efficiency is increased. Or if we produce the same from less input, again our efficiency is increased. And it is only possible when a manager avoids the wastage of scarce resources.
Effectiveness refers to the successful consummation of activities so that organizational goals are achieved. When a manager attains goals, we say he/she is effective. It meAns. effectiveness is adjudged merely on the basis of the attainment of goals irrespective of the fact how much cost is incurred in their fulfillment.

Question 13. Explain in brief, “Management” as a group of people having managerial responsibility for an enterprise?
Answer. In the context of Management, the word “group” is used in two different contexts; firstly. It refers to the group of people who are actually doing the work and are being managed and secondly, to the group of people who are actually perform the activity of Management i.e. the mangers. In this discussion by ‘group’ we simply to the group of people who perform the work of mgt. acc. to this description of mgt, the activity of Management is not carried out by any 1 person but rather it is collectivity carried out by a group of persons.

Question 14. Explain in brief ‘Management’ as an activity?
Answer. A few Management experts have defined Management as an ‘activity.’ The word activity implies doing something, for ex. Reading, writing, Running, swimming etc, are all activities. In the same manner, it can also be said that Management is not a person or a group of persons, rather Management is an activity therefore, the activity of Management aims to get a specific task accomplished.

Question 15. Explain in brief. “Management” as a process.
Answer. “Management” as a process means a definite system of functioning. This appear to be true so far as Management is concerned because a manager, at Whatever level of Management he may happen to be, has to perform the function of Management in a sequence, i.e. planning, organizing, staffing directing and controlling.

Question 16. Enumerate the importance of management.
Answer. Following points are the importance of management.

1. Management helps in achieving group goals.
2. Management increase efficiency
3. Management creates a dynamic organisation.
4. Management helps in achieving personal objectives.
5. Management helps in development of society.

Question 17. 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.

1. Top management
2. Middle management and
3. Supervisory or operational management.

Question 18. 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 19. ‘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 20. 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 21. 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.

1. Deciding various sources from which required funds can be raised.
2. Negotiating with banks, brokers, under-writers etc. for raising finance

Question 22. ‘Coordination is a continuous 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 never-ending 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.

LONG ANSWER TYPE QUESTIONS (5 OR 6 MARKS)
CBSE Class 12th | Business Studies | Chapter 1. Nature And Significance Of Management

Question 1. What is meant by management? Explain any five features or characteristics.
Answer. Management is the process of conducting a set of functions (planning, organizing, staffing, directing and controlling) to get the work done in an efficient and effective manner.
Characteristics of Management:- following are the main features of Management:

1. Management is 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
2. Management is all pervasive :- Anything minus management is nothing or zero. Here by anything we mean all types of activities- business and non-business. If we deduct management out of these activities, the result will be failure or zero. Whether it is a commercial organisation or non commercial organisation, big or small all require management to handle their operations effectively and efficiently.
3. 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.
4. Management is an Intangible force :- Management is that power which cannot be seen. It can only be felt. If any organization is heading toward higher levels of achievement, it signifies an existence of good management & vice – versa.
5. 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 2. Anything minus Management is zero’. Explain the importance of management in the light of this statement.
Answer. Not only in the field of business but in other field also, has management come to occupy an important place. In this reference, it is said that anything minus management is nothing. The following facts clearly highlight the importance of management.

1. Management helps in achieving Group goals: it is the most important characteristics of management that it is goal oriented activity. A manager achieves these goals by giving proper direction to the efforts of all individuals.
2. Management increases efficiency: a manager increases efficiency through optimum utilization of all the resources, such as Man, Machine, Material and money.
3. Management creates a Dynamic Organization: to face the changing environment many changes need to be made in the organization as well. But people resist changes,. Manager creates a favorable environment through introducing employees to the benefits arising by adapting changes.
4. Management helps in achieving Personal Objectives: every employee wants to get suitable remuneration a share in profit, participation in management etc, in the form of 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 organization objectives.
5. Management helps in the Development of Society : Management has some responsibility towards society. Managers by fulfilling their social responsibilities help in the development of society. These responsibilities are to provide employment opportunities to prevent environment from getting pollution, to make available good quality products at a reasonable price, etc.

Question 3. 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.

1. 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.
2. 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.
3. Growth: The next important objective of the management is to ensure future growth and development of the business.

Question 4. “Management is a science like physics or chemistry”. Do you agree with this statement? Give reasons in support of your
Answer.This statement is wrong. Although management can be called science but not as an exact or pure science like physics or chemistry. It is important to apply the characteristics of science to management in order to find out whether management is a science or not. Following are the main points:

1. Systematized Body of Knowledge: it is necessary for science to be a systematized body of knowledge. Management is also a systematized body of knowledge because it has its own theory and principle which are developed by the management experts after years of research.
2. Principle Based on Experiments: after applying this characteristics of science to mgt, we find that development of mgt, took year for the collection of facts, their analysis and experiment .
3. Universal validity : scientific principal are based on truth and they can be applied at every time and every situation. In the field of management and principles of management are considered to be based on truth and they too can be applied anywhere and in every situation.

Conclusion : the subject matter of management is human being who is an intelligent and sensitive being and whose behavior or conduct changes according to the changing situations. Therefore, no permanent principles like the principles of physics and chemistry can be enunciated in relation to his conduct or behaviour. Clearly the science of management cannot be called a pure science but it should be described as an Applied Science.

Question 5. 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:

1. To supply quality goods and services
2. Providing basic amenities to the employees like schools and creches for their children, medical facilities etc.
3. To generate employment opportunities especially for the backward classes.
4. To provide environment friendly methods of production.
5. To provide financial support to society by donating for noble causes.
6. To organize educational, health and vocational training programmes.
7. To participate in social service projects of Government and Non – Governmental Organisations (NGOs).

Question 6. 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:

1. Financial needs like competitive salaries, incentives and other monetary benefits.
2. Social needs like recognition in the organisation.
3. Higher level need which includes personal growth and development.

Question 7. Explain five functions of top-management.
Answer. Top management performs the following functions.

1. Develops long-term objectives: Top-level managers develop the long - term objectives like expansion of business, manpower planning etc.
2. Framing of policies: They lay down guidelines for departmental head i.e., policies relating to production, marketing, personnel, finance public relation etc.
3. Organizing : Top management organizes the business into various sections and departments to achieve the desired organisational objectives.
4. 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.
5. Controlling: Top-level managers periodically review the work of executives at different levels to ensure that their performance is as per predetermined plans.

Question 8. Explain five functions of top-management.
Answer. Top management performs the following functions.

1. Develops long-term objectives: Top-level managers develop the long - term objectives like expansion of business, manpower planning etc.
2. Framing of policies: They lay down guidelines for departmental head i.e., policies relating to production, marketing, personnel, finance public relation etc.
3. Organizing : Top management organizes the business into various sections and departments to achieve the desired organisational objectives.
4. 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.
5. Controlling: Top-level managers periodically review the work of executives at different levels to ensure that their performance is as per predetermined plans.

Question 9. Test the fact that “Management is an Art”?
Answer. Whether Management is an art or not will be known by the application of the characteristic of art in mgt., description of which is as under.

1. Existence of theoretical knowledge: - Art is always based on certain theory of knowledge. On the basis of this knowledge one can understand how a particular work can be accomplished. In this context Management is an art as a lot of literature available in various areas of Management
2. Personalized Application: - The use of available the theoretical knowledge is found in varying degree different person. For ex- 2 teacher, to players will always differ in performing their jobs. Management processes the features of art too there are various principles of management as developed by management experts. Managers apply there principles differently depending on their levels of knowledge.
3. Based on practice and creativity:- just as art can the embellished with the help Of practice in the same way managerial skills also improves with practice. Every manager has a desire to become a complete expert in this field. They can Fulfill his desire by continuous practice. The above analysis clearly establishes that management possesses all the characteristic of art and on this very base it has been accepted as on art.

Question 10. What do you mean by coordination? Discuss its nature.
Answer. Coordination is a process to establish harmony among the different activities of an organization, so that the desired objectives can be achieved. Nature of coordination: Definitions of coordination present the following facts about its nature.

1. Coordination integrates group effort: the need for coordination is felt when group effort is needed for the accomplishment of an objective. In short, it can be said that coordination is related to group effort and not individual effort.
2. Coordination ensures unity of action: the nature of coordination is of creating unity in action. It meAns. during coordination process an effort is made to create unity among the various activities of an organization.
3. Coordination is a continuous process: it is not a job which can be performed once and for all, but its need is felt at every step.
4. Coordination is an all-pervasive function: Pervasiveness refers to that truth which is applicable to all spheres (business and non-business organizations). Like making of time-table in an educational institution is an apt example of establishing coordination.
5. Coordination is a deliberate function: coordination is never established by itself but it is a deliberate effort. Only cooperation is not suffice but coordination is also needed. For example, a teacher aspires to teach effectively (this is cooperation) but the time table is not prepared in the school (this is lack of coordination).