TAGORE PUBLIC SCHOOL, NARAINA VIHAR

CLASS - XII
SUBJECT - BUSINESS STUDIES
CH - 1 NATURE AND SIGNIFICANCE OF MANAGEMENT

Q1. Write the meaning of management.

Ans. Meaning of management: Management is the 'process' of designing and maintaining

an environment in which individuals work together with the aim of achieving goals
'Effectively' and 'Efficiently'.
Successful organisations do not achieve their goals by chance but by following a
deliberate process called 'Management'.

Q2. Write the meaning of 'Effectiveness' and 'Efficiency'.

Ans. Effectiveness: It refers to achieving the goals on time. It focuses at the end result of
the task.

Efficiency: It refers to doing the task correctly and with minimum cost. It focuses at
cost benefit analysis, i.e. getting maximum output with minimum resources.

Q3. Explain the characteristics of Management in brief.

Ans. The important characteristics of management are:

1. Management is a goal oriented process: Management always aims to achieve

certain organisational goals.
 These should be simple and clearly stated.
 Different organisations may have different goals. Management integrates
efforts of all members towards achieving the objectives.
2. Management is all pervasive: Management is a universal concept. It is essential to
all organisations, whether big or small, business or non-business. Moreover,
activities involved in managing an enterprise are common to all organisations. So
management is an essential element of every organisation in the whole world.
3. Management is multi dimensional: Management is a complex activity with
multiple dimensions. Its three main dimensions are:
a) Management of work: Every organisation exists to perform some work.
Management traslates this work in terms of goals to be achieved and assigns
the means to achieve it.
b) Management of people: Human resources or people are the most important
asset of an organisation. The task of management is to make people work
towards achieving the organisation's goals by making their strengths
effective and their weakness irrelevant.
c) Management by operations: In order to survive and grow, every organisation
produces goods and services. Management of operations combines
management of work as people to produce the goods.
4. Management is a continuous process: Management is an ongoing process. All the
functions of management (planning, organisaing, staffing directing and controlling)
are simultaneously performed by the managers on continuous basis.
5. Management is a Group Activity: An organisation consists of diverse individuals
with different needs. Management helps people to realise their individual as well as
organisational goals through group efforts.

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 6. Management is a dynamic function: An organisation interacts with its external
environment, which consists of various social, economic & political factors. In
order to survive and grow, an organisation must change itself. So management is a
dynamic function.
7. management is an intangible force: Management is an invisible force that cannot
be seen. However, its presence can be felt when targets are met, employees are
happy and there is orderliness and coordination in the work environment.

Q4. Explain in brief the objectives of management.

Ans. In any organisation, there are different objectives and management has to achieve in
an efficient manner. The objectives of an organisation can be classified into three
categories:

OBJECTIVES

Organisational Social Personal or Individual

1. Organisational objectives: Organisational objectives are the main objectives,

which are needed to achieve the economic goals of the organisation. Every
organisation aims to achieve following three organisational objectives:
a) Survival: Survival is possible only when organisation is able to earn enough
revenue to cover its costs.
b) Profit: Profit is the life blood of business, without which no business can
survive. Profit is the reward for risk bearing and is essential to cover costs.
c) Growth: A business needs to add to its prospects in the long run. Growth of
an organisation indicates how well it is able to exploit its opportunities.
2. Social objectives: Social objectives refer to objectives, which are desired to be
achieved for the benefit of the society. It means, management must consistently
create economic values for various constituents of society. It includes:
a) Protection of environment by using environmental friendly methods of
production.
b) Generation of employment opportunities for weaker sections of the society.
c) Providing basic amenities like schools and crèches to employees.
d) Supply of good quality products at fair prices.
e) Conducting business in lawful manner.

3. Personal or Individual objectives: An organisation is made up of people who have

different personalities, backgrounds and objectives. As employees are one of the
most valuable resources for an organisation, satisfaction of their objectives is
important. It includes:
a) Financial needs like competitive salary & perks.
b) Social needs like peer recognition.
c) Higher level needs such as polices for personal growth and development.
d) Good and healthy working conditions.

Q5. Describe the importance of management in brief.

Ans. The importance of management will be clear from the following points:

1. Management helps in achieving group goals: Management is required not for

itself but for achieving the goals of the organisation. It brings the human & non
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 human resources together & gives a common direction to effort of all individuals
towards achiving the organisational goals.

2. Management increases efficiency: Management helps in reducing costs and

increasing productivity through better planning, organising, directing & controlling
the activities of the organisation.

3. Management creates a dynamic organisation: An organisation operates in a

constantly changing environment. Management helps people adapt to these
changes so that the organisation is able to maintain its competitive edge

4. 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 working towards organisational objectives

5. Management helps in the development of society: While achieving the

development organisation, management also aims to develop society by giving due
importance to social obligations. Efficient management helps to provide good
quality products and services, creates employment opportunities etc.

Q6. Is 'management a science'? Give reasons in support of your answer.

Ans. Meaning of science: Science is a systematised body of knowledge, acquired through

observation and experimentation, that explains general truth or the operation of
general laws.

Features of Science Vs Management

1) Systematised body of knowledge: Science is a systematised body of knowledge,

whose principles are based on a cause and effect relationship. Management
satisfies this feature as it also has a systematised body of knowledge built up by
management practitioners.

2) Principles based on observation and experimentation: Science principles are first

developed through observation and then tested through repeated experimentation
under controlled condition. this feature of science is not cent percent applicable in
management. Management principles have evolved on the basis of observation and
experimentation. But, management deals with human beings and their behaviour
cannot be accurately predicted. So, management can be called an inexact science.

3) Universal Validity: Scientific principles have universal validity and can be applied
in all situations and at all times. This feature of science is also not cent percent
applicable in management. Management principles are not as exact as the
principles of science. Their application and use is not universal. They have to be
modified according to a given situation.

Conclusion: On comparing the features of science with management, we can

conclude that management cannot be considered an exact science like physics or
chemistry. But, we can call it an inexact science or social science or soft science.

Q7. Is 'Management an Art'? Give reasons in support of your answer.

Ans. Meaning of Art: Art refers to skillful and personal application of systematic
knowledge to bring desired results. It can be acquired through study, observation
and experience.
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 Features of Art Vs Management:

1. Existence of Theoretical Knowledge: Art is based on existence of some theoretical

knowledge of concepts and principles. This feature of art is present in management
as it also involves use of theoretical knowledge like principles and techniques.
2. Personalised Application: Art is a personalised concept as everyone applies the
theoretical knowledge in his own way. This feature of art is also present in
management as every manager has his own unique way of managing things and
people, although all managers learn same management theories and principles.
3. Based on practice and creativity: Application of art needs regular practice to do
things creatively and skillfully. Art can be improved through constant practice.
This feature of art is also applicable in management. Managers also improve their
managerial skills and efficiency with regular application of management priciples.
This gives rise to different styles of management.

Conclusion: Finally, it can be concluded that management is an art as it satisfies

all its characteristics. It is rightly said that 'Management is the art of getting work
done through people'.

Q8. Is management a profession? Give reasons in support of your answer.

Ans. Meaning of profession: Profession refers to an occupation backed by specialised

knowledge and training, in which entry is restricted.

Features of profession vs Management:

1. Well defined body of knowledge: Every profession has a well-defined body of

knowledge, which can be acquired through instructions. This feature of profession
is present in management as it also consists of systematic knowledge can be
acquired at different instructions and through large number of books and journals.
2. Restricted entry: Every profession restricts the entry through an examination or
through acquired and educational degree. This feature is not applicable to
management as management is open to all individuals who want to learn skills of
management. Anyone can be called a manager irrespective of the educational
qualifications possessed.
3. Professional Association: All professions are affiliated to a professional
association which regulates entry, grant certificate of practice and formulates and
enforces a code of conduct. This feature is also not applicable to management as it
is not compulsory for a manager to be a member of any management association.
Although there are management associations (like AIMA), but they do not enjoy
legal status.
4. Ethical code of conduct: All professions are bound by a code of conduct which
guides the behaviour of its members. This feature is also not present in
management as there is no uniform code of conduct for the managers. Although
certain management associations, like AIMA, have formulated ethical code for
managers, but there is no legal support for it.
5. Service Motive: The basic motive of a profession is to serve clients by rendering
dedicated and committed service.

This feature is not cent percent applicable in management as the basic aim of
management is to help the organisation achieve its stated goal. This may be profit
maximisation for a business enterprise and service for hospital.

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 Conclusion: Finally, it can be concluded that management does not possess all the
necessary features of a profession. But, it is moving fast in the direction of
becoming a profession as professionals enjoy higher status in every society.

Q9. Explain the levels of Management with their functions.

Ans. The hierarchy of management positions from top to bottom is called levels of
management.

In an organisation, three levels of management are usually identified:

1. Top level management

2. Middle level management
3. Operational or Supervisory or Lower level

Board of TOP LEVEL MANAGEMENT

director,
chairman,
president etc.

Purchase manager
production manager MIDDLE LEVEL MANAGEMENT
Finance manager
Plant superintendent etc.
OPERATIONAL LEVEL
Supervisor, Superintendent, Foreman, Section officer etc.
MANAGEMENT

LEVELS OF MANAGEMENT

TOP LEVEL MANAGEMENT: Top level management consists of the senior most executives of
the organisation. Top management is team consisting of managers from different functional
levels. It includes: Board of Directors, Chairman, Chief executive officer (CEO), Chief
operating officer (COO), Chief financial officer (CFO), President, Vice-President, General
manager and other senior executives.

Functions of Top level Management:

1. To integrate diverse elements and coordinate the activities of different

departments.
2. To analyse the business environment and its implications for the survival of the
firm .
3. To formulate overall organisational goals.
4. To arrange resources of men, machines, material and money to achieve desired
goals.

MIDDLE LEVEL MANAGEMENT: Middle level acts a link between top and lower level
management. They are usually known as division all heads, operations manager or plant
superintendent. Middle level consists of divisional or departmental heads, like: purchase
manager, production manager, finance manager, marketing manager, personnel manager and
other executive officers attached to different departments.

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 Functions of Middle Level Management:

1. To interpret the polices framed by top management.

2. To ensure that their department has the necessary personnel.
3. To assign necessary duties and responsibilities to them.
4. To motivate them to achieve desired objectives.
5. To cooperate with other departments for smooth functioning of the organisation.

OPERATIONAL OR SUPERVISORY OR LOWER-LEVEL MANAGEMENT: It is the lowest level in

the hierarchy of management. The authority and responsibility of this level is limited
according to plans drawn by the top management.
Operational management consists of supervisors, foreman, superintendent, section officers
and other members directly concerned with control of operative employees.

Functions of Lower-Level Management:

1. To oversee the effort of the work-force.

2. To interact with the actual work force and pass on instructions of the middle
management to workers.
3. To ensure that equality of output is maintained & wastage of materials is
minimised.
4. To represent workers grievances.
5. To ensure safe and proper working environment to workers.

Q10. Describe the functions of management in brief.

Ans. Management is a dynamic process, in which every manager has to perform various
functions. These functions may be broadly classified into five categories:

FUNCTIONS OF MANAGEMENT

PLANNING ORGANISING STAFFING DIRECTING CONTROLLI

1. PLANNING: It is the function of determining in advance what to do, when to do, how
to do & who is going to do it. It involves setting goals in advance and developing a way
of achieving them effectively and efficiently.
2. ORGANISING: Organising function examines the activities and resources required to
implement the plan organising is the management function of assigning duties
grouping tasks, establishing authority and allocating resources required to carry out a
specific plan. It decides who will do a particular task, where it will be done, and when
it will be done.
3. STAFFING: Staffing is a managerial function of hiring and developing the required
employees to fill in various positions created by the organising process. This function
is concerned with finding the right person for the right position at the right time.
4. DIRECTING: It is the process of supervising, motivating, leading and communicating
with the subordinates to achieve the organisation objectives. This function is basically
concerned with influencing the behaviour of human resources.
5. CONTROLLING: Controlling is the management function of monitoring organisational
performance towards the attainment of organisational goals. The task of controlling
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 involves establishing standards of performance, measuring current performance,
comparing it with establishing standards and taking corrective actions, if there is any
significant deviation between actual and planned performance.

Q11. What do you mean by coordination? How it is considered as an essence of

management?

Ans. Coordination: It is the force that binds all the other functions of management. In
other words it is the process by which a manager synchronises the activities of
different departments towards the achievement of a common goal.
It is the common thread that runs through all the activities, to ensure continuity in the
working of the organisation.

Coordination is not a separate function but the essence of management due to

following two reasons:

1. Coordination is needed in all management functions: Each function of management

can be accomplished only through proper coordination.
(i) In planning, coordination is required between
i. Overall plan of the organisation and departmental plans.
ii. Objective and the available resources.
(ii) In organisaing, coordination is required:
i. between resources and activities to be performed.
ii. For assigning authority, responsibility and accountability.
(iii) In staffing, coordination is required between:
i. Skills of the workers and the jobs assigned to them.
ii. Efficiency of the workers and compensation.
(iv) In directing, coordination is required:
i. among orders, instructions and suggestions.
ii. between superior and subordinates
(v) In controlling, coordination is required:
i. between standards and actual performance.
ii. between correction of deviations and achievement of objectives.
2. Coordination is needed at all levels: Coordination is required between activities of all
the three levels of management.
(i) Top level needs coordination to integrate activities of organisation for
attainment of goals.
(ii) Middle level required coordination to integrate efforts of different sections and
sub-sections.
(iii) Lower level needs coordination in the activities of workers, to ensure that work
proceeds as per plans.

Finally it can be concluded that coordination is concerned with all the functions
and levels of management. Therefore coordination is termed as the essence of
management.

Q12. Describe the nature/features/characteristics of coordination in brief.

Ans. The features of coordination are as follows:

1. Coordination integrates group efforts: Coordination unifies unrelated or diverse

interests into purposeful work activity. It gives a common focus to group efforts to
ensure the performance is as per plans.

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 2. Coordination ensures unity of action: Coordination aims to achieve unity of
actions in the realisation of a common purpose. It acts as the binding force
between departments.
3. Coordination is a continuous process: Coordination is a never ending process as
its need is felt at each and every step in the organisation. It begins at the planning
stage and continues till controlling.
4. Coordination is an all pervasive function: Coordination is needed in all
departments and at all levels because of interdependence of various activities.
5. Coordination is the responsibility of all managers: Coordination is the function
of every manager and no one can avoid this responsibility:
 Top level managers need to coordinate with their subordinates to ensure that
the overall polices for the organisation are duly carried out.
6. Coordination is a deliberate function: A manager has to coordinate the efforts of
different people in a conscious and deliberate manner. Coordination does not
occur spontaneously nor can it be achieved by force.

Q13. Explain the importance of coordination in brief.

Ans. Coordination is needed because departments and individuals in the organisation are
interdependent, i.e., they depend on each other for information and resources to
perform their respective activities. The various points of importance of coordination
are:

1. Growth in size: With increase in size of the organisation, number of employees

also rises. For organisational efficiency, coordination helps to harmonise individual
goals and organisational goals.
2. Functional Differentiation: In an organisation activities and functions are
frequently divided into departments, divisions or sections. All departments and
individuals are interdependent and activity of each department needs to be
focussed on attainment of organisational goals. Coordination helps to synchronises
activities of these departments.
3. Specialisation: Due to increasing complexities of modern technology and diversity
of tasks, a number of specialists are hired. They do not take advice or suggestions
from others in matters pertaining to their area of specialisation. It often leads to
conflict amongst different specialists. Coordination helps to reconcile the
differences in approach, internet or opinion of the specilists.

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