Nature and Significance of Management Class 12 Important Questions and Answers Business Studies Chapter 1

We have given these Business Studies Class 12 Important Questions Chapter 1 Nature and Significance of Management to solve different types of questions in the exam. Go through these Nature and Significance of Management Class 12 Important Questions and Answers & Previous Year Questions to score good marks in the board examination.

Important Questions of Nature and Significance of Management Class 12 Business Studies Chapter 1

Question 1.
Das is the Managing Director of ‘Gamut Ltd.’ manufacturing different varieties of cheese. He has an efficient team working under him consisting of Raj at the Production manager, Vinay the Marketing manager and Adit the Finance manager. They understand and interpret the policies made by Das, ensure that their departments have adequate manpower, assign them the necessary duties and motivate them to achieve the desired objectives. State one more function other than those mentioned above, that this team may perform at the level they are working. (All India 2019)
Answer:
The team working at middle level should ensure that there is interdepartmental coordination in the organisation.

Question 2.
“Is management concerned only with doing the right task, completing activities and achieving goals without taking into consideration the cost benefit?” Give reason in support of your answer. (All India 2016; Foreign 2016)
Answer:
As per the modem concept, management is concerned with achieving goals effectively as well as efficiently i.e. with least cost. So, management takes into consideration the cost benefit also.

Question 3.
‘Management is the process of getting things done.’ State the meaning of the term ‘process’ used in this statement. (Delhi 2016)
Answer:
The term ‘process’ used in this statement refers to the functions of planning, organising, staffing, directing and controlling which have to be performed by the manager.

Question 4.
Why is management called an intangible force? state. (All india (C) 2015)
Answer:
Management is intangible as it does not have a physical existence, one can only feel its presence by the way the organisation functions.

Question 5.
What is meant by ‘efficiency1 in management? (Compartment 2015: Delhi 2015)
Answer:
Efficiency means doing the task correctly and with minimum cost, least wastage and maximum utilisation of resources.

Question 6.
How does management help in achieving personal objectives? State. (Delhi 2015)
Answer:
These objectives are related with satisfying the personal needs of the employees. Management must seek to satisfy the diverse needs of employees in the following manner:

Financial needs By giving competitive salary and perks.
Social needs By peer recognition.
Higher level needs By providing opportunities for personal growth and development.

Question 7.
Explain, how management helps in the development of society. (All India 2015)
Answer:
Management helps in development of society by producing quality goods at fair and competitive prices, providing employment and adopting new technologies to raise the living standard of the society.

Question 8.
What is meant by effectiveness in management? (Delhi 2015, 2011)
Answer:
Effectiveness in management is concerned with doing the right task/completing activities/ achieving goals within the prescribed time. In other words, it is concerned with end results.

Question 9.
Which level managers are responsible for coordination? State. (All India (C) 2015)
Answer:
Top level management of an organisation is responsible to coordinate the activities of various departments.

Question 10.
Define ‘coordination’. (All India 2015)
Or
What is meant by ‘coordination’ in management? (Delhi 2015)
Answer:
Coordination is a continuous process by which a manager integrates the inter-related activities of different departments in order to achieve the common organisational goals.

Question 11.
How does coordination integrate group efforts? State. (Compartment 2015)
Answer:
Integration of group efforts All business activities are interdependent. Therefore, there should be coordination among them. Coordination enables the business to make efficient use of its available resources.

Question 12.
What is meant by management of work? (All India 2014)
Answer:
Every organisation exists to achieve certain goals. Management sets and plans certain activities, which are to be performed, so that the goals can be achieved. This is considered as management of work.

Question 13.
What is meant by management of people? (Delhi 2014)
Answer:
Management of people is an art of getting things done through others. A manager deals with individuals who have different needs and behaviour. He directs and motivates them to work towards the organisational goals.

Question 14.
What is meant by management of operations? (Foreign 2014)
Answer:
Every organisation provides some basic product or service,.for the production of which there is a process of flow of input material and technology for transforming this input into output for consumption. Thus, management involves management of operations for converting input into output.

Question 15.
Identify the basic characteristic of management involved in the statement. ‘The activities involved in managing an organisation are common to all organisations, whether economic, social or political’. (Delhi (C) 2014)
Answer:
Management is all pervasive.

Question 16.
Name the level of management that is responsible for the welfare and survival of the organisation. (All India (C) 2014)
Or
At which level of management, the managers are responsible for the welfare and survival of the organisation? (Delhi 2012; All India 2012)
Answer:
At the top level of management, the managers are responsible for the welfare and survival of the organisation.

Question 17.
One of the objectives of management is to consistently create economic value for various constitutes of the society. Give two examples of this objective. (Comportment 2013)
Or
List any two social objectives of management. (All India 2011,2010: Delhi 2010)
Answer:
Two social objectives of management are as follows

Using environment friendly methods of production.
Giving employment opportunities to the disadvantaged sections of the society.

Question 18.
“One of the organisational objectives of management is ‘growth’ of a business.” How can growth of a business be measured? Give any two examples. (All India (C) 2013)
Answer:
Growth of a business can be measured:

in terms of sales volume.
increase in the number of employees.

Question 19.
Identify the nature of management when it is said to be a systematised body of knowledge that explains certain general truths. (Delhi 2012)
Answer:
Management as a science

Question 20.
Identify the nature of management when it is practised as personal application of existing knowledge to achieve desired results. (All India 2012)
Or
Identify the nature of management when a manager applies the existing theoretical knowledge in his own unique manner. (Foreign 2012)
Answer:
Management as an art.

Question 21.
At which level of management are the managers responsible for maintaining the quality of output and the safety standards? Foreign 2012
Answer:
Lower level/Supervisory level/Operational level.

Question 22.
Name the level of management at which the managers are responsible for implementing and controlling the plans and strategies of the organisation. (All India 2012)
Answer:
Middle level management

Question 23.
What is meant by management? (Delhi 2011)
Answer:
Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation.

Question 24.
What should an organisation do to achieve the basic objective of ‘survival’? (Foreign 2011)
Answer:
An organisation must earn revenues equal to its cost in order to survive in the market.
Survival: Revenues = Costs

Question 25.
Explain in one sentence how management increases efficiency? (Delhi (C) 2011)
Answer:
Management increases efficiency by reducing cost and increasing productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.

Question 26.
Explain in one sentence how management helps in achieving group goals? (All India 2011)
Answer:
Management helps in achieving group goals by directing the individual efforts in achieving the overall goal of the organisation.

Question 27.
Your grandfather has retired as the director of a manufacturing company. At which level of management was he working? Different type of functions are performed at this level. State any one function. (Delhi 2011)
Answer:
He was working at the top level of management. A function performed at the top level is to set objectives for the organisation, e.g. in the following year, the sales of the company will have to cross ₹ 1,000 crore.

Question 28.
Your grandfather has retired from an organisation in which he is responsible for implementing the plans developed by the top management. At which level of management was he working? State one more function performed at this level. (All India 2011)
Answer:
He was working at the middle level of management. One more function performed by the middle level managers is to interpret the policies framed by the top level of management.

Question 29.
Your grandfather has retired from an organisation in which he is responsible for overseeing the efforts of the workforce. At which level of management was he working? State one more function performed at this level. (Foreign 2011)
Answer:
He was working at supervisory/operational/lower level of management. At this level, he was required to ensure quality output, minimum wastage and safety standards.

Question 30.
List any two functions of top level management. (Delhi (C) 2011)
Answer:
The two functions of top level management are

Laying down the overall objectives and framing policies of the enterprise.
Coordinating the activities of different departments and assembling all resources.

Question 31.
List any two organisational objectives of management. (All India 2010; Delhi 2010; Foreign 2010)
Answer:
Two organisational objectives of management are as follows

Survival
Earning profit

Question 32.
List any two personal objectives of management. (All India 2010; Delhi 2010)
Answer:
Personal objectives of management are as follows

Competitive salaries and perks.
Personal growth and development of employees.

Question 33.
Hero Ltd’s target is to produce 10,000 shirts per month at a cost of ₹ 150 per shirt. The production manager could achieve this target at a cost of ₹ 160 per shirt. Do you think the production manager is effective? Give reason in support of your answer. (All India 2010)
Answer:
Yes, the manager is effective as he has been able to achieve the target by producing 10,000 shirts in time but he is not efficient as he is producing the same at a higher production cost.

Question 34.
Hero Ltd’s target is to produce 20,000 shirts per month at cost ₹ 150 per shirt. The Production Manager could achieve this target at a cost of ₹ 170 per shirt.
Do you think the Production Manager is ‘efficient’? Give reason in support of your answer. (Foreign 2010)
Answer:
No, the manager is not efficient as he is unable to produce the shirts within the prescribed cost i. e. ₹ 150 per shirt.

Question 35.
Volvo Ltd’s target is to produce 10,000 shirts per month at a cost of ₹ 100 per shirt. The production manager achieved this target at a cost of ₹ 90 per shirt. Do you think the Production Manager is effective? Give one reason in support of your answer. (Delhi 2010)
Answer:
Yes, the production manager is both efficient and effective. He is effective because he has achieved the target in time and is efficient because he has produced the shirts at a lower production cost.

Question 36.
Mita has successful ice cream business at Bikaner, namely ‘Smartflavours’. Her ice creams are utterly delicious. She makes ice creams from fresh milk and the same are available in a wide range of flavours and packs. She sets viable business objectives and works with the same in mind in order to ensure that the customers will come back for purchasing.
Having the first mover advantage, her business was doing well. To earn higher profits, she started cutting costs. This would sometimes lead to delay in delivery and the ice cream was not reaching the market in time. Over a period of time, the demand for her ice cream declined and because of it the competitors entered the market. She lost some of her market share to competitors.
At the beginning of summer season, she got back to back orders for supply of 4,000 ice cream packs of different flavours for special occasions. To ensure that the task was completed and orders delivered in time she hired additional workers. She was, thus able to produce and deliver the ice cream packs but at a high production cost. While completing activities and finishing the given task for achieving goals, Mita realised that she was ignoring one of the important aspects of management.
Identify the aspects of management that has been ignored by Mita. Also explain the same with the help of an example. (Delhi 2019)
Answer:
She has ignored the concept of ‘Effectiveness vs Efficiency’. The purpose of management is to achieve the goals/ objectives set for the organisation. These goals have to be achieve efficiently and effectively. While efficiency means attaining objectives with specified cost, effective means achieving goals within specific time limit.

For example, A company’s target is to produce 5,000 units of goods per year at a cost of ₹ 5 per unit. In order to achieve the target he employs extra labour force which results in increasing the cost per unit to ₹ 550. Thus, the manager is effective but not efficient. If, however, he works with same manpower to keep the cost at ₹ 5.00 per unit, he is unable to attain the target in a year. Thus, he becomes ineffective. Therefore, in order to be successful, it is necessary that he is efficient and effective in his operations at the same time.

Question 37.
Management is a complex activity that has three main dimensions. Explain these dimensions. (Delhi 2019)
Answer:
Management is a complex activity which is concerned with people, work and operations. It comprises of
(i) Management of work It is concerned with performance of various activities/tasks in an organisation, e.g. Manufacturing a product in a factory, treating patients in a hospital, etc.

(ii) Management of people It refers to management of human resources which are the most important asset for an organisation. Management of people implies two things

Dealing with employees as individuals with diverse needs and behaviour.
Dealing with individuals as a group of people.

(iii) Management of operations It refers to the activities of production cycle, which entails the flow of input material and transforms the input into desired output. It is interlinked with both management of work and management of people.

Question 38.
‘Science is a systematic body of knowledge that explains certain general truths or the operation of general laws’. In the light of this statement, describe management as a science. (Delhi 2019)
Or
What is meant by management as a science? Explain with the help of any three features. (All India 2010)
Answer:
Management as a Science Science is a systematised body of knowledge which establishes the relationship between causes and their effects. Management is regarded as a Science because of the following features of management:
(i) Existence of systematic body of knowledge Like Science, management has its own theory and principles that have developed over a period of time. Thus, we can say, management has a systematised body of knowledge.

(ii) Scientific methods of observation Certain management principles are evolved from scientific methods of observation. The cause and effect relationship is the part of science and it is applicable in management also. Therefore, management principles are accurate and reliable.

(iii) Universally accepted principles Certain management principles are universally valid. The established principles of modem management have universal applicability. Principle of division of labour and specialisation, unity of command, etc. are accepted everywhere.

Though management has certain features of science, still it is considered as an inexact science, because management principles may not produce same results everytime in all situations, due to the presence of human element.

Question 39.
Coordination is the essence of management. (Delhi 2019)
Answer:
Coordination is needed to perform all the functions of management. They are:
(i) Coordination in planning In planning, coordination is needed

between overall plan of the organisation and the departmental plans.
between objectives and available physical and human resources, e.g. coordination between production department and sales department targets.

(ii) Coordination in organising In organising, coordination is required

between resources of an organisation and activities to be performed.
among authority, responsibility and accountability, e.g. if a supervisor is given responsibility to get the work done, he should also be given the authority to divide the work among his subordinates.

(iii) Coordination in staffing In staffing, coordination is needed

between the skills of the workers and the jobs assigned to them, e.g. a Chartered Accountant should be given work of financial nature.
between the efficiency of the workers and the compensation, etc.

(iv) Coordination in directing In directing, coordination is required-

among orders, instructions, guidelines and suggestions.
between superiors and subordinates, e.g. a manager instructs the subordinates, motivates them and also supervises their work.

(v) Coordination in controlling In controlling, coordination is required-

between the standard and the actual performance.
between correction of deviations and achievement of objectives, e.g. If production target for workers is set as 80 units per hour, while they are able to produce only 60 units per hour, then there is a need to coordinate the plans with actual performance.

Thus, coordination can be considered as the core function of management which ensures that all the factors in the business work together smoothly.

Question 40.
Coordination is needed at all levels of management and is the responsibility of all managers. Explain.
Answer:
Coordination is needed at all the three levels of management. The work at every level is performed by a group of people, that is why, it is required at all the three levels viz

Top level It requires coordination to integrate all the activities performed by middle and lower level of management.
Middle level This level requires coordination to balance the activities performed by different individuals.
Lower level This level requires coordination to bind the efforts of all workers towards the achievement of goals.

Question 41.
‘Art is concerned with personal application of knowledge.’ In the light of this statement compare all the features of management with art and prove that it is an art. (Delhi 2019)
Or
What is meant by management as an art? Explain with the help of any three features. (Delhi (C) 2010)
Answer:
Art is the skillful and personal application of existing knowledge to achieve desired goals. Management is said to be an art, since it satisfies the following features of an art:

Manager practices the art of management in day-to-day job of managing an enterprise on the basis of study, observation and experience.
Because of the availability of the theoretical knowledge of management, a manager is able to apply it in a personalised manner.
Art requires creativity, similarly manager also requires creativity to apply the acquired knowledge in a personalised and skilful manner in real situations.

Question 42.
What is meant by ‘management’? Explain any two points of its importance. Foreign 2012
Answer:
According to Drucker, “Management is the dynamic life-giving element in every organisation. Without it, the resources of production remain resources.” It is the activating force that gets things done through people.

The importance of management can be understood from the following points:

Management helps in achieving group goals An organisation sets certain goals. Management aims at achieving such goals by directing the individual efforts.
Management increases efficiency With proper planning, organising, staffing, directing and controlling the activities of the organisation, management increases the efficiency by producing maximum output with minimum cost.

Question 43.
State any three organisational objectives of management. (Compartment 2012)
Answer:
Three organisational objectives are as follows:

Survival The most important objective of every business is to survive and in order to survive, it should earn enough revenue to cover its costs.
Profit It is the incentive or reward for the efforts put in by an entrepreneur. Moreover, it is the reason behind carrying out a business.
Growth It is an extension of the objective of survival and profit. It can be measured in terms of increase in sales volume, number of employees, capital, machinery, etc.

Question 44.
Explain any three points of importance of coordination. (Compartment 2012)
Answer:
Importance of coordination can be understood by following points:
(i) Growth in size As the organisations grow in size, the number of people in the organisation also increase. Different individuals have different objectives. Coordination is needed to integrate diverse individual objectives with organisational objectives.

(ii) Functional differentiation Different departments in the organisation have their own set of objectives, policies, etc. This creates conflicting situations many a times. Coordination seeks to intergrate the efforts and activities of various departments.

(iii) Specialisation In modern organisations, high level of specialised activities take place, which are performed by specialists. Specialists often consider themselves to be supreme and are not open to suggestions and advice. This brings conflicting situations, which can be resolved by coordination.

Question 45.
Explain any five features of management. (All India 2019; Delhi 2013)
Or
Explain any four features of management. (Foreign 2016)
Or
State any four points that highlight the characteristics of management. (Delhi (C) 2013)
Or
State any five characteristics of management. (All India 2013)
Or
“Management is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.’ In the light of the above statement, explain any four features of management. (Delhi (c) 2010)
Answer:
Features of management are as follows:

Goal-oriented process Every organisation has a set of economic and social goals and management is meant to achieve these goals. Management ensures efficiency and economy in the utilisation of human, physical and financial resources.
Group activity An organisation is a group of different individuals with different skills. Management directs and uses all such skills and activities of different individuals towards the achievement of common organisational goals.
Intangible force Management is an intangible force as it cannot be seen but its presence can be felt, when targets are achieved as per the pre-determined plAnswer:
All pervasive Management is all pervasive as it is applicable in all types of organisation, in all activities and at all levels.
Multi-dimensional Management is multi-dimensional as it comprises of three dimensions, viz management of work, people and operations.

Question 46.
State five points, which highlight the importance of management. (All India 2019,2013 (C))
Or
Describe any five reasons, which clarify that ‘management is gaining importance day-by-day.’ (Delhi 2019,2013)
Or
Explain any four points that highlight the importance of management. (Foreign 2016)
Or
‘Success of every organisation depends upon its management.’ Explain any five reasons to justify the above statement. (Delhi (C) 2011)
Or
‘Lack of proper management results in wastage of time, money and efforts’. In the light of this statement, explain any four points of importance of management. (Delhi (C) 2010)
Answer:
According to Drucker, “Management is the dynamic life-giving element in every organisation. Without it, the resources of production Temain resources.” It is the activating force that gets things done through people.

The importance of management can be understood from the following points:
(i) Management helps in achieving group goals An organisation sets certain goals. Management aims at achieving such goals by directing the individual efforts.

(ii) Management creates a dynamic organisation With the ever changing needs and demands of the environment, an organisation needs to adopt those changes.

(iii) Management helps people to adopt such changes easily, so that the organisation is able to sustain successfully in the competitive market.

(iv) Management increases efficiency With proper planning, organising, staffing, directing and controlling the activities of the organisation, management increases the efficiency by producing maximum output with minimum cost.

(v) Management helps in achieving personal objectives A manager motivates its subordinates in such a manner that it boosts their morale and enable them to achieve their personal objectives such as competitive salary, peer recognition, etc while contributing to the organisational objectives.

(iv) Management helps in development of society Management in an organisation helps the society by way of supplying quality products at reasonable price. It also contributes towards society by providing basic amenities such as schools, hospitals, dispensaries etc. Moreover, it also generates employment opportunities for the disadvantaged sections of the society.

Question 47.
State any five features of ‘coordination’. (Delhi 2019, 2018,2018 (C); All India 2016, 2013)
Or
Explain any four features of coordination. (Foreign 2016)
Or
Explain any four characteristics of coordination. (All India (C) 2014)
Or
Explain any five characteristics of coordination. (Delhi (C) 2013)
Or
Explain any five features of coordination. (All India 2012; Foreign 2012)
Answer:
Coordination is a continuous process, by which a manager integrates the inter-related activities of different departments in order to achieve the common organisational goals. Features of coordination are as follows:

Integration of group efforts All business activities are interdependent. Therefore, there should be coordination among them. Coordination enables the business to make efficient use of its available resources.
Unity of action Coordination enables the manager to secure unity of action in the direction of a common purpose.
Continuous process It is a continuous process and not a one-time task. A manager has to continuously coordinate the activities of different departments in order to meet the targets by using the available resources efficiently.
All pervasive function It is an all pervasive function, which runs through all managerial functions from planning till controlling. It is not only needed among different departments but also within the departments at all levels.
Deliberate function A manager has to coordinate the efforts of different individuals working in an organisation in a conscious and deliberate manner.

Question 48.
Rishitosh Mukherjee has recently joined AMV Ltd, a company manufacturing refrigerators. He found that his department was under-staffed and other departments were not cooperating with his department for smooth functioning of the organisation. Therefore, he ensured that his department has the required number of employees and its cooperation with other departments is improved.
(i) Identify the level at which Rishitosh Mukherjee was working.
(ii) Also state three more functions required to be performed by Rishitosh Mukherjee at this level. (All India 2017)
Answer:
(i) Rishitosh Mukherjee is working at the middle level of management.

(ii) Three more functions required to be performed by Rishitosh Mukherjee at this level are:

To interpret the policies framed by the top level of management.
To assign necessary duties and responsibilities to the employees of his department for implementation of the plans.
To motivate employees of his respective department to achieve the desired objectives.

Question 49.
Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that the profits had started declining from the last six months. Profit has an implication for the survival of the firm, so he analysed the business environment to find out the reasons for this decline.
(i) Identify the level of management at which Ashutosh Goenka was working.
(ii) State three other functions being performed by Ashutosh Goenka. (Delhi 2017)
Answer:
(i) Ashutosh Goenka is working at the top level of management.

(ii) The other three functions being performed by Ashutosh Goenka are:

To set objectives for the organisation
To analyse, evaluate and deal with the external forces.
To formulate the policies of business.

Question 50.
Define management. Explain the features that establish it as a social science. (All India 2016)
Answer:
Harold Koontz and Heinz Weithrich define management as, “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”
The features of management that establish it as a social science are:

It has systematised body of knowledge consisting of theories, principles and concepts.
Principles of management are evolved after continuous observations and experimentations.
These principles are not universally applicable as management involves study of human behaviour. They are applied differently in different situations and produce different results everytime.

Question 51.
What is meant by management? Explain its any three features that establish it as an art. (All India 2016)
Answer:
Management is an activity which is necessary wherever there is a group of people working in an organisation, towards a common goal.
It is a process of planning, organising, actuating and controlling the organisation’s operations and activities, effectively and efficiently.
Thus, management means to manage men tactfully in the organisation to achieve group goals.

Three features that establish it as an art are:

Manager practices the art of management in day-to-day job of managing an enterprise on the basis of study, observation and experience.
Because of the availability of the theoretical knowledge of management, a manager is able to apply it in a personalised manner.
Art requires creativity, similarly manager also . requires creativity to apply the acquired knowledge in a personalised and skillful manner in real situations.

Question 52.
Explain the features of management that do not establish it as a profession. (All India 2016)
Or
Management does not have some features of a profession. Explain those features. (Compartment 2012)
Or
Management is a profession like medical or legal profession. Do you agree with this statement? Give any four reasons in support of your answer. (All India 2011; Foreign 2011)
Or
Is management a full fledged profession? Give any three reasons in support of your answer. (Delhi 2010; Foreign 2010)
Answer:
No, management is not a full fledged profession like legal and medical profession because of the following reasons:
(i) Restricted entry The entry to any profession is restricted through a prescribed qualification. But there is no restriction on anyone being appointed as a manager in any business enterprise.

(ii) Professional association Though AIMA is an association for management graduates, it is not obligatory for managers to get registered with any professional body like the Medical Council or Bar Council of India, which regulates the professional conduct of doctors and lawyers respectively.

(iii) Ethical code of conduct Legal and medical professions are bound by a code of conduct, which guides the behaviour of its members. AIMA has devised a code of conduct for Indian managers but there is no statutory backing for this code.

(iv) Service motive The motive of legal and medical profession is to serve their client’s interests by rendering dedicated and committed service. The basic purpose of management is to help the organisation to achieve its goals by providing good quality products at reasonable prices. A manager is expected to adopt the service motive but the basic motive remains profit maximisation.

Question 53.
What is meant by ‘management’? State any three objectives of management. (All India 2015)
Answer:
According to Harold Koontz, “Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.”

Three objectives of management are:
(i) Organisational objectives It refers to the goals for the benefit of all stakeholders such as employees, government, shareholders and investors.
The organisational objectives are:

Survival When the organisation earns enough revenue to cover its cost.
Profit When the organisation earns enough revenue to cover costs and risks of the business.
Growth It implies growth in terms of sales, profit, number of workers, products produced and sold etc.

(ii) Social objectives Since, business organisations are social units, their objectives should be in line with general needs of the society.
Some of the social objectives of an organisation are:

Supply of quality products.
Using environment friendly methods of production.
It should provide employment opportunities to the disadvantaged sections of society.

(iii) Personal objectives These objectives are related with satisfying the personal needs of the employees, which may be in terms of financial needs, social needs or higher level needs.

Question 54.
Science is a systematised body of knowledge that explains certain general truths or the operation of general laws? In the light of this statement, describe whether management is a science. (Delhi (C) 2014)
Answer:
Management as a Science Science is a systematised body of knowledge which establishes the relationship between causes and their effects. Management is a science but not an exact science. The reasons are
(i) Systematised body of knowledge Like science, management is a systematic body of knowledge with its own theories and principles that have developed over a period of time.
So, this feature is present in management.

(ii) Principles based on observation and experimentation Like science, management principles are derived through observation and repeated experimentation. So, this feature is present in management. However, since management deals with human beings, the outcome of these experiments are not capable of being accurately predicted.

(iii) Universal validity Principles of management like principles of pure science provide managers with certain standardised techniques that can be used in different situations. Since, they have to be modified according to given situation, their application and use is not universal. So, this feature of science is not fully present in management.

Question 55.
‘The skilful and personal application of existing knowledge to achieve desired results is called art.’ In the light of this statement, describe whether management is an art or not. (Delhi (C) 2014)
Or
Art is concerned with personal application of knowledge’. In the light of this statement, compare all the features of art with management and prove that it is an art. (Delhi (C) 2010)
Answer:
Basic features of art are as follows

Existence of theoretical knowledge.
Personalised application.
Based on practice and creativity.

Management can be said as an art, since it satisfies the following features:
(i) A successful manager practices the art of management in the day-to-day job of managing an enterprise which is based on study, observation and experience. There are lot of literature available in various areas of management like marketing, finance and human resource which the manager has to specialise in.

(ii) There are various theories of management propounded by many management thinkers, which prescribe certain universal principles. A manager applies these scientific methods and body of knowledge to a given situation, issue or a problem in his own unique manner.

(iii) A manager applies his acquired knowledge in a personalised and skilful manner in the light of the realities of a given situation. He is involved in the activities of the organisation, studies critical situations and apply his own theories in a given situation.

(iv) Like any other art, a manager, after studying various situations, formulates his own theories for use in given situation. This gives rise to different styles of management.

Question 56.
What is meant by ‘coordination’? Explain why coordination is important in an organisation. (All India (C) 2014)
Or
What is meant by ‘Coordination’? Explain any two points of its importance in management. (Foreign 2012)
Answer:
Coordination is the orderly arrangement of group efforts to provide unity of action in pursuit of common purpose. It-involves unifying, integrating and harmonising the activities of different departments and individuals for the achievement of common goal.

Importance of coordination can be understood by following points:

Growth in size As the organisations grow in size, the number of people in the organisation also increase. Different individuals have different objectives. Coordination is needed to integrate diverse individual objectives with organisational objectives.
Functional differentiation Different departments in the organisation have their own set of objectives, policies, etc.
This creates conflicting situations many a times. Coordination seeks to intergrate the efforts and activities of various departments.
Specialisation In modem organisations, high level of specialised activities take place, which are performed by specialists.
Specialists often consider themselves to be supreme and are not open to suggestions and advice. This brings conflicting situations, which can be resolved by coordination.

Question 57.
Coordination in the essence of management. Explain how? (All India (C) 2014)
Answer:
Coordination is a function that is inherent and pervasive. Coordination is not a separate function of management.
It is the essence of management.
Refer to ans 4 on page 10.

Question 58.
State any four characteristics of profession. (All India (C) 2013)
Answer:
The four characteristics of a profession are:

Systematised body of knowledge A profession is based on a systematised body of knowledge.
‘Restricted entry Entry into a profession is restricted through an examination or degree, as in medical, law profession, etc.
Professional association All professionals are bound to be a part of a professional association which regulates entry, grants certificate of practice and enforces a code of conduct, e.g. All lawyers have to be member of Bar council to pursue their profession.
Code of conduct All professionals are subject to an ethical code of conduct, as laid down by the association.

Question 59.
Give the meaning of management and explain how it creates a dynamic organisation and helps in the development of society. (Delhi 2012)
Answer:
Management is the process of planning, organising, staffing, directing and controlling the enterprises’ resources efficiently and effectively for achieving the goals of the organisation. The traditional viewpoint of the management is concerned with the opinion that’Management is the art of getting things done through others.’ On the other hand, as per the modem concept, ‘Management is a process of getting things done through others with the aim of achieving goals effectively and efficiently.’

Management creates a dynamic organisation All organisations operate in a constantly changing environment. However, individuals in an organisation usually resist change. Management persuades people to adopt environmental changes so that the organisation can maintain its competitive edge in the market.

Management helps in the development of society Management helps to provide good quality products and services, creates employment opportunities, adopt new technology for the betterment of the people and lead the path towards growth and development. Thus, it helps in the development of society.

Question 60.
Explain how management increases efficiency and helps in the development of society? (All India 2012)
Answer:
Increases efficiency The aim of a manager is to reduce costs and increase productivity through better planning, organising, staffing, directing, and controlling the activities of the organisation.

Helps in the development of society:
Management helps in the development of society by providing good quality products and services, creating employment opportunities, providing fair remuneration, adopting new technology, etc. for the betterment of people.

Question 61.
What is meant by coordination? How it integrates group efforts and ensures unity of action. Explain. (Delhi 2012)
Answer:
Coordination is the integration, synchronisation or orderly arrangement of group efforts to provide unity of action, directed towards the accomplishment of common objectives. Coordination integrates group efforts and ensures unity of action in the following way:
(i) Coordination integrates group efforts It integrates group efforts by unifying diverse interests, thereby giving them a common focus to ensure that performance is in accordance with pre-determined plans.

(ii) Coordination ensures unity of action The purpose of coordination is to ensure unity of action for the realisation of a common purpose. It acts as the binding force between departments and ensures that all actions are aimed at achieving the goals of the organisation.

Question 62.
“Management is regarded as an art by some, as science or as inexact science by others. The truth seems to be somewhere in between In the light of this statement, explain the true nature of management. (All India 2011: Delhi 2011)
Answer:
Management is an art as well as a science but an inexact science.
Management as an art Management may be regarded as an art because of the following reasons:

Existence of theoretical knowledge: A successful manager practices the art of management in the day-to-day job of managing an enterprise based on study, observation and experience.
Personalised application The use of basic knowledge varies from individual to individual, therefore, it is a personalised concept, e.g. two dancers, two speakers will always differ in demonstrating their art.
Based on practice and creativity A good manager works through a combination of practice, creativity, imagination, initiative and innovation. He, uses tact and creativity to develop his own style. Thus, management is an art because it satisfies all the characteristics of an art.

Management as a science Management may be regarded as a science because it fulfils the following characteristics of science:

Systematised body of knowledge As science, management has a systematised body of knowledge. It has its own theories and principles that have developed over a period of time. It also draws some principles from other disciplines such as economics, sociology, psychology and mathematics.
Principles based on scientific observation and experiments Like science, management principles cure based on scientific enquiry and observations.
Universal validity and application like science, principles of management are universally applicable. Thus, we can say that management is also a science.

However, the principles of management are not as exact as the principles of Physics or Chemistry. Management principles are flexible and can be modified to suit different situations. Thus, management can be called as an inexact science also.

In the light of both the above statement, the true nature of management can be defined as, management is both an art and a science. Principles of management constitute the science of management and the practice of management principles is the art of management.

Question 63.
‘Coordination is a synchronisation of group efforts to achieve organisational objectives’. In the light of this statement, highlight any three features of coordination. (All India 2011)
Or
‘Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of common purpose.’
In the light of this statement, explain the nature of coordination. (Foreign 2011)
Answer:
Coordination is the process whereby an excecutive develops an orderly pattern of group efforts among his subordinates and ensures unity of action in the pursuit of common purpose.
The features or nature of coordination are as follows:
(i) Integration of group efforts All business activities are interdependent. Therefore, there should be coordination among them. Coordination enables the business to make efficient use of its available resources.

For example, supply of material should come, when production needs it. If there is a mismatch in the time schedule, it is an instance of lack of coordination. It is the central task of the manager to reconcile differences in approach, timing, efforts or interests to harmonise individual goals with organisational goals. Coordination is the effort to ensure a smooth interplay of the functions and forces of all the different components of an organisation so that its purpose will be realised with minimum friction and maximum collaborative effectiveness.

(ii) Coordination is needed at all levels Coordination is an essential function which is required at all levels of management. The content and scope of coordination will vary at different levels. However, it is a part of duty which should be performed by every managerial personnel right from operational level to the top management.

(iii) Coordination ensures unity of action The purpose of coordination is to unite the efforts of every individual in the realisation of common purpose.

Question 64.
“Management seeks to achieve certain objectives which must be derived from basic purpose of the business.’ In the light of the above statement, explain organisational and social objectives of management. (All India 2010)
Answer:
Organisational objectives Management is responsible for setting and achieving the organisational objectives. It helps to achieve the objectives in such a manner that the human and financial resources are acquired, used and maintained in the most economic and efficient manner.

Organisational objectives are as follows:

Survival The most important objective of any business is to survive and in order to survive, it should earn enough revenue to cover costs.
Profit It is the incentive or reward for the efforts put in by an entrepreneur. Moreover, it is the reason behind carrying out a business.
Growth A business needs to add to its prospects in the long-run and for this it needs to grow and expand its activities. The success of every business is measured by the growth rate and growth is measured in terms of sales, profits, number of products produced and sold, etc.

Social objectives Since, organisations are social units, their objectives should be in line with general needs of the society.
Some of the social objectives of an organisation are given below:

Supply of quality products at reasonable prices.
Using environment friendly methods of production.
Providing employment opportunities to the disadvantaged sections of the society.

Question 65.
Is management a science? Give any three reasons in support of your answer. (Delhi 2010)
Answer:
Yes, management is a science but not an exact science. Science is the systematised body of knowledge which establishes the cause and effects relationship. Management is regarded as a science, because the following characteristics of science are applicable to management as well.

Management as a Science Science is a systematised body of knowledge which establishes the relationship between causes and their effects. Management is a science but not an exact science. The reasons are:
(i) Systematised body of knowledge Like science, management is a systematic body of knowledge with its own theories and principles that have developed over a period of time. So, this feature is present in management.

Question 66.
Is management an art? Give any three reasons in support of your answer. (Delhi 2010)
Answer:
Yes, management is an art, because practical application of knowledge is an art and management is also the application of skill and knowledge to achieve the desired results. Basic features of art are as follows

Existence of theoretical knowledge.
Personalised application.
Based on practice and creativity.

Management can be said as an art, since it satisfies the following features:

A successful manager practices the art of management in the day-to-day job of managing an enterprise which is based on study, observation and experience. There are lot of literature available in various areas of management like marketing, finance and human resource which the manager has to specialise in.
There are various theories of management propounded by many management thinkers, which prescribe certain universal principles. A manager applies these scientific methods and body of knowledge to a given situation, issue or a problem in his own unique manner.
A manager applies his acquired knowledge in a personalised and skilful manner in the light of the realities of a given situation. He is involved in the activities of the organisation, studies critical situations and apply his own theories in a given situation.
Like any other art, a manager, after studying various situations, formulates his own theories for use in given situation. This gives rise to different styles of management.

Question 67.
Explain any four characteristics of management. (Delhi 2016)
Answer:
Features of management are as follows:

Goal-oriented process Every organisation has a set of economic and social goals and management is meant to achieve these goals. Management ensures efficiency and economy in the utilisation of human, physical and financial resources.
Group activity An organisation is a group of different individuals with different skills. Management directs and uses all such skills and activities of different individuals towards the achievement of common organisational goals.
Intangible force Management is an intangible force as it cannot be seen but its presence can be felt, when targets are achieved as per the pre-determined plAnswer:
All pervasive Management is all pervasive as it is applicable in all types of organisation, in all activities and at all levels.

Question 68.
Explain any four points of importance of management. (Delhi 2016)
Answer:
Four points which highlight the importance of management are enumerated below:
(i) Management helps in achieving group goals Every organisation has a set of goals to be achieved. Management is required in an organisation to achieve the goals by giving proper direction to the efforts of all individuals.

(ii) Management increases efficiency By making optimum utilisation of all resources such as men, money and material, management increases efficiency. A manager achieves efficiency and reduces costs through proper planning, organising, staffing, directing and controlling.

(iii) Management creates a dynamic organisation Every organisation works in an ever-changing environment and it is generally seen that individuals resist change. Thus, management helps people to adapt to these changes, so that an organisation is able to maintain its competitive edge.

(iv) Management helps in achieving personal objectives Every individual who is working in an organisation desires handsome salary, peer recognition, profit sharing, etc. Through motivation and leadership, management helps an individual to achieve his/her personal objectives, alongwith attainment of organisational objectives.

Question 69.
Kamal, Khan and Devid are partners in a firm engaged in the distribution of dairy products in Madhya Pradesh. Kamal is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Khan had done his post graduation in Hindi literature and Devid in Dairy Farming. One day there was a serious discussion between Khan and Devid regarding the nature of ‘Management as a Science’. Khan argued that management was not a science whereas Devid was of the opinion that Management is a Science. Kamal intervened and corrected both Khan and Devid about the nature of Management as a Science with the help of his knowledge of Business Studies. Explain, how Kamal would have been able to satisfy both Khan and Devid? (All India (C) 2015)
Answer:
Management as a Science Science is a systematised body of knowledge which establishes the relationship between causes and their effects. Management is regarded as a Science because of the following features of management:
(i) Existence of systematic body of knowledge Like Science, management has its own theory and principles that have developed over a period of time. Thus, we can say, management has a systematised body of knowledge.

Question 70.
Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy products in Maharashtra state. Aman is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Ahmad had done his post graduation in History and Ally in dairy farming. One day there was a serious discussion between Ahmad and Ally regarding the nature of management. Ahmad argued that management was a profession. Whereas Ally argued against it saying that the legal and medical profession are the only professions because they fulfill all the conditions of profession. Aman on the basis of his knowledge of Business Studies explained the nature of management as a profession to Ahmad and Ally. Explain, how Aman would have satisfied both Ahmad and Ally. (Delhi 2015)
Answer:
For satisfying both Ahmad and Ally, Aman should explain nature of management given in text on page 4.

Multiple Choice Questions

Question 1.
Which of the following is not a dimension of management?
(a) Management of work
(b) Management of people
(c) Management of operations
(d) Management of Ideas
Answer:
(d) Management of Ideas

Question 2.
Name the level of management involved in taking key decisions.
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) Either (b) or (c)
Answer:
(a) Top level management

Hint:
Top management is made up of senior level executives of an organisation. They integrate and coordinate the activities of different departments.

Question 3
………… helps in achieving group goals by giving proper direction to the efforts of all individuals.
(a) Work
(b) Management
(c) Society
(d) None of these
Answer:
(b) Management

Hint:
(b) Management helps in achieving group goals as it helps in optimum utilisation of resources and reducing costs through planning, organising, directing and controlling.

Question 4.
Identify the social objectives from the following.
(a) Providing good quality products at reasonable prices.
(b) Conducting business in fair and lawful manner.
(c) Expansion of the organisation.
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

Hint:
Social objectives deal with the commitment of an organisation towards the society. So, providing good quality products at reasonable prices and conducting business in fair manner results in creation of benefits for the society.

Question 5.
At which level of management, managers are responsible for maintaining the quality output and safety standards?
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) Both (b) and (c)
Answer:
(c) Lower level management

Hint:
Lower level management refers to the groups or members, who are concerned with execution of the work. They supervise and control the workers and arrange materials and tools to start the process.

Question 6.
Which of the following statements is incorrect?
(a) Every individual who is working in an organisation desires handsome salary, peer recognition, etc.
(b) Every organisation has a set of goals to be achieved.
(c) Management has some social responsibilities towards society.
(d) None of the above
Answer:
(d) None of the above

Question 7.
Identify the nature of management when it is practiced as personal application of existing knowledge to achieve desired results.
(a) Management as a science
(b) Management as an art
(c) Management as a profession
(d) All of the above
Answer:
(b) Management as an art

Hint:
An art may be defined as personalised application of general theoretical principles for achieving best possible results. Art requires creative power and skillful application of knowledge. Therefore, it can be said that when it comes to practical application of existing knowledge, management is an art.

Question 8.
“Management is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment”, is given by
(a) Henry Fayol
(b) Harold Koontz
(c) Kreitner
(d) None of these
Answer:
(c) Kreitner

Question 9.
Why is co-ordination needed in large enterprises?
(a) To minimise their profits
(b) To perform their task slowly
(c) To bind the efforts of all individuals
(d) All of the above
Answer:
(c) To bind the efforts of all individuals

Hint:
Co-ordination is needed in large enterprises to bind the efforts of all individuals as it is difficult to establish the personal contacts with each and every employee in an organisation.

Question 10.
What is the main focus of management?
(a) To complete task efficiently and effectively
(b) To complete task efficiently but not effectively
(c) To complete task effectively but not efficiently
(d) None of the above
Answer:
(a) To complete task efficiently and effectively

Question 11.
An organisation is a collection of diverse activities and different individuals. Which characteristic of management is defined by this statement?
(a) Intangible force
(b) Group activity
(c) Goal oriented process
(d) All of these
Answer:
(b) Group activity

Question 12.
…………. refers to the management of human resources, which are the most important assets for an organisation.
(a) Management of work
(b) Management of operations
(c) Management of people
(d) None of the above
Answer:
(c) Management of people

Question 13.
Aafat Ltd. is a MNC which produces cellphones. Currently Aafat Ltd. is under huge losses due to the failure of its much hyped product in the market. R and D department and marketing department are blaming each other for this failure. In your opinion Aafat Ltd. is lacking which quality of management?
(a) Planning
(b) Controlling
(c) Co-ordination
(d) Directing
Answer:
(c) Co-ordination

Hint:
Co-ordination is needed to perform all the functions of management. In this case, it is clearly evident that there is lack of co-ordination between departments of business organisation.