Nature and Significance of Management Important Questions for CBSE Class 12 Business Studies Levels and Functions of Management
1. Levels of Management
(i) Top Level Management (consists of the Board of Directors, the Chief Executive or the Managing Director.)
Functions performed at top level management are:
(a) Responsible for welfare and survival of the organisation.
(b) Analyse business environment.
(c) Formulate overall organisational goals and strategies.
(d) Integrate diverse elements and coordinate the activities of different departments.
(ii) Middle Level Management (consists of heads of functional departments, plant superintendents, etc.)
Functions performed at middle level management are:
(a) Responsible for implementing and controlling plans and strategies developed by top management.
(b) Responsible for all the activities of first line managers.
(c) Interpret the plans and policies framed by top management.
(d) Ensuring availability of necessary personnel.
(e) Assigning necessary duties and responsibilities to the personnel.
(f) Cooperate with other departments.
(iii) Lower Level Management or Supervisory Level (consists of supervisors, foremen and superintendents).
Functions performed at operational/supervisory level are:
(a) They interact with the actual workforce and pass on instructions of the middle management.
(b) Maintains discipline among workers.
(c) Ensures quality output, minimum wastage and safety standards.
2. Functions of Management
(i) Planning It is an intellectual process. It is a conscious determination of course of action, which enables an organisation to face uncertainly and change.
(ii) Organising It involves identification and grouping the activities to be performed, dividing them among the individuals and creating authority and responsibility relationships among them for the accomplishment of organisational objectives.
(iii) Staffing The managerial function of staffing involves managing the organisational structure through proper and effective selection, appraisal, and development of personnel to fill the right person for the right job.
(iv) Directing This function is related with leading, influencing, guiding, supervising and motivating people towards the attainment of planned targets.
(v) Controlling This is the process of determining what is to be accomplished; what is being accomplished; evaluating the performance; and if necessary, applying corrective measures.
Previous Years Examinations Questions
1 Mark Questions
1. At which level of management, the managers are responsible for the welfare and survival of the organisation?
(Compartment 2014; Delhi 2012; HOTS)
Ans. At the top level of management, the managers are responsible for the welfare and survival of the â– organisation.
2. Name the level of management at which the managers are responsible for implementing and controlling the plans and strategies of the organisation. (HOTS; AH India 2012)
Ans. Middle level management.
3. 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.
(hots; Delhi 2011)
Ans. He was working at the top level of management.
Functions performed at the top level are: (any one)
(i) To set objectives for the organisation, e.g. in the following year, the sales of the company will have to cross Rs. 1000 crore.
(ii) To analyse, evaluate and deal with the external forces.
(iii) To formulate the policies of business.
(iv) To create an organisational framework consisting of authority responsibility and relationship.
4. 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. (HOTS; All India 2011)
Ans. He was working at the middle level of management.
Functions performed by the middle level managers are: (any one)
(i) To interpret the policies framed by the top level of management.
(ii) To ensure that their department has the necessary personnel.
(iii) To assign necessary duties and responsibilities to the employees of their respective departments for implementation of the plans.
(iv) To motivate employees of their respective departments to achieve the desired objectives.
5. List any two functions of top level management. (Delhi 2011c)
Ans. The two functions of top level management are:
(i) Laying down the overall objectives and framing policies of the enterprise.
(ii) Coordinating the activities of different departments and assembling all resources.
6. List any two functions of middle level management.
(All India 2011; 2008)
Ans. The two functions of middle level mahagement are:
(i) Interpretation of policies framed by top management to lower management.
(ii) Responsible for implementation and controlling of plans and strategies.
7. Enumerate the levels of management. (Delhi 2008C).
Ans. There are three levels in the hierarchy of management which as follows:
(i) Top level management (ii) Middle level management (iii) Lower or supervisory level management
 4 / 5 Marks Questions
8. Raman is working as a plant superintendent in Tifco Ltd. Name the managerial level at which he is working? State any four functions he will perform as plant superintendent in this company. (hots; Delhi 2008)
Ans. He is working at the middle level of management.
He will perform the following functions:
(a) Responsible for implementing and controlling plans and strategies developed by top management.
(b) Responsible for all the activities of first line managers.
(c) Interpret the plans and policies.framed by top management.
(d) Ensuring necessary personnel in their departments.
9. ‘Management is a series of continuous, inter-related functions with no
pre-determined sequence’. Explain. (HOTS,-Delhi2008C)
Ans. Management is considered as a series of continuous, inter-related functions with no pre-determined sequence. The management process includes planning, organising, staffing, directing and controlling functions.
These functions are inter-related. It is clear from the following facts:
(i) Planning is the primary function and basis for all other functions.
(ii) Organising is creation of the organisational structure to implement the plans.               .
(ii) Staffing involves filling jobs with right persons in an organisation.
(iv) Directing is concerned with instructing, guiding and inspiring people in the organisation for achieving its planned objectives through the employees.
(v) The controlling function ensures that action leads to desired targets.
Planning provides the basis (i.e. the standards of performance for management functions controlling and controlling helps in future planning). Similarly, directing initiates action and controlling ensures monitoring of performance.
However, the various functions of a manager are discussed in order, i.e. planning, organising, staffing directing and controlling, but in reality the managers are rarely able to carry them in isolation. It is often difficult to pinpoint where one ended and the other began.
Thus, these management functions are inter-related with no pre-determined sequence, while performing specific function.
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