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Test: Nature and Significance of Management- Case Based Type Questions- 2 - Commerce MCQ


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10 Questions MCQ Test Business Studies (BST) Class 12 - Test: Nature and Significance of Management- Case Based Type Questions- 2

Test: Nature and Significance of Management- Case Based Type Questions- 2 for Commerce 2024 is part of Business Studies (BST) Class 12 preparation. The Test: Nature and Significance of Management- Case Based Type Questions- 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Nature and Significance of Management- Case Based Type Questions- 2 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Nature and Significance of Management- Case Based Type Questions- 2 below.
Solutions of Test: Nature and Significance of Management- Case Based Type Questions- 2 questions in English are available as part of our Business Studies (BST) Class 12 for Commerce & Test: Nature and Significance of Management- Case Based Type Questions- 2 solutions in Hindi for Business Studies (BST) Class 12 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Nature and Significance of Management- Case Based Type Questions- 2 | 10 questions in 20 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Business Studies (BST) Class 12 for Commerce Exam | Download free PDF with solutions
Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 1
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Direction: Read the following text and answer the following questions on the basis of the same:

Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, readymades and household items made out of traditional Indian fabrics. Sana decides quantities, varieties, colours and textures of all the above items and then allocates resources for their purchase from different suppliers. She appointed a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk. Although the products looked very attractive and impressive, they were relatively expensive on the front of affordability for an average customer. Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control.

“She appointed a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk.” Which function of management is highlighted in this context ?

Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 1
Staffing is a very important aspect of management so as to make sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation.
Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 2
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Direction: Read the following text and answer the following questions on the basis of the same:

Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, readymades and household items made out of traditional Indian fabrics. Sana decides quantities, varieties, colours and textures of all the above items and then allocates resources for their purchase from different suppliers. She appointed a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk. Although the products looked very attractive and impressive, they were relatively expensive on the front of affordability for an average customer. Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control.

With reference to the above case, at which level of management Sana is working?

Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 2
Middle Management is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads.
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Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 3
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Direction: Read the following text and answer the below questions :

Radio XYZ is a company which has improved its functioning by proper management. The company has been good in deciding and completing targets. In the previous meeting, it was decided that in coming years, company could show increase in the number of workers, number of products produced and also the sales turnover. However, recently it earned a negative reputation under the impact of resignations put forth by two of its departmental heads. These departmental heads were experts in their fields. One was leading the marketing department and the other was a scientist of repute who headed the manufacturing department. In the top-level management meeting it was found that such departmental heads who were specialists in their areas cannot be tackled by unity of command. They were egoistic as they were specialists.

After the meeting, things started to change for the organisation as all the departments started to work with one single target of giving back the company its lost fame. There was a combined effort which doubled the revenue of the organisation. A special regulation system of including every level manager was brought into action. Thus, the overall functioning of the organization improved.

“… as all the departments started to work with one single target of giving back the company its lost fame.” Identify the feature of coordination being discussed above :

Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 3
Unity of action: Coordination always emphasises on unifying the actions of different individuals.. The main aim of every manager is to coordinate the activities and functions of all individuals to common goal.
Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 4
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Direction: Read the following text and answer the below questions :

Radio XYZ is a company which has improved its functioning by proper management. The company has been good in deciding and completing targets. In the previous meeting, it was decided that in coming years, company could show increase in the number of workers, number of products produced and also the sales turnover. However, recently it earned a negative reputation under the impact of resignations put forth by two of its departmental heads. These departmental heads were experts in their fields. One was leading the marketing department and the other was a scientist of repute who headed the manufacturing department. In the top-level management meeting it was found that such departmental heads who were specialists in their areas cannot be tackled by unity of command. They were egoistic as they were specialists.

After the meeting, things started to change for the organisation as all the departments started to work with one single target of giving back the company its lost fame. There was a combined effort which doubled the revenue of the organisation. A special regulation system of including every level manager was brought into action. Thus, the overall functioning of the organization improved.

“…company could show increase in the number of workers, number of products produced and also the sales turnover.” Identify the type of objective being discussed.
Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 4
Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government.
Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 5
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Direction: Read the following text and answer the below questions :

Radio XYZ is a company which has improved its functioning by proper management. The company has been good in deciding and completing targets. In the previous meeting, it was decided that in coming years, company could show increase in the number of workers, number of products produced and also the sales turnover. However, recently it earned a negative reputation under the impact of resignations put forth by two of its departmental heads. These departmental heads were experts in their fields. One was leading the marketing department and the other was a scientist of repute who headed the manufacturing department. In the top-level management meeting it was found that such departmental heads who were specialists in their areas cannot be tackled by unity of command. They were egoistic as they were specialists.

After the meeting, things started to change for the organisation as all the departments started to work with one single target of giving back the company its lost fame. There was a combined effort which doubled the revenue of the organisation. A special regulation system of including every level manager was brought into action. Thus, the overall functioning of the organization improved.

Identify the feature of management highlighted above :
Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 5
Features of Management:

  • Management is Goal-Oriented: The success of any management activity is assessed by its achievement of the predetermined goals or objective.

  • Management integrates Human, Physical and Financial Resources: In an organization, human beings work with non-human resources like machines.

  • Management is Continuous: Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it.

  • Management is all Pervasive: Management is required in all types of organizations whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require management.

  • Management is a Group Activity: Management is very much less concerned with individual’s efforts. It is more concerned with groups. It involves the use of group effort to achieve predetermined goal of management of ABC & Co. is good refers to a group of persons managing the enterprise.

Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 6
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Direction: Read the following text and answer the below questions :

Radio XYZ is a company which has improved its functioning by proper management. The company has been good in deciding and completing targets. In the previous meeting, it was decided that in coming years, company could show increase in the number of workers, number of products produced and also the sales turnover. However, recently it earned a negative reputation under the impact of resignations put forth by two of its departmental heads. These departmental heads were experts in their fields. One was leading the marketing department and the other was a scientist of repute who headed the manufacturing department. In the top-level management meeting it was found that such departmental heads who were specialists in their areas cannot be tackled by unity of command. They were egoistic as they were specialists.

After the meeting, things started to change for the organisation as all the departments started to work with one single target of giving back the company its lost fame. There was a combined effort which doubled the revenue of the organisation. A special regulation system of including every level manager was brought into action. Thus, the overall functioning of the organization improved.

The concept of management missing in Radio XYZ Company is :
Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 6
Coordination is the force that binds all the other functions of management. It is the common thread that runs through all activities such as purchase, production, sales, and finance to ensure continuity in the working of the organisation.
Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 7
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Direction: Read the following text and answer the below questions :

Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middle-level managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals.

The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

At which level of management does Sanjeev work?
Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 7
Middle-level managers are responsible for executing organizational plans which comply with the company's policies. They act as an intermediary between top-level and low-level management. Low-level managers focus on the execution of tasks and deliverables, serving as role models for the employees they supervise.
Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 8
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Direction: Read the following text and answer the below questions :

Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middle-level managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals.

The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Which importance of management has been highlighted above ?
Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 8
Functions of an organisation are divided into departments, divisions and sections. In an organisation there may be separate departments of finance, production, marketing or human resources. The activity of each department needs to be focused on attainment of common organisational goals. The process of linking the activities of various departments is accomplished by coordination.
Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 9
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Direction: Read the following text and answer the below questions :

Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middle-level managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals.

The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Which characteristic of coordination has been highlighted in the above case?
Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 9

  • Coordination Integrates Group efforts: The concept of coordination always applies to group efforts. There is no need for coordination when only single individual is working.

  • Ensure Unity of efforts: Coordination always emphasises on unifying the efforts of different individuals because conflicting efforts may cause damage to organisation.

  • Continuous process: Coordination is a non-ending function. It is a continuous function although its degree may vary.

  • Coordination is a pervasive function: Coordination is a universal function; it is required at all the levels, in all the departments and to perform all the functions due to interdependence of various activities on each other.

  • Coordination is the responsibility of all managers: Coordination is not the task of only top level managers but managers working at different levels try to coordinate the activities of organisation.

  • Coordination is a deliberate function: Every manager tries to coordinate the activities of organisation to avoid confusion and chaos.

Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 10
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Direction: Read the following text and answer the below questions :

Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middle-level managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals.

The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Which type of objective is fulfilled here ?
Detailed Solution for Test: Nature and Significance of Management- Case Based Type Questions- 2 - Question 10

Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. Management has to reconcile personal goals with organisational objectives for harmony in the organisation.

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