Nature & Significance of Management NCERT Solutions | Business Studies (BST) Class 12 - Commerce PDF Download

Very Short Answer Type Questions

Q2: Name any two important characteristics of management. 
Ans: Pervasive and Multidimensional

Q3: Identify and state the force that binds all the other functions of management.
Ans:  Coordination is an essential force that brings together the efforts of individuals to achieve shared goals within an organization.  

Q4: List any two indicators of growth of an organisation. 
Ans: Indicators of Growth of an organisation:

1. Increase in sales volume
2. Increase in the capital investment

Q5: Indian Railways has launched a new broad gauge solar power train which is going to be a path breaking leap towards making trains greener and more environment friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12, 00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.
Ans: The Management objective achieved by the Indian Railways is Social objective. Social objectives involve creation of benefit for the society. This involves creating economic value consistently for society as a whole.

Short Answer Type Questions

• Interpreting the policies formed by the top level management and acting as a link between top level management and operative management.
• Assigning necessary duties to the employees.

Q2: State the basic features of management as a profession. 
Ans: Basic features of management as a profession management as a profession has the following features which are as follows

• Well-defined Body of Knowledge: All professionals are based on a well-defined body of knowledge that can be acquired through Instruction.
• Professional Association: There are several associations of practicing managers in India, like the AIMA (All India Management Association) that has laid the code of conduct to regulate the activities of their members.
• Service Motive: All business organisations aim to provide good quality product or service at a reasonable price thus serving the society Thus, we can say management does not meet the exact criteria of a profession but It has some features as a profession.

Q3: Why is management considered to be a multi-dimensional concept? 
Ans: Management is considered as a multi-faceted concept because it is a complex activity that has three main dimensions. These are

• Management of Work: All organisations perform some work e.g., producing or selling. A work is defined as the goals to be achieved.
• Management of People: The main asset of an organisation is the human resources. Thus resource has to be managed In such a manner that it helps to achieve the goals of the organisations.
• Management of Operations: All organisations either produce a product or provide a service this requires a production process which means using an operation to convert the inputs into the output. It is interlinked with both management of work and management of output.

Q4: Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens, refrigerators and  air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining return on investment and bad marketing. 
State the quality of management that the company is lacking? What quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track? 
Ans: Co-ordination is missing in Company X. All the departments are not coordinating with each other and that is why they end up blaming each other for the poor performance.
To bring co-ordination. management should take the following steps

• After the goals are established. it should be communicated to all departments well in advance to understand its importance and their role in helping to achieve it.
• Managers ensure that all departments co-ordinate with each other.
• Wherever is the difference of interest. the managers should try and strike a balance so that they all work in the same direction.
• Meetings between the departmental heads of production. marketing. finance etc should be organised on regular basis and in routine to solve problems when they emerge.

Q5: Coordination is the essence of management. Do you agree? Give reasons. 
Ans: Coordination plays a vital role as it binds all the other functions of management. It is the common thread of all activities such as purchase, production, sales etc that runs through. Some of the basic features are as follows

• Integrates Group Efforts: Coordination brings unity to all. It gives a common focus to group efforts.
• Ensures Unity of Actions: It acts as a binding force between departments and ensures that all action is aimed at achieving the goals of the organisation.
• It is a Continuous Process: Coordination is not a one time function but a continuous process. It begins at the planning stage and continues till controlling.
• It is an All Pervasive Function: Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels.
• It is the Responsibility of All Managers: All managers need to coordinate something or the other. A manager of production department needs to co-ordinate the work within his department and also with the other departments at the same time.
• It is a Deliberate Function: Whatever the managers are doing in an organisation they are doing it knowingly. Coordination is one of the most important functions of all managers. Thus coordination is also done deliberately. Whatever the managers do, they do it deliberately to achieved the predetermined goals and objectives. Thus, we can say co-ordination is the essence of management after analyzing these points.

Q6: Ashita and Lakshita are employees working in Dazzling enterprises dealing in costume jewellery. The firm secured an urgent order for 1,000 bracelets that were to be delivered within 4 days. They were assigned the responsibility of producing 500 bracelets each at a cost of Rs 100 per bracelet. Ashita was able to produce the required number within the stipulated time at the cost of Rs 55,000 whereas, Lakshita was able to produce only 450 units at a cost of Rs 90 per unit. State whether Ashita and Lakshita are efficient and effective. Give reasons to justify your answer.
Ans: Ashita is effective but not efficient, as she completed the task on time but incurred higher costs. Effectiveness refers to finishing a task within the required timeframe while focusing on achieving the desired results.
On the other hand, Lakshita is neither efficient nor effective. She failed to meet the target altogether. Although she produced units at a lower cost, her inability to achieve the goal makes her both inefficient and ineffective.

Long Answer Type Questions

• Existence of Theoretical Knowledge: All art subjects are based on theoretical knowledge e.g, written material IS available on dancing. time arts. music etc same way there is lot of literature available on management and Its branches – finance, marketing human resource etc.
• Personalised Application: The use of this basic knowledge differs from one individual to the other. Two painters, two dancers or two singers all use their knowledge in their own way same way two managers who have acquired the same knowledge may use It in their own different ways to get the work done.
• Based on Practice and Creativity: All art & practical involves creative practice. The more we practice it better we become at it. It also requires creativity. Same way a manager applies his acquired knowledge in a unique manner. More practice makes him a better manager and he also develops his own style of management.

Q2: Do you think management has the characteristics of a full-fledged profession?
Ans: No, management does not possess all the characteristics of a full-fledged profession. The reasons go as follows

• Well-defined Body of Knowledge: All professions are based on a well-defined body of knowledge that can be acquired teaching – learning process. This feature of a profession is possessed by management as well. There is vast knowledge available on management in the form of definitions, concepts, theories, principles etc.
• Restricted Entry: All professions have a restriction or the entry of its practitioners. They have to acquire a specific degree to be professional e.g., LLB for a lawyer MBBS for a doctor etc. But a manager can be an MBA qualified or not.
• Professional Association: All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates a code of conduct e.g., all lawyers have to be a member of Bar Council to practice law. It is not compulsory for all managers to be a member of AIMA.
• Ethical Code of Conduct: All professions are bound by a ethical code of conduct which guides the behaviour of its members. But as it is not compulsory for all managers to be members of AlMA, they all may not be aware of the prescribed code of conduct of AIMA.
• Service Motive: All basic motive to serve their client’s interest. e.g., lawyers to get justice for their clients, doctors to treat the patients etc. All managers also work in a manner where by they show their effectiveness and efficiency in the form of good quality goods provided to the customer at a reasonable price. Thus, management possesses some characteristics of a profession but not all.

Q3: “A successful enterprise has to achieve its goals effectively and efficiently.” Explain. 
Ans: “A successful enterprise has to achieve its goals effectively and efficiently”. Thus, management has to see that task are completed and goals are achieved with the minimum resources. Management is thus getting things done with the aim of achieving goals effectively and efficiently. Being effective or doing work effectively basically means finishing the given task. It is concerned with end result, it is achieved or not. Efficiency means doing the work correctly and with minimum cost. If by using less resources more benefits are derived then efficiency has increased. It is thus essential for any organisation to focus on efficiency as well as effectiveness. It is not only important to complete the work correctly but equally important to complete it with minimum cost. In the same manner, it is not only important to reduce cost but equally important to complete the work correctly.

Effectiveness V/S Efficiency

Q4: Management is a series of continuous inter related functions. Comment. 
Ans: Management is a series of continuous inter-related functions. Each one of them performed to guide and direct the efforts of others.
1. Planning: Planning is the primary function which runs through all other functions. It is the process of thinking before doing. It bridges the gap between where we are and where we want to go.
2. Organising: It is the process of defining the formal relationship among people and resources to accomplish the desired goals. It involves
(a) Identification and division of work
(b) Departmentalisation
(c) Assigning of duties
(d) Establishing reporting relationships
3. Staffing: Organisational goals can be achieved only through human efforts. It Is the duty of management to make the best possible use of this resource. Thus, placing the right person on the right job is very important. Staffing helps management to motivate, select and place the right person on the right job.
4. Directing: Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best. Directing comprises of four elements; supervision, motivation, leadership and communication.
5. Controlling: Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. The task of controlling involves.
(a) Establishing standards of performance
(b) Measuring current performance
(c) Comparing this with established standards
(d) Taking corrective action

Q5: A company wants to modify its existing product in the market due to decreasing sales. You can imagine any product about which you are familiar. What decisions/steps should each level of management take to give effect to this decision? 
Ans: The three levels of management will work together towards the modification of the product with the motive of increasing sales.
The following are the three levels of management. 
(i) Top Management
(ii) Middle Management
(iii) Lower Management
Decisions Taken by Top Management for Increasing Sales 
(i) Direction of modification.
(ii) Drafting sales targets and various sales plans and sales incentives.
(iii) How to enhance the value of the product in qualitative terms?
(iv) Thinking of the financial requirements.
(v) Marketing and promotional techniques required for fastening the sales.
Decisions Taken by Middle Level Management for Increasing Sales 
(i) Interpretation of the policies framed by top management to the lower level management.
(ii) Hiring necessary personnel with the required qualities and qualifications.
(iii) Assigning responsibility as per capability and establishing the supervisor subordinate relationship.
(iv) Co-operating with the team members as well as first line supervisors.
(v) Taking the feedback and arranging the follow up meeting.
Decisions Taken by Lower Level Management for Increasing Sales 
(i) Interpretation of planned targets to the actual work force and labourers.
(ii) Helping and directing the workers regarding how to carry out the work.
(iii) Maintaining standards, quality control and frequent checks
(iv) Minimisation of wastage and motivating the workers so that they can deliver up to their maximum potential.
(v) Communicating the grievances and feedback to the middle management and bringing in the changes if required.

Q6: A firm plans in advance and has a sound organisation structure with efficient supervisory staff and control system but on several occasion it finds that plans are not being adhered to. It leads to confusion and duplication of work. Advise remedy.
Ans: As per the case. the problem is in co-ordination and in communicating the work schedule. Because the duplication of work implies that there is a lack of coordination in between the levels of management as well as there is a problem in communication because the confusion is only arise when the things are not communicated properly.
Following Remedies are to be Taken

• A proper communication pattern is to be followed
• A proper co-ordination is to be made between the workers.
• Time to time feedback is to be taken by the managers from the bottom level.
• There is a transparency in the working pattern.