Previous Year Short & Long Questions With Answers - Nature and Significance of Management | Business Studies (BST) Class 12 - Commerce PDF Download

Short Answer Type Questions

Q.1. State any three points of importance of Management.
Ans. Importance of Management:

• Achieving Organizational Goals: Management plays a crucial role in setting and achieving organizational objectives by coordinating resources, planning strategies, and guiding activities towards desired outcomes.
• Optimizing Resource Utilization: Effective management ensures efficient utilization of resources such as human capital, financial assets, and physical infrastructure, maximizing productivity and minimizing waste.
• Adapting to Change: Management helps organizations navigate through dynamic environments by fostering innovation, fostering flexibility, and facilitating adaptation to changing market conditions, technological advancements, and regulatory requirements.

Q.2. Briefly describe the organisational objectives of Management.

OR

State any three organisational objectives of Management. 
Ans. The organizational objectives of management encompass key goals aimed at ensuring the success and sustainability of the organization. These objectives typically include: 

• Profit Maximization: Management strives to generate sufficient profits to sustain operations and support growth initiatives.
• Market Leadership: Management aims to establish the organization as a leader in its industry or market segment, gaining a competitive advantage and expanding market share.
• Customer Satisfaction: Management focuses on meeting and exceeding customer expectations by delivering high-quality products or services and providing excellent customer service.
• Employee Engagement: Management seeks to create a positive work environment where employees are motivated, engaged, and empowered to contribute to the organization's success.
• Social Responsibility: Management acknowledges its responsibility to stakeholders beyond shareholders, including employees, customers, communities, and the environment, and aims to conduct business ethically and sustainably.

Q.3. Is it important for Management to achieve its objectives effectively and efficiently?

OR

"Management should achieve its objectives effectively and efficiently." Are you agree with this statement? If yes, present a comment is favor of your answer.
Ans. Yes, I agree with the statement that management should achieve its objectives effectively and efficiently. 

• Effectiveness: Management's primary goal is to ensure that organizational objectives are met. Effectiveness signifies the ability to achieve these objectives and deliver desired outcomes.
• Efficiency: In addition to effectiveness, efficiency is crucial. It involves utilizing resources such as time, money, and manpower optimally to minimize waste and maximize output.
• Enhanced Performance: When management operates effectively and efficiently, it enhances organizational performance and competitiveness.
• Stakeholder Confidence: Achieving objectives in a timely and cost-effective manner strengthens stakeholder confidence and trust.
• Adaptability: Effective and efficient management enables organizations to adapt to changing market conditions and capitalize on opportunities while overcoming challenges effectively.
• Long-term Success: Ultimately, effective and efficient management is essential for the long-term success and sustainability of any organization.

Q.4. What is meant by ‘Management’? State any three objectives of Management.
Ans. Management refers to the process of planning, organizing, directing, and controlling organizational resources to achieve specific goals and objectives efficiently and effectively.

Three objectives of management include:

1. Goal Achievement: Management aims to ensure that organizational goals and objectives are identified, articulated, and achieved in a timely and effective manner.

2. Resource Optimization: Management seeks to utilize organizational resources, including human, financial, and material resources, efficiently to maximize productivity and minimize waste.

3. Stakeholder Satisfaction: Management endeavors to meet the needs and expectations of various stakeholders, including employees, customers, shareholders, and the community, while balancing competing interests and priorities.

Q.5. Explain any four points of importance of Management.

OR

State any four points of importance of Management.

OR

State any four points which highlight the importance of Management.
Ans. Importance of Management:

1. Goal Achievement: Management coordinates and aligns organizational efforts towards achieving specific goals and objectives. It ensures clarity in goals, facilitates strategic planning, and monitors progress to ensure targets are met.

2. Resource Optimization: Effective management ensures optimal utilization of available resources, including human capital, financial assets, and physical infrastructure. By efficiently allocating resources and minimizing wastage, management enhances productivity and profitability.

3. Decision Making: Management plays a pivotal role in decision-making processes. It gathers relevant information, evaluates alternatives, and selects the best course of action to address challenges and capitalize on opportunities, thereby driving organizational success.

4. Organizational Efficiency: Through effective coordination, delegation, and supervision, management enhances organizational efficiency. It streamlines processes, improves workflow, and fosters a culture of innovation and continuous improvement, leading to enhanced performance and competitiveness.

5. Adaptability to Change: Management ensures organizational adaptability to changing environments, fostering flexibility in strategies and structures to maintain relevance and sustainability. 

Q.6. ‘Science is a systematised body of knowledge that explains certain general truths or the operation of general laws’. Based on the statement, identify and state the characteristics of management that establish it as a science.
Ans. Based on the statement, the characteristics of management that establish it as a science are:

1. Systematic Body of Knowledge: Management is based on a systematic body of knowledge comprising principles, theories, and techniques that explain and guide organizational practices.

2. General Truths and Laws: Management principles and theories elucidate general truths and laws governing organizational behavior and performance, providing a framework for understanding and predicting managerial phenomena.

3. Empirical Evidence: Management principles are derived from empirical observations, research, and experimentation, contributing to the scientific validity and reliability of managerial knowledge.

4. Predictive Capability: Management science enables managers to predict and anticipate outcomes based on established principles and laws, facilitating informed decision-making and problem-solving in organizational contexts.

5. Continuous Development: Like other sciences, management undergoes continuous refinement and evolution through research, experimentation, and the accumulation of new knowledge, enhancing its scientific rigor and applicability.

Q.7. ‘Art is the skillful and personalized applications of existing knowledge to achieve desired results and some kind of ingenuity and creativity is required to practice its basic principles learnt.’ Pick up points from the statements and explain the same to prove that management is an art.
Ans. To establish that management is an art, consider the following points derived from the statement:

1. Skillful Application of Existing Knowledge: Management involves applying learned principles, theories, and techniques to real-world situations. Managers use their expertise to make informed decisions and solve problems effectively.

2. Personalized Approach: Successful management often requires adapting strategies and techniques to fit the unique circumstances of each organization. Managers must tailor their actions to address specific challenges and meet the needs of stakeholders.

3. Ingenuity and Creativity: Managers frequently encounter complex problems that demand innovative solutions. They must think creatively and employ ingenuity to devise strategies that drive organizational success.

4. Practice of Basic Principles: While management is grounded in established principles, the art lies in how managers interpret and apply these principles in diverse contexts. Managers demonstrate creativity in adapting fundamental concepts to suit the requirements of different situations.

Q.8. What is meant by ‘Management’? Explain its any three features that establish it as an art.
Ans. 

 Management refers to the process of planning, organizing, directing, and controlling organizational resources to achieve specific goals and objectives efficiently and effectively.

Three features of management that establish it as an art are:

1. Creativity and Innovation: Management often requires creative thinking and innovative problem-solving to address complex and dynamic organizational challenges. Managers must exhibit creativity in devising strategies, adapting to changing environments, and finding unique solutions to achieve desired outcomes.

2. Flexibility and Adaptability: Effective management involves adapting to diverse organizational contexts, changing market conditions, and evolving technologies. Managers must demonstrate flexibility in their approach, adjusting strategies and tactics as needed to navigate uncertainties and capitalize on opportunities.

3. Personalization and Customization: Management is personalized to fit the unique needs and circumstances of each organization. Managers tailor their approaches, strategies, and decisions to align with organizational goals, values, and culture, reflecting the artistry involved in applying management principles in diverse contexts.

Q.9. Define Management. Explain the features that establish it as a Social Science.
Ans. Management refers to the process of planning, organizing, directing, and controlling organizational resources to achieve specific goals efficiently and effectively. As a social science, management exhibits several features:

1. Interdisciplinary Nature: Management draws insights from various disciplines such as psychology, sociology, economics, and anthropology to understand human behavior, organizational dynamics, and economic principles.

2. Focus on Human Behavior: Management emphasizes understanding and influencing individual and group behavior within organizations, recognizing the social and psychological factors that impact organizational performance.

3. Empirical Research: Management relies on empirical research and data analysis to develop theories, test hypotheses, and make evidence-based decisions, contributing to the scientific understanding of organizational behavior and performance.

4. Application of Theories: Management theories and principles are applied in real-world organizational settings to address practical challenges and improve managerial practices, highlighting its relevance as a social science in solving societal problems.

Q.10. Explain the features of management that do not establish it as a profession.
Ans. Several features of management distinguish it from a profession:

1. Absence of Formal Licensing: Management does not require formal licensing or regulation by a governing body, unlike traditional professions such as medicine or law.

2. Diverse Educational Backgrounds: Managers come from various educational backgrounds and may attain their positions through experience or education in fields unrelated to management.

3. Lack of Uniform Ethical Standards: While ethical conduct is essential, there is no universally recognized code of ethics governing managerial behavior across all industries and organizations.

4. Flexible Entry and Exit: Entry into management roles and career progression pathways are often determined by factors such as experience and performance rather than strict criteria or qualifications.

5. Focus on Practical Application: Management emphasizes practical skills and the ability to achieve organizational objectives rather than adherence to a specific set of professional standards or theoretical knowledge.

Q.11. State any four characteristics of Profession.
Ans. Four characteristics of a profession include:

1. Specialized Knowledge: Professions require specialized education and training in a specific field or discipline, resulting in expertise and competency in the profession's domain.

2. Ethical Standards: Professionals adhere to a code of ethics or professional conduct that governs their behavior and interactions with clients, colleagues, and the public. This ensures integrity, trustworthiness, and accountability in their practice.

3. Autonomy and Decision-Making Authority: Professionals have a degree of autonomy and discretion in their decision-making process within their area of expertise. They apply their knowledge and judgment to solve complex problems and make informed decisions.

4. Professional Associations and Licensing: Many professions are governed by professional associations or regulatory bodies that establish standards of practice, provide professional development opportunities, and may require licensure or certification to practice legally. These associations uphold professional standards and ensure the competence and integrity of practitioners.

5. Continuing Education and Professional Development: Professionals engage in ongoing learning and development to stay current with advancements in their field, enhance their skills, and maintain their professional competence. This commitment to lifelong learning ensures that professionals provide high-quality services and remain effective in their roles amidst evolving industry trends and best practices. 

Q.12. Is ‘Management a Science’? Give any three reasons in support of your answer.
Ans. Management can be considered a science due to the following reasons:

1. Systematic Study: Management involves the systematic study of organizational processes, behaviors, and phenomena. It applies scientific methods such as observation, experimentation, and data analysis to understand and predict managerial outcomes.

2. Established Principles: Management principles and theories are based on empirical research and observation. They provide a framework for understanding organizational dynamics, guiding decision-making, and improving managerial practices.

3. Predictive Capability: Like other sciences, management aims to develop theories and models that enable prediction and control of organizational outcomes. By identifying patterns and relationships among variables, managers can anticipate future events and make informed decisions to achieve desired results.

Q.13. State any four functions of Operational Management.
Ans. Four functions of operational management include:

1. Planning: Operational managers set objectives, establish strategies, and develop plans to achieve organizational goals efficiently. They determine resource requirements, allocate tasks, and create timelines to guide operational activities.

2. Organizing: Operational managers organize resources such as personnel, equipment, and materials to ensure smooth workflow and optimal utilization. They define roles, establish reporting structures, and coordinate activities to achieve desired outcomes effectively.

3. Directing: Operational managers provide leadership and direction to employees, motivating them to perform tasks according to established standards and objectives. They communicate expectations, delegate responsibilities, and monitor performance to ensure alignment with organizational goals.

4. Controlling: Operational managers monitor and evaluate operational activities to ensure they align with predetermined standards and objectives. They establish performance measures, analyze variances, and implement corrective actions as needed to maintain efficiency and effectiveness in operations

Q.14. Chandrika Bhattacharya is working in Olax Ltd., a company manufacturing room heaters. She is responsible for all the activities of the business and for its impact on the society. Her job demands long hours and commitment to the organisation.
(i) Identify the level at which Chandrika Bhattacharya is working.
(ii) State three more functions required to be performed by Chandrika Bhattacharya at this level.
Ans. (i) Chandrika Bhattacharya is working at the top management level, also known as the strategic management level.

(ii) At this level, Chandrika Bhattacharya would need to perform the following additional functions:

1. Strategic Planning: Chandrika would be responsible for setting the long-term goals and objectives of Olax Ltd., as well as developing strategies to achieve them. This includes analyzing market trends, identifying growth opportunities, and making decisions that shape the company's future direction.

2. Stakeholder Management: Chandrika would need to maintain positive relationships with various stakeholders such as shareholders, employees, customers, and the community. This involves communicating the company's vision and values, addressing stakeholders' concerns, and ensuring alignment with their expectations.

3. Corporate Social Responsibility (CSR): Chandrika would be tasked with overseeing Olax Ltd.'s initiatives to fulfill its ethical, environmental, and social responsibilities. This includes implementing sustainable practices, supporting community development projects, and ensuring the company operates in an ethical manner.

Long Answer Type Questions

Q.1. Give the meaning of Management and explain how it ‘creates a dynamic organisation’ and ‘helps in the development of society’. [Delhi Set II 2012]

OR

Explain how Management ‘increases efficiency’ and ‘helps in the development of society’.
Ans. According to Trewelly and Newport “Management is defined as the process of planning, organising, actuating and controlling an organisation’s operations in order to achieve Coordination of the human and material resources essential in the effective and efficient attainment of objectives.”
(i) Management creates a dynamic organisation: An organisation operates in a consistently changing environment. In order to survive and grow, the organisation has to adapt itself as per the environment. Employees generally resist to changes. Management helps in implementing such changes by convincing the employees that such changes will benefit their future prospects.
(ii) Management helps in the development of society: While achieving the development of organisation, management also aims to develop the society by giving due importance to social obligations. Efficient management improves living standard of people in the society by creating employment opportunities, by providing good quality products and by using latest technology. It leads the path towards growth and development through optimum utilisation of available resources.
(iii) Management increases Efficiency: Management always enhances the efficiency as the work is done in a systematic manner and decreases the cost of production.

Q.2. “Management is termed as an Art by some, as a Science or as an inexact Science by others. The truth seems to be somewhere in between.” In the light of this statement, explain the true nature of Management.

OR

Management is considered to be both an Art and a Science. Explain. [NCERT]
Ans. 
(i) Management is an art as well as a science though an inexact science.
(ii) Art is the skillful and personal application of existing knowledge to achieve desired results. Management is an art because like any other art, it is existence of theoretical knowledge and personalised application based on continuous practice.
(iii) Science is a systematised body of knowledge that explains certain general truths. Like science, management principles are derived through observation and repeated experiments. Since management deals with human beings the outcome of these experiments cannot be accurately predicted. Moreover, they have to be modified according to the given situation. Hence, it is an inexact science.

Q.3. 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 is 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 a 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 Comptt. Set I, II, III 2015]
Ans. Aman would have satisfied both Ahmed and Ally by explaining the following features of Management as a Profession:
(i) Well-defined body of knowledge: All professions are based on a well-defined body of knowledge that can be acquired through instructions. Management too is based on a systematic body of knowledge comprising well defined principles. This feature of profession is present in the management.
(ii) Restricted entry: The entry to the above stated profession is restricted through a prescribed qualification. But there is no restriction on anyone being appointed as a manager in any business enterprise. So, presently this feature of profession is not present in the management.
(iii) Professional association: Legal and medical professions are affiliated to a professional association like bar council and medical council which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. There are several associations of practicing managers in India, like the AIIMA that has laid down a code of conduct to regulate the activities of their members. There is, however, no compulsion for managers to be members of such an association. So, presently this feature of profession is not present in the management.
(iv) Ethical code of conduct: Legal and medical professions are bound by a code of conduct which guides the behaviour of its members. AIIMA has devised a code of conduct for Indian managers but there is no statutory backing for this code. So, presently this feature of profession is not present in the management.
(v) 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 to help the organisation achieve its goals by providing good quality products at reasonable prices, thereby serving the society is being increasingly recognised. So, presently this feature of profession is not fully present in the management. The above discussion shows that management satisfies some and not all the criteria of a profession. Through the above discussion Aman would have been able to satisfy both Ahmed and Ally by making them understand that management is a profession but not a full fledged or a true profession.

Q.4. Kamal, Khan and David 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 David in Dairy Farming. One day there was a serious discussion between Khan and David regarding the nature of ‘Management as a Science’. Khan argued that Management was not a science whereas David was of the opinion that Management was a science. Kamal intervened and corrected both Khan and David 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 David. [Outside Delhi Comptt. Set I, II, III 2015]
Ans. Kamal would have been able to satisfy both Khan and David by explaining the following features of Management as a Science:
(i) Systematised body of knowledge: Like science, management is a systematic body of knowledge with its own theories and principles that have been developed over a period of time. So, this feature of science is present in the management.
(ii) Principles based on observation and experimentation: Like science, management principles are derived through observation and repeated experimentation. So, this feature of science is present in management. However since management deals with human beings the outcome of these experiments cannot be 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 a given situation, their application and use is not universal. So, this feature of science is not fully present in the management. Through the above discussion Kamal would have been able to satisfy both Khan and David by making them understand that management is a science but not an exact science.

Q.5. Management is a series of continuous interrelated functions. Comment. [NCERT]

OR

"Management includes number of functions which are interrelated." Are you agree with this statement? Present comment for your answer.
Ans. Management is described as the process of planning, organising, staffing, directing and controlling the efforts of an organisation and utilisation of resources to achieve specific goals.
(i) Planning: Planning refers to deciding in advance what to do, how to do it, when to do it and who has to do it. Planning bridges the gap between where we are and where we want to go.
(ii) Organising: It is the process of defining and grouping the activities of an enterprise and to establish organisational authority relationships.
(iii) Staffing: Finding the right person for the right job is known as staffing. Staffing as a function of management pertains to recruitment, selection, training, development, appraisal and remuneration.
(iv) Directing: Directing is telling people what to do and to monitor that they do it to the best of their abilities.
There are four elements of directing:
(a) Supervision,
(b) Motivation,
(c) Leadership,
(d) Communication.
(v) Controlling: Management control implies the measurement of actual performance against the predetermined standards and correcting deviations, if any, to assure attainment of objectives according to the plans.