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Case Studies - Nature and Significance of Management | Business Studies (BST) Class 12 - Commerce PDF Download


Case Studies - Nature and Significance of Management | Business Studies (BST) Class 12 - Commerce

Q.1. Dheeraj is working as ‘Operations Manager’ in Tifco Ltd. Name the managerial level at which he is working. State any four functions he will perform as ‘Operations Manager’ in this company.    (5 marks)
Ans.  Dheeraj is working at the middle management level as an Operations Manager in Tifco Ltd.

Four functions he will perform as an Operations Manager in this company include:

  1. Planning: Dheeraj will be involved in strategic and operational planning for the company's operations, including setting objectives, defining strategies, and developing plans to achieve organizational goals efficiently.

  2. Organizing: He will be responsible for organizing resources, such as manpower, materials, and equipment, to ensure smooth and effective operations. This may involve designing workflows, establishing work schedules, and allocating resources appropriately.

  3. Directing: Dheeraj will provide leadership and direction to the operations team, ensuring that employees understand their roles and responsibilities and guiding them to achieve desired performance outcomes. He will also motivate and inspire team members to work towards common objectives.

  4. Controlling: He will monitor and evaluate the performance of operations against predetermined goals and standards, identifying deviations and taking corrective actions as necessary to ensure that operations remain on track. This may involve implementing quality control measures, cost-control initiatives, and process improvements to enhance efficiency and effectiveness.

Q.2. Volvo Ltd’s target is to produce 10000 shirts per month at a cost of Rs. 100/- per shirt. The Production Manager achieved this target at a cost of Rs. 90/- per shirt. Do you think the ‘Production Manager’ is effective? Give one reason in support of your answer.   (1 mark)
Ans. Yes, the Production Manager is effective because he has completed the task and achieved the goal of producing 10000 shirts. He is efficient also as he has achieved the target at a lower cost.

Q.3. Yash Ltd. is facing a lot of problems these days. It manufactures electronic goods like washing machines, microwave ovens, refrigeration and air-conditioners. The company’s margins are under pressure and the profits and market marketing department blames production department for producing goods, which are not of good quality to meet customers’ expectations. The finance department blames both production and marketing departments for declining return on investment and bad marketing.
1. What quality of management do you think the company is lacking? Justify your answer.
2. State the importance of the concept identified in (a).       (5 marks)
Ans. 

  1. Quality Management: The company, Yash Ltd., seems to be lacking effective quality management.

    • Justification:
      • Complaints about product quality indicate that the production department may not be implementing quality control measures effectively.
      • Declining return on investment suggests inefficiencies in resource allocation and management, which could be attributed to inadequate quality management practices.
      • The blame game between different departments (production, marketing, finance) indicates a lack of coordination and accountability in addressing quality issues, further highlighting the need for effective quality management.
  2. Importance of Effective Quality Management:

    • Customer Satisfaction: Quality management ensures products meet or exceed customer expectations, driving satisfaction and loyalty.
    • Competitive Advantage: Maintaining high-quality standards gives a competitive edge, differentiating the company's offerings and building a reputation for excellence.
    • Cost Reduction: Quality management practices lead to cost savings by reducing waste, rework, and warranty claims.
    • Enhanced Reputation: Consistently delivering high-quality products enhances the company's reputation, trust, and credibility.


Q.4. 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 professions 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.         (6 marks)
Ans. Aman would have satisfied Ahmad and Ally with the following points.
(i) The existence of a body of knowledge: Management is based on a systematic body of knowledge comprising well-defined principles based on a variety of business situations. This knowledge can be acquired at different colleges and professional institutes and through a number of books and journals. The subject of management is taught at different institutions.
(ii) Acquisition of knowledge, training and experience: Like profession managerial skill and knowledge can only be enhanced through training and experience. Though in small business firms, management training may not be provided formally but gained through experience.
(iii) Establishment of professional association: Like professional associations there are several associations of practising managers in India, like the AIMA (All India Management Association) that regulate the activities of their members.
(iv) Ethical code of conduct: The professional associations have also laid down their code of conduct to regulate activities of their members.
(v) Service motto: If an organisation has a good management team that is efficient and effective it automatically serves society by providing good quality products at reasonable prices.

Q.5. To meet the objectives of the firm, the management of Bhavya Ltd. offers employment to physically challenged persons. Identify the organizational objective it is trying to achieve. Give reason in support of your answer.       (1 mark)
Ans. Growth, since number of employees is increasing, it leads to increase in production and hence the growth of the company.

Q.6. B Ltd. wants to modify its existing product, CD players in the market due to decreasing sales. What decisions/steps should each level of management take to give effort to this decisions?       (6 marks)
Ans. 

  1. Top Management:

    • Decision: Set strategic direction and objectives for the product modification initiative.
    • Steps:
      • Evaluate market trends and customer preferences to understand the reasons behind decreasing sales.
      • Define clear goals and objectives for modifying the CD players, such as improving features, reducing costs, or targeting new market segments.
      • Allocate resources and budget for research, development, and marketing efforts related to the product modification.
      • Provide leadership and support to ensure alignment with the company's overall strategic objectives.
  2. Middle Management:

    • Decision: Develop and implement plans to modify the CD players according to the strategic direction set by top management.
    • Steps:
      • Coordinate cross-functional teams, including product development, marketing, and operations, to execute the modification plans.
      • Conduct market research and analysis to identify specific changes or improvements needed to address customer preferences and market demands.
      • Collaborate with suppliers and partners to source necessary components or technologies for the modified CD players.
      • Oversee the design, testing, and production processes to ensure quality and timely delivery of the modified products.
  3. Lower Management/Supervisory Level:

    • Decision: Execute day-to-day activities and monitor progress towards achieving the objectives set by middle management.
    • Steps:
      • Assign tasks and responsibilities to employees involved in the modification process, ensuring clear communication and accountability.
      • Supervise the implementation of plans, providing guidance and support to address any challenges or obstacles encountered.
      • Monitor key performance indicators (KPIs) related to product modification, such as development timelines, production costs, and sales projections.
      • Collect feedback from frontline employees and customers to identify areas for improvement and make necessary adjustments to the modification plans.

Q.7. Sonali is the manager of a large company manufacturing garments for kids. She plans her winter collection in the month of August itself. Then, she ensures that there is adequate workforce. She continuously monitors whether production is proceeding according to plans. She asks the marketing department to prepare their promotional and advertising campaigns also.
1. Identify and explain the concept of management explained in the above para.
2. What characteristic feature does the above para highlight?  State.          (5 marks)
Ans. 

  • Concept of Management: The concept of management illustrated in the above paragraph is planning. Planning involves setting objectives, identifying courses of action, and allocating resources to achieve those objectives efficiently. Sonali, as the manager of the garment manufacturing company, engages in several planning activities:

    • She plans her winter collection in advance, indicating strategic planning to meet seasonal demand.

    • Sonali ensures there is an adequate workforce, demonstrating operational planning to align resources with production requirements.

    • She continuously monitors production progress, suggesting tactical planning to ensure that activities are on track and adjustments can be made as needed.

    • Sonali also coordinates with the marketing department to prepare promotional and advertising campaigns, emphasizing integrated planning across different functional areas of the organization.

  • Characteristic Feature Highlighted: The characteristic feature highlighted in the paragraph is proactive management. Sonali demonstrates a proactive approach by planning her winter collection in advance, ensuring there is adequate workforce availability, and continuously monitoring production progress. By taking these proactive measures, Sonali anticipates and prepares for future events and challenges, rather than reacting to them after they occur. This proactive management style enables the company to better meet customer demands, optimize resources, and achieve its business objectives efficiently.

Q.8. H. Tech Ltd. is a company producing IT services. The company’s profits are enough for the survival and growth. The management of the company believes that a satisfied employee creates a satisfied customer, who in turn creates profits that lead to satisfied shareholders. So, it pays competitive salaries and perks to its all employees. All the employees are happy working in the organization because of personal growth and development.
The company has a strong sense of social responsibility. It has set up an engineering college in which one-third of the students are girls to whom the company gives 50% scholarship.
Is the management of H. Tech Ltd. fulfilling its objectives? Justify your answer by giving reasons.           (6 marks)
Ans. Yes, the management of H. Tech Ltd. appears to be fulfilling its objectives effectively. Here's the justification:

  1. Employee Satisfaction and Growth: The management believes that satisfied employees lead to satisfied customers and ultimately, satisfied shareholders. By paying competitive salaries and offering perks, the company ensures that its employees are content and motivated. This focus on employee satisfaction contributes to a positive work environment and fosters loyalty and commitment among the workforce.

  2. Customer Satisfaction: The company's emphasis on employee satisfaction as a driver of customer satisfaction aligns with its objective of providing quality IT services. Satisfied employees are more likely to deliver excellent service to customers, leading to higher levels of customer satisfaction and retention. This, in turn, contributes to the company's profitability and growth.

  3. Social Responsibility: By setting up an engineering college and offering scholarships to girls, H. Tech Ltd. demonstrates a strong sense of social responsibility. This initiative not only benefits the community by promoting education and gender equality but also helps the company build a positive reputation and goodwill among stakeholders.

  4. Profitability and Shareholder Satisfaction: The company's profitability, coupled with its commitment to employee satisfaction, customer service, and social responsibility, indicates that it is meeting the needs and expectations of its shareholders. Satisfied shareholders are likely to continue investing in the company and support its growth and expansion efforts.



Q.9. Govinda Ltd. is a highly reputed company. Different functions are performed by different individuals in this company, who are bound together in a hierarchy of relationships. Every individual in the hierarchy is responsible for successful completion of a particular task. Mr. Gauranga is responsible for the welfare and survival of the organization. He formulates overall organizational goals and strategies for their achievement. MR. Nityanand ensures that quality of output is maintained, wastage of materials is minimized and safety standards are maintained. Mr. Sanatan assigns necessary duties and responsibilities to the personnel and motivates them to achieve desired objectives At what levels of management are MR. Gauranga, Mr. Nityanand and Mr. Sanatan working in Govinda Ltd.?  Justify your answer.        (3 marks)
Ans.
1. Mr. Gauranga is working at the top level management. He is responsible for the welfare and survival of the organization.He formulates overall organizational goals and strategies for their achievement.
2. Mr. Nityanand is working at the lower level management. He ensures that quality of output is maintained, wastage of materials is minimized and safety standards are maintained.

3. Mr. Sanatan is working at the middle level management. He assigns necessary duties and responsibilities to the personnel and motivates them to achieve desired objectives.

Q.10. The management of Vrinda Ltd. strongly believes that the members of an organization should work towards fulfilling the common organizational goals. This requires team work and integration of efforts of all individuals, departments and specialists. This is because all the individuals and departments depend on each other for information and resources to perform their respective activities. Managers need to reconcile differences in approach, timing, effort or interest. At the same time it should enable all its members to grow and develop. Thus, there is a need to harmonize individual goals and organizational goals.
1. Identify the concept of management discussed above.
2. State any three features of the concept identified in (a).

3. Identify and explain the characteristic of management which is reflected from the above para.         (6 marks)
Ans. 

  1. Concept of Management: The concept of management discussed above is organizational integration and teamwork.

  2. Features of the concept:

    • Integration of Efforts: It emphasizes the need for coordination and collaboration among individuals, departments, and specialists to achieve common organizational goals.
    • Interdependence: Recognizes that all individuals and departments rely on each other for information and resources to perform their respective activities.
    • Harmonization of Goals: Highlights the importance of aligning individual goals with organizational goals to ensure that all members work towards a common purpose.
  3. Characteristic of Management reflected:

    • Coordination: The characteristic of coordination is reflected in the paragraph. Coordination involves reconciling differences in approach, timing, effort, or interest among individuals and departments to ensure that organizational goals are achieved efficiently. By emphasizing the need for teamwork, integration of efforts, and harmonization of goals, the management of Vrinda Ltd. demonstrates its commitment to coordinating activities across the organization to achieve common objectives.

Q.11. "Sanjana is the branch manager of ABC Handicrafts Pvt. The company’s objective is to promote the sales of Indian handloom and handicraft products. Its sells fabrics, furnishings, ready-mades and household items are made out of traditional Indian fabrics. Sanjana decides quantities, variety, colour and texture of all the above items and then allocates resources for their purchase from different suppliers. She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk. Although they looked very impressive, they were more expensive than they had planned to sell. Average customer could not afford to buy it. Praising their effort, Sanjana suggested that they should keep the silk bed covers for special occasions like Diwali and Christmas and offer the cotton bed covers on a regular basis to keep costs under control".
Identify the functions of management which Sanjana performs by quoting the lines the above para.         (5 marks)
Ans. 
  1. Planning Function:

    • "Sanjana decides quantities, variety, colour and texture of all the above items..." - This line reflects the planning function of management. Sanjana is involved in strategic planning by determining the quantities, variety, and characteristics of the handicraft products.
  2. Organizing Function:

    • "She appoints a team of designers and craftspeople in the company..." - The appointment of a team of designers and craftspeople demonstrates the organizing function. Sanjana is organizing resources by assembling a skilled team to contribute to the development of products.
  3. Directing Function:

    • "Praising their effort, Sanjana suggested..." - The act of praising the team and providing suggestions represents the directing function. Sanjana is providing guidance and direction to the team, encouraging positive efforts.
  4. Controlling Function:

    • "Although they looked very impressive, they were more expensive than they had planned to sell." - This line highlights the controlling function. Sanjana is assessing the results of the team's efforts and identifying an issue (higher cost than planned), indicating the need for corrective action.
  5. Coordinating Function:

    • "Sanjana suggested that they should keep the silk bed covers for special occasions like Diwali and Christmas and offer the cotton bed covers on a regular basis..." - This suggests the coordinating function. Sanjana is aligning the product offerings with market demand, coordinating the release of silk bed covers for special occasions and offering more affordable cotton bed covers regularly.


Q.12. XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and the risks. The demand of lanterns was increasing day by day, so the company decided to increase production to generate higher sales. For this they decided to employ people from the nearby villages as very few job opportunities were available in that area. The company also decided to open schools and crèches for the children of its employees.
1. Identify and explain the objectives of management discussed above.
2. The company is fulfilling the organizational and social objectives of management.            (4 marks)
Ans. 
1. The company is fulfilling the organizational and social objectives of management.
Organizational objectives include survival, profit and growth:
(i) In order to survive, XYZ Power Ltd. earns enough revenues.
(ii) Company’s profits are sufficient to the cover the costs and the risks.
(iii) Since demand for lanterns was increasing day by day and so the company decided to increase production to generate higher sales, it implies that the company exploits fully its growth potential.
(iv) Social objectives involve the creation of benefits for the society.
(v) The company decided to employ people from the nearby villages as very few job opportunities were available in that area. It also decided to open schools and crèches for the children of its employees.’
2. Values
(i) Providing employment opportunities in rural areas
(ii) Concern for the environment
(iii) Socially responsible behavior
(iv) Community development by opening schools and crèches for children (any two)


Q.13. Nishtha is the marketing manager of a company selling laptops.  She plans the target sale of 2000 laptops per month.  She allocates necessary resources to carry out the plan.  She has six salesmen working under her.  She works with them, guiding and motivating them to achieve the target sales.  At the end of the month, after comparison of actual sales with the target sales she found that actual sales exceeded the target sales. She rewards the efficient employees to motivate them.
1. How does Nishtha prove the importance of management?  Explain.
2. Also state any two values which she wants to communicate to the society by her behavior.        (5 marks)
Ans. 

  1. Nishtha demonstrates the importance of management through her actions in planning, organizing, leading, and controlling the sales activities of the company:

    • Planning: By setting a target sale of 2000 laptops per month, Nishtha establishes clear objectives for the sales team, providing direction and focus for their efforts.
    • Organizing: Nishtha allocates necessary resources, such as sales staff and promotional materials, to carry out the sales plan effectively, ensuring that the team has the support needed to achieve their goals.
    • Leading: Nishtha works closely with her sales team, providing guidance, support, and motivation to help them achieve the target sales. Her leadership fosters a positive work environment and encourages collaboration and teamwork.
    • Controlling: Nishtha monitors the performance of the sales team and compares actual sales with the target sales, allowing her to assess progress and take corrective action as needed. By rewarding efficient employees, she reinforces desired behavior and encourages continuous improvement. Overall, Nishtha's management skills contribute to the success of the sales department and the company as a whole, highlighting the importance of effective management in achieving organizational objectives.
  2. Values communicated by Nishtha's behavior:

    • Efficiency and Excellence: Nishtha's recognition and reward of efficient employees communicate a value of efficiency and excellence. By acknowledging and incentivizing high performance, she promotes a culture of excellence within the organization and encourages employees to strive for success.
    • Fairness and Equity: Nishtha's practice of rewarding efficient employees demonstrates a commitment to fairness and equity. By recognizing and rewarding employees based on their performance, rather than favoritism or bias, she reinforces principles of fairness and meritocracy in the workplace, promoting a positive and inclusive work environment.


Q.14. Sooraj works as a salesman in a company selling pet accessories and food. He has been given a target of selling 1200 units of the food packets in a month by offering a maximum of 10% discount to his customers. In order to meet his monthly sales target, on the last two days of the months, he offers 15% discount to his customers.
In the context of the above case: "Is Sooraj effective in his work?  Explain by giving a suitable reason in support of your answer".
Ans.  In evaluating Sooraj's effectiveness in his work, we need to consider both his ability to achieve his sales target and the strategies he employs to do so.

Sooraj's ability to meet his monthly sales target of 1200 units is commendable. However, his decision to offer a higher discount (15%) on the last two days of the month to push sales raises some concerns about the sustainability of his approach.

While offering discounts can sometimes be an effective strategy to stimulate sales, relying on such tactics to meet targets may indicate a short-term focus rather than a sustainable, long-term approach. By offering a higher discount only at the end of the month, Sooraj may be sacrificing profitability and potentially undermining the company's pricing strategy.

Additionally, Sooraj's reliance on last-minute discounts to achieve his targets may mask underlying issues with his sales techniques or customer engagement throughout the month. If Sooraj is consistently falling short of his targets and resorting to last-minute discounts as a quick fix, it suggests a need for improvement in his sales approach and customer relationship management skills.


Q.15. Sujata works as a designer in an export house. As per the terms of an order received by the export house, she has to get 100 units of denim jackets made in 15 days @ Rs. 2000 per jacket. She is able to complete her target production in 20 days because in order to complete it he order in 15 days she would have made the workers work over time. As a result, the cost of production per jacket may have increased by Rs. 100.
In the context of the above case: "Is Sujata efficient in her work?  Explain by giving a suitable reason in support of your answer".
Ans.  In assessing Sujata's efficiency in her work, we need to consider her ability to meet the production target within the specified time frame and at the expected cost.

Sujata's completion of the production target of 100 units of denim jackets demonstrates her effectiveness in delivering the desired output. However, her inability to complete the order within the originally specified time frame of 15 days raises concerns about her efficiency.

While Sujata was able to complete the production in 20 days, she had to extend the production timeline due to not making the workers work overtime. This decision likely led to increased production costs, as she mentions that completing the order in 15 days would have resulted in a higher cost of production per jacket by Rs. 100.

Efficiency in this context would involve completing the production target within the specified time frame while minimizing costs. Sujata's decision to prioritize regular working hours for her workers may have contributed to a more sustainable and equitable work environment. However, the increased production costs incurred by extending the production timeline suggest a potential inefficiency in her work.


Q.16. "Anju and Manju are good friends. Considering the cast that the activities involved in managing an enterprise are common to all organizations, after completing their masters in business management, both of them take up a job at managerial level in different organizations as per their individual areas of interest. Anju tales up a marketing job in a retail company and strives to increase sales where as Manju joins an NGO and works diligently to realize its objective related to providing employment to specially abled persons. Both of them have to perform a series of continuous, composite, but separate functions. On some days, Anju may spend more time in planning a future display layout and on another day, she may spend time in sorting out an employee’s problem. Both Anju and Manju make conscious efforts to build a feeling of team spirit and coordination among diverse individuals with different needs who work under them. The effect of their management is noticeable in their respective departments as the targets are met according to plans, employees are happy and satisfied, and there is orderliness in its functioning rather than chaos".
In context of the above case:
Identify the various features of management highlighted in the above paragraph by quoting lines from it.
Ans. 

  1. Common Activities in Managing an Enterprise:

    • "Considering the fact that the activities involved in managing an enterprise are common to all organizations..." - This line highlights the commonality of management activities across different types of organizations, suggesting that fundamental management principles apply universally.
  2. Diverse Job Roles:

    • "Anju takes up a marketing job in a retail company and strives to increase sales whereas Manju joins an NGO and works diligently to realize its objective related to providing employment to specially abled persons." - This line illustrates how Anju and Manju pursue different career paths aligned with their individual areas of interest, showcasing the diversity of job roles within the field of management.
  3. Continuous, Composite Functions:

    • "Both of them have to perform a series of continuous, composite, but separate functions." - This line emphasizes that management involves performing a variety of interconnected functions continuously, indicating the complexity and dynamic nature of managerial roles.
  4. Planning and Problem-Solving:

    • "On some days, Anju may spend more time in planning a future display layout and on another day, she may spend time in sorting out an employee’s problem." - This line highlights the importance of planning and problem-solving in management, indicating that managers like Anju engage in activities aimed at both long-term strategic planning and day-to-day operational issues.
  5. Building Team Spirit and Coordination:

    • "Both Anju and Manju make conscious efforts to build a feeling of team spirit and coordination among diverse individuals with different needs who work under them." - This line underscores the role of managers in fostering a positive work culture and promoting teamwork and coordination among employees, regardless of the organizational context.
  6. Achieving Targets, Employee Satisfaction, and Orderliness:

    • "The effect of their management is noticeable in their respective departments as the targets are met according to plans, employees are happy and satisfied, and there is orderliness in its functioning rather than chaos." - This line highlights the outcomes of effective management, including the achievement of targets, high employee satisfaction, and the maintenance of order and efficiency in organizational functioning.


Q. 17. Real Alliance Ltd. is a well-known cement company in India. It is able to earn adequate revenues to cover costs. Its capital base, number of employees and production turnover has increased manifolds over the years. The rate of profitability of the business is also creditable. The employees of the company are happy and satisfied with their remuneration, working conditions, promotion policy etc. as a part of its moral obligation, the company has taken many initiatives for providing employment to specially abled persons and promoting literacy in the villages adopted by it.

In the context of the above case:
1. Identify and explain the various types of objectives of management being fulfilled by Real Alliance Ltd by quoting lines from the paragraph.
2. List any two values that real Alliance Ltd. wants to communicate to the society.
Ans. 

Objectives of Management Fulfilled by Real Alliance Ltd:

  • Profitability Objective: "It is able to earn adequate revenues to cover costs." - This line indicates that Real Alliance Ltd fulfills the profitability objective of management by generating sufficient revenues to cover its costs and ensure financial sustainability.
  • Employee Satisfaction Objective: "The employees of the company are happy and satisfied with their remuneration, working conditions, promotion policy etc." - Real Alliance Ltd satisfies the objective of employee satisfaction by ensuring that its employees are content with their remuneration, working conditions, and promotion policies.
  • Social Responsibility Objective: "As a part of its moral obligation, the company has taken many initiatives for providing employment to specially abled persons and promoting literacy in the villages adopted by it." - Real Alliance Ltd fulfills the social responsibility objective of management by taking initiatives to provide employment opportunities to specially abled persons and promote literacy in the villages it has adopted.

Values Communicated by Real Alliance Ltd to Society:

  • Social Responsibility: Real Alliance Ltd communicates a value of social responsibility by taking initiatives to provide employment to specially abled persons and promote literacy in the villages it has adopted. This demonstrates the company's commitment to making a positive impact on society beyond its core business activities.
  • Employee Welfare: Real Alliance Ltd communicates a value of employee welfare by ensuring that its employees are happy and satisfied with their remuneration, working conditions, and promotion policies. This reflects the company's commitment to valuing and prioritizing the well-being of its workforce.

Q.18. Esha works as the cost and risk management head of a company in power sector. As a result of her excellent managerial competence, the company is able to reduce costs and increase productivity. The company belongs to infrastructure sector, where is regular amendments are made in the government regulations and policies. She holds regular meetings to ensure that people in her department are not only aware of the related changes but are also able to adapt to these changes effectively. This helps the company to maintain its competitive edge. She motivates and leads her team in such a manner that individual members are able to achieve personal goals while contributing to the overall organizational objective. In the process of fulfilling her duties for the growth of the organization, she helps in providing competitive services, adopting new technology, creating more employment opportunities etc. for the greater good of the people at large.
In context of the above case: Identify the various reasons that have made management so important by quoting lines from the paragraph.
Ans. The various reasons mentioned in the above paragraph that have made management so important are stated below:
1. Management increases efficiency as it leads to reduction in costs due to optimum utilization of resources. “As a result of her excellent managerial competence the company is able to reduce costs and increase productivity.”
2. Management creates a dynamic organization so that it is able to incorporate the corresponding changes in its working with any change in its business environment.
“The company belongs to infrastructure sector, wherein regular amendments are made in the government regulations and policies. She holds regular meetings to ensure that people in her department are not only aware of the related changes but are also able to adapt to these changes effectively.This helps the company to maintain its competitive edge.”
3. Management helps in achieving personal objectives of the employees in the organization.
“She motivates and leads her team in such a manner that individual members are able to achieve personal goals while contributing to the overall organizational objective.”
4. Management helps in the development of society by contributing effectively towards it is multiple ways.
“In the process of fulfilling her duties for the growth of the organization, she helps in providing competitive services, adopting new technology, creating more employment opportunities etc. for the greater good of the people at large.

Q.19. Ramarjuna joins an IT from as a system analyst after completing his masters in Computer Science. As the nature of his work demands he has to work in very close coordination with all the departmental head in the firm, very soon Ramarjuna realizes that each departmental head has own individual style of working. They differ greatly in their day-to-day approach to work. They tend to deal with a given situation, an issue or a problem through a combination of their own experience, creativity, imagination, initiative and innovation.
In the context of the above case: Identify and explain the nature of management highlighted in the above case.
Ans. In the above case, management is being considered as an art.
Art is the skillful and personal application of existing knowledge to achieve desired results.
The evaluation of management as an art is given below:
1. Existence of theoretical knowledge
2. Personalized applications
3. Based on practice and creativity

Q.20. Dharam is a well-known businessman in the field of publishing. He owes the success of his business to his own education in business management and his team of certified management consultants. Therefore, he decides to send both his children Danush and Damini abroad to acquire a degree in business management in their individual area of expertise. He feels that all over the world there is marked growth in managements a discipline, but still it is not considered to be a full-fledged profession for certain reasons.
In the context of the above case:
1. Explain the reasons because of which Dharam considers management as a discipline.
2. Critically examine the various reasons because of which management is not considered to be a full-fledged profession.
Ans. 
1. Dharam considers management as a discipline because there exist a number of theories and principles on management which have been formulated by various management experts. It is taught in various schools and colleges, all over the world, as a separate subject of study.
2. Management is not considered to be a full-fledged profession because of the following reasons:
(i) Restricted entry
(ii) Professional association

Q.21. Kartik joins a garment factory as a plant supervisor in Lucknow. He observes that the output of some workers is very low as compared to the standards set for their performance. On analyzing the reasons for the same, he finds out that a lot of time of the workers is wasted in getting the requisite materials issued form the store. Whereas on asking, the store keeper complains that there is no harmony in the working of the production department as a whole. Every day the workers approach him at the least minute to procure different kinds of threads, laces, mirrors, buttons etc. if it is not available in the store then he has to place an order with the purchase officer. As a result, a lot of time of the workers is wasted.  So, in order to integrate the various production activities, henceforth, Kartik ensures that the store keeper is informed well three days in advance about the requisite materials. Consequently, the store keeper is able to keep the materials ready for the workers every morning in accordance with their requirements.
In context of the above case:
1. Identify and explain the quality of management that Kartik has introduced in the working of the production department as a corrective measure to control the output of the workers.
2. State briefly and two points highlighting the importance of quality of management identified in part (a).
Ans. 
1. Coordination is the quality of management that Kartik has introduced in the working of the production department as a corrective measure to control the output of the workers. Coordination is the process which helps to integrate the efforts of different individuals with diverse needs to secure a unity of action in the pursuit of common goals.
2. The two points highlighting the importance of coordination are stated below:
(i) Growth in the size
(ii) Functional differentiation

Q.22. Sridhar’s father is working as a section in-charge in a government office.  Identify the level of management at which he is working? State any five functions that he has to perform at this level.
Ans. Sridhar’s father is working as a section in-charge in a government office. He is working at the lower level of management.
He has to perform the following functions at this level of management:
1. He has to directly oversee the efforts of the workforce.
2. He has to serve as a link between the workers and middle level managers.
3. He has to ensure sufficient availability of resources and good quality of output.
4. He has to provide guidance and training to workers.
5. He has to ensure that good working conditions are provided to the workers.

Q.23. Geetika is working in a private sector bank. One of her key function relates to the formulation of the overall organizational goals and strategies of the bank. Identify the level of management at which she is working? State any three other functions that she has to perform at this level.
Ans. Geetika is working at the top level of management in the private sector bank.
The three other functions that she has to perform at this level are outlined below:
1. She is responsible for the success and failure of the organization.
2. She is responsible for all the business activities and its impact on society.
3. She has to coordinate the activities of different departments in pursuit of common goals.

Q.24. Arundhati has been promoted to the post of Marketing Division Head of a soft drink company. Identify the level of management at which she will be working henceforth. State any four functions that she will have to perform at this level.
Ans. Henceforth, Arundhati will be working at middle level of management.
The four functions that she will have to perform at this level are stated below:
1. She had to ensure that her department has the necessary staff.
2. She has to assign duties and responsibilities to the people in her department.
3. She has to motivate the people in her department to achieve the desired objectives.
4. She has to co-operate with the other departments for ensuring smooth functioning of the organization.

Q.25. Bhuvan argues that management is required in all kinds of organizations where as Piyush feels that management is not required in non-business organizations such as school, club, hospitals, etc. who is correct
Ans. Bhuvan, because management is pervasive.

Q.26. Mohan has retired from the post of a foreman in a factory. At what level of management is he working?
Ans. Supervisory or operational level.

Q.27. ‘Sonu Nigam’ the famous playback singer always spends time for practice and adds his creativity in his singing.
Like Sonu Nigam, Mr. Rajiv, manager of Headlines Ltd. uses his creativity and practice management principles under different situations to manage the business. The employees are happy and satisfied as he every day reward employees for their punctuality and efficiency.
1. Identify the nature of management highlighted above.
2. Name other two aspects of nature of management.
3. Identify the values followed by Mr. Rajiv.
Ans. 
1. Nature of management highlighted above is “Management as an Art”
2. The other two aspects of nature of management are:
(i) Management as Science.
(ii) Management as Profession.
3. Values
4. Motivating employees for discipline and punctuality.
5. Good and responsible behavior by rewarding employees.

Q.28. Bhuvan Ltd., a garment manufacturing Company set the target production of 100 garments per month at the estimated cost of Rs. 200 per garment. Mohan, a worker worked double shift and manufactured around 150 garments but at the estimated cost of Rs. 230 per garment. On the other hand, Ravi another worker focus on cost and handled resources very carefully so the manufactured 90 garments but at the estimated cost of Rs. 190 per garment. Third worker maintained the balance and achieved target of 100 garment at the estimated cost of Rs. 200 per garment.
1. Identify the quality possessed by Ravi, Mohan and what they are lacking.
2. What quality is possessed by third worker?
3. Which worker is preferred by management?
Ans. 
1. Mohan is effective but he lacks efficiency. Ravi is efficient but he lacks effectiveness.
2. Third worker is effective as well as efficient.
3. Management prefer third worker as management always insist on achievement of goal effectively as well as efficiently.

Q.29. Management of Alpha Ltd. has installed a special recycling plant to recycle the waste instead of dumping the waste in ground. It is also providing employment opportunities to local residents. Company started a school nearby for the children of their employees.
1. Identify the objectives company is fulfilling.
2. Quote the lines from above para which indicate those objective.
Ans. 
1. Social and personal objectives “Installed a recycle plant”. Social objective.
2. “Started a school for children of their employees”. Personal objectives.

Q.30. Directors of Bhuvan Ltd. assigned the task of implementing the plans and policies framed by the board to all the departmental heads. Departmental head appointed supervisors, superintendent, executives, etc. so that work can be assigned to workers as per the plan supervisors kept a check on workers as per the plan.
1. Identify the feature of management highlighted in above para.
2. Explain that feature.
Ans. The feature highlighted in above para is “management is a group activity.”

Q.31. Alpha Ltd. is a Company that manufacturers mobile phones and accessories. Its profits are declining nowadays. The sales department blames production department for low quality, the production department blames purchase department for not supplying good quality parts.
1. What quality of management is lacking in the above case?
2. Explain the nature of the concept.
Ans. (a) Coordination.

Q.32. A group of people believes that management is a systematic body of knowledge that explain certain general truth and is based on logical observation.
Identify and explain the nature of management discussed in above case.
Ans. Management as a Science.

Q.33. Unique enterprises is able to achieve the target production of 5,000 units within the prescribed time; however to achieve this target they hired extra workers on adhoc and spent around is 40,000 extra to pay the adhoc workers sot that target production can be achieved on time.
1. Do you think unique enterprise is effective or efficient?
2. Was their decision to hire adhoc workers to achieve the target was correct?3. Explain the concept of management highlighted above.
Ans. 
1. Unique enterprise is effective but not efficient.
2. No, the decision to hire adhoc workers and spending extra is not correct, this will reduce the efficiency of enterprise.
3. The concept referred in this case is “Balance between effectiveness and efficiency.

Q.34. In an organization sales department wants to increase the sale by 20% so sales department planned to offer extra discounts to customers. Finance department raised objection on it as they sat it will result in loss of revenue and company may face liquidity problem.
1. Name the importance of coordination referred here.
2. State other two importance of coordination.
Ans. 
1. Functional differentiation.
2. Other two importance:

  • Size 
  • Specialization

Q.35. Mr. Rajiv and Arun are responsible for welfare of the whole organization. Their job is very complex they have to develop long term objectives, policies and review the work of different heads at different level. Mr. John and Mr. Singh are responsible for the working of department they are heading, they formulate short term departmental objectives in accordance with organizational objectives.
Mr. Philip, Mrs. Archana, Mrs. Kamlesh and Mrs. Kavita are in direct contact with the workforce consisting of various employees and workers.  They are responsible for quality of work and providing good working conditions to workers.
1. State the three level of management.
2. Name the persons who are involved in different level from the above para.
Ans. 
1. Top level, middle level, supervisory level.
2. (a) Top level – Mr. Rajiv and Arun

(b) Middle level – Mr. John and Singh
(c) Supervisory level – Mr. Philip, Mrs. Archana, Kamlesh and Kavita


Q.36. The manager of Alpha Ltd. is very efficient and effective and makes sure all the employees and workers in his team perform the task on time with minimum cost. His main focus is on cost cutting so he never listens to the demand of workers for increasing wages.  He even gives no opportunity to worker for promotion. As a result workers started becoming frustrated and disheartened all the time.
1. Which objective of management could not be achieved by the manager.
2. State other two objectives of management.
3. State any one value ignored by the manager.
Ans.
1. Personal/Human or individual objective.
(i) Economic
(ii) Social
2. Value of humanity, Care.

Q.37. The management of Amaira Ltd. strongly believes that the members of the organization should work toward fulfilled the common organizational goals. This requires team work and integration of efforts of all individuals departments and specialists. This is because all the individuals and departments depend on each other for information and resources to perform their respective activities. Manager needs to reconcile differences in approach, timing, efforts and interest. At the same time it should enable all its members to grow and develop. Thus, there is a need to harmonize individual goals and organizational goals.
1. Stat the concept of management discussed above.
2. State any three features of the concept identified in above para.
3. State value referred in above para.
Ans.
1. Coordination.
2. Give features of coordination.
3. Value of Harmony between employees and management.

Q.38. Mega Ltd. manufactured water-heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its cost. To increase the revenue, the company analysed the reasons behind the less revenues. After analysis, the company decided:
1. To reduce the labour cost by shifting the manufacturing unit to a backward area where labour was available at a very low rate.
2. To start manufacturing solar water-heaters and reduce the production of electric water-heaters slowly.
This will not only help in covering the risks but also help in meting other objectives.
1. Identify and explain the objectives of management discussed above.
2. State any two values which the company wanted to communicate to society.
Ans. 
1. The objectives of management discussed above are:
(i) Organizational objectives
(ii) Social Objectives
2. The two values that the company wanted to communicate to the society are:
(i) Rural development
(ii) Environment sustainability

Q.39. Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organization?  What are he basic functions?
Ans. Ritue / grandfather / Deepak’s father / Deeraj / Rajat, all of them are working at the middle level of management.

Q.40. Mr. Nitin Singhania’s father has a good business of iron and steel. He wants to go to the USA for his MBA but his father thinks that he should join the business. On the basis of emerging trends, do you think that Mr. Singhania should send his son to the USA? Give any three reasons in support of your answer.
Ans. Yes, according to me, Mr. Singhania should send his son to USA for his MBA because management is being recognized as a profession to a great extent because of the following reasons:
1. Well defined body of knowledge
2. Ethical code of conduct
3. Service motive

Q.41. "Jayant is working as Head Relationship Manager in the wealth management division of a private sector bank. He has created an internal environment which is conducive to an effective and efficient performance of his team of ten relationship management executives. A typical day at work in Jayant’s life consists of a series of interrelated and continuous functions. He decides the targets for his department which are in line with the objectives of the organizaitonas a whole. The future course of action for his team members is laid out well in advance. The various resources required by the relationship managers like an Paid with GPS system, account opening forms, brochures, details of account holders etc. are made readily available to them. The executives are given sufficient authority to carry out the work assigned to them. Jayant works in close coordination with the human Resource Manager in order to ensure that he is able to create and maintain a satisfactory and satisfied work force in his department. Through constant guidance and motivation, Jayant inspires them to realize their full potential. He offers them various types of incentives from time to time keeping in view their diverse individual needs. Moreover, he keeps a close watch on their individual performances in order to ensure that they are in accordance with the standards set and takes corrective actions whenever needed".
In context of the above case:
1. Identify the concept being referred to in the following line, “He created an internal environment which is conducive to an effective and efficient performance of his team of ten relationship management executives.”
2. Identify and describe the various functions of the concept as identified in part (a) of the question by quoting liens from the paragraph.
Ans. 
1. The concept of management is being referred to in the following line, “He has created an internal environment which is conducive to an effective and efficient performance of his team of ten relationship management executives.”
2. The various functions of the management concept mentioned in the above paragraph are listed below:
(i) Planning
(ii) Organizing
(iii) Staffing
(iv) Directing
(v) Controlling

Q. 42. "Ajay and Sanjay are childhood friends. Sanjay had lost his right hand in an accident in childhood.  They meet after a long time in a restaurant. On being asked, Sanjay tells Ajay that he feels very discounted in managing his family business after the death of his father as it doesn’t match with his areas of interest. Ajay knows that Sanjay possess extraordinary skills in management although he hasn’t acquired any professional degree in management. Therefore, he asks Sanjay to wind up his business in India and join him in his hotel business in Dubai as an Assistant Manager in Sales and Marketing Division".
In context of the above case:
1. Can Sanjay be deployed at the post of Assistant Manager in Sales and Marketing Division though he hasn’t acquired any professional degree in management?  Explain by giving suitable justifications in support of your answer.
2. List any two values that are reflected in this act of Ajay.
Ans. 
1. Yes, Sanjay can be deployed at the post of Assistant Manager in Sales and Marketing Division although he hasn’t acquired any professional degree in management as management is not considered to be a full-fledged profession because of the following reasons:-
(i) Restricted entry
(ii) Professional association
2. The two values that are reflected in this act of Ajay are:
(i) Compassion
(ii) Responsibility

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FAQs on Case Studies - Nature and Significance of Management - Business Studies (BST) Class 12 - Commerce

1. What is the nature of management?
Ans. The nature of management refers to the characteristics and features that define the field of management. It involves planning, organizing, staffing, directing, and controlling the resources of an organization to achieve its goals effectively and efficiently.
2. Why is management significant in an organization?
Ans. Management is significant in an organization because it helps in achieving organizational goals, maximizing productivity, coordinating and integrating activities, making informed decisions, and adapting to changes in the business environment. It ensures the efficient use of resources and promotes the overall growth and success of the organization.
3. How does management contribute to the success of a business?
Ans. Management contributes to the success of a business by providing effective leadership, setting clear goals and objectives, developing strategies and plans, allocating resources, motivating employees, and monitoring performance. Through these activities, management ensures that the business operates smoothly and achieves its desired outcomes.
4. What are the key functions of management?
Ans. The key functions of management are planning, organizing, staffing, directing, and controlling. Planning involves setting objectives and determining the courses of action to achieve them. Organizing involves arranging resources and tasks to achieve the desired goals. Staffing involves selecting and developing a competent workforce. Directing involves guiding and motivating employees to achieve organizational objectives. Controlling involves monitoring performance and taking corrective actions when necessary.
5. How does management adapt to changes in the business environment?
Ans. Management adapts to changes in the business environment by being proactive and responsive. It involves analyzing the external environment, identifying potential threats and opportunities, and making necessary adjustments in strategies, plans, and operations. Management also encourages innovation and fosters a culture of continuous learning and improvement to stay competitive in a dynamic business environment.
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