NATURE OF MANAGEMENT- CASE STUDIES

EFFECTIVENESS Vs EFFICIENCY
Q1) 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

Q2) 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.

Q3) Sujata works as a designer in n 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 ithe 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.

Q4) 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 he 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.

A) Identify the quality possessed by Ravi, Mohan and what they are lacking.
B) What quality is possessed by third worker?
C) Which worker is preferred by management?

Q5) 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 so that target production can be achieved on time.
a) Do you think unique enterprise is effective or efficient?
b) Was their decision to hire adhoc workers to achieve the target was correct?
c) Explain the concept of management highlighted above.

FEATURES OF MANAGEMENT
Q6) 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 takes 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 form it.

Q7) 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?

Q8) 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.
Identify & explain the feature of management highlighted in above para.

Q9) After every three months, Mr. Peter, the sales manager, offers new trade promotion schemes to its
distributors. He plans to introduce new varieties of products keeping in mind the needs of a customer and
promotional schemes from his competitors. This gives him an added advantage over his competitors.
Identify which characteristics of management is reflected in above situation?

Q10) “ A collection of diverse individuals with different needs but working towards fulfilling the common
organizational goals.” Which characteristic of management is highlighted in aforesaid statement?

Q11) The production manager at Smart Laptops Ltd. was assigned a target of producing 5,000 laptops in a month.
He had 10 workers under him. Each of these workers was allotted the task of producing 500 laptops each. During
the course of the month, due to severe cold, two workers fell sick. The other workers refused to divide their work
amongst them and concentrated only on the production of their individual targets of producing 500 laptops. Thus,
at the end of the month, the group target of 5,000 laptops could not be met.
Which characteristic of management is being ignored in the above case?

OBJECTIVES OF MANAGEMENT
Q12) 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.         

Q13) 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. 
   Q14) 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.
Identify and explain the objectives of management discussed above.

  Q15) 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:
Identify and explain the various types of objectives of management being fulfilled by Real Alliance Ltd by quoting
lines from the paragraph.

Q16) 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.
Identify the objectives company is fulfilling.
Quote the lines from above para which indicate those objective.

Q17) 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. Which objective
of management could not be achieved by the manager.
State other two objectives of management

Q18) 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:

 To reduce the labour cost by shifting the manufacturing unit to a backward area where labour was available
at a very low rate.
 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 meeting other objectives.
Identify and explain the objectives of management discussed above.

LEVELS OF MANAGEMENT
Q19) 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.  

Q20) 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.

Q21) 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.

Q. 22) 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.

Q. 23) 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.

Q24) Mohan has retired from the post of a foreman in a factory.   At what level of management is he
working?

Q25) 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.
a) State the three level of management.
b) Name the persons who are involved in different level from the above para.

Q26) Ritu is the manager of the northern division of a large corporate house. At what level does she work
in the organization? What are her basic functions?

NATURE OF MANAGEMENT
Q27) 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.        

Q28)  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 heads
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.

Q29) 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 management as a discipline, but still it is not considered to be a full-fledged profession for certain
reasons.
In the context of the above case:
a) Explain the reasons because of which Dharam considers management as a discipline.
b) Critically examine the various reasons because of which management is not considered to be a full-fledged
profession.

Q30) 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.
a) Identify the nature of management highlighted above.
b) Name other two aspects of nature of management.

Q31) 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.

Q32) 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.

Q33) 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
disinterested 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:
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.

IMPORTANCE OF MANAGEMENT
Q34) 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 . How does Nishtha prove the importance
of management?  Explain.

Q35) 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.

Q36) Texmaco Ltd. aims to manufacture and sell 1,500 locomotives in 2020. To achieve this target, the production
department ensures timely production and sales department takes all possible steps to generate maximum
revenue. Due to combined efforts of all the departments, Texmaco. Ltd. is able to achieve its sales target.
Which importance of Management is highlighted in the above situation?
Which other aspect of management is necessary to ensure achievement of sales target by Texmaco Ltd.?

Q37) Management at Stella Ltd. took steps to modernise their plants, keeping in tune with the latest technological
developments in the environment. To ensure that workers do not feel out of place with the new technology,
proper training facilities are arranged for them. They are thus able to pick up the required skills and are rather
happy with the new & improved machines. Workers are encouraged to share their feedback, suggestions,
complaints and grievances, if any. This motivates the employees to put in their best for goal achievement of the
organisation. The company is also able to supply good quality goods to the members of the society.
Identify by quoting lines, the importance of management highlighted in the above case.

CO-ORDINATION & MISCELLANEOUS

Q38) 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 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.
A) What quality of management do you think the company is lacking?  Justify your answer.
B)State the importance of the concept identified in (a)

Q39) 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. Identify and explain the concept of
management explained in the above para. What characteristic feature does the above para highlight?  State.     
     
Q40) 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.

Q41) 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
from 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 last 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:

a) 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.
b) State briefly and two points highlighting the importance of quality of management identified in part (a).

Q42) 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.
a) What quality of management is lacking in the above case?
b) Explain the nature of the concept.

Q43) 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 said it will result
in loss of revenue and company may face liquidity problem.
Name the importance of coordination referred here.
State other two importance of coordination.

Q44) The management of Amaira Ltd. strongly believes that the members of the organization should work
toward 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.   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.

A) State the concept of management discussed above.

B) State any three features of the concept identified in above para.
Q45) 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 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, Sanjaja 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.          

Q46) 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 organization as 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 I-Pad 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.