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30 DAYS REVISION SERIES

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 Chapter-1
Nature and Significance of
Management
❖Management can be defined as a process of
getting the work done by others with the aim
of achieving goals effectively and efficiently
❖Effectiveness refers to completion of work or
achievement of target on time.
❖Efficiency refers to optimum utilization of
resources or no wastage of resources.
Question 1:

Cyclone Cycles is a leading bicycle manufacturing company. The company

decides to manufacture 5000 bicycles by the end of the month. The bicycle
manufacturing cost is to be kept below Rs.750 per unit. The bicycles have to be
manufactured at the set toughness enduring capacity at the scale of 8 out of 10.
With all these parameters in mind the company kick starts its manufacturing.
By the 28th of the month the company is able to achieve the manufacturing of
5050 bicycles. The toughness endurance scale is well above 8.25 out of 10.
When everything seems to have gone well the manufacturing department
reveals that per unit cost of each bicycle is Rs.780.
In the above case do you think that the company has been able to achieve
Effectiveness? 1
Answer:
Yes the company has achieved Effectiveness. Since the quality (toughness
scale—8.25 well above 8), quantity (5050 units well above 5000 units) and
dead line (the target is achieved on 28th) have been achieved. The company
lacks in efficiency as per unit cost has gone above the set target by Rs.30.
Characteristics or features of Management
1. Characteristics or features of Management

2. Management is pervasive
3.(a)Management (b)Management (c)Management
3. Management is multi dimensional of work of People of operation

4. Management is a continuous process

5. Management is a group activity

6. Management is a dynamic function

7. Intangible
Question 1:
Josh Enterprises decides to have a meeting of all the key employees of different
departments in the organisation. The main motive is to tell the employees to keep
the target of 20% increase in sales as the main objective when they work
throughout the year. The meeting is full of ideas regarding the employees and
processes involved. Various plans are made to harness the potential of the
employees and streamline the processes. However with the passage of a few days
the external business environment checks the capability of the organisation to
adapt to the situations. The company successfully comes out at the end of the year
with flying colours.
What are the various characteristics of management you can find highlighted
here? Also identify the lines in which these characteristics have been highlighted.
Answer:
The various characteristics of management involved here are:

Goal Oriented. The main motive is to tell the employees to keep the target of 20%
increase in sales as the main objective when they work throughout the year.
Multidimensional. Various plans are made to harness the potential of the employees
and streamline the processes. Employees—People, and Streamline the process—
Operations.
Dynamic. However with the passage of a few days the external business
environment checks the capability of the organisation to adapt to the situations.
 Objectives of Management

1. Organisational objectives 2. Social Objectives 3. Personal Objectives

 1. Organisational objectives
The three important organisational objectives are
❑ Survival
❑ Profit
❑ Growth
 Social Objectives
Social objectives are-

➢ Supply of quality product at reasonable prices.

➢ Generation of economic wealth.
➢ Environmental friendly methods of production.
➢ Providing employment to weaker section of society.
➢ Organising educational, health and vocational training
programmes.
 3.Personal Objectives
Personal Objectives are
▪ Competitive salary.
▪ Personal growth and development
▪ Peer recognition.
▪ Social recognition.
▪ Good and healthy working conditions
Question 14:
Shiva Computers Ltd. is a leading company in Computer Technology and
IT services. The CEO of the company attributes the success of the
Company to its managerial team spirit, which have helped to handle
rapid changes in technologies and to transform threats into
opportunities. Like any other business enterprise profits are important
for survival and growth of Shiva Computers Ltd. The management of the
company believes that a satisfied employee creates a satisfied customer;
who in turn creates profits that lead to satisfied shareholders.
The company has a strong sense of social responsibility. It has set up
many educational institutions in the field of management, engineering
and computer education, in which half of the students are girls.
On the basis of the given information about Shiva Computers Ltd.
answer the following

(a) Identify and explain the objectives of the company discussed in the
above para. Also quote the lines for the identified objectives.
(b) Identify any two values which the company is trying to
communicate to the society.
Answer:
(a) “Like any other business enterprise profits are important for survival and growth of
Shiva Computers Ltd.”
Objective—Organisational objectives. Organisational objectives include proper
utilisation of material and human resources to fulfill the economic objectives of the
business. These economic objectives include the following:

Survival. Management has to ensure the survival of the organisation. An organisation

must generate sufficient revenue so that it is able to cover its costs.

Profit. Management must ensure that business earns profit so that it can continue its
operations in the long rim.
Growth. It involves adding to the prospects of the business in the long run. Growth
of the business is indicated by increase in sales volume, increase in number of
employees, increase in investment, etc.
“The management of the company believes that a satisfied employee creates a
satisfied customer, who in turn creates profits that lead to satisfied
shareholders.”

Objective—Personal objectives. Various people join a particular organisation to

satisfy their diverse needs that range from financial needs to affiliation needs.
Management aims at reconciling personal goals with organisational goals for the
purpose of creating harmony.
“The company has a strong sense of social responsibility. It has set up many
educational institutions in the field of management, engineering and computer
education, in which half of the students are girls.
Objective—Social objectives. Social objectives involve creation of benefit by the
business for the society. It involves creation of economic value for the benefit of the
members of the society.

(b) Values:

Team Spirit and Good work culture.

Women’s Empowerment.
Fulfilling social responsibility by showing concern for the society. (any two)
 Importance of Management
1. Management helps in achieving group goal
2. Management increases efficiency
3. Management creates a dynamic organisation
4. Management helps in achieving personal objectives
5. Management helps in the development of society
Question 4:

A floor manager of a mall is a very good manager as he utilizes all the

functions of management to minimize cost of maintenance of his
area. He directs all the staff members under him to follow the targets
and advises them to put their efforts in the direction of achievement
of these targets. Under his guidance the employees admit that they
learn a lot and are able to meet their targets. This has led to the
increase in their salaries. Identify the importance of management
highlighted above.
Answer:
The importance of management highlighted here are:

Management increases efficiency. A floor manager of a mall is a very good manager as

he utilizes all the functions of management to minimize cost of maintenance of his
area,
Management helps in achieving group goals. He directs all the staff members under
him to follow the targets and advises them to put their efforts in the direction of
achievement of these targets.
Management helps in achieving personal objectives. This has led to the increase in
their salaries.
 Nature of Management

Management as an Management as Management as

Art Science Profession
 Management as an Art
The basic features of an art are

1. Existence of theoretical knowledge - There is lot of literature available in various

areas of management like marketing, finance and human resources which the
manager has to specialise in.
2. Personalised application - In management also all managers learn same
management theories and principles. But their efficiency depends on how well they
use these principles under different situations by applying personal skills and
creativity
3. Based on practice and creativity- In management a manager applies this acquired
knowledge in a personalised and skillful manner in the light of the realities of a
given situation
 Management as a Science
I. Systematic body of knowledge
II.Principles based on experimentation

❖Absence of universal validity

❖Unpredictable outcome
 Management as a profession
❖ Well defined body of knowledge

1. Restricted entry - The entry to a profession is restricted through an, examination or

through acquiring an educational degree but there is no restriction on anyone being
designated or appointed as manager .
2. Professional association – All professionals are affiliated to a professional association
however, no compulsion for managers to be members of such a neither association nor
does it have any statutory backing
3. Ethical code of conduct – All professions is bound by a code of conduct which guides
the behavior of its members. Although no code of conduct is binding on managers.
4. Service Motive – The basic motive of a profession is to serve their client is interest by
rendering dedicated and committed service while the basic purpose of management is to
help the organisation achieve its stated goal.
Question 10:

In a country named Wonderland acting is considered as a profession. Whosoever has

to become an actor has to read books written about acting. These books tell the
nuances of acting and without reading these books one can’t be considered as an
actor. To judge the ability of an actor an examination is conducted and then a degree
is assigned to the qualified persons who can then act in films. There is also a body
which provides membership to all actors. There are about thirty thousand actors in
wonderland who are compulsorily members of this organisation.
What are the three features of profession highlighted here? Also identify the lines
highlighting these features?
Answer:

The three features of profession highlighted here are:

Well-defined body of knowledge. An actor has to read books written about acting.
Restricted Entry. To judge the ability of an actor an examination is conducted and
then a degree is assigned to the qualified person who can act in films.
Professional Association. Actors in wonderland who are compulsorily members of
this organisation.
Levels of Management

1. Top Management

2. Middle Management

3. Lower Management
 1. Top Management
Main function
❖Determining the objectives of the enterprise.
❖ Framing the plans & policies.
❖ Organising activities to be performed by persons working at middle
level.
❖ Assembling all the resources such as finance, fixed assets etc.
❖ Responsible for welfare and survival of the organization
❖ liaison with outside world i.e. meeting govt. officers etc.
❖ They analyze the business environment and its implication for the
survival of the firm
 2. Middle Management
Main functions
➢ Interpret the policies framed by top management.
➢ Organising the activities of their department.
➢ Finding out or recruiting/ selecting and appointing the required
employees
➢ Cooperate with other departments for smooth functioning of the
organisation
➢ Implementing the plans framed by top level.
➢ Responsible for all the activities of first line managers.
 3. Supervisory or Operational Management
❑ Representing the problems or grievances of workers
❑ Maintaining good working conditions and developing healthy relations between
superior and subordinate.
❑ Looking to safety of workers
❑ Helping the middle level management and in recruiting, selecting and appointing the
workers.
❑ Maintaining quality of output
❑ Minimizing the wastage of materials
❑ Maintenance of safety standards • They are responsible for boosting the morale of
the workers.
❑ Communicating with workers and welcoming of their suggestion The quality and
quantity of output depends upon the hard work, discipline and loyalty of the workers.
 Functions of Management
➢ Planning – Planning is the function of determining in advance what is to be
done and who is to do it.
➢ Organising – Organising is the management function of assigning duties,
grouping tasks, establishing authority and allocating resources required to
carry out a specific plan.
➢ Staffing – Staffing means finding the right people for the right job.
➢ Directing – Directing involves leading, influencing and motivating employees
to perform the task assigned to them.
➢ Controlling – In this function managers try to match the actual performance
with standared performance
 Coordination
Coordination means bringing together the activities and resources of
organisation and bringing harmony in them
Coordination – The essence of management

i. Coordination is needed to perform all the functions of management

ii. Coordination is required at all levels
iii. Coordination is the most important function of an organisation
 Characteristics of Coordination
1. Coordination integrates group efforts.
2. Ensure unity of efforts
3. Continuous process
4. Coordination is a pervasive function
5. Coordination is the responsibility of all managers
6. Coordination is a deliberate function
 Importance of Coordination

1. Growth in size
2. Functional differentiation
3. Specialisation
Question 15:

White Camel Sports Ltd. has recently given job to two employees. Rajesh
work experience as Rajesh is a bit older and had worked in an MNC earlier. However both
are paid equally. Every person in their department knows that Rajesh is more efficient than
Suresh. Definitely they see a mismatch in the salaries and the efficiencies of the employees
in the company. The marketing department of the same company has this year set a
monthly target of 10000 units of sports items to be sold. In the month of March 6000 items
were sold and the deviation was 4000 units. In the month of April 8000 units were sold
and the deviation was 2000 units. Despite these deviations no effort is being made to track
the performance of the company to minimize the gaps.
In the above case which two functions of management have been discussed? A very
important concept of management has also been overlooked. Identify it.
Answer:
The functions of management discussed above are—
(i) Staffing (The company has recently given jobs to two employees)
and Controlling (Deviations are being discussed above).
The concept of management which is missing in the above case
is coordination. There is lack of coordination in staffing (they see a
mismatch in the salaries and the efficiencies of the employees in the
company) and controlling (no effort is being made to track the
performance of the company to minimize the gaps).
 Differences between Coordination and Cooperation
S.No Basis Coordination Cooperation
1. Meaning Coordination refers to bringing Cooperation refers to voluntary
together the activities of an efforts of individuals to work
organisation together and help each other.
2. Nature Coordination is a conscious and It is a voluntary effort of
deliberate action of manager employees
3. Relations Coordination is achieved Cooperation arises out of
through both formal and informal relations
informal relations.
Question 18:

In an island there is a famous ship company. Hundreds of workers work here. All
of them belong to a culture where they help each other. The environment in the
company is about helping each other thus leading to a great environment in the
company. However the company lacks professionalism. Most of the workers are
school dropouts and they hardly know how to make their work synchronized as a
team. Failing of plans is common in this company.
After reading the above case find out the concept of management which is
followed and its advantage. Also find out one concept of management which is
violated and its outcome on the company. 4
Answer:
The concept of management which is followed is Cooperation. Since the
workers help each other and the general environment in the company is of
cooperation. The advantage of cooperation is that there is satisfaction within
the employees in its presence.
The concept of management which is violated is Coordination. They hardly
know how to make their work synchronized as a team. One disadvantage of not
following coordination is the wastage of effort and time .