NATURE AND SIGNIFICANCE OF

MANAGEMENT
CHAPTER 1
 MANAGEMENT
• Management is the process of getting things
done with the aim of achieving goals effectively
and efficiently.

• It is the process of planning, organising, directing

and controlling an organisation’s operations in
order to achieve coordination of human and
material resources essential in efficient and
effective attainment of objectives.
Terms of Management
• Process – it means the primary function or activities
that management performs to get things done. These
functions are planning, organising, staffing, directing
and controlling. All these are performed in order to
achieve specific goals.

• Effectiveness – It is concerned with doing the right

task, completing activities and achieving goals. It
means finishing the given task on time.

• Efficiency – it means doing the task correctly and with

minimum cost.
• The two terms ‘Efficiency’ and ‘Effectiveness’
are different but they are inter-related. They
both are two sides of the same coin.
• COMPANY TARGET = 1000 UNITS

• Manager wants to achieve the target by cutting down

costs. He was able to cut down costs but not achieve
the target.

• TARGET NOT ACHIEVED

• MANAGER WAS EFFICIENT BUT NOT EFFECTIVE

Because the target was not achieved on time
despite less costs.

Efficiency – it means doing the task correctly with

minimum cost.
• COMPANY TARGET = 1000 UNITS
• Company operates on double shift due to power failure most
of the time.

• TARGET ACHIEVED BUT HIGHER PRODUCTION COST (labour

costs and electricity costs)

• MANAGER IS EFFECTIVE BUT NOT EFFICIENT

Because for the same output more costs have been
incurred.
Thus effectiveness means doing the right task,
completing activities and achieving goals.
• Thus, management must try to achieve
goals effectively and efficiently and thus
maintain balance between the two. Poor
management is due to both inefficiency
and ineffectiveness.
Is the manager effective or
efficient?
 “Commitment Roadways” promised Mr. Deepak that
goods would be delivered to his customer in three
days. They charged extra money for express delivery.
However, the goods were not delivered after five days
and as a result his customer cancelled the order.
Neither Effective nor Efficient
 Mr Shenoy produced 500 T-Shirts two days before
time. He paid overtime to his workers to complete
production before time.
Effective but not efficient
 Tarun is the HR Manager of ABC Ltd. He had to arrange
for recruitment and selection of 100 workers to meet
an urgent order within a week. He was able to appoint
only 80 workers in 15 days.
Not effective
 CHARACTERISTICS OF
MANAGEMENT
• Management is a Goal-Oriented Process – The
primary aim of management is to achieve the
organisational goals. Management unites the efforts of
different individuals in the organisation towards
achieving these goals.For eg- if the target of the
company is to sell 2000 TV sets per month then
manager will plan the course of action, motivate all the
employees and organise all the resources keeping in
mind the goal.
• Management is all pervasive (means everywhere) –
The activities involved in managing an enterprise are
common to all organisations whether economic, social
or political. A petrol pump needs to be managed as
much as a hospital or a school.
• Management is multi-dimensional – management is a complex
activity which has three main dimensions. These are:
o Management of work – all organisations exist to perform some task
or work. Management translates these work in terms of goals to be
achieved and assigns the means to achieve these goals. Management
ensures that task is achieved efficiently and effectively. For eg- in a
factory a product is manufactured, in a school providing education
etc
o Management of people – human resources are the most valuable
assets of an organisation. With the help of efficient employees an
organisation can compete with others. The task of management is to
make people work towards achieving the organisations goals by
making their strengths effective and their weaknesses irrelevant.
o Management of operations – in order to survive and grow each
organisation has to provide goods or services. This requires a
production in which inputs are converted into desired output.
Operations are the activities of production processes such as buying
inputs, converting them into finished products. Management of
production is concerned with both the management of work and
management of people.
 DIMENSIONS OF
MANAGEMENT

Management of Work Management of People Management of Operations

•Planning •Staffing •Production

•Organising •Directing •Sales
•Controlling •Purchases
• Management is a continuous process – management is an
ongoing or never ending activity. Management goes on without
breaks or gaps. It involves continuous handling of problems and
issues. All the functions of management are performed by all
managers on continuous basis.
• Management is a group activity – management is a team work
rather than an individual activity. It replace ‘I’ with ‘We’. All
diverse individuals with diverse needs work together fulfilling the
common organisational goal. This requires team work and
coordination.
• Management is an intangible force – management cannot be
seen but its presence can be felt when targets are achieved
according to plans, employees are happy and satisfied, and there
is orderliness instead of chaos.
• Management is a dynamic function – management is a dynamic
function as it adapts itself to the changing environment. In order
to be successful, an organisation must change itself and its goals
according to the needs of the environment.
 Identify the characteristic of
management
• This requires a production in which inputs are converted into desired output.
Management of operations (management is multidimensional)
• It replace I with We.
Management is a group activity
• Management consists of ongoing series of functions.
Management is a continuous process
• Management translates this work in terms of goals to be achieved and assigns
the means to achieve it.
Management of work (management is multidimensional)
• A petrol pump needs to be managed as much as a hospital or a school.
Management is all pervasive
• In an organisation employees are happy and no chaos exists.
Management is an intangible force
• Management sets targets and unites efforts of all individuals to achieve them.
Management is a goal oriented process
• KFC made major changes in its menu to be able to survive in the Indian Market.
Management is a dynamic function
 OBJECTIVES OF
MANAGEMENT
Objectives are the ends or goals towards which the activities of a
business are directed and the standards against which the
performance is measured.
Management helps to achieve all its objectives in an effective and
efficient manner.

TYPES OF OBJECTIVES
 Organisational /Economic Objectives
 Social Objectives
 Personnel Objectives
 ORGANISATIONAL/ECONOMIC
OBJECTVES
• Survival – the basic objective is survival. Ensure survival
by earning enough revenues to cover costs.

• Profit – mere survival is not enough. Enough profit

should be made to cover costs and risks of the business.

• Growth – it is important for every business to grow in the

long run. Growth potential is measured in terms of
increase in sales turnover, increase in the number of
products, increase in employees, increase in capital
investment etc.
 SOCIAL OBJECTIVES

It involves creation of benefits or economic value to the

society.

• Using environmental friendly methods of production

• Providing good quality goods at reasonable prices
• Honest and timely payment of taxes
• Not to follow any unfair trade practices like black
marketing, adulteration, misleading advertisements etc
• Providing basic amenities like schools, crèches to
employees
• Giving employment opportunities to disadvantaged
section of the society
 PERSONNEL
OBJECTIVES
They are concerned with satisfying diverse needs of
the employees.
• Financial needs – salary and perks
• Social needs – peer recognition
• Higher level needs – personal growth and
development.

Management has to reconcile Personal Objectives

with Organisational objectives for harmony in the
organisation.
IDENTIFY THE OBJECTIVE
• It is essential to meet the costs of business and also cover
the business risks.
Economic /Organisational objectives
• A company uses environmental friendly methods of
production.
Social objectives
• Management provides competitive salaries and perks.
Personnel/Individual objectives
• Honest and timely payment of taxes
Social Objective
• Management provides peer recognition
Personnel/Individual objectives
• It is important for every business to grow in the long run.
Economic /Organisational objectives
 IMPORTANCE OF
MANAGEMENT
Successful organisations do not achieve their goals by chance but by following a deliberate
process called Management.

IMPORTANCE
• It helps in achieving group goals – management tries to reconcile the individuals
objectives with the goals of organisation. The task of the manager is to direct the
efforts of all the individuals in the common direction of accomplishing organisational
goals.
• It increases efficiency – the motive of manager is to reduce costs and improve
productivity with proper utilisation of resources and eliminating wastage. Management
always focus to bring efficiency and effectiveness in its activities.
• Creates a dynamic organisation – all business organisations operate in a constantly
changing environment. In order to survive and grow, organisation has to adapt itself
according to the needs of the environment.
• Helps in achieving personal objectives – management not only helps in achieving the
organisational goals but also the individual goals of the employees. With the help of
motivation and leadership techniques, management helps individuals to develop team
spirit, cooperation and commitment that help to attain their personal objectives.
• Helps in the development of society – management also aims to develop society by
giving due importance to social obligations by generating employment opportunities,
providing better quality goods at reasonable prices, providing fair wages to workers,
adopting technology, preventing environment from getting polluted etc
 Identify the importance of
management
• Management helps to provide good quality products and services
and creates employment opportunities.
Management helps in the development of the society
• The aim of the manager is to reduce costs and increase productivity.
Management increases efficiency
• Managers helps people to adapt to the changes so that the
organisation is able to maintain its competitive edge.
Management creates a dynamic organisation
• A manager motivates and leads his team in such a manner that
individual members are able to achieve personal goals while
contributing to overall organisational objective.
Management helps in achieving personal objectives
• The task of the manager is to give a common direction to the
individual effort in achieving the overall goal of the organisation.
Management helps in achieving group goals.
 NATURE OF
MANAGEMENT
Different management thinkers have different
views.
Management as a Science
Management as an Art
Management as a Profession
 MANAGEMENT AS A
SCIENCE
Science is a systematised body of knowledge that explains certain general
truths or operation of general laws.
 Systematised body of knowledge- it has its own theory and principles
that have developed over a time. This feature of science is present in
management.
 Principles based on experiments and observation – the principles are
first developed through observation and then repeated experimentation.
The principles are also derived over a period of time through observation
and repeated experimentation.
Since in management we deal with human behaviour and since we cannot
estimate and predict human behaviour in management unlike science
where experiments can be predicted.
So this feature of science is not fully present in management.
 Universal Validity – scientific principles have universal validity and
application. But principles of management have certain standardised
techniques and can be used in different situations. So principles of
management are not as exact and pure as science. They application is
not universal. So this does not fulfill the criteria.
 MANAGEMENT AS A
SCIENCE

S.NO FEATURES OF SCIENCE DOES MANAGEMENT

FULFILLS THIS CRITERIA?
1. SYSTEMATISED BODY OF KNOWLEDGE FULFILS THIS CRITERIA

2. PRINCIPLES BASED ON EXPERIMENTS AND PARTIALLY FULFILS THIS

OBSERVATION CRITERIA
3. UNIVERSAL VALIDITY DOES NOT FULFILL THIS
CRITERIA

Conclusion: All points did not follow so Management is called an inexact

science.
 Management as an Art
Art is the skillful and personal application of existing knowledge to achieve
desired results. It can be acquired through study, observation and
experience.

FEATURES OF AN ART
 Existence of theoretical knowledge – there is existence of theoritical
knowledge in every art (Dancing, Acting, Music). Similarly there is a lot of
literature available in various areas of management like finance, marketing,
human resources etc. So there is a theoretical knowledge in management.
 Personalised application – art is a personalised concept, it differs from
individual to individual. Two actors, two speakers, two dancers always differ
in demonstrating their art.
Similarly in management every manager has his own unique style of
managing things although they learn same management theories.
 Based on practice and creativity – art involves continuous practice of existing
theoretical knowledge. Art also involves creativity.
Management satisfies this criteria as a manager gains experience through
regular practice and becomes more effective. Manager also studying various
situations formulates his own theories for use in the given situation. This
gives rise to different styles of management.
 MANAGEMENT AS AN
ART
S.NO FEATURES OF ART DOES MANAGEMENT FULFILS
THIS CRITERIA
1. Existence of theoritical knowledge Fulfils this criteria

2. Personalised application Fulfils this criteria

3. Based on practice and creativity Fulfils this criteria

Conclusion: Since all characteristics of art are present in

management, we call Management as an art of getting
things through people.
 MANAGEMENT AS A
PROFESSION
Profession refers to an occupation backed by specialised knowledge and training
and to which entry is restricted.
Features of Profession
 Well defined body of Knowledge – all professions (legal, medical, accounting)
are based on well defined body of knowledge. Management is also like
profession because it has a well defined body of knowledge. And this
knowledge can be acquired in different colleges and professional institutes
through books and journals.
So this feature is present in management.

 Restricted Entry – the entry to profession is restricted through an

examination or through acquiring an educational degree.
Entry to management institutes like IIMs is usually through an examination.
Professional Knowledge and training is considered to be desirable
qualification. But there is no restriction on anyone to be appointed as
manager in any business. Anyone can be called as a manager irrespective of
educational qualifications unlike other professions like doctors.
So this feature is not fully present in management.
 Professional Association – all professionals are affiliated to a professional
association which regulates entry, grants certificate of practice and
formulates and enforces a code of conduct. For eg Bar Council of India
which controls and regulates activities for Lawyers. There are several
associations like AIMA (All India Management Association). But legally it is
not compulsory for managers to be members of such association.
So, this feature is not fully present in Management.
 Ethical code of conduct – all professionals are bound by a code of conduct
which guides behaviour of its members.
AIMA has laid down a code of conduct to regulate the activities of its
members. But its membership is not compulsory for all members.
So, this feature is also not fully present in Management.
 Service motive – the basic motive of profession is to serve their client
interest with dedicated service.
The basic motive of management is profit maximisation and not social
service. It holds principles of profit maximisation along with providing value
benefit to society.
So, this feature is also not fully present in Management.
 MANAGEMENT AS A PROFESSION
S.NO FEATURES OF PROFESSION DOES MANAGEMENT FULFILS THIS
CRITERIA?
1. Well defined body of Knowledge Fulfils this criteria

2. Restricted Entry Does not fulfill the criteria completely

3. Professional Association Does not fulfill the criteria completely

4. Ethical Code of Conduct Does not fulfill the criteria completely

5. Service Motice Does not fulfill the criteria completely

Conclusion: Management is not a full-fledged profession like

legal, accounting or medical because it does not meet the
exact criteria of a profession.
 IDENTIFY THE NATURE OF
MANAGEMENT
• All management practices are based on the same
set of principles, what distinguishes a successful
manager from less successful one is the ability to
put these principles into practice.
MANAGEMENT AS AN ART
• There are several associations of practising
managers in India that lays code of conduct to
regulate the activities of their members.
MANAGEMENT AS A PROFESSION
• Management is a systematised body of
knowledge that explains certain general truths.
MANAGEMENT AS A SCIENCE
 LEVELS OF MANAGEMENT
The authority responsibility relationship binds
individuals as superiors and subordinates. It
gives rise to different levels of management in
an organisation.
The three main levels are:
1. Top Management
2. Middle Management
3. Supervisory/Operational Management
LEVELS OF MANAGEMENT
Top Management
o Board of Directors, Chairman, President, Vice-
President, CEO, CFO, COO
Middle Management
o Operation Manager, Finance Manager, Regional
Manager, Plant Superintendent, Sales Manager,
Marketing Manager
Supervisory/Operational Management
o Supervisor Superitendent, Foreman, Section
Officer, Clerk, Sub-Departmental Executive
 TOP MANAGEMENT
It consists of senior most executives of the organisation. The people
working here have maximum authority. They spend more time in
planning and organising rather than other levels of management.
Functions
 Formulates organisational goals and strategies for acheivement.
 Responsible for welfare and survival of the organisation.
 Responsible for all business activities and their overall impact on
society.
 Held responsible for the overall success or failure of the enterprise.
 Analyse business environment and its implications for the survival of the
enterprise.
 The activities involved in managing an enterprise are common to all
organisations whether economic, social or political. A petrol pump
needs to be managed as much as a hospital or a school.
Thus, the job of the top management is complex and stressful and
demanding long hours and commitment to the organisation.
 MIDDLE MANAGEMENT

It is the link between the top and lower level managers. They are
subordinates to top managers and superior to first line managers. It
consists of departmental heads.
FUNCTIONS
 To interpret the policies framed by top management.
 Responsible for implementing and controlling plans and strategies
developed by top management.
 Responsible for all the activities of first line managers.
 To ensure that their department has the necessary personnel.
 To assign necessary duties and responsibilities to the employees of
their respective departments for implementation of the plan.
 To motivate employees for their respective departments for higher
productivity to achieve the desired objectives.
 To cooperate with other departments for smooth functioning of the
organisation.
 SUPERVISORY/OPERATIONAL
MANAGEMENT
It refers to the lower level of the hierarchy of the organisation. The managers
at this level are in direct contact with workers. Foreman and Supervisors
comprise the operational management.
FUNCTIONS
 They ensure that the quality standards are properly followed by the top
management.
 They ensure proper and safe working conditions for workers.
 Planning day to day activities and issuing orders and instructions to
workers.
 They are in direct contact with the workers so they are the right people to
understand their problems and suggestions which is passed to middle
management.
 They supervise and motivate workers.
 They send reports on work performance to the higher level management.
 They encourage workers to take initiative and welcome suggestions and
reward them for good suggestions.
 Arrange machinery, tools, equipments for workers.
 IDENTIFY THE LEVEL OF
MANAGEMENT
• Entering into joint venture with a foreign company.
TOP MANAGEMENT
• Harsh is a plant superintendent in Tifco Ltd.
MIDDLE MANAGEMENT
• Yash is responsible for appointing workers on daily
basis.
SUPERVISORY MANAGEMENT
• Abhishek decides whether to start a new product or
not.
TOP MANAGEMENT
• Mr Mahesh is representing problems of workers
regarding safety issues.
SUPERVISORY MANAGEMENT
• Mr A is the manager of the company
manufacturing electronic goods and found that
the profits have started declining and he
analysed the business environment to find out
the reasons for the decline. Identify the level of
management.
TOP MANAGEMENT
• Mr R found that the department has shortage
of staffs and other departments are not
cooperating with his department for smooth
functioning of the organisation. Identify the
level of management.
MIDDLE MANAGEMENT
 FUNCTIONS OF
MANAGEMENT
Management includes all those activities which
managers perform in an organsisation to achieve
desired results.

These are –
• Planning
• Organising
• Staffing
• Directing
• Controlling
 FUNCTIONS OF
MANAGEMENT
• PLANNING – it is the basic function of management. It is
the function of management which determines in advance
what to do, how to do it, when to do it and by whom.
It is looking ahead and preparing for the future. It bridges
the gap between where we are and where we want to
reach.
• ORGANISING – after setting plan, it examines the activities
and resources required to execute the plan. It decides to do
a particular task, where it will be done and when it will be
done.
Thus, organising is the function of assigning duties,
grouping tasks, establishing authority and allocating
resources required to carry out a specific plan.
• STAFFING – it means filling up various jobs in the organisation with
competent personnel. This function means finding right person for the
right position at the right time.
It is also called human resource function and it involves activities like
recruitment, selection, placement, training and development of
employees.
• DIRECTING – it is the process of instructing, guiding, motivating, leading,
counseling and coaching of the employees in the organisation so that their
efforts result in achievement of organisational objective. It has four
elements Motivating, Leadership, Supervision and Communication.
It also involves influencing human behaviour. A good manager directs and
praise in such a way and brings out the best in the employee.
• CONTROLLING – it involves monitoring organisational performance
towards the accomplishment of organisational goals.
It involves establishing standard performance, measuring actual
performance, comparing it with standard performance, and taking
corrective action where any deviation is found.
It ensures that everything in the organisation is done as per the
predetermined goals.
 IDENTIFY THE FUNCTION
• Name the function of management which ensures that
actual activities conform to planned activties.
CONTROLLING
• Name the function of management in which employees are
recruited.
STAFFING
• Name the function of management is considered as the
base for all other functions.
PLANNING
• Name the function under which employees are guided and
inspired.
DIRECTING
• Assigning duties, grouping tasks, establishing authority and
allocating resources is one of the functions of management.
Name the function.
ORGANISING
• Payal is the Marketing Manager of a company selling mobile phones. She
plans the target sale of 2000 mobile phones per month. She allocates
necessary resources to execute the plan. She has six saleman 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.
Identify the functions of management highlighted here.
ANS
Payal performs the following functions:
• Planning –”she plans the target sale of 2000 mobile phones per month”
• Organising –”she allocates necessary resources to carry out the plan”
• Directing –”she works with them, guiding them and motivating them to
achieve the target sales”
• Controlling –”at the end of the month, after comparison of actual sales
with the target sales she found that actual sales exceeded the target
sales”
 COORDINATION
• It refers to the process by which a manager
synchronises the activities of different departments. It
ensures the orderly arrangement of individual and
group effort to ensure unity in action in order to
achieve common objectives.
For eg: suppose in a pen manufacturing company, the
sales department has received an order of 10,000
units. It cannot execute the order unless production
department produces 10,000 units. The production
department cannnot produce 10,000 units unless
purchase department purchases raw materials and
provides the same to the production department.
Thus, if production and sales plan are not properly
coordinated, objectives in respect of these activities of
the enterprise cannot be efficiently accomplished.
 COORDINATION – THE ESSENCE OF
MANAGEMENT
It is the force that binds all other functions of management. It is sometimes considered as a separate
function of management but it is the essence of management for achieving harmony to achieve
group goals.

• The process of coordination begins at the planning stage in which top management plans for the
entire organisation. Coordination is required between the master plan of the organisation and the
plans of different departments or divisions and day to day planning for workers at operational level.
• At the organising stage, the organisational structure is developed as per plans. Coordination is
needed between resources of an enterprise and activities to be performed. There should be
coordination between authority, accountability and responsibility. For eg – if a finance manager is
given authority to raise funds, he should also be given responsibility to manage funds efficiently.
• The staffing function is performed thereafter as per the organisational structure developed.
Coordination is needed between the skill of employees and jobs assigned to them, between
efficiency of the employees and compensation. For eg – an employee qualified as Chartered
Accountant (CA) should be given work of financial nature.
• Directing is then required to ensure that these plans are executed accordingly.
• Controlling function ensures that the deviations between actual and planned activities are taken
care of.

CONCLUSION: - Coordination, therefore is not a separate function of management, but it is the essence
of management. Like a thread in a garland, coordination is a part of all management functions. To
achieve its objectives coordination is required. So, this is a part of all management functions.
 PLANNING

CONTROLLING
ORGANISING
COORDINATION

DIRECTING STAFFING
 CHARACTERISTICS OF
COORDINATION
• It integrates group efforts – it integrates group efforts by
unifying diverse interest into purposeful work activity. It
gains a common focus to group effort to ensure that the
performance is according to the plans.
• It ensures unity of action – it ensures unity of action by
acting as a binding force between departments. It ensures
that all action is aimed at achieving the goals of the
organisation.
• It is a continuous process – it begins at the planning stage
and continues till controlling. Top management plans for the
entire organisation. According to these plans, the
organisational structure is developed and staffed. Directing
is required for execution of plans. Controlling corrects the
deviation between planned standards and actual
performance.
• It is a pervasive function – it is required at all levels of management and in
all departments. It integrates the efforts of different departments and
different levels. The purchase, production, finance and sales departmental
efforts must be coordinated for achieving organisational objectives
harmoniously.
• It is the responsibility of all the managers – it is the function of every
manager.
o Top level managers need to coordinate with their subordinates to ensure that
the overall policies of the organisation are duly carried out.
o Middle level managers coordinate with both top level and first line managers.
o Operational level management coordinates the activities of its workers to
ensure that work precedes according to plans.
• It is deliberate function – a manager has to coordinate the efforts of
different people in the conscious and deliberate manner. Even where
members of a department willingly cooperate and work, coordination gives
a direction to that willing spirit. Cooperation in the absence of coordination
may lead to wasted effort and coordination without cooperation may lead
to dissatisfaction among employees.
 IMPORTANCE OF
COORDINATION
Coordination is important as it integrates the efforts of
individuals, department and specialists. The primary reason
for coordination is that individuals and departments in an
organisation are interdependent.
Managers need to reconcile differences in approach, timing and
effort.
The need for coordination arises due to following reasons:

• Growth in size – when an organisation grows in size, the

number of employees also increases. It may become difficult
to integrate their efforts and activities. For management, it is
necessary to ensure that all individuals work towards the
common goals of the organisation. But employees may have
their individual goals also. Thus, for organisational efficiency it
is important to harmonise individual goals and organisational
goals through coordination.
• Functional Differentiation – in an organisation, there may be
separate departments like production, finance, marketing and
human resource departments. All these departments have their
own objectives, policies, strategies etc. So, there may arise conflict
between them.

• Specialisation – in modern organisations, there is high degree of

specialisation. Specialisation arises out of the complexities of
modern technology and the diversity of tasks to be performed.
Therefore, organisations need to employ a number of specialists.
Specialists usually think that they only are qualified to evaluate,
judge and decide according to their professional criteria. They do
not take advice or suggestions from other members of the
organisation. This often leads to conflicts between them. Therefore,
coordination is required to avoid conflict between the specialists
and the other members of the organisation.
 QUESTIONS
• Which force binds all other functions of management?
COORDINATION
• Coordination is called the __________of management.
ESSENCE
• Coordination acts as a _________force between various
departments to ensure unity of action.
BINDING
• In ABC Ltd, the purchase department purchased 15 tonnes
of raw material for the production department. However
the production required only 10 tonnes. Due to this reason,
goods were over-produced and were not acccepted by
sales department. As a result, some goods remain unused.
Which aspect of management is lacking?
COORDINATION IS LACKING AMONG DEPARTMENTS
NATURE AND SIGNIFICANCE OF
MANAGEMENT

CLASS 12TH
IMPORTANT QUESTIONS
MCQs
 1. Which of the following is not the function of Management?
(a)Planning (b) Coordination
(c) Organising (d) Directing
ANS: B

2. Managers at the top level spend their time more in :

(a) Planning (b)Organising
(c) Staffing (d)Directing
ANS: A

3. Efficiency means:
(a) doing the task correctly (b)doing the task with minimum cost
(c) deriving more benefits by using less resources all of the above
ANS: D

4. Which of the following is not an organizational objective?

(a) Survival
(b) Giving employment opportunities to the disadvantaged sections of the society
(c)Profit
(d) Growth
ANS : B
 5. Superintendent belongs to
(a) Operational mgt (b) Middle mgt
(c) Top mgt (d) None of these
ANS : A

6. Which of the following is not a characteristic of profession?

(a) Service motive (b) Restricted entry
(c) Based on practice and creativity (d) Well-defined body of knowledge
ANS : C

7. Foremen and Supervisors comprise:

(a) Top level mgt. (b) Middle level mgt.
(c) Operational mgt. (d) None of these
ANS : C

8. Which function of the management relates to assigning duties ,grouping tasks,

establishing authority and allocating resources required to carry out a specific plan?
(a) Planning (b) Organising
(c) Staffing (d) Directing

ANS : B
9. Which function of management is concerned with finding the right
people for the right job?
(a) Planning (b) Organising
(c) Staffing (d) Directing
ANS : C
10. The process by which a manager synchronizes the activities of different
departments is called:
(a) Coordination (b) Cooperation
(c) Organising (d) Supervision
ANS : A

11. A production manager is able to produce the desired output with

minimum cost but not within the required time. In this case the manager
was:
(a) Effective only (b) Efficient only
(c) Both effective and efficient (d) Either effective nor efficient
ANS: B
12. Which of the following statement best explains the “Management as an
Art”?
(a) Two managers deal with the same problem differently.
(b) Management has drawn its knowledge from other disciplines also
(c) No formal qualification is required for the appointment as a manager
in a company
(d) Outcomes of managerial actions cannot be predicted accurately
ANS: A
13. Match the following:
Column 1 (Example) Column 2(Function)
(a) Matching outcomes with targets Planning
(b) Objectives Organizing
(c) Resources for Implementation Directing
(d) Recruitment and Training Staffing
(e) Supervision and Motivation Controlling
ANS : B, C, E , D, A
 14. Management is
(a) An Art (b) A Science
(c) Both Art and Science (d) Neither
ANS: C
15. The following is not an objective of management
(a) Earning profits (b) Growth of the Organisation
(c) Providing employment (d) Policy making
ANS: D
16. Policy formulation is the function of
(a) Top level managers (b) Middle level managers
(c) Operational management (d) All of the above
ANS: A

17. Coordination is:

(a) Function of management (b)The essence of management
(c) An objective of management (d) None of the above
ANS: B
• Which of the following is the function performed by
operational level of management?
o Looking safety of workers
o Representing the problems of workers before middle
management
o To ensure quality standards are properly followed
o All of these
D
• Coordination is the essence of management because
o Coordination is the part of planning function of management
o Coordination is the part of staffing function of management
o Coordination is the part of controlling function of management
o Coordination is the part of all functions of management
D
FILL IN THE BLANKS
• Every ______restricts the entry on the basis of examination or education.
PROFESSION
• Payal is using environmental friendly methods of production. She is trying to
achieve _____ objective of management.
SOCIAL OBJECTIVE
• _____level determines the objectives of the organisation.
TOP LEVEL
• Plant superitendent belongs to _______level of management.
MIDDLE MANAGEMENT
• _________is an example of personal objective.
SOCIAL, FINANCIAL AND HIGHER LEVEL NEEDS
• _______feature of profession is present in management.
WELL DEFINED BODY OF KNOWLEDGE
• ________refers to the process by which a manager synchronises the activities of
different departments.
COORDINATION
• Management increases __________by reducing costs and increasing productivity.
EFFICIENCY
QUESTIONS BASED ON
REMEMBERING AND
UNDERSTANDING
• “Successful organisations do not acheive their goals by chance but by
following a deliberate process.”Name the process.
Management

• “The task of management is to make people work towards achieving the

organisational goals, by making their strengths effective and weaknesses
irrelevant”. Name the dimension of management referred.
Management of People

• The production manager of a company is trying to produce goods with

minimum cost. Name the concept referred.
Efficiency
• Name the intangible force which creates productive relationships among
the resources of the company.
Management
• List organisational objectives of manangement.
Survival , Profit, Growth

• “ In an organisation employees are happy and satisfied, there is no

chaos and the effect of management is noticeable”. Which feature of
management is highlighted ?
Management is an Intangible Force

• “An organisation is a collection of diverse individuals with individual

needs”. State the feature of manangement.
Management is a Group Activity
• Like a thread in a garland, what function of management can be said
to be as a central as the thread in a garland?
Coordination
• List any two personal objectives of management.
- financial needs - Fair remuneration and perk
- social needs - Hygienic and good working conditions

• A manager applies various theories of management in his unique personalised

way. What nature of management is highlighted?
Management is an Art

• There has been increase in the corporate form of business and increasing
emphasis on managed business concern. What does it imply?
Management is a Profession

• Mention the characteristics of profession that are partly not satisfied by the
management .
-Professional Association
-Service motive
• Name the levels of Management :
1. Formulating organisational goal
Top mgt.
2. Deciding the capital structure of the company
-Top mgt.
3. Giving performance reports to the top management
Middle mgt.
4. Introducing a new product line-
Top mgt.
5. Recruitment of daily wages labourers-
Supervisory mgt.
6. Devising a suitable advertising campaign to sell a new product/service
of a company is launching –
Middle mgt.
• Identify the managerial function:
1. Motivating ,Communicating and Supervising the employees
Directing
2. Recruitment and Selection of the personnel –
Staffing
3. Finding out deficiences in implementation of the plans with the
results achieved –
Controlling
4. Deciding the objective, policies and procedures to be followed in
the company –
Planning
5. Assigning duties, grouping tasks, establishing authority and
allocating the resources to carry out a specific plan –
Organising
• Which force binds all other functions of management?
Coordination

• One of the functions of management is considered as the base for

all the other functions. Name the function.
Planning

• Name the function under which there is division of activities.

Organising

• Name the function under which performance is compared with the

standards laid down.
Controlling
• Mention the concept highlighted:
1.”Doing things right”in management:
efficiency
2. “Doing right things” in management:
effectivenes

• Which level of management is direct touch with the

workforce?
Operational Management

• At which level of management managers are responsible for

maintaining the quality of output and the safety standard?
Operational/Supervisory mgt
APPLICATION BASED QUESTIONS
Q. Ayushi works as a soft skill trainer in a corporate house. She begins
a new session every time by acquainting the trainees with a process
which is vital for achieving the goals of the organisation effectively
and efficiently. She also makes them understand the various
primary activities involved on carrying out this process. She
emphasis upon the fact that in the absence of this process it will be
difficult for the employees to attain their personal goals. Moreover,
the development of the society will be hampered as the welfare of
the people is also likely to be overlooked by the organisation.
(a) Identify and explain the process being referred.
(b) List the primary activities being contained in this process.

ANS: (a) The process of Management (explain)

(b) Planning, Organising, Staffing, Directing and Controlling
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.
ANS: Dheeraj is working at the middle level
manangement.(Explain)

2. In today’s scenario, organisations look for individuals

with specific qualifications like MBA and experience to
manage them. It has also been observed that there has
been an increase in the corporate form of business.
There has been increasing emphasis on managed
business concerns. What does this imply?
ANS: Management is a Profession(explain)
3. “Management is regarded as an Art by some, as
Science or as an inexact science by others. The truth
seems to be somewhere in between”. In light of this
statement, explain the true nature of management .

ANS: Management is regarded as an Art because like in any art, management

too there is: (explain properly in detail)

• Existence of theoretical knowledge eg: finance, marketing

• Personalised application of methods
• Continuous practice and creativity .which gives rise to formulation of
theories and styles of management
Management is regarded as Science because like science management is too
a systematised body of knowledge with its own theories and principle
which are derived through observation and experimentation. (explain
properly in detail)
However management is an ‘inexact science’ because the
outcomes of these experiments are not capable of
being accurately predicted. Since management deals
with human beings and human behaviour , therefore
their application is not universal.
True nature of management: Management has features
of both science and art. The practice of management
is an art. However, managers can work better if their
practice is based on principles of management which
constitute the science of management. Management
as an art and a science are therefore not mutually
exclusive, but complementary to each other.
4. Schools and colleges in USA are changing the
way they operate their administration system.
Name and explain the characteristics of
management highlighted by this statement.
ANS: Mangement is a Dynamic function(explain)

5. Management principles are as much as

applicable to a government office as much to a
limited company. Which feature of management
is highlighted in this statement? State any other
two features of management.
ANS: Management is all Pervasive(explain)
6. “Management is a profession like medical or a
legal profession.”Do you agree with this
statement? Give any five reasons in support of
your answer.
ANS: No, Management is a not a full- fledged profession
like medical or legal profession because it does not
fulfill the characteristics of a profession(explain
yourselves)

7. Rahul is working as ‘Plant Superintendent’ in

Mac Ltd. Name the managerial level at which he
is working. State any four functions he will
perform in the company.
ANS: Middle Management (explain yourself)
8. Rishitosh Mukherjee has recently joined AMV Ltd, a
company manufacturing refrigerators. He found that his
department was understaffed and other departments were
not cooperating with his department for the smooth
functioning of his organisation. Therefore, he ensured that
his department has the required number of employees and
its cooperation with other departments is improved .
(a) Identify the level at which Rishitosh Mukherjee was
working.
(b) Also, state three more functions required to be
performed by Rishitosh Mukherjee at this level.
Ans: Rishitosh Mukherjee is working at the middle level of
the management. The three more functions that he has to
perform at this level are:
(a) He has to assign duties and responsibilities to the
people of his department.
(b) He has to motivate the people in his department to
achieve the desired objectives.
(c) He has to interpret the policies framed by the top
management.
 9. Ashutosh Goenka was working in Axe Ltd., a
company manufacturing air purifiers . He found
that the profit started declining from the last six
months. Profit has implication for the survival of
the firm, so he analysed the business environment
to find out the reasons for its decline.
(a) Identify the level of management at which
Ashutosh Goenka was working.
(b) State three other functions being performed
by Ashutosh Goenka .

ANS: Top level Management (explain)

10. XYZ Power Ltd., set up a factory for manufacturing solar
lantern in a remote village as there was no reliable supply
of electricity in the rural areas. The revenue earned by the
company was sufficient to cover the costs and risks. The
demand of lanterns was increasing day by day, so the
company decided to increase the 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 creches for the children of its employees.
(a) Identify and explain the objectives of management
discussed above.

ANS: The company is fulfilling the organisational and social

objectives of management.(explain)
11. Anushka Fabric Ltd, has been able to achieve its
production targets as per plans using a new
german technology. Its employees are happy and
satisfied with their pay scale and working
environment in the organisation. All the work
proceeds a per plans and there is orderliness in
the entire functioning of the organisation.
Identify the feature of management.

ANS: Management is an Intangible Force.(explain)

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

ANS:(a) Coordination(explain the entire concept)

(b) Coordination is a continuous process
13. The manager of Beta Ltd. Is very effective and
efficient and makes sure that all the employees
and workers in this team perform the task on
time with minimum cost. His main focus is on
cost reduction. So he never listens to the
demand of the workers for increasing the
wages. He gives no opportunity to the workers
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?

ANS: Personal Objectives of Management (explain)

14. In ABC Ltd., the purchased department
purchased 15 tonnes of raw material for the
production department. However, the production
department required only 10 tonnes. Due to this
reasons, goods were over produced and were not
accepted by sales department. As a result, some
goods remained unsold. Which aspect of
management is lacking in this case?

ANS: “Coordination” is lacking between various

departments.(explain the concept)
15. Identify the importance of management highlighted.
(a) Management should apply all functions of
management like planning, organising, staffing,
controlling to reduce cost and improve productivity.
ANS: Management increases efficiency

(b)Management should earn profits but it should also

produce good quality products. It should also innovate
itself in providing facilities to the society without any
profit motive.
ANS: Management helps in the developing in the society.
(c) Management should help in achieving the individual
goals along with the organisational goals. A good
management helps its employees by giving them
recognition, increament in salary, promotion,etc.
ANS: Management helps in achieving personal objectives.

(d) A company is able to convince its employees to

accept the changes whenever the employees find
something new they tend to resist. It is in the favour of
both the company and employees must be guided to
accept the changes happily.
ANS: Management creates a Dynamic Organisation
Q. Gurpreet, Shenoy and Lakshay are three best friends. They established
‘Unity ltd.’ Of the three, one was management expert, second an
engineer and third a businessman. The company was established in a hilly
area where large number of people were umemployed. The main aim of
the company was to make popular a variety of apples that was grown
using a new seed across the country. Mr. Deepak, the Managing Director
of the company, took upon himself the responsibility of doing this job. He
selected those areas where the company was to enter in the first
instance. The entire business was divided into five departments i.e.,
purchase, marketing, production, finance and human resource. People
with requisite qualification were appointed in all departments. Special
arrangements were made to keep a close watch on different activities of
the company, so that there was no shortfall in quality. The company had
entered five states. Of these, sale in four was upto mark, but in one it was
less than expected. It’s reasons were enquired into. Thus, the company
achieved desired success in the very first year.
(a) Identify the functions of management highlighted by also quoting
the lines.
ANS:
A:: (1) Planning
“The main aim of the company …………………those areas
where the company was to enter in the first instance.”
(2) Organising
‘The entire business……….departments.’
(3) Staffing
‘Person with requisite qualification………….in all
department.’
(4) Directing
‘Special arrangements ……………….shortfall in quality.’
(5) Controlling
‘Sale in four……………less than expected.’