SIGNIFICANCE OF

MANAGEMENT
NATURE AND

CHAPTER – 1

NATURE AND SIGNIFICANCE OF MANAGEMENT

Management the aim of achieving goals effectively and efficiently
Management is the process by which a co-operative group (effectiveness refers to achievement of task on time
directs actions of others toward common goals. and efficiently implies optimum use of resources).
Management is defined as the process of planning, (iii) Process means the primary function or activities that
organising and controlling an organisation’s operations in management performs to get things done. These
order to achieve the target efficiently and effectively. It is functions are planning, organising, staffing, directing
essential for all organisations. and controlling.
Concepts of Management (iv) Effectiveness is concerned with doing the right task,
(i) Traditional Concept Management is the art of getting completing activities and achieving goals. In other
things done through others. words, it aims at end result.
(ii) Modern Concept Management is defined as the process
(refers to the basic steps) to get the things done with

(v) Efficiency means doing the task correctly and with

minimum cost. Efficiency is increased with using
less inputs and for producing same output, fewer
resources are used.

Basis of Difference Effectiveness Efficiency

Meaning It refers to completing the task on time, It refers to completing the task with
no matter whatever the cost. minimum cost, optimum utilization of
resources and in cost effective manner.
Objective To achieve end result. To conduct cost benefit analysis.
Main consideration Doing the right task. Doing the task in right way.
Characteristics of Management (c) Management of operations : In order to survive
(i) Management is a Goal Oriented Process: and grow each organisation has to provide goods
Organisation’s existence is based on objectives and or services. This requires a production in which
management is the process which unites the efforts of inputs are converted into desired output.
every individuals to achieve the goal. For eg. If target Operations are the activities of the production
of Adda 247 is to add 1 crore paid subscriber in month, process such as buying inputs, converting them
then all the managerial activities are directed towards into finished goods.
achievement of this goal. (iv) Management is a Continuous Process : It is a never
ending process. It consists of series of interrelated
functions which performs continuously.
(v) Management is a Group Activity : Organisation is a
collection of many individuals, every individual
contributes towards achieving the goal. For eg. A
marketing manager cannot allow additional credit
(ii) Management is All Pervasive: The use of period to a customer without consulting finance
management is not restricted, it is applicable in all manager.
organisations big or small, profit or non-profit making.
(iii) Management is Multidimensional: It does not
contain one activity, it is a complex activity including
three main activities
(a) Management of work : All organisations exist to
perform some task or work. Management
translates this work in terms of goals to be
achieved and assign the means to achieve the goals

(b) Management of people : Human resources are the

most valuable assets of the organisation. With the
help of efficient employees an organisation can
compete with others because two enterprises may
have same technological and physical resources
(vi) Management is an Intangible Force: It cannot be
but not human resources due to the fact that most
seen or touched only it can be felt in the way the
of the employees consider different type of mind
and thinking. organisation functions.

(vii) 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.

Objectives of Management (a) Conservation of natural resources.

Objectives can be classified into organisational, social or (b) Using environment friendly methods of production.
personal (c) Providing basic amenities like schools and creches of
(i) Organisational Objectives: employees.
(a) Survival- It exists for a long time in the competition (d) Providing quality products at reasonable prices.
market. (e) Organising education and health programme.
(f) Generating employment opportunities to the
(b) Profit- It provides a vital incentive for the disadvantaged sections of the society.
continued successful operations.
(iii) Personal Objectives:
(c) Growth- Success of an organisation is measured by of management are concerned with satisfying diverse
growth and expansion of activities. needs of the employees such as :
(ii) Social Objectives: (a) Financial needs by giving them competitive salary and
Involves creation of benefit for society. perks
The main social objectives of organisation are: (b) Social needs such as peer recognition
(c) Higher level needs such as personal growth and For eg. The purchase manager of Vinod Book Depot
development. maintains stock on continuous basis. It helps the
Importance of Management owner to place orders well in advance, thus avoid
(i) Management Helps Achieving Group Goals: situation of stock shortage.
It integrates the objective of individual along with (iii) Management Creates a Dynamic Organisation:
organisational goal. For eg. Mr. Dinesh CEO of Tata Ltd. Organisation have to survive in dynamic environment
has set a target to export 60% of its total production. thus manager keep changes in the organisation to
In order to achieve the target Mr. Dinesh has to match environmental changes.
provide opportunities to his sales director to visit (iv) Management Helps in Achieving Personal
overseas market and in turn, the sales director will Objectives:
prepare the appropriate strategies, train, guide and Through motivation and leadership, management
direct his sales team so that the desired target is helps in achieving the personal objectives.
achieved.
(v) Management Helps in the Development of Society:
(ii) Management Increases Efficiency: It provides good quality products and services, creates
It increases productivity through better planning, employment, generate new technology in that sense it
organising, directing the activities of the organisation. helps in the development of the society.

Management as an Art to his own style. The success of different artists differ
Management as an art because eve when all of them possess the same technical
(i) Existence of theoretical knowledge: Art is based on knowledge or qualifications. This characteristic of art
some theoretical knowledge of concepts and is also present is management as every manager has
principles. For example literature on music is available his own unique unique style of managing things and
in huge volume. This characteristic of art is present in people, although all managers learn same
management as in management too, there is lot of management theories and principles.
literature available in various areas of management
like (marketing, human resource etc.) which the Conclusion
manager has to specialise in. On comparing the characteristics of art with
management we find all the characteristics of art
(ii) Based on practice and creativity: Perfect practice
are present in management so we call management
makes man perfect. The artist requires constant
as art of getting thing done through others.
practice of art to obtain excellence and perfection. For
eg. A dancer learns to perform better by continuously
Management as a Science
practising dance. This feature of art is also present is
Management as a science because
management. A good manager works through
combination of regular practice, initiative, imagination (i) Systematised body of knowledge: Science is a
and innovation. Over a period of time, he gains a vast systematised body of knowledge which is developed
experience and formulates his own theories for use in after years of research and experimentation. Like
a given situation. science, management is a systematised body of
knowledge that have been developed over a period of
(ii) Personalised Application: Art is personalised
time by management thinkers. So this feature of
concept as everyone applies the theoretical knowledge
science is present in management.
in his own personal way. Every artist work according
(ii) Principles are based on experimentation: The by every professional. If we talk about management,
scientific principles are derived through repeated The All India Management Association (AIMA) has
observation and experiments under controlled framed a code of conduct for managers. But legally, it
conditions. Similarly, management principles have is not mandatory for all managers to get registered
been developed over a period of time and are based on with AIMA and abide by the code of conduct.
observation and experiments in different types of
organisations. But management deals with human Conclusion
beings and human behaviour is quite unpredictable
On the basis of the above we can say that all the
and thus, result may vary in different types of
organisations. Therefore, management may be called presently all the features of profession is not
inexact science. present in management but in near future these
(iii) Universal Validity : Scientific principles have universal will be included in management with statutory
validity and can be applied in all the situations and at backing.
all times. The principles of management are also
universal in nature but the principles of management Levels of Management
are not like scientific principles so their application (i) Top Management: It consists of senior-most
and use is not universal. So this characteristic of executives who are usually referred to as the
science does not apply in case of management. Chairman, Chief Executive Officer, President and Vice
President.
Conclusion
Following are the main functions of top level
On comparing the characteristics of science with
management:
management, we can conclude that management
cannot be considered as pure or accurate science (a) Formulates overall organisational goals and strategies
like physics or chemistry. But we can call it as an for their achievement.
inexact or social or soft science. (b) They are responsible for welfare and survival of the
organisation.
Management as a Profession (c) They are responsible for the overall success or failure
(i) Well defined body of knowledge: All professions are of the organisation.
based on a well defined body of knowledge that can be (d) They are responsible for all the business activities and
acquired through training and instructions. Similarly their overall impact on society.
in management also there is specialised knowledge (e) The top level managers analyse the business
which is taught in universities and management environment and its implication for the survival of the
institutes. enterprise.
(ii) Restricted Entry: No one can enter a profession (f) Coordinating the activities of different departments.
without going through an examination or acquiring
educational degree. Whereas there is no restriction on (ii) Middle Management: They are usually division heads
appointment of manager, irrespective of his who are the link between top and lower level of
educational qualification. So presently this management.
characteristic of management is not applicable to Following are the main functions of middle level
management. management:
(iii) Professional Association- All professions are (a) To interpret and explain the plans and policies
affiliated to a statutory association or institution formulated by top level management to lower level.
which regulates entry in the profession, issues (b) They are responsible for implementing and
certificate of practice and enforces a code of conduct. controlling plans and strategies frames by top
Presently this feature of profession is not present in management.
management as it is not mandatory for a manager to (c) They ensure department has necessary personnel.
be a member of any management association. (d) To motivate employees for higher productivity and
(iv) Service Motive: The main aim of a profession is to rewarding them for their better performance.
serve the client with dedication for example the task of (e) Middle level management is responsible for the
doctor is save his patient life. Whereas basic motive of activities of first line managers.
management is to achieve organisational goal which is (f) Middle management cooperate with other
generally profit maximisation. But now-a- days in departments for smooth functioning of the
order to survive in competitive market an organisation.
organisation has to fulfil its social obligations along (g) Reporting the performance, problems, suggestions
with economic objectives. and other important data to the top management.
(iii) Supervisory Level Management: They are usually
(v) Ethical Code of Conduct: Every profession is the foremen and supervisors who actually carry on the
regulated by code of conduct which has to be followed work or perform the activities.
Following are the main functions of supervisory level (e) They send reports on work performance to higher
management: level management.
(a) They ensure quality standards are properly followed (f) Planning day-to-day activities and issuing orders and
by workers. instruction to workers.
(b) They supervise and motivate workers and maintain (g) The lower-level management encourage the workers
discipline. to take initiative and welcome their suggestions and
(c) Arranging Machinery, materials, tools etc. for workers. reward them for their good suggestions.
(d) They ensure proper and safe working condition for (h) They guide and help the middle level management in
workers. selection, training, placement and promotion of
employees.

Functions of Management
(i) Planning: It refers to deciding in advance what to do, how to do and developing a may of achieving goal efficiently and
effectively.
(ii) Organising: It refers to the assigning of duties, grouping tasks, establishing authority and allocating of resources
required to carry out a specific plan.
(iii) Staffing: It implies right people for the right job.
(iv) Directing: It involves leading, influencing, motivating employees to perform the task assigned to them.
(v) Controlling: It refers to the performance measurement and follow-up actions that keep the actual performance on the
path of plan.
Co-ordination—The Essence of Management
Co-ordination means binding together all the activities such as purchase, production, sales, finance to ensure continuity in the
working of the organisation. It is considered as a separate function of management, in order to achieve harmony among
individual, efforts towards the accomplishment of goods.
Characteristics of Co-ordination (vi) It is a deliberate function- A manager has to
(i) It integrates group efforts: Coordination is needed in coordinate the efforts of different people in conscious
group efforts not in individual efforts. When two or and deliberate manner.
more work people work together to achieve common Importance of Coordination
goals, then there is need to coordinate their efforts in
common direction. (i) Growth in Size: When there is a growth in size, the
number of people employed by the organisation also
(ii) It ensures units of action: Coordination leads to unity increases. Thus to integrate the efforts, coordination is
of action towards the organisational goals. needed.
(iii) It is a continuous process- Coordination is never (ii) Functional Differentiation: In an organisation, there
ending process. It is carried on by all managers at all are separate department and different goals. The
the times. process of linking these activities is achieved by co-
(iv) It is an all pervasive function: Coordination is ordination.
universal in nature. It is needed at all the levels, in all (iii) Specialisation: Modern organisation is characterised
departments because of interdependence of various by a high degree of specialisation. Co-ordination is
activities. required among different specialists because of their
(v) It is the responsibility of all managers: different approaches, judgement etc.
Coordination is responsibility of all managers in the
organisation.
 QUESTIONS FOR PRACTICE

(c) Middle level management

MCQ (d) Either (a) or (c)
Q10. Which of the following is not an essential
Q1. The following is not an objective of management organisational objective of management?
(a) earning profit (a) Survival
(b) growth of the organisation (b) Eco-friendly production
(c) providing employment (c) Growth
(d) policy making (d) Profit
Q2. Coordination is Q11. In order to achieve organisational goals, ...........
(a) function of management objectives should be integrated with organisational
(b) the essence of management goals, as only satisfied employees will help in
(c) an objective of management achieving organisational goals.
(d) None of the above (a) organisational (b) social
(c) personal (d) None of the above
Q3. Which of the following is not an importance of
management? Q12. Which of the following highlights the importance of
(a) Management increases efficiency coordination?
(b) Management helps in achieving individual goals (a) Growth in size
only (b) Functional differentiation
(c) Management creates a dynamic organization (c) Specialisation
(d) Both (a) and (c) (d) All of the above
Q4. Ajay is working as an operations manager in WH Ltd. Q13. Without coordination, directing is impossible and of
What is the managerial level at which he is working? no worth if there is lack of coordination between
(a) Top (b) Middle level superiors and
(c) Lower level (d) Shop floor (a) managers (b) directors
(c) subordinates (d) All of these
Q5. To conserve tigers, Airtel started an earnest
awareness campaign ‘Save our Tigers’. Which Q14. The ............... coordinates the activities of the whole
objective of management is highlighted here? organisation keeping in view the desired goals.
(a) Organisational (b) Social (a) middle level management
(c) Personal (d) Both (b) and (c) (b) top level management
(c) lower-level management
Q6. In Tysfo Ltd. the purchase department purchased 20
(d) All of the above
tonnes of raw material for the production department.
However, the production department required only 15 Q15. ............... is a process through which harmony is
tonnes. Due to this reason, goods were produced established among different activities of an
beyond required level and were not accepted by sales organisation.
department. As a result, many goods remained unsold. (a) Planning (b) Organising
Identify the aspect of management lacking in the given (c) Coordination (d) Either (a) or (b)
case. Q16. Which of the following functions are required to be
(a) Planning (b) Coordination carried out for successfully establishing coordination?
(c) Directing (d) None of these (a) Planning and directing
Q7. Which objectives of management deals with the (b) Organising
commitment of an organisation towards the society? (c) Staffing
(a) Personal objectives (d) All of the above
(b) Social objectives Q17. ............... is an important function of management as it
(c) Organisational objectives ensures that right people with right qualification are
(d) Economic objectives employed at a right place.
Q8. What is concerned with completing activities or (a) Organising (b) Planning
achieving goals, within the prescribed time limit? (c) Staffing (d) Directing
(a) Process (b) Efficiently Questions 18–19 contain two statements–– Assertion (A)
(c) Effectively (d) None of the above and Reason (R). Each question has FOUR choices (a), (b),
Q9. Finance manager and marketing manager comes at (c), (d), only one of which is correct.
which level of management? In the light of these statements, choose the most appropriate
(a) Top level management option:
(b) Lower level management (a) (A) is incorrect but (R) is correct.
(b) (A) is correct but (R) is incorrect. Q6. Rajan has retired from the post of a foreman in a
(c) Both (A) and (R) are correct and (R) is the correct factory. At what level of management is he working?
explanation of (A)
Q7. MNC Ltd. is facing a lot of problems these days. The
(d) Both (A) and (R) are correct but (R) is not the correct
explanation of (A). company’s profit margin is declining day by day. The
production manager is blaming marketing
Q18. Assertion (A): Management is multidimensional. management whereas marketing is blaming both.
Reason (R): The effect of management is noticeable in
What quality of manager do you think is lacking?
the organization when targets are achieved according
to the plans, employees are happy and satisfied, and Explain it briefly.
there is order instead of chaos. Q8. Hema is one of the most successful managers of her
Q19. Assertion (A): Planning is that function of company, ‘Nexon Ltd’. She uses her creativity and
management which determines in advance what to do, initiative in handling challenging situations at work.
how to do. The knowledge gained by her during her student days
Reason (R): Directing is the last function of at a renowned management institute as well as
management. through her observation and experience over the
Q20. Personal objectives are related with satisfying the years is applied by Hema in a skillful manner in the
personal needs of the employees. Management must context of the realities of a given situation. She often
seek to satisfy the diverse needs of employees like reads books and other literature in various fields of
(a) financial needs, by giving competitive salary and management to keep her knowledge updated.
perks
(b) social needs, by peer recognition (i) An aspect of the nature of management is being
(c) higher level needs, by providing opportunities for highlighted in the above description. Identify the
personal growth and development aspect.
(d) All of the above
(ii) Explain any three features of the aspect identified
SUBJECTIVE QUESTIONS in part (i).
Q1. The management of Usha Ltd. strongly believes that Q9. Feel India Ltd. decided to synchronize all the activities
the members of the organisation should work towards of organisation. While deciding what is to be done,
fulfilled the common organisational goals. This when it is to be done, they tried to bring harmony
requires team work and integration of efforts of all between organisational goal and individual goal.
individuals departments and specialists. This is While hiring employees HR department made sure
because all the individuals and departments depend people with right qualification only joined the
on each other for information and resources to organisation and they are paid as per their
perform their respective activities. Manager needs to qualification. Further the directors made arrangement
reconcile differences in approach, timing, efforts and that at the end of every three months performance of
interest. At the same time it should enable all its
the employees is compared with planned performance
members to grow and develop. Thus, there is a need to
so that steps can be taken to check the deviation.
harmonise individual goals and organisational goals.
(i) State the concept of management discussed above. (i) Identify the three functions of management
highlighted in above para.
(ii) State any three features of the concept identified
in above para. (ii) Also identify the concept of management that
Q2. Vivek Ltd. is using eco-friendly method of production. gives importance in above para.
Identify the objective it is trying to achieve. Q10. Rohan, Sohan and Mohan are three friends they work
Q3. If a manager is able to achieve the target of production in same company. One day they were having a
of 5000 units but at a higher cost. Is he efficient or conversation. When Rohan said I have purchased two
effective? new machines and it has become very difficult to
Q4. Dev argues that management is required in all kinds motivate workers at shop floor to use these machines.
of organisations where as Mohan feels that Sohan said I am facing problems in finding the exact
management is not required in non-business number and types of employees for my department.
organisations such as school, club, hospitals, etc. who Mohan said I have to decide the long the plans of
is correct? organisation and I am responsible for the overall
Q5. “An organisation is a collection of diverse individuals welfare of the organisation.
with different needs.” Which characteristics of (i) Identify different levels of management these
management are highlighted in this statement? friends belong to.
(ii) Explain any two functions of each level.
 HOMEWORK
(a) The cost of production is ₹150 per unit but work
MCQ is completed in 15 days
(b) The work is completed within 10 days even at
Q1. Successful organisations do not achieve goals by higher cost per unit
chance but by following a deliberate process known as (c) The cost of production is less than ₹150 per unit
(a) Planning (b) Co-ordination and work is completed in 11 days
(c) Controlling (d) Management (d) All of the above
Q2. Management is essential for the organisations which Q9. Sita is working as a marketing manager in a company,
are she has been given the task of selling 100000 units of
(a) Non-profit organisations (b) Service organisations a product at the cost of ₹100 per unit within 20 days.
(c) Social organisations (d) All of the above She is able to sell all the units within the stipulated
Q3. Ramesh is manager of PQR Ltd. He noticed that time, but had to sell last 1000 units at 20% discount in
changes were taking place in the market, due to which order to complete the target. In such a situation, he
company’s future can be in danger. He started will be considered to be
adopting changes in its product design and starting (a) An efficient manager
(b) An effective manager
producing goods as per the taste and preference of
(c) Both effective and efficient manager
consumers and he got support of all workers also. He
did everything which he could do. Identify the feature (d) None of the above
of management highlighted in the above para. Q10. Yash Ltd. is facing a lot of problem these days. It
manufactures electronic goods like washing machines,
(a) Management is goal-oriented process
microwave ovens, refrigerators and air conditioners.
(b) Management is all pervasive
(c) Management is Multidimensional The company’s margins are under pressure and the
profits and market share are declining. The
(d) Management is a Dynamic function
production department blames marketing
Q4. People in the organisations carry out diverse tasks department for not meeting sales targets and
with the aim to achieve marketing department blames production
(a) Different objectives (b) Common objectives department for producing goods, which are not of
(c) Both of the above (d) None of the above good quality to meet customer’s needs. The finance
Q5. Successful management ensures that department blames both production and marketing
(a) Goals are achieved with least cost departments for declining return on investment and
(b) Timely achievement of goals bad marketing. What quality of management do you
(c) Both of the above think the company is lacking?
(d) None of the above (a) Coordination (b) Decentralisation
Q6. Mr. Hitesh is working as a foreman in a garment (c) Delegation (d) None of the above
manufacturing unit and he supervises 10 employees Q11. Ramesh Enterprises Limited is planning to increase its
under him and makes day to day production plan and sales by 30% in the next quarter. Identify the feature
other activities. At which level of management he is of management being highlighted in the given
working ? statement.
(a) Top level Management (a) Management is all pervasive
(b) Middle level Management (b) Management is a goal oriented process
(c) Supervisory Management (c) Management is a continuous process
(d) Can’t say (d) All of the above
Q7. An organization in Germany needs to be managed as Q12. Management is equally important to run a political
much as an organization in India. Though the way they organisation as it is to run an economic organisation.
manage would vary due to differences in culture, Which feature of management is being reflected in the
traditions and history. Name the feature of given statement?
management referred above. (a) Management is goal oriented
(a) Management is all pervasive (b) Management is multidimensional
(b) Management is a dynamic function (c) Management is all pervasive
(c) Management is a group activity (d) Management is a group activity
(d) Management is goal oriented process
Q13. Management translates the works to be carried out in
Q8. Lakhan works as a production manager in Naresh terms of goals to be achieved and assigns the means to
Enterprises Limited. He has been given the task of achieve it. This statement relates to
getting 1000 units of hand woven table mats (a) Management of work
manufactured at the cost of ₹150 per unit within 10 (b) Management of people
days. In order to be acknowledged as an effective (c) Management of operations
manager, he must ensure that (d) All of the above
Q14. Which of the following statements highlights that Q20. Which of the following is a function of top level
management is a group activity? management?
(a) Organisation is a collection of diverse individuals (a) Ensuring quality of output
with different roles. (b) Assigning necessary duties and responsibilities to
(b) Achievement of common goal requires teamwork their departments
and co-ordination of efforts in a common (c) Taking responsibility for all the activities of the
direction. business and its impact on the society
(c) Each member of the organisation may have (d) Ensuring that the safety standards are maintained
different individual goals but they must travel within the organisation.
together towards common goals.
(d) All of the above Q21. Which of the following statements does not pertain to
middle level management?
Q15. Keeping in view the changes in the consumer demands (a) They are responsible for all the activities of the
and preferences ‘Tushar Bakery’ has reduced the operational managers.
sugar and fat content in its products. This approach of (b) They are responsible for the welfare and survival
business shows that management is of the organisation.
(a) An intangible force (c) The interpreter the policies made by top level
(b) A group activity managers
(c) A dynamic function (d) Co-operate with other departments for the
(d) A multidimensional activity smooth running of the organisation.
Q16. Which of the following is not an organisational Q22. Which of the following statements is not true for lower
objective of management? level management?
(a) Earning enough revenue to cover costs (a) Analyse the business environment and its
(b) Earning sufficient profits to cover risks of implications for the survival of the business.
business (b) Ensure the quality of the output
(c) Increase in the prospects of business in the long (c) They strive to reduce the wastage of resources
run (d) They ensure that the safety standards are
(d) Providing free education to their employees maintained within the organisation.
children Q23. Identify the level of management which does not
Q17. Management of Globus Ltd. fulfils all its objectives and interact with the work force directly.
the organization is able to work effectively and (a) Supervisory management
efficiently. It is using environment friendly methods of (b) Operational management
production and disposing off the waste material either (c) First line managers
by recycling it or using the same for landfill in such a (d) Middle level management
manner that the aquatic life is not disturbed. It also Q24. This level of management serves as a link between top
provide employment opportunities to the level managers and first line managers.
disadvantaged sections of the society. Identify the (a) Supervisory level management
objective of management of Globus Ltd. which it wants (b) Operational management
to fulfil by doing the above activities. (c) Middle level management
(a) Personal Objectives (d) None of the above
(b) Organisational objectives
(c) Social Objectives Q25. The General Manager of Bharat Ltd. called the meeting
(d) Both (a) and (b) of the Production manager and Sales manager of the
company. She explained them that both of these
Q18. Management is considered to be an art because departments are the base of company’s success.
(a) The principles of management have universal Therefore, it is necessary for both of them to work
validity with coordination. Also, they are told that whatever
(b) The principles of management have universal decision they took for their respective departments;
application which could affect others, they must give its
(c) Different principles of management are brought information to them immediately. They did the same.
into effect differently by different managers As a result of this, there never arose a situation in the
(d) It is not important for the practising managers to company. When the sales orders could not be
be a member of a professional association. compiled with because of the shortage of goods.
Q19. Your elder brother is working as a finance manager in Identify the feature of coordination highlighted in the
a multi-dimensional company. State the level of above para.
management he is working at? (a) Coordination is deliberate function
(a) Top level management (b) Coordination is a continuous process
(b) Bottom level management (c) Coordination ensures unity of action
(c) Middle level management (d) Coordination is pervasive function
(d) Can’t say
Q26. The function of management related to grouping of (ii) Give any two points of difference between
activities to be carried out into departments and effective and efficiency.
creating management hierarchy is Q2. PQR Ltd., a garment manufacturing Company set the
(a) Planning (b) Organising target production of 100 garments per month at the
(c) Controlling (d) Directing estimated cost of ₹ 200 per garment. Mohan, a worker
Q27. This function of management relating to laying down worked double shift and manufactured around 150
the foundation for carrying out the other functions of garments but at the estimated cost of ₹ 230 per
management successfully is garment.
(a) Organising (b) Staffing On the other hand, Ravi another worker focus on cost
(c) Planning (d) Controlling and handled resources very carefully so he
Q28. The director of Wadhwa Ltd. has a firm belief in team manufactured 90 garments but at the estimated cost of
work where the members of the company should work ₹190 per garment. Third worker maintained the
towards fulfilling the common organisational goals. He balance and achieved target of 100 garment at the
gives more emphasis on team work and integration of estimated cost of ₹ 200 per garment.
efforts of all individuals, departments and specialists. (a) Identify the quality possessed by Ravi, Mohan and
He gives importance to reconciliation of individuals as what they are lacking.
well as departmental differences and creating a work (b) What quality is possessed by third worker?
environment which enable all its members to grow (c) Which worker is preferred by management?
and develop to their maximum capacity. Identify the Q3. Is planning, organising, staffing, directing and
concept of management discussed above. controlling applied in organisations such as school,
(a) Planning (b) Centralisation club, restaurant, hospitals, etc.? If yes which
(c) Coordination (d) None of these characteristics of management does it signify? Explain
Q29. Co-ordination is considered to be the essence of that characteristic.
management because
(a) It is a common thread that runs through all the Q4. Dominos Pizza’s keep introducing new variety of
activities within the organisation Pizzas in its menu. Which characteristics of
(b) It is implicit and inherent in all functions of the management is highlighted in this? Explain any other
organisation two characteristics of management.
(c) It is a force that binds all the functions of Q5. EFG Power Ltd. set up a factory for manufacturing
management solar lanterns in a remote village as there was no
(d) All of the above reliable supply of electricity in rural areas. The
Q30. Lata is the marketing manager of a company selling revenue earned by the company was sufficient day by
mobile phones. She plans the target sales of 2000 day, so the company decided to increase production to
mobile phones. She allocates necessary resources to generate higher sales. For this they decided to employ
execute the plan. She has six salesman working under people from the nearby villages as very few job
her. She works with them, guiding and motivating opportunities were available in that area. The
them to achieve the target sales. At the end of the company also decided to provide training to their
month, after comparison of actual sales with the target employees, for updating their knowledge. Identify the
sales she found that actual sales exceeded the target objectives of management discussed by quoting the
sales. She rewarded efficient employees to motivate lines.
them. Identify the four functions of management Q6. ABC Ltd. is running a chain of fast food restaurants in
discussed in the above para. India. The business was flourishing but over last two
(a) Planning, Organising, Directing, Controlling years they observed that the revenue and profit is
(b) Planning, Staffing, Directing, Controlling declining. The management observed that with the
(c) Staffing, Organising, Directing, Planning entry of new fast food chains from across the world the
(d) Directing, Organising, Staffing, Controlling people are shifting to these restaurants, so the
management planned to add new variety of food items
SUBJECTIVE QUESTIONS in their MENU, for that they sent their efficient
employees abroad for training and imported machines
Q1. During festival season MNO Ltd. received a new to maintain the quality of food. The company make
order of 10,000 mobile phones to be delivered in sure only fresh food is served to their customers, so at
10 days, failing which the contract will be null and night they distribute left over food in nearby slum
void. To complete this production manager area. To increase profit margin, the supervisors take
planned to outsource the production so that order special care that there is minimum wastage and
could be delivered on time. The outsourcing maximum utilisation of resources.
resulted in increase in cost by 30%. Identify the three points of importance from the above
(i) Do you think the production manager performed para by quoting lines.
duties effectively and efficiently?
Q7. Management has evolved like a discipline. There are departments were not cooperating with his
number of books on management. Students are department for smooth functioning of the
learning from these books various principles and organisation. Therefore, he ensured that his
theories of management. But all students of MBA do department has the required of employees and its
not become successful only by learning these cooperation with other departments is improved.
principles. The success depend upon creative (a) Identify the level at which Shyamlal Mukherjee
application of these principles. Today many was working.
companies have started giving importance to (b) Also, state three more functions required to be
corporate social responsibility and Business Ethics. In performed by Shyamlal Mukherjee at this level.
the above para one feature of Science, Art and
Profession each are given. Identify each one of them by Q10. The marketing manager of Beta Ltd. fixed the target for
quoting lines. all the sales executives and gave them all the possible
Q8. Ashutosh Gupta was working in ‘BNP Ltd’, a company authority to achieve it. They were asked to submit to
manufacturing air purifiers. He found that the profits him their performance report at the end of the month.
had started declining from the last six months. Profit All of them did the same. On the receipt of report the
has an implication for the survival of the firm, so he expected and actual results of sales executives were
analysed the business environment to find out the compared, on this basis future course of action was
reasons for this decline. decided. The sales executives also wrote in their
report the expectations of the customers from the
(a) Identify the level of management at which company. The majority of them had written that they
Ashutosh Gupta was working. wanted the company to cooperate in the construction
(b) State three other functions being performed by of Shimla, going on in the city. The marketing manager
Ashutosh Gupta. placed this demand before the Board of Directors. This
Q9. Shyamlal Mukherjee has recently joined AMV Ltd., a was happily accepted. Identify the functions of
company manufacturing refrigerators. He found that management highlighted in above para by quoting
his department was under-staffed and other relevant lines.
 SOLUTION FOR PRACTICE QUESTIONS

SOLUTION FOR MCQ QUESTIONS

S1. (c) S8. (c) S15. (c)

S2. (b) S9. (c) S16. (d)
S3. (b) S10. (b)
S17. (c)
S4. (b) S11. (c)
S18. (d)
S5. (b) S12. (d)
S6. (b) S13. (c) S19. (b)
S7. (b) S14. (b) S20. (d)

SOLUTIONS FOR SUBJECTIVE

QUESTIONS

S1. (i) Coordination Explain the topic: coordination an essence of

(ii) Give features of coordination (Refer Page no. 9) management.
S2. Social objective. S8. (i) Management as an art.
S3. He is effective as he achieves the target on time but he (ii) Features of management as an art (Refer Page no.
is inefficient as he incurred higher cost. 6)

S4. Dev, because management is pervasive. S9. (i) (a) Planning

(b) Staffing
S5. Management is a group activity.
(c) Controlling
S6. Supervisory or operational level. (ii) Coordination
S7. The quality which is lacking in the above case is S10. (i) Rohan: Supervisory level
“coordination.” The manager is able to execute all the Sohan: Middle level
functions but he is unable to coordinate these Mohan: Top level
functions and coordination is not a mere function of (ii) Functions of each level (Refer Page no. 7-8)
manager but it is the essence of management.
 SOLUTION FOR HOMEWORK QUESTIONS

SOLUTION FOR MCQ QUESTIONS

S1. (d) Management is considered to be a deliberate S15. (c) In order to be successful, it is important that a
process as it involves creating an environment business adapts itself to the changes in the taste
which is conducive to efficient and effective and preferences of the consumers.
performance. S16. (d) Providing free education to children is a social
S2. (d) Management is essential for all types of objective of management.
organisations irrespective of their size or type. S17. (c)
S3. (d) S18. (c) Management is based on personalised
S4. (b) Management seeks to integrate individual goals application of the knowledge and skills.
with organisational goals and ensure realisation S19. (c)
of both.
S20. (c) Ensuring quality of output; Ensuring the safety
S5. (c) Management aims to carry out the work in a standards are maintained within the
manner that is completed within the stipulated organisation – lower level management and
time (effectiveness) and at the least cost assigning necessary duties and responsibilities
(efficiency). to their departments – middle level management.
S6. (c) S21. (b) They are responsible for the welfare and survival
S7. (a) of the organisation- top level management
S8. (b) The concept of effectiveness is related to the S22. (a) Analyse the business environment and its
completion of the task within the stipulated time implications for the survival of the business-top
irrespective of the cost involved. level management
S9. (b) S23. (d) The middle level managers interact with the
S10. (a) supervisory/operational/first-line managers
who in turn interact with the workers directly.
S11. (b) Management is considered to be goal oriented as S24. (c)
an organisation is brought into existence for
realisation of certain goals. S25. (c)
S12. (c) Management is required in all types: economic, S26. (b)
social or political, and sizes of organisations. S27. (c)
S13. (a) Management is multidimensional in nature and S28. (c)
involves three aspects, management of work is
one of them. S29. (d)
S14. (d) S30. (a)

SOLUTION FOR SUBJECTIVE QUESTIONS

S1. (i) Effective but not efficient (b) Personal Objectives
(ii) Refer Page no. 4 Relevant Lines ‘The company …………. their
S2. (a) Mohan is effective but not efficient knowledge’.
Ravi is efficient but not effective (c) Social Objectives
(b) Third worker is effective as well as efficient Relevant Lines ‘For this …………… in that area’.
(c) Management will prefer third worker S6. The importance highlighted in above para are:
S3. ‘Management is all pervasive’ is discussed in the (a) Management creates a dynamic organisation.
above case. Refer page no. 5 Line: "Managers planned …………….. in their MENU".
S4. ‘Management is Dynamic’ characteristic of (b) Management help in achieving personal objectives.
management is highlighted in the above Line: "Management sent ……………… abroad for
statement. training".
For other characteristic refer page no. 5 (c) Management increases efficiency.
S5. (a) Organisational Objectives Line: "Supervisors take ……………… maximum
Relevant lines ‘The revenue earned …………. higher utilisation of resources".
sales’.
S7. (i) Management as Science: systematic body of S9. Middle Level Management
knowledge For other functions Refer Page no. 7.
Line: "There ……… books." S10. (a) Organising
(ii) Management as an Art: Based on Practice and Relevant Line ‘gave them …….. authority to
Creativity achieve it’
Line: "Success ……… application." (b) Controlling
(iii) Management as a Profession :Service Motive Relevant Line ‘expected and actual ………… were
Line: "Companies ……… responsibility." compared’
S8. Top level Management (c) Planning
For other functions Refer Page no. 7. Relevant Line ‘future course ……….. was decided’