Chapter-1

Nature and significance of management

Topic- 1

Management and characteristics of management

Multiple Choice Questions:

1) An efficient control system helps to
A. accomplishes organisational objectives
B. boosts employee morals
C. judges accuracy of standards
D. All the above

2) In successful Organization, ___________

A. Low efficiency and high Effectiveness go hand in hand
B. Low effectiveness and high efficiency go hand in hand
C. High effectiveness and high efficiency go hand in hand

3) Whereas___________ is concerned with the means of getting things done,

_____________ is concerned with end, and attainment of organizational goal
A. Effectiveness; Efficiency
B. Efficiency; Effectiveness
C. Effectiveness; Goal attainment

4) Effectiveness is concerned with_______________

A. Doing the task correctly with minimum cost
B. Getting things done with the aim of achieving goals effectively and efficiently
C. Doing the right task, completing activities and achieving goals
5) X. ltd target production of 2,000 units in a month. Production manager was able
to achieve this target but at a higher production cost. In this case, manager is
______ but not __________
A. Efficient but not effective
B. Efficient but not honest
C. Effective but not efficient

6) OD was founded on the belief that using behavioural science methods to increase
collaborative problem solving would increase:
A. Organizational effectiveness
B. Organizational turnover
C. Organizational reputation

7) intervention seminars being conducted in the organizations help to:

A. Improve overall efficiency
B. improve productivity
C. improve morale of the employees
D. all of the above

8) Doing the right things" is referred to as ____________.

A. Effectiveness
B. Efficiency
C. Productivity
D. Profitability

9) Efficiency means ___________

A. Doing the task correctly
B. Doing the task with minimum cost
C. Deriving more benefits by using less resource
D. All the above
 10) a production manager was 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. Neither effective nor efficient

Very Short Questions:

Q1. Production manager tries to produce goods with minimum costs.
Name the concept which is being focused by management?

Answer. Efficiency

Q2. Hritik Ltd target is to produce 10,000 shirts per month at a cost of Rs. 150 per
shirt. The production manager has achieved this target at the cost of Rs 160 per
shirt. Do you think the production manager is effective?
Answer. He is effective as he has achieved the target but he is not efficient as he
achieved the target by incurring higher cost

Q3. What do you mean by effectiveness?

Answer. It means completing the task or achieving the goals within stipulated
time period.

Q4. “Planning, Organizing, Staffing, Directing and controlling” is the sequence of

functions in a process. Name it.

Answer. Management

Q5. What is Management?

Answer. Management is the process of giving direction and controlling the various
activities of the people to achieve the objectives of an organization.
Q6. Name any two important characteristics of management.

Answer: Pervasive and Multidimensional

Q7. What is meant by management by people?

Answer. Management of people is an art of getting things done through others. A manager
tries to direct and motivate the individuals and tries to achieve individual needs along with
organizational needs.

Q8. The management principles can be applied to all types of activities. Which type of
characteristics is highlighted by this statement?

Answer: Management is all pervasive: Management is common to all organisations whether

economic, social or political. For e.g. management is applicable for a government company,
school, private company or a NGO

Q9. "Management is the process of getting things done.' State the meaning of the term
'process' used in this statement

Answer. Management of people is an art of getting things done through others. A manager
tries to direct and motivate the individuals and tries to achieve individual needs along with
organizational needs.

Q10. The Activities involved in managing an enterprise are common to all organizations
whether economic, social or political. Which characteristics of management is
highlighted by this statement?

Answer: Management is all pervasive: Management is common to all organisations whether

economic, social or political. For e.g. management is applicable for a government company,
school, private company or a NGO

Q11. In order to be successful an organization must change its goals according to the
need of the environment. Which characteristic of management in highlighted in the
statement?
Answer: Management is dynamic function. It has to adapt itself to its changing external
environment, which consists of various social, economic and political factors.

Q12. "A collection of diverse individuals with different needs but working towards
fulfilling the common organizational goals" this statement highlights which
characteristic of management?

Answer: Management is a group activity-All the individuals in the organisation contributes

towards achieving the goals set by the organization.

Q13. 'Is Management concerned only with doing the right task, completing activities
and achieving goals without taking into consideration the cost benefit? Give reason in
support of your answer?

Answer: No, management is not only concerned with doing the right task, completing
activities and achieving goals but it also takes into consideration the cost benefit. Efficient
management minimizes the costs and increases the productivity through the optimum
utilization of resources and minimum wastage.

Q14. "Management is considered to be three-tier machinery". Why?

Answer: Because of the three levels in the management hierarchy-Top, Middle & operational

Q15. State any two points which prove that management is multi-dimensional?

Answer: a) Management of work

b) Management of people.

Q16. A company's target production is 5000 units in a year, to achieve this target the
manager has to operate in double shifts due to power failure. The manager is able to
meet the target but at a higher production cost. Is the manager efficient or effective?

Answer: The manager of the company is effective but not efficient

Q17. 'Is Management concerned only with doing the right task, completing activities
and achieving goals without taking into consideration the cost benefit?' Give reason in
support of your answer.

Answer: No, management is not only concerned with doing the right task, completing
activities and achieving goals but it also takes into consideration the cost benefit. It is one of
the most important parts of management, that it increases the efficiency which means
management minimises the costs by increasing the productivity through the optimum
utilisation of resources.

Q18. How does management help in increasing efficiency?

Answer. A manager reduces cost and increases productivity through better planning,
organising, directing, staffing and controlling the activities of the organisation.

Q19. If a manager is able to achieve the target of production of 5000 units but at a
higher cost. Is he efficient or effective?

Answer. He is effective as he achieves the target on time but he is inefficient as he incurred

higher cost.

Q20. Is planning, organising, staffing, directing and controlling applied in organisations

such as school, club, restaurant, hospitals, etc.? If yes which characteristics of
management does it signify? Explain that feature.

Answer. Yes, the characteristics which signify this is management is pervasive”.

Pervasive: Management is all pervasive that means it is applicable everywhere. Because it

has universal application. It is applicable to educational institutions as well as NGO's.
Management means to get the things done from others.

Q21. The task of management is to make people work towards achieving the
organisational goals by making their strengths effective and their weakness irrelevant.
Identify the dimension of management.

Answer. Management of people.

Q22. “An organisation is a collection of diverse individuals with different needs.” Which
characteristics of management are highlighted in this statement?

Answer. Management is a group activity.

Short Questions:

Q1. What are the personal objectives of the management?

Answer. Personal objectives refer to the objectives which are related to the
employees of an organisation. They are as follows:

i) Financial needs like competitive salaries, incentives and other monetary

benefits.

ii) Social needs like recognition in the organisation.

iii) Higher level need which includes personal growth and development.

Q2. Explain the 'social objectives' of management.

Answer. Each organisation is a part of society and thus it has certain social
obligations to fulfil.

Some of them are as follows:

(i) To supply quality goods and services

(ii) Providing basic amenities to the employees like schools and creches for their
children, medical facilities etc.

(iii) To generate employment opportunities especially for the backward classes.

(iv) To provide environment friendly methods of production.

(v) To provide financial support to society by donating for noble causes.

(vi) To organize educational, health and vocational training programmes.

(vii) To participate in social service projects of Government and Non –
Governmental Organisations (NGOs)

Q3. “Management is intangible.”Comment.

Answer. Management cannot be seen physically, its presence can be felt through
orderliness, enthusiastic employees and efficient work. The result of
mismanagement can be felt more clearly as compared to management.

Q4. Management is a continuous activity.

Answer. Management is a continuous and never ending function. All the function
of management are performed continuously,
For Example, Planning, organising, staffing, directing, and controlling are
performed by all the managers all the time. Sometimes, they are doing planning,
then staffing or organising, etc. Managers perform ongoing series of function
continuously in the organisation.

Q5. Give the meaning of “efficient utilisation of resource” and “effectiveness”.

Answer. Efficiency refers to getting the things done in right way with no wastage
of resources. Effectiveness refers to achieving target and setting goals in the the
right direction.
For Example, when there is a demand for old cars in the market then producing
small cars on time means effectiveness whereas producing cars by minimum
wastage, cost and in best possible way is called efficiency.

Q6. Trace the evolution of management with reference to the contributions made
by management thinkers.

Answer. Management is defined for conceptual, theoretical and analytical

purposes as that process by which managers direct, maintain and operate
purposive organizations through systematic, coordinated, cooperative human
efforts. Management is a process involving planning, organizing, staffing,
 directing and controlling human efforts to achieve stated objective in an
organization.
Contributions of:
Peter Drucker
F.W. Taylor
Elton Mayo
Henri Fayol
Max Weber
Henry Gantt
Frank & Lillian Gilbreth.
These contributions came bit by bit and in haphazard manner and have failed to
stimulate to study management as a distinct discipline. However their ideas
created awareness about managerial problems.

Q7. Without effective management the resources will remain as resources cannot
be converted into productive utility. “Do you agree”? Give reason.

Answer. Success of an organization is largely depend upon its management

because of the following reasons.
(a) Help in achieving group goals
(b) increase efficiency
(c) creates a dynamic organisation
(d) help in achieving personal objective of an organisation
(e) help in development of society

Q8. Define Management.

Answer. According to KOONTZ & WEIHRICH, “Management is the process of
designing and maintaining of an environment in which individuals working together
in groups efficiently accomplish selected aims”.
“Management is the art of getting things through and with people in formally
organized groups”.
Ex: Human Resource Management, Financial Management.

Q9. How is management all pervasive?

 Answer: Activities involved in management are applicable to every type of
organisation whether political, For example, a cricket team needs to be managed as
much as a club or a hospital. The activities of managers in India are similar to their
activities in say U.K. or USA. Thus, it can be said that management is all-pervasive.

Q10. 'Management provides judgement and vision'. Explain?

Answer: Management keeps adjusting to the complex and ever-changing external
environment. It helps in decision making. As it visualizes the future and the right
course of action for same, sound decisions become possible. Thus, its foresight
provides judgment and vision.

Long questions:

Q1. Define the term “effectiveness” and“efficiency”. Differentiate between

“effectiveness” and “efficiency”.

Answer. Definition of Efficiency:

Efficiency refers to the ability to produce maximum output from the given input
with the least waste of time, effort, money, energy and raw materials. It can be measured
quantitatively by designing and attaining the input-output ratios of the company’s resources
like funds, energy, material, labour, etc.

Definition of Effectiveness:

Effectiveness refers to the extent to which something has been done, to achieve the targeted
outcome. It means the degree of closeness of the achieved objective with the predetermined
goal to examine the potency of the whole entity.

BASIS FOR
EFFICIENCY EFFECTIVENESS
COMPARISON
 BASIS FOR
EFFICIENCY EFFECTIVENESS
COMPARISON

Meaning The virtue of being The magnitude of nearness of the

efficient is known as actual result with the intended result,
efficiency. is known as effectiveness.

What is it? Work is to be done in a Doing accurate work.

correct manner.

Emphasis on Inputs and Outputs Means and Ends

Time Horizon Short Run Long Run

Approach Introverted Extroverted

Ascertainment Strategy Strategy Formulation

Implementation

Q2. “Success of an organization largely depends upon its management.” Explain

any five points to justify the above statement.

Answer. Success of an organization largely depends upon its management because of

the following reasons:-

 It helps in achieving organisational goals and plans

 Increase effectiveness and efficiency of the individual and other and other
resources of the organisation
 Creates a dynamic organisational structure
 Helps in achieving individual objective of employee along with the objective
of the organisation
  Help in the overall development of the society by adhering to the norms of
corporate social responsibilities

Q3. Explain any five features of management.

Answer. (a) Management is a goal-oriented process: An organisation has a set of

basic goals which are the reason for its existence. These should be simple and clearly
stated. Different organisations have different goals. For example, the goal of a retail
store may be to increase sales, but the goal of the Spastics Society of India is to impart
education to children with special needs. Management unites the efforts of different
individuals in the organisation towards achieving these goals.

(b) Management is all pervasive: The activities involved in managing an enterprise

are common to all the organisations whether economic, social or political.

(c) Management is multidimensional: Management is a complex activity that has

three main dimensions. These are:
(i) Management of work
(ii) Management of people
(iii) Management of operations

(d) Management is a continuous process: The process of management is a series of

continuous, composite, but separate functions. These functions are simultaneously
performed by all managers all the time.

(e) Intangible:
Management function cannot be physically seen but its presence can be felt. The presence of
management can be felt by seeing the orderliness and coordination in the working
environment. It is easier to feel the presence of mismanagement as it leads to chaos and
confusion in the organisation.
For example, if the inventory of finished products is increasing day by day it clearly indicates
mismanagement of marketing and sales.

Q4. Differentiate between “management” and “administration”.

Answer.

BASIS FOR
MANAGEMENT ADMINISTRATION
COMPARISON

Meaning An organized way of The process of administering an

managing people and things organization by a group of people
of a business organization is is known as the Administration.
called the Management.

Authority Middle and Lower Level Top level

Role Executive Decisive

Concerned with Policy Implementation Policy Formulation

Area of operation It works under It has full control over the

administration. activities of the organization.

Applicable to Profit making organizations, Government offices, military,

i.e. business organizations. clubs, business enterprises,
hospitals, religious and
educational organizations.

Decides Who will do the work? And What should be done? And When
 BASIS FOR
MANAGEMENT ADMINISTRATION
COMPARISON

How will it be done? is should be done?

Work Putting plans and policies Formulation of plans, framing

into actions. policies and setting objectives

Focus on Managing work Making best possible allocation

of limited resources.

Key person Manager Administrator

Represents Employees, who work for Owners, who get a return on the
remuneration capital invested by them.

Function Executive and Governing Legislative and Determinative

Q5. “A successful enterprise has to achieve its goals effectively and efficiently:’
Explain.

Answer. “A successful enterprise has to achieve its goals effectively and efficiently”.
Thus, management has to see that tasks are completed and goals are achieved with the
minimum resources.

Management is thus getting things done with the aim of achieving goals effectively
and efficiently. Being effective or doing work effectively basically means finishing
the given task. It is concerned with end result, it is achieved or not. Efficiency means
doing the work correctly and with minimum cost. If by using less resource more
benefits are derived then efficiency has increased. It is thus essential for any
organisation to focus on efficiency as well as effectiveness. It is not only important to
 complete the work correctly but equally important to complete it with minimum cost.
In the same manner, it is not only important to reduce cost but equally important to
complete the work correctly.

Q6. Lack of proper management results in wastage of time, money and efforts. In
the fight of this statement, explain any four importance of management.

Answer. According to drucker, ‘management is the dynamic life-giving element in

every organisation. Without it, the resources of production remain resources’. It is the
activating force that gets things done through people.

The importance of management can be understood from the following points:

(a) Management is a goal-oriented process: An organisation has a set of basic goals

which are the reason for its existence. These should be simple and clearly stated.
Different organisations have different goals. For example, the goal of a retail store
may be to increase sales, but the goal of the Spastics Society of India is to impart
education to children with special needs. Management unites the efforts of
different individuals in the organisation towards achieving these goals.

(b) Dynamic function: An organization exists in a business environment that has

various factors like social, political, legal, technological and economic. A slight
change in any of these factors will affect the organization’s growth and
performance. So, to overcome these changes management formulates strategies
and implements them.

(c) Intangible: Management function cannot be physically seen but its presence can
be felt. The presence of management can be felt by seeing the orderliness and
coordination in the working environment. It is easier to feel the presence of
mismanagement as it leads to chaos and confusion in the organisation.

For example, if the inventory of finished products is increasing day by day it

clearly indicates mismanagement of marketing and sales.
 (d) Management is a continuous process: The process of management is a series of
continuous, composite, but separate functions. These functions are simultaneously
performed by all managers all the time.

Q7. Jayant is working as Head Relationship Manager in the wealth management

division of a private sector bank. He has created an internal environment which is
conducive to an effective and efficient performance of his team of ten relationship
management executive” A typical day at work in Jay ant’s life consists of a series of
interrelated and continue functions. He decides the targets for his department which
are in line with the objectives of the organization as a whole. The future course of
action for his team members is laid out well in advance. The various resources
required by the relationship managers like an iPad with GPS system, account
opening forms, brochures, details of account holders etc. are made readily available
to them. The executives are given sufficient authority to carry out the work assigned
to them. Jayant works in close coordination with the Human Resource Manager in
order to ensure that he is able to create and maintain a satisfactory and satisfied
workforce in his department. Through constant guidance and motivation, Jayant
inspires them to realise their full potential. He offers them various types of
incentives from time to time keeping in view their diverse individual needs.
Moreover, he keeps a close watch on their individual performances in order to
ensure that they are in accordance with the standards set and takes corrective
actions whenever needed.
In context of the above case:

1. Identify the concept being referred to in the following line, “He has created an
internal environment which is conducive to an effective and efficient performance
of his team of ten relationship management executives.”
2. Identify and describe the various functions of the concept as identified in part (a)
of the question by quoting lines from the paragraph.

Answer.
1. The concept of management is being referred to in the following line, “He has created
an internal environment which is conducive to an effective and efficient performance of
his team of ten relationship management executives.”
2. The various functions of the management concept mentioned in the above paragraph are
listed below:
 Planning: It is the function of determining in advance what is to be done and who
is to do it.
“He decides the targets for his department which are in line with the objectives of
the organization as a whole. The future courses of actions for the team members
are laid out well in advance.”
 Organising: Organising is the process of bringing together human, physical and
financial resources and establishing productive relations among them for the
purpose of achieving the desired goals efficiently and effectively.
“The various resources required by the relationship managers like an iPad with
GPS system, account opening forms, brochures, details of account holders etc. are
made readily available to them. The executives are given sufficient authority to
carry out the work assigned to them.”
 Staffing: The managerial function of staffing involves manning the organisational
structure in order to fill in the roles designed into the structure.
“Jayant works in close coordination with the human resource manager in order to
ensure that he is able to create and maintain a satisfactory and satisfied workforce
in his department.”
 Directing: Directing involves leading, influencing and motivating employees to
perform the tasks assigned to them.
“Through constant guidance and motivation, Jayant inspires them to realise their
full potential. He offers them various types of incentives from time to time
keeping in view their diverse individual needs.”
 Controlling: Controlling is the management function of ensuring that events
conform to plans.”Moreover, he keeps a close watch on their individual
performances in order to ensure that they are in accordance with the standards set
and takes corrective actions whenever needed.”

Q8. Anju and Manju are good friends. Considering the fact that the activities
involved in managing an enterprise are common to all organizations, after
completing their masters in business management, both of them take up a job at
managerial level in different organizations as per their individual areas of interest.
Anju takes up a marketing job in a retail company and strives to increase sales
whereas Manju joins an NGO and works diligently to realize its objective related to
providing employment to especially able persons. Both of them have to perform a
series of continuous, composite, but separate functions. On some days, Anju may
spend more time in planning a future display layout and on another day, she may
spend time in sorting out an employee’s problem. Both Anju and Manju make
conscious efforts to build a feeling of team spirit and coordination among diverse
individuals with different needs who work under them. The effect of their
management is noticeable in their respective departments as the targets are met
according to plans, employees are happy and satisfied, and there is orderliness in its
functioning rather than chaos.
In context of the above case:
Identify the various features of management highlighted in the above paragraph by
quoting lines from it.
Answer.
The various features of management highlighted in the above paragraph are stated below:

 Management is all pervasive: “Considering the fact that the activities involved
in managing an enterprise are common to all organizations, after completing
their masters in business management, both of them take up a job at
managerial level in different organizations as per their individual areas of
interest.”
 Management is a goal-oriented process: “Anju takes up a marketing job in a
retail company and strives to increase sales whereas Manju joins an NGO and
works diligently to realize its objective related to providing employment to
especially able persons.”
 Management is a continuous process: “Both of them have to perform a series
of continuous, composite, but separate functions. Like on some days, Anju
may spend more time in planning a future display layout and on another day,
she may spend time in sorting out an employee’s problem.”
  Management is a group activity: “Both Anju and Manju make conscious
efforts to build a feeling of team spirit and coordination among diverse
individuals with different needs who work under them.”
 Management is an intangible force: “The effect of their management is
noticeable in their respective departments as the targets are met according to
plans, employees are happy and satisfied, and there is orderliness in its
functioning rather than chaos.”

Q9. Why management is considered a multi-faceted concept?

Answer: Management is considered as a multi-faceted concept because it is a complex

activity that has three main dimensions. These are
1. Management of Work All organisations perform some work e.g., producing or selling. A
work is defined as the goals to be achieved
2. Management of People The main asset of an organisation IS the human resources. Thus
resource has to be managed In such a manner that it helps to achieve the goals of the
organisations.
3. Management of Operations All organisations either produce a product or provide a service
This requires a production process which means using an operation to convert the inputs into
the output It is interlinked with both management of work and management of output

Q10. “A successful enterprise has to achieve its goals effectively and efficiently:’
Explain.

Answer. “A successful enterprise has to achieve its goals effectively and efficiently”. Thus,
management has to see that tasks are completed and goals are achieved with the minimum
resources.
Management is thus getting things done with the aim of achieving goals effectively and
efficiently. Being effective or doing work effectively basically means finishing the given
task. It is concerned with end result, it is achieved or not. Efficiency means doing the work
correctly and with minimum cost. If by using less resource more benefits are derived then
efficiency has increased. It is thus essential for any organisation to focus on efficiency as well
as effectiveness. It is not only important to complete the work correctly but equally important
 to complete it with minimum cost. In the same manner, it is not only important to reduce cost
but equally important to complete the work correctly.

Q11. A firm plans in advance and has a sound organisation structure with efficient
supervisory staff and control system. On several occasion, it finds that plans are not
being adhered to, It leads to confusion and duplication of work.

Question: Advise remedy.

Answer. As per the case. the problem is in co-ordination and in communicating the work
schedule. Because the duplication of work implies that there is a lack of co-ordination in
between the levels of management as well as there is a problem in communication because
the confusion is only arise when the things are not communicated properly.
Following Remedies are to be Taken
1. A proper communication pattern is to be followed

2. A proper co-ordination is to be made between the workers.

3. Time to time feedback is to be taken by the managers from the bottom level.

4. There is a transparency in the working pattern.

Q12. Without effective management the resources will remain as resources cannot be
converted into productive utilities. "Do you agree”? Give reasons.
Answer: Success of an organization largely depends upon its management because of the
following reasons

• It helps in achieving organizational goals and plans

• Increases efficiency and effectiveness of the individuals and other resources of an

organisation.

• Creates a dynamic organization structure.

• Help in achieving individual objectives of employees along with the objectives of the
organization.

• Helps in the overall development of society by adhering to the norms of corporate social
responsibility

Q13. "Success of an organization largely depends upon its management." Explain any
five reasons to justify the above statement.
Answer: Success of an organization largely depends upon its management because of the
following reasons

• It helps in achieving organizational goals and plans

• Increases efficiency and effectiveness of the individuals and other resources of an

organisation.

• Creates a dynamic organization structure.

• Help in achieving individual objectives of employees along with the objectives of the
organization.

• Helps in the overall development of society by adhering to the norms of corporate social
responsibility

Topic-2

Objectives and importance of Management

Multiple Choice Questions:

Q1. The following is not an objective of management

(a) earning projects
(b) growth of the organisation
(c) providing employment
(d) policy making

Q2. To meet the objectives of the firm the Management of BPL ltd. It offers
employment to physically challenged person. Identify the organization and objective it
is trying to achieve?
(a) Social objective
(b) Personal objective
(c) Organisational objective
(d) Economic objective

Q3. Which of the following is not an organisational objective?

(a) Survival
(b) Giving employment opportunities to disadvantage section of society
(c) Profit
(d) Growth

Q4. An achievement of which organizational objectives results in "an increase in sales

volume, increase in number of employees, no of products and increase in capital
investment

(a) social objective

(b) Objective of growth

(c) Objective of profit

(d) Objective of survival

Q5. To meet the objectives of the firm the Management of BPL ltd. It offers
employment to physically challenged person. Identify the organization and objective it
is trying to achieve?
(a) It is social objective.

(b) It is organisational objective

(c) It is personal objective
(d) It is economic objective
Q6. Management of Alpha Ltd. has installed a special recycling plant to recycle the
waste instead of dumping the waste in ground. It is also providing employment
opportunities to local residents. Company started a school nearby for the children of
their employees. Identify the objective of management the company is fulfilling.
(a) Social objective
(b) Individual objective
(c) Human Objective
(d) Profit objective

Q7. The manager of Beta Ltd. is very efficient and effective and makes sure that all the
employees and workers in this team performs the task on time with minimum cost. His
main focus is on cost reduction. So he never listens to the demand of workers for
increasing wages. He even gives no opportunity to 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?

(a) Social objective

(b) Individual objective
(c) Human Objective
(d) Personal objective

Very Short Questions:

Q1. To meet the objectives of the firm the management of Angora Ltd. offers
employment to physically challenged persons. Identity the organizational objective it is
trying to achieve.

Answer: Social objective - Is to provide quality products at reasonable rates and generating
employment opportunities for disadvantaged sections of society. To provide basic amenities
like schools and crèches to employees and by using environmental friendly methods of
production
Q2. An achievement of which organizational objectives results in "an increase in sales
volume, increase in number of employees, no of products and increase in capital
investment

Answer: Objective of growth

Q3. Management of Alpha Ltd. has installed a special recycling plant to recycle the
waste instead of dumping the waste in ground. It is also providing employment
opportunities to 19 local residents. Company started a school nearby for the children of
their employees.

(i) Identify the objectives company is fulfilling.

(ii) Quote the lines from above para which indicate those objectives.

Answer. (i) Social and personal objectives

“Installed a recycle plant”: Social objective.

(ii) “Started a school for children of their employees": Personal objectives.

Q4. The manager of Alpha Ltd. is very efficient and effective and makes sure all the
employees and workers in his team perform the task on time with minimum cost. His
main focus is on cost cutting so he never listens to the demand of workers for increasing
wages. He even gives no opportunity to worker for promotion. As a result workers
started becoming frustrated and disheartened all the time.

(a) Which objective of management could not be achieved by the manager.

(b) State other two objectives of management.

(c) State any one value ignored by the manager.

Answer. (a) Personal/Human or individual objective.

(b) (i) Economic (ii) Social

(d) Value of humanity, Care.

Q5. To meet the objectives of the firm the Management of BPL ltd. It offers
employment to physically challenged person. Identify the organization and objective it
is trying to achieve?
Answer. It is social objective.
Q6. Give any one social objective of management.
Answer. Either one of the following:

i.Desired quality of products at reasonable price.

ii.Using environment friendly methods of production
iii.Generation of employment opportunities.

Q7. Why is profit essential as an organisational objective of management?

Answer. Profit is essential to cover the costs and risks of the business.

Q8. List any two organisational objectives of management.

Answer. Survival, Profit and Growth

Q9. List any two personal objectives of management.

Answer. (i) Satisfying financial needs of employees by giving them a competitive salary and
perks.

(ii) Satisfying social needs such as peer recognition.

Q10. How does management help individual to develop team spirit, cooperation and
commitment to group success?

Answer. Through motivation and leadership (Management helps in achieving personal

objectives).

Q11. How does management help in achieving personal objectives? State.

Answer. Management helps in achieving personal objectives by motivating and leading in

such a way that the individual members are able to achieve personal goals while contributing
to the overall organisational Objectives.

Q12. To meet the objectives of the firm, the management of Bhavya Ltd. offers
employment to physically challenged persons. Identify the organisational objective it is
trying to achieve. Give reason in support of your answer.
Answer. Growth; since number of employees is increasing, it leads to increase in production
and hence growth of the company.

Short Questions:

Q1. “A business needs to add to its prospects in the long run.” Identify the
organisational objectives highlighted in this statement. Explain other two objectives
under this category.

Answer. Growth. Other two objectives under this category are: (i) Survival (ii) Profit.

 Survival: The basic objective of any business is survival. In order to survive, an

organization must earn enough revenues to cover costs.
 Profit: Management has to ensure that the organization makes a profit. Profit
provides a vital incentive for the continued successful operation of the enterprise.
 Growth: To remain in the industry, management must exploit fully the growth
potential of the organization. There are many indicators of growth such as sales
volume, increase in the of employee count, the number of products or the increase in
capital investment

Q2. The manager of Alpha Ltd. is very efficient and effective and makes sure all the
employees and workers in his team perform the task on time with minimum cost. His
main focus is on cost cutting so he never listens to the demand of workers for increasing
wages. He even gives no opportunity to worker for promotion. As a result workers
started becoming frustrated and disheartened all the time.

(a) Which objective of management could not be achieved by the manager.

(b) State other two objectives of management.
(c) State any one value ignored by the manager.
Answer. (a) Personal/Human or individual objective.
(b) (i) Economic (ii) Social
(c) Value of humanity, Care.
Q3. 1. XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote
village as there was no reliable supply of electricity in rural areas. The revenue earned
by the company was sufficient to cover the costs and the risks. The demand of lanterns
was increasing day by day, so the company decided to increase production to generate
higher sales. For this they decided to employ people from the nearby villages as very few
job opportunities were available in that area. The company also decided to open schools
and creches for the children of its employees.

(i) Identify and explain the objectives of management discussed above.

(ii) State any two values which the company wanted to communicate to the society.

Answer. (i) The company is fulfilling the organisational and social objectives of
management.

Organisational objectives include survival, profit and growth.

- In order to survive, XYZ Power Ltd. earns enough revenues.

- Company's profits are sufficient to the cover the costs and the risks.

- Since demand for lanterns was increasing day by day and so the company decided to
increase production to generate higher sales, it implies that the company exploits fully its
growth potential.

Social objectives involve the creation of benefits for the society.

“The company decided to employ people from the nearby villages as very few job
opportunities were available in that area. It also decided to open schools and creches for the
children of its employees.'

(ii) Values:

• Providing employment opportunities in rural areas

• Concern for the environment

• Socially responsible behaviour

• Community development by opening schools and creches for children (any two)

Q.4 M LTD. WAS MANUFACTURING HEATERS. IN THE FIRST YEAR OF ITS

OPERATIONS, THE REVENUE EARNED BY THE COMPANY WAS JUST ADEQUATE TO
MEET ITS COSTS. TO INCREASE THE REVENUE, THE COMPANY ANALYSED THE
REASONS OF LESS REVENUE. AFTER ANALYSIS THE COMPANY DECIDED:
(I) TO LESSEN THE LABOUR COST BY MOVING THE MANUFACTURING UNIT TO A
BACKWARD LOCALITY WHERE LABOUR WAS AVAILABLE AT A VERY LOW COST.

(II) TO START MANUFACTURING SOLAR HEATERS AND REDUCE THE PRODUCTION

OF ELECTRIC HEATERS SLOWLY. THIS WILL NOT ONLY HELP IN COVERING THE
RISKS BUT ALSO HELP IN MEETING OTHER OBJECTIVES TOO.

(A) RECOGNIZE AND EXPLAIN THE AIMS OF MANAGEMENT DISCUSSED ABOVE.

(B) STATE ANY 2 VALUES WHICH THE COMPANY WANTED TO COMMUNICATE TO

THE SOCIETY.

ANSWER:

(A) OBJECTIVES OF  Organisational Objectives: These objectives are set on the

MANAGEMENT basis of goals of the organisation and management is
responsible to set and achieve such objectives.

These objectives are Survival, Profit and Growth of an organisation.

 Social Objectives: Survival of any organisation whether it

is private or government, depends upon its commitment
towards society.

The organisations which care for society enjoy long term growth.

Example:

Using environment-friendly methods of production, generating

employment opportunities etc.,

(B) VALUES  Generation of employment opportunity.

COMMUNICATED TO THE  Balanced regional development.
SOCIETY
Q5. XYZ Power Ltd set up a factory for manufacturing solar lanterns in a remote
village as there was no reliable supply of electricity in rural areas. The revenue earned
by the company was sufficient to cover the costs and the risks. The demand of lanterns
was increasing day-by-day, so the company decided to increase production to generate
higher sales. For this, they decided to employ people from the nearby villages as very
few job opportunities were available in that area. The company also decided to open
schools and creches for the children of its employees.

(i) Identify and explain the objectives of management discussed above.

(ii) State any two values which the company wanted to communicate to the society.

Answer. (i) It is related with the social objective of management. It deals with the
commitment of an organisation towards society. Such objectives may relate with producing
eco-friendly products, providing employment to the weaker sections of the society, etc. By
covering the costs and risks, the company has also achieved the organisational objectives.

This objective is related with three aspects:

(a) Survival Ensure the continuity of business operations.

(b) Profit Earn a reasonable profit, which covers the costs and risks of the business.

(c) Growth It ensures the success of business in the long-run.

(ii) Firstly, by manufacturing solar lanterns, company gives due values to the rural people,
now they will be able to enjoy electricity in their respective areas. Secondly, by giving
employment, they will raise the standard of rural people

Long Questions:

Q1. "Management is the life giving element in every business, without it the resources of
production 1 remain resources and shall never become production.” Comment.

Answer. Yes it is right to say that management is life giving element because of following
importances:

1. It helps in Achieving Group Goals - It arranges the factors of production, assembles

and organizes the resources, integrates the resources in effective manner to achieve
 goals. It directs group efforts towards achievement of pre-determined goals. By
defining objective of organization clearly there would be no wastage of time, money
and effort. Management converts disorganized resources of men, machines, money
etc. into useful enterprise. These resources are coordinated, directed and controlled in
such a manner that enterprise work towards attainment of goals.
2. Optimum Utilization of Resources - Management utilizes all the physical & human
resources productively. This leads to efficacy in management. Management provides
maximum utilization of scarce resources by selecting its best possible alternate use in
industry from out of various uses. It makes use of experts, professional and these
services leads to use of their skills, knowledge, and proper utilization and avoids
wastage. If employees and machines are producing its maximum there is no under
employment of any resources.
3. Reduces Costs - It gets maximum results through minimum input by proper planning
and by using minimum input & getting maximum output. Management uses physical,
human and financial resources in such a manner which results in best combination.
This helps in cost reduction.
4. Establishes Sound Organization - No overlapping of efforts (smooth and
coordinated functions). To establish sound organizational structure is one of the
objective of management which is in tune with objective of organization and for
fulfillment of this, it establishes effective authority & responsibility relationship i.e.
who is accountable to whom, who can give instructions to whom, who are superiors &
who are subordinates. Management fills up various positions with right persons,
having right skills, training and qualification. All jobs should be cleared to everyone.
5. Establishes Equilibrium - It enables the organization to survive in changing
environment. It keeps in touch with the changing environment. With the change is
external environment, the initial co-ordination of organization must be changed. So it
adapts organization to changing demand of market / changing needs of societies. It is
responsible for growth and survival of organization.
6. Essentials for Prosperity of Society - Efficient management leads to better
economical production which helps in turn to increase the welfare of people. Good
management makes a difficult task easier by avoiding wastage of scarce resource. It
improves standard of living. It increases the profit which is beneficial to business and
society will get maximum output at minimum cost by creating employment
 opportunities which generate income in hands. Organization comes with new products
and researches beneficial for society.

Q2. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy
products in Maharashtra state. Aman is a holder of Senior Secondary School Certificate
from Central Board of Secondary Education with Business Studies as one of his elective
subjects. Ahmad had done his post graduation in History and Ally in dairy farming.
One day there was a serious discussion between Ahmad and Ally regarding the nature
of management. Ahmad argued that management was a profession whereas Ally argued
against it saying that the legal and medical professions are the only professions because
they fulfill all the conditions of profession. Aman on the basis of his knowledge of
business studies explained the nature of management as a profession to Ahmad and
Ally.

Explain, how Aman would have satisfied both Ahmad and Ally.

Answer. Aman would have satisfied both Ahmad and Ally by giving the following
explanation:

Management is a profession. However, it is not a full-fledged profession like legal,

accounting or medical professions because it does not meet the exact criteria of a profession.

The application of the features of a profession to management is examined below:

(i) Well-defined body of knowledge: Management has a well-defined body of knowledge

comprising well-defined principles based on a variety of business situations. The subject of
management is taught at different institutions such as the Indian Institutes of Management
(IIMs) in India.

(ii) Restricted Entry: Entry to management institutes like Indian Institutes of Management
(IIMs) is usually through an examination. However, there is no restriction on anyone being
designated or appointed as manager in any business. Anyone can be a called a manager
irrespective of the educational qualifications possessed.

(iii) Professional Association: There are several associations of practicing managers in India,
like All India Management Association (AIMA).

But legally, it is not compulsory for managers to be members of such an association.

(iv) Ethical code of conduct: AIMA has laid down a code of conduct to regulate the activities
of its members
But its membership is not compulsory for all managers.

(v) Service motive: The basic motive of management of an organisation is profit

maximisation.

However, profit maximisation as the objective of management does not hold true and is fast
changing.

Q3.

AN ORGANISATION SETS DIFFERENT OBJECTIVES FOR ITSELF AND OTHER

STAKEHOLDERS. EXPLAIN SUCH OBJECTIVES BRIEFLY.

ANSWER:
AN ORGANISATION SETS AND ACHIEVES THE FOLLOWING OBJECTIVES:

(a)ORGANISATIONAL OR  These objectives are set on the basis of the goals of the
ECONOMIC OBJECTIVES organisation.

 These objectives are set by keeping in mind the interests of

various stakeholders like owners, employees, shareholders,
employees etc.

 The purpose of setting these objectives is to ensure optimum

use of all available resources.

 Management is responsible to set and achieve such

objectives.

These objectives are classified as:

(1)SURVIVAL:

 The basic objective of any organisation is survival.

 For this, an organisation must earn sufficient revenues to

cover the cost.

Example:

If Ram is running a shop and incurring a cost of Rs.50,000 per

month then he has to collect minimum revenue of Rs.50,000 to cover
 all his costs otherwise his business won’t survive.

(2)PROFIT:

 Mere survival is not enough for any organisation

 An organisation needs to earn profit to face unforeseen or

contingent situations.

Example:

If the revenue of the shop is more than Rs.50,000, than Ram is

earning a profit. The more the gap between the cost of production
and revenue collected, the better the profit. It will help him in
reducing business risk.

(3)GROWTH:

 Regular earning of profits makes it possible for an

organisation to expand and stay in the industry and face
competition.

Growth of an organisation can be measured by:

 Increase in revenue.

 Increase in the number of employees.

 Increase in the number of products.

 Increase in the number of branches.

Example:

Patanjali is growing as it is dealing in a variety of products and

opening megastores in multiple cities.

(b) SOCIAL OBJECTIVES  Survival of any organisation whether it is private or

government, depends upon its commitment towards society.

 The organisations which care for society enjoy long term

growth.
 Some of the social objectives are:

 Using environment-friendly methods of production.

 Producing quality products at reasonable rates

 Employment generation in society.

 These objectives are related to the growth of the employees

(c) PERSONAL OR working in an organisation.
INDIVIDUAL OBJECTIVES Some of these objectives are:

 FINANCIAL NEEDS–Providing competitive salaries and

perquisites.

 SOCIAL NEEDS-Self-respect, peer recognition, respect for

colleagues.

 HIGHER END NEEDS or SELF DEVELOPMENT

NEEDS.

Q4. 'Management seeks to achieve certain objectives which must be derived from basic
purpose of the business'. In the light of the above statement, explain organisational and
social objectives of management.

Answer. (i) Organisational objectives Management is responsible for setting and achieving
the organisational objectives. It helps to achieve the objectives in such a manner that the
human and financial resources are acquired, used and maintained in the most economic and
efficient manner. Organisational objectives are as follows:

(a) Survival The most important objective of any business is to survive and in order to
survive, it should earn enough revenue to cover costs.

(b)Profit It is the incentive or reward for the efforts put in by an entrepreneur. Moreover, it is
the reason behind carrying out a business.

(c) Growth A business needs to add to its prospects in the long-run and for this it needs to
grow and expand its activities. The success of every business is measured by the growth rate
and growth is measured in terms of sales, profits, number of products produced and sold, etc.
(ii) Social objectives Since, organisations are social units, their objectives should be in line
with general needs of the society.

Some of the social objectives of an organisation are given below

(a) Supply of quality products at reasonable prices. (b) Using environmental friendly methods
of production.

Should provide the employment opportunities to the disadvantaged sections of the society.

Topic- 3

Nature and level of Management

Multiple Choice Questions:

Q1. Management is

(a) an art
(b) a science
(c) Both art and science
(d) Neither

Answer. (c) Management has features of both art and science as it relies on practice, thus it
an art and it is based on the principles which are the outcome of science. Thus, it is science
also.

Q2. Policy formulation is the function of

(a) top level managers

(b) middle level managers
(c) operational management
(d) All of these

Q3. Manager in Top Level spend their time more in

(a) Directing

(b) Organising

(c) Staffing

(d) Planning

Q4. Your Grand Father has retired as the director of a manufacturing company. At
what level of management was he working.
(a) Top management

(b) Middle level

(c) Lower level

(d) Supervisory level

Q5. A manager applies the various theories of management in his unique personalised
way. What aspect of nature of management does this statement indicate!

(a)Management as a science

(b) Management as an art.

(c)Management as a profession

(d) Management as a both science and art

Q6. Mohan has retired from the post of a foreman in a factory. At what level of
management is he working?

(a) Top level

(b) Middle level

(c) Supervisory or operational level.

(d) Organisational level

Q7. At what level of management, managers are responsible for the welfare and
survival of the organization?

(a) At top level.

(b) At middle level

(c) At lower level

(d) At supervisory level

Q8. Identify the nature of management When it is practiced as personalisd application

of existing knowledge to achieve desired result.

(a) Management as an both science and art

(b) Management as a Profession

(c) Management as a science

(d) Management as an Art.

Q9. Name any two designations given to first line managers.

(a) Foremen and supervisors.

(b) Chairman and president

(c) production manager and marketing manager

(d) managing director and vice-president

Q10. Foremen and supervisors comprise_________

(a) Top level management

(b) Middle level management

(c) Operational level management

(d) None of these

Q11. Which of the following statement best explains the “Management is 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.

Q12. Which one of the following is not a characteristic of employment?

(a) service motive

(b) restricted entry

(c) based on practice and creativity

(d) well-defined body of knowledge

Very Short Questions:

Q1. How is entry to a profession restricted?

Answer: The entry to a profession is restricted through an examination or through acquiring

an educational degree.

Q2. Bhuvan argues that management is required in all kinds of organisations where as
Piyush feels that management is not required in non-business organisations such as
school, club, hospitals, etc. who is correct?

Answer. Bhuvan, because management is pervasive.

Q3. A manager applies the various theories of management in his unique personalised
way. What aspect of nature of management does this statement indicate!

Answer. Management as an art.

Q4. Mohan has retired from the post of a foreman in a factory. At what level of
management is he working?

Answer. Supervisory or operational level.

Q5. 14. Your father wants you to do M.B.A. before joining family business. What does
this show about the nature of management?
Answer. Management is on the path of becoming a profession.

Q6. At what level of management, managers are responsible for the welfare and
survival of the organisation?

Answer. At top level.

Q7. Identify the nature of management When it is practiced as personalisd application

of existing knowledge to achieve desired result.

Answer. Management as an Art.

Q8. Three groups of employees of Unique Enterprises are working at different levels.
The first group is responsible for survival and growth of organisation with a view of
coping with changes going on in the business environment. This group prefers to
include the changes immediately in the plan. The second group explains the policies of
superiors with the employees and tries to develop the feeling of cooperation among all
the departments. The third group is responsible for maintaining quality and safety
standards and minimising wastages.

(i) Identify the levels of management described in above para by quoting the lines.

(ii) State any two functions of each type.

Ans. (i) Top, middle and lower level

(ii) Planning, organizing.

Q9. A group of people believes that management is a systematic body of knowledge that
explains certain general truth and is based on logical observation.

• Identify and explain the nature of management discussed in above case.

Answer. Management as a Science.

Q10. Management is a soft science. How?

Answer. Management is a soft science as its principles are not very rigid.

Q11. Name two features of profession which are not available in Management?
Answer. (I) Restricted entry (II) Ethical code of conduct.

Q12. Give one designation each of top and middle level management?
Answer. Top - CEO, Middle - Divisional Manager
 Q13. Your Grand Father has retired as the director of a manufacturing company. At
what level of management was he working.
Answer. Top management.
Q14. Why is management called inexact science?
Answer. Management relates to human behaviour, whose cause and effect is not certain,
that’s why it is called and inexact science.

Short Questions:

Q1. Ritu is the manager of the Northern division of a large corporate house. At what
level does she work in the organisation? What are her basic functions?

Answer: Ritu is working at the middle level her baste functions are (number of functions
should be given according to the marks allotted for the question).
1. Interpreting the policies formed by the top level management and acting as a link between top
level management and operative management

2. Assigning necessary duties to the employees.

Q2. Discuss the basic features of management as a profession.

Answer: Basic features of management as a profession management as a protession has the

following features which are as follows
1. Well-defined Body of Knowledge All professionals are based on a well-defined body of
knowledge that can be acquired through Instruction
2. Professional Association There are several associations of practicing managers in India, like
the AIMA (All India Management Association) that has laid the code of conduct to regulate
the activities of their members.
3. Service Motive All business organisations aim to provide good quality product or service at a
reasonable price thus serving the society

Thus, we can say management does not meet the exact criteria of a profession but It has some
features as a profession
Q3. Explain the features of management that do not establish it as a profession.

Answer: The features of management that do not establish it as a profession are as follows.

Restriction to Entry: Management satisfies this criterion only to some extent. As against other
professions such a doctor or a lawyer, no specific qualification or degree are required to be a
manager. That is, any person holding any degree or qualification can be a manager. However,
the entry is restricted as persons with professional management degree or diploma are
preferred.

Professional Association: All professions are affiliated to a professional association, which

regulates entry and frames code of conduct relating to the profession. For example, to
practice Chartered Accountancy, a person has to be a member of the Institute of Chartered
Accounts of India. Similarly, management is also affiliated to a professional association that
regulates the functions of the members. In India, the AIMA (All India Management
Association) for its member managers. However, it is not compulsory for managers to be a
part of them.

Code of Conduct: Any professional has to abide by the rules and regulations developed by
the apex authority, which regulates the functions of that profession. There is a set Code of
Conduct that a professional has to follow for smooth functioning. In management, also, we
have a specific Code of Conduct but it is not obligatory for the managers to abide by them.
Unlike other profession, the members violating the rules are not penalized.

Q4. What is meant by 'Management'? Explain its any three features that establish it as
an Art.

Answer: Art refers to skilful and personal application of existing knowledge acquired
through study, observation and experience. The features of art are as follows:

Existence of theoretical knowledge: In every art, Systematic and organized study material is
available to acquire theoretical knowledge and experts in the respective fields apply these
principles to their respective art forms.

Personalized application: The use of basic knowledge differs from person to person and thus,
art is a very personalized concept.

Based on practice and creativity: Art involves creativity and practice of the experts.

For e.g. the music created by musicians are different though the musical notes used are the
same.
Every manager has his own unique style of managing things and people. He/she uses his
creativity in applying management techniques and his skills improve with regular application.
Since all the features of art are present in management. So it can called as an art.

Q5. Ashutosh Goenka was working in 'Axe Ltd., a company manufacturing air
purifiers. He found that the profits had started declining from the last six months.
Profit has an implication for the survival of the firm, so he analysed the business
environment to find out the reasons for this decline. (a) Identify the level of
management at which Ashutosh Goenka was working. (b) State three other function
being performed by Ashutosh Goenka. (CBSE Board-2017)

Answer: (a) Ashutosh Goenka was working at top level management'.

(b) The other functions performed by managerial staff employed at top level are en listed
below:

Coordinates different activities of the organisation for the accomplishment of the common
goals Works towards the survival of the organisation by analysing the business environment.
Drafting of necessary plans and policies for increasing the profits of the company

Q6. Rishitosh Mukherjee has recently joined AMV Ltd, A company manufacturing
refrigerators. He found that his department was under staffed and other departments
were not cooperating with his department for smooth functioning of the organisation.
Therefore, he ensured that his department has the required number of employees and
its cooperation with other departments in improved, (a)identify the level at which
Rishitosh Mukerjee was working. (b) Also, state three more functions required to be
performed by Rishitosh Mukerjee at this level.

Answer: Rishitosh Mukherjee is working at Middle Level Management as he is the head of a

department. The other functions performed by Rishitosh are: Acts as a link between the top
management and the workers at the lower level Interpretation and implementation of policies
and plans formulated by the top level management assigns liabilities to the workers and
ensures proper working environment in their respective department.

Q7. Name the level of management engaged in:

(i) Selection of employees

(ii) Introducing new products

(iii) Design a suitable advertisement: campaign to sell a new product

(iv) Framing the capital structure of the company

(v) Preparing performance reports of employee

(vi) Hiring casual laborers.

Answer. (i) Middle level (ii) Top level

(iii) Middle level (iv) Top level

(v) Middle level (vi) Supervisory or lower level

Q8. Rohan, Sohan and Mohan are three friends they work in same company. One day
they were having a conversation. When Rohan said I have purchased two new machines
and it has become very difficult to motivate workers at shop floor to use these machines,
Sohan said I am facing problems in finding the exact number and types of employees
for my department. Mohan said I have to decide the long term plans of organisation
and I am responsible for the overall welfare of the organisation.

(i) Identify different levels of management these friends belong to.

(ii) Explain two functions of each level.

Answer. (i) Rohan: Supervisory level

Sohan: Middle level

Mohan: Top level

(ii) Functions of Supervisory level:

1. To plan day-to-day production within the goals laid down by higher authorities.
2. To assign jobs to workers and to make arrangements for their training and development.
Functions of Middle level:
1. Interpreting Policies:
At this level, policies framed by top-level managers are interpreted. Like the marketing
manager introduces his salesmen to the sales policy of the company that at no cost credit
sales will be made

2. Preparing Organizational Set-up:

Every middle-level manager prepares outline of his respective department in accordance with
the objectives of the organisation.
Functions of Top- Level Management:

1. Determining the objectives of the enterprise

2. Framing of plans and policies

Q9. Management has evolved like a discipline. There are number of books on
management. Students are learning from there books various principles and theories of
management. But all students of MBA do not become successful only by learning there
principles. The success depend up creative application of their principles. Today many
companies have started giving importance to corporate social responsibility and have
started giving importance, e tc. Business Ethics.

In the above para one feature of each Science, Art and Profession are given. Identify
each one of them by quoting lines.

Answer. (i) Management as Science systematic body of knowledge.

Line: “There are number of books."

(ii) Management as an Art Based on Practice and Creativity

Line: "Success depend upon creative application."

(iii) Service motive—Companies have started giving importance to corporate social

responsibility.

Q10. "Sonu Nigam' the famous playback singer always spends time for practice and
adds his creativity in his singing. Like Sonu Nigam, Mr. Rajiv, manager of Headlines
Ltd. uses his creativity and practice management principles under different situations
to manage the business. The employees are happy and satisfied as he every day reward
employees for their punctuality and efficiency.

(a) Identify the nature of management highlighted above.

(b) Name other two aspects of nature of management

(c) Identify the values followed by Mr. Rajiv.

Answer. (a) Nature of management highlighted above is "Management as an Art

(b) The other two aspects of nature of management are:

(i) Management as Science,

 (ii) Management as Profession.

(c) Values: (i) Motivating employees for discipline and punctuality

(ii) Good and responsible behaviour by rewarding employees.

Q11. Q1. Ritu is the manager of the Northern division of a large corporate house. At
what level does she work in the organisation? What are her basic functions?

Answer: Ritu is working at the middle level her baste functions are (number of functions
should be given according to the marks allotted for the question).
3. Interpreting the policies formed by the top-level management and acting as a link between
top level management and operative management

4. Assigning necessary duties to the employees.

Q12. State any four functions of operational management.

Answer. (i) To oversee the efforts of the workforce.

(ii) To interact with the actual workforce and pass on the instructions of the middle
management to the

workers.

(iii) To ensure that the quality of output is maintained, and wastage of material is minimised.

(iv) To ensure safety standards are maintained

Long Questions:

Q1. Management is considered to be both an art and science. Explain.

Answer. Art is the skilful and personal applications of existing knowledge to achieve desired
goal
Management s considered an art due to the following reasons
1. Existence of Theoretical Knowledge All art subjects are based on theoretical knowledge
e.g., written renitent IS available on dancing. Time arts. music etc same way there is lot of
literature available on management and Its branches – finance, marketing human resource etc
2. Personalised Application The use of this basic knowledge differs from one individual to the
other. Two painters, two dancers or two singers all use their knowledge in their own way
Same way two managers who have acquired the same knowledge may use It in their own
different ways to get the work done
3. Based on Practice and Creativity All art 1& practical. II involves creative practice. The
more we practice it better we become at it. It also requues creativity.
Same way a manager applies his acquired knowledge In a unique manner. More practice
makes him a better manager and he also develops his own style of management

Management is an In-exact Science

1. Systematised Body of Knowledge Science is a systematised body of knowledge Its or-ne
pies are based on cause and effect relationship.
e.g . Water evaporates on being heated Same way management is a body stigmatised
Knowledge All managerial principles have cause and effect relationship
2. Principles Based on Experimentation Scientific principles are first developed through
observation and then tested through repeated experimentation. Same way management
principles are also propounded after observation and repeated experimentation
3. Universal Validity All scientific principal have universal validity. They give same result
wherever applied
Principles of management do not have Universal validity. They have to be adjusted and
applied according to the need of the situation.

Thus, Management is an in-exact science.

Q2. Do you think management has the characteristics of a full fledged profession?

Answer. No, management does not possess all the characteristics of a full fledged
profession. The reasons go as follows
1. Well-defined Body of Knowledge All professions are based on a well-defined body of
knowledge that can be acquired teaching – learning process. This feature of a profession is
possessed by management as well. There is vast knowledge available on management in the
form of definitions, concepts, theories, principles etc.
2. Restricted Entry All professions have a restriction or the entry of its practitioners. They
have to acquire a specific degree to be professional e.g., LLB for a lawyer MBBS for a doctor
etc. But a manager can be an MBA qualified or not.
3. Professional Association All professions are affiliated to a professional association which
regulates entry, grants certificate of practice and formulates a code of conduct e.g., all
lawyers have to be a member of Bar Council to practice law. It is not compulsory for all
managers to be a member of AIMA.
4. Ethical Code of Conduct All professions are bound by a ethical code of conduct which
guides the behaviour of its members. But as it is not compulsory for all managers to be
members of AlMA, they all may not be aware of the prescribed code of conduct of AIMA.
5. Service Motive All basic motive to serve their client’s interest. e.g., lawyers to get justice for
their clients, doctors to treat the patients etc. All managers also work in a manner where by
they show their effectiveness and efficiency in the form of good quality goods provided to the
customer at a reasonable price.
Thus, management possesses some characteristics of a profession but not all

Q3. A company manufacturing mobiles is facing the problem of decreasing sales in the
market. You can imagine any product about which you are familiar. What decisions/
steps, each level of management should take to give effect to this decision?

Answer: Modernization of product is needed to increase its market share. Hence to

modernize the product each level should work as follows:

Top level management

• Concentrate on research and development and add new features to their products or start a
new product line

• Drafting sales targets, sales plan and sales incentive.

• Increase marketing and promotional activities.

• Coordinate all the functional departments activities.

• To raise money from the market if there is any financial requirements

Middle level management

• Implementation of the plans formulated by the top level

• Hiring candidates with required qualifications as the job position demands.

• They should try to use available resources efficiently and should try to minimize the cost of
product

• Continuously evaluate all activities and take corrective actions for any deviations and report
the top level management

Lower/supervisory level

• Interpretation of the plans and targets to the work force of the company.

• Assign the task depending on the efficiency & qualification of employees.

• Maintain the quality of work and reduce the wastage by efficient utilization of available
resources,

• Make efforts to improve the loyalty of workers and communicate the grievances and
feedback to the managers.

Q4. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy
products in Maharashtra state. Aman is a holder of Senior Secondary School Certificate
from Central Board of Secondary Education with Business Studies as one of his elective
subjects. Ahmad had done his post graduation in History and Ally in dairy farming.
One day there was a serious discussion between Ahmad and Ally regarding the nature
of management, Ahmad argued that management was a profession. Whereas Ally
argued against it saying that the legal and medical profession are the only professions
because they fulfilli all the conditions of profession. Aman on the basis of his knowledge
of business studies explained the nature of management as a profession to Ahmad and
Ally. Explain, how Aman would have satisfied both Ahmad and Ally

Answer: Aman would have satisfied both Ahmed and Ally by explaining the following
features of management as a profession.

(i) Well-defined body of knowledge: All professions are based on a well-defined body of
knowledge that can be acquired through instruction Management is based on a systematic
body of knowledge comprising well defined principles. This feature of profession is present
in management.

(i) Restricted entry: The entry to the above stated profession is restricted through a prescribed
qualification. However, there is no restriction on anyone being appointed as a manager in any
business enterprise. Therefore, presently this feature of profession is not present in
management.

(iii) Professional association: Legal and medical professions are affiliated to a professional
association like bar council and medical council which regulates entry, grants certificate of
practice and formulates and enforces a code of conduct. There are several associations of
managers in India. Like the AIMA that has laid down a code of conduct to regulate the
activities of their members. There is, however, no compulsion for managers to be members of
such an association. Therefore, presently this feature of profession is not present in
management.

(iv) Ethical code of conduct: Legal and medical professions are bound by a code of conduct
which guides the behaviour of its members. AIMA has devised a code of conduct for Indian
managers but there is no statutory backing for this code. Therefore, presently this feature of
profession is not present in management.

(v) Service motive: The motive of legal and medical profession is to serve their client's
interests by0 rendering dedicated and committed service. The basic purpose of management
to help the organisation achieve its goals by providing good quality products at reasonable
prices, thereby serving the society

The above discussion shows that management does not satisfy all the criteria of a profession.
Through the above discussion Aman would have been able to satisfy both Ahmed and Ally
by making them understand that Management is a profession but not a full fledged or a true
profession.

Q5. Your father is working in an MNC as a chief operating officer. At what level of
management is he working? Also explain any five functions of that level.

Answer. Top level management.

The Top-Level management is also referred to as the administrative level. They coordinate
services and are keen on planning. The top-level management is made up of the Board of
Directors, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the
Chief Operating Officer (COO) or the President and the Vice President.

The Top level management controls the management of goals and policies and the ultimate
source of authority of the organization. They apply control and coordination of all the
activities of the firm as they organize the several departments of the enterprise which would
include their budget, techniques, and agendas.

The Top-level management is accountable to the shareholders for the performance of the
organization. There are several functions performed by the top-level management, but three
of them are the most important, and they are:

 To lay down the policies and objective of the organization

 Strategizing the plans of the enterprise and aligning competent managers to the
departments or middle level to carry them out.
 Keeping the communication between the enterprise and the outside world.

Q6. "The skilful and personal application of existing knowledge to achieve desired
results is called art'. In the light of this statement, describe whether management is an
art or not.

Answer. "The skilful and personal application of existing knowledge to achieve desired
results is called art".

Management is an art because of the following reasons:

1. Existence of theoretical knowledge: As in art, in management too, there is a lot of literature

available in various areas of management which the manager has to specialise in.

2. Personalised application: Like in any art, in management too, a manager applies his
acquired knowledge in a personalised and unique manner.

3. Based on continuous practice: Management satisfies this criteria as a manager gains

experience through regular practice and becomes more effective.

4. Creativity: Like any other art, a manager after studying various situations, formulates his
own theories for use in a given situation. This gives rise to different styles of management.

Q7. "Science is a systematised body of knowledge that explains certain general truths
or the operation of general laws." In the light of this statement, describe whether
management is a science.
Answer. Management is a science but not an exact science. The reasons are:

1. Systematised body of knowledge: Like science, management is a systematic body of

knowledge with its own theories and principles that have developed over a period of time.

So, this feature of science is present in management.

2. Principles based on observation and experimentation: Like science, management principles

are derived through observation and repeated experimentation. So, this feature of science is
present in management. However, since management deals with human beings the outcomes
of these experiments are not capable of being accurately predicted.

3. Universal validity: Principles of management, like principles of pure science, provide

managers with certain standardised techniques that can be used in different situations.
However, since they have to be modified according to a given situation, their application and
use is not universal.

So, this feature of science is not fully present in management.

Q8. "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 the light of this statement,
explain the true nature of management.

Answer. Management is regarded as an Art' because like in any art, in management too, there
is:

- existence of theoretical knowledge (e.g. finance, marketing, etc.);

- personalised application of scientific methods to a given situation; and

- 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 a systematic body

of knowledge with its own theories and principles which are derived through observation and
repeated experimentation.

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 art and science. The practice
of management is an art. However, managers can work better if their practice is based on the
principles of management. These principles constitute the science of management.
Management as an art and a science are therefore not mutually exclusive, but complementary
to each other.

Q9. 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.

Answer. Dheeraj is working at middle level management.

Functions: The main task of Dheeraj is to carry out the plans formulated by the top managers.
For this he need to: (i) interpret the policies framed by top management,

(ii) ensure that his department has the necessary personnel, assign necessary duties and
responsibilities to them,

(iii) motivate them for higher productivity to achieve desired objectives, and

(iv) cooperate with other departments for smooth functioning of the organisation.

Q10. B Ltd. wants to modify its existing product, CD players in the market due to
decreasing sales What. decisions/steps should each level of management take to give
effect to this decision?

Answer. The company wants to modify its existing product, CD players in the market
because of today's dynamic business environment. For this, each level of management must
divide its tasks.

Functions of top management:

(i) They must plan the technique of modification/modernisation of the product. They may
plan to manufacture DVD players or Blue ray players, etc. to modernise the product.

(ii) They must organise and assemble necessary resources and coordinate the efforts of all the
departments towards modernisation.

Functions of middle management:

(i) They must implement the plans laid down by top management in their respective
departments or divisions.
(ii) They must interpret the plans and policies to their subordinates.

Functions of operational/supervisory management:

(i) They must assign the tasks to workforce and supervise that the task is carried on in the
right direction.

(ii) They must maintain the quality of work and reduce the wastage by improving the
motivation and loyalty of workers.

Topic- 4

Function of management

&

Coordination- The essence of management

Multiple Choice Questions:

Q1. Which is not a function of management of the following?
(a) Planning
(b) Staffing
(c) Co-operating
(d) Controlling

Q2. Co-ordination is

(a) Function of management

(b) the essence of management
(c) an objective of management
(d) None of these

Q3. The process by which manager synchronises the activities of different departments
is known as _________
(a) Supervision

(b) Organising

(c) Cooperation

(d) Coordination

Q4. Which is not a function of management?

(a)Planning

(b) Coordination

(c) Organising

(d) Directing

Very Short Questions:

Q1. How co-ordination does integrate group efforts? State Briefly.

Answer: Co-ordination integrates group efforts by unifying diverse interests thereby giving
them a common focus to ensure that the performance is according to the plans

Q2. Assigning duties, grouping tasks establishing authority and allocating resources” is
one of the function of management. Name that Function.

Answer. Organising

Q3. Name the process by which a manager synchronises the activities of different
departments?

Answer. Coordination.

Q4. Unique India Ltd. decided to synchronize all the activities of organisation. While
deciding what is to be done, when it is to be done, they tried to bring harmony between
organisational goal and individual goal. While hiring employees HR department made
sure people with right qualification only joined the organisation and they are paid as
per their qualification, Further the directors made arrangement that at the end of every
three months performance of the employees is compared with planned performance so
that steps can be taken check the deviation.

(i) Identify the three functions of management highlighted in above para,

(ii) Also identify the concept of management gives importance in above para,

Answer. (i) (a) Planning

(b) Staffing

(c) Controlling

(ii) Coordination

Q5. 14. Vivo Mobile aims to produce 20,000 mobiles in 2017. To achieve this target
Production department strives for timely production, finance department agreed for
timely release of funds, purchase agreed for timely supply of raw materials and sales
department agreed to take all possible steps to sell them. Due to combined efforts of all
the departments, company can achieve its target.

(i) Which other aspect of management helps the Vivo Mobile Ltd. to achieve its
objectives.

Answer. (i) Coordination.

Q6. Gemini Circus is organising shows internationally for the last thirty years. Their
shows have been successful across the globe. Of late, their shows are not as popular as
they were in past. After analysing they are thinking of bringing necessary changes in
their shows to gain popularity and get their past image of No. 1 back.

(i) Which two functions of management are indicated here?

Answer. (i) (a) Planning (b) Controlling

Q7. The marketing manager of Alpha Ltd. fixed the target for all the sales executives
and gave them all the possible authority to achieve it. They were asked to submit to him
their performance report at the end of the month. All of them did the same on the
receipt of report the expected and actual results of sales executives were compared on
this basis future course of action was decided. The sales executives also wrote in their
report what the expectations of the customers from the company were majority of them
had written that they wanted the company to cooperate in the construction of
Dharamshala going on the city. The marketing manager placed this demand before the
Board of Directors. This was happily accepted.

(i) Identify the functions of management highlighted in above para by quoting relevant
lines.

(ii) Which objective is being highlighted here?

(iii) Which two values are followed?

Answer. (i) (a) Organising—'fixed target and gave them all authority'.

(b) Controlling—“expected and actual results of sales executives were compared'.

(c) Planning—'future course of action was decided.

(ii) Social

(iii) Concern for society

Trust on employees.

Q8. In an organisation sales department wants to increase the sale by 20% so sales
department planned to offer extra discounts to customers. Finance department raised
objection on it as they say it will result in loss of revenue and company may face
liquidity problem

1. Name the importance of coordination referred here.

2. State other two importance of coordination.

Answer. 1. "Functional differentiation"

2. Other two importance:

(a) Size (b) Specialisation.

Q9. Mr. Rajiv and Arun are responsible for welfare of the whole organisation. Their job
is very complex they have to develop long term objectives, policies and review the work
of different heads at different level. Mr. John and Mr Singh are responsible for the
working of department they are heading, they formulate short term departmental
objectives in accordance with organisational objectives.
Mr. Philip, Mrs. Archana, Mrs. Kamlesh and Mrs. Kavita are in direct contact with the
workforce consisting of various employees and workers. They are responsible for
quality of work and providing good working conditions to workers.

(a) State the three level of management.

(b) Name the persons who are involved in different level from the above para.

Answer. (a) Top level, middle level, supervisory level.

(b) Top level - Mr. Rajiv and Arun

Middle level - Mr. John and Singh

Supervisory level — Mr. Philip, Mrs. Archana, Kamlesh and Kavita.

Q10. Why is coordination known as essence of Management?

Answer. Because it is not a separate function of Management rather it forms a major part of
all the other functions of Management

Q11. “Planning, Organizing, Staffing, Directing and controlling” is the sequence of

functions in a process. Name it.
Answer. Management

Short Questions:

Q1. ABC Ltd. is facing a lot of problem these days. The company's profit margin is
declining day-by-day. The production manager is blaming marketing management
whereas marketing is blaming production department for not maintaining the quality.
Finance department is blaming both. What quality of management do you think is
lacking. Explain it briefly.

Answer: The quality, which is lacking in the above case, is "co-ordination". The manager is
able to execute all the function but he is unable to co-ordinate with the other functional
managers. Co-ordination is the essence of management and a functional department cannot
function in isolation, coordination of all the departments are required to achieve
organizational goals and targets.

Q2. Explain any four features of co-ordination,

Answer: Coordination is the essence of management. It unites the functioning and efforts of
various employees for the achievement of the common goals and objectives of an
organisation. It forms the link between the various functions of management. The following
are the characteristics that highlight features of coordination

1. Group activity: Coordination is said to be a group activity as it integrates the efforts of

various individuals for the achievement of common objectives. In other words, it unifies the
collective efforts of the employees for the achievement of set targets or goals

ii. Binding force: The main purpose of coordination is to unify the actions of individuals. It
acts as a force that binds the various functions of management. It ensures that the people of
an organisation work together towards the accomplishment of the organisational goals.

iii. Continuous process: Coordination is a continuous process. It creates a channel between

the functions of management. It ensures that work is being performed according to the
planned targets.

iv. All pervasive function: Coordination is a pervasive function. That is, it is performed at all
the levels of management. The managers of all departments at every level practice it in order
to ensure unity of action

Q3. Name the function of management:

(i) Finding out deficiencies in implementation of plans.

(ii) Establishing authority responsibility relationship between superior and

subordinates.

(iii) Instructing and ordering employees.

(iv) Deciding policies, procedures, objectives of an organisation.

Answer. (i) Controlling (ii) Organizing

(iii) Directing (iv) Planning

Q4. ABC Ltd. is facing a lot of problems these days. The company's profit margin is
declining day by day. The production manager is blaming marketing management
whereas marketing is blaming production department for not maintaining the quality.
Finance department is blaming both. What quality of manager do you think is lacking?
Explain it briefly.
Answer. The quality which is lacking in the above case is “coordination.” The manager is
able to execute all the functions but he is unable to coordinate these

Explain the topic: coordination an essence of management.

To bring coordination following steps can be taken:

(1) Top level management must ensure integration in various departments and activities of
the organisation.

(2) Middle level management must develop balance in all the department by maintaining the
timing for example whenever sales department gets order production department must be
ready with production, purchase must have stock of raw materials, etc.

(3) Periodic meetings must be conducted to listen to the grievances and problems of
employees and also to welcome their suggestions.

Q5. In a manufacturing unit the purchase department purchased 50 tonnes of raw

material for production department. Although only 40 tones was needed by the
production department. Due to this goods were overproduced and not accepted by sales
department. As a result some goods remained unsolved.

(i) Which aspect of management is lacking above.

(ii) Explain any two points of importance of that aspect.

Answer. (i) Coordination

(ii) Any two importance of coordination.

Unity in Diversity

Every large organization has a large number of employees, each with different views or
opinions, activities and background. Therefore, there are diverse activities in an organization.
However, all these activities would not be highly effective in the absence of coordination.
Hence, coordination is important for unity in diversity.

Unity of Direction

An organization needs to integrate the efforts and skills of different employees in order to
achieve common objectives. Coordination also eliminates duplication of work leading to cost-
efficient operations.
Q6. 3. Identify the functions of management:

(i) Leading, influencing and motivating employees to perform the tasks assigned to
them.

(ii) Assigning duties, grouping tasks, establishing authority and allocating resources
required to carry

out a specific plan.

(iii) Recruitment and selection of the personnel.

(iv) Finding out deficiencies in implementation of plans with the results achieved.

(v) Deciding the objectives, policies and procedures to be followed in the company.

Ans. (i) Directing

(ii) Organising

(iii) Staffing

(iv) Controlling

(v) Planning

Q7. What is meant by 'coordination'? Explain why coordination is important in an

organisation.

Answer. Coordination is the process by which the activities of different departments are
synchronised to ensure unity of action. Importance of Coordination:

(i) Growth in size - coordination is needed to integrate efforts of people in the organisation.

(ii) Functional differentiation, coordination is needed to ensure unity of action among

interdependent departments like production, marketing, finance, etc.

(iii) Specialisation, coordination is needed to avoid conflict

between the specialists and the other members of the organisation.

Q8. 'Coordination is the essence of management.' Explain how.

Answer. Coordination is not a separate function of management. It is the force that binds all
other functions and thus, called the essence of management.
 -The process of coordinating the activities begins at the planning stage in which the top
management plans for the entire organisation.

-At the organising stage, the organisational structure is developed as per plans.

-The staffing function is performed thereafter as per the structure developed in the
organisational structure.

- 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.

Coordination, therefore, synchronises the efforts through all functions of management and
ensures that the organisational objectives are achieved with a minimum of conflict.

Long Questions:

Q1. Co-ordination is the essence of management. Do you agree? Give reasons.

Answer. Co-ordination plays a vital role as it binds all the other functions of management. It
is the common thread of all activities such as purchase, production, sales etc that runs
through. Some of the basic features are as follows
1. Integrates Group Efforts Co-ordination brings unity to all. It gives a common focus to group
efforts.
2. Ensures Unity of Actions It acts as a binding force between departments and ensures that all
action is aimed at achieving the goals of the organisation.
3. It is a Continuous Process Co-ordination is not a one time function but a continuous process.
It begins at the planning stage and continues till controlling.
4. It is an All Pervasive Function Co-ordination is required at all levels of management due to
the interdependent nature of activities of various departments. It integrates the efforts of
different departments and different levels.
5. It is the Responsibility of All Managers All managers need to co-ordinate something or the
other. A manager of production department needs to co-ordinate the work within his
department and also with the other departments at the same time.
6. It is a Deliberate Function Whatever the managers are doing in an organisation they are doing
it knowingly. Co-ordination is one of the most important functions of all managers. Thus co-
 ordination is also done deliberately. Whatever the managers do, they do it deliberately to
achieved the predetermined goals and objectives.
Thus, we can say co-ordination is the essence of management after analyzing these points.

Q2. Management is a series of continuous inter-related functions. Comment.

Answer. Management is a series of continuous inter-related functions. Each one of them

performed to guide and directs the efforts of others.
1. Planning Planning is the primary function which runs through all other functions. It is the
process of thinking before doing. It bridges the gap between where we are and where we
want to go.
2. Organising It is the process of defining the formal relationship among people and resources
to accomplish the desired goals. It involves
(a) Identification and division of work
(b) Departmentalisation
(c) Assigning of duties
(d) Establishing reporting relationships
3. Staffing Organisational goals can be achieved only through human efforts. It Is the duty of
management to make the best possible use of this resource. Thus, placing the right person on
the right job is very important. Staffing helps management to motivate, select and place the
right person on the right job.
4. Directing Directing involves leading, influencing and motivating employees to perform the
tasks assigned to them. This requires establishing an atmosphere that encourages employees
to do their best. Directing comprises of four elements; supervision, motivation, leadership
and communication.
5. Controlling Controlling is the management function of monitoring organisational
performance towards the attainment of organisational goals. The task of controlling involves
(a) Establishing standards of performance
(b) Measuring current performance
(c) Comparing this with established standards
(d) Taking corrective action

Q3. Company X is facing a lot of problems these days. It manufactures white goods like
washing machines, micro-waves, refrigerators and air conditioners. The company’s
 margins are under pressure and the profits and market share are declining. The
production department blames marketing for not meeting sales targets and marketing
blames production department for producing goods, which are not of good
quality meeting customers expectations. The finance department blames both
production and marketing for declining return on investment and bad marketing.

Question. What quality of management do you think the company is lacking? Explain
briefly. What steps should the company management take to bring the company back on
track?
Answer. Co-ordination IS missing in Company X. All the departments are not co-ordination
with each other and that is why they end up blaming each other for the poor performance. To
bring co-ordination. Management should take the following steps
1. After the goals are established. it should be communicated to all departments well in advance
to understand its importance and their role In helping to achieve it.

2. Managers ensure that all departments co-ordinate with each other.

3. Wherever is the difference of interest? The managers should try and strike a balance so that
they all work in the same direction.

4. Meetings between the departmental heads of production. Marketing. Finance etc should be
organised on regular basis and in routine to solve problems when they emerge.

Q4. A company wants to modify its existing product in the market due to decreasing
sales. You can imagine any product about which you are familiar.

Question: What decisions/steps should each level of management take to give effect to
this decision?
Answer. The three levels of management will work together towards the modification of the
product with the motive of increasing sales. The following are the three levels of
management.
1. Top Management

2. Middle Management

3. Lower Management

Decisions Taken by Top Management for Increasing Sales

1. Direction of modification.

2. Drafting sales targets and various sales plans and sales incentives.

3. How to enhance the value of the product in qualitative terms?

4. Thinking of the financial requirements.

5. Marketing and promotional techniques required for fastening the sales.

Decisions Taken by Middle Level Management for Increasing Sales

1. Interpretation of the policies framed by top management to the lower level management.

2. Hiring necessary personnel with the required qualities and qualifications.

3. Assigning responsibility as per capability and establishing the supervisor-subordinate

relationship.

4. Co-operating with the team members as well as first line supervisors.

5. Taking the feedback and arranging the follow up meeting.

Decisions Taken by Lower Level Management for Increasing Sales

1. Interpretation of planned targets to the actual work force and labourers.

2. Helping and directing the workers regarding how to carry out the work.

3. Maintaining standards, quality control and frequent checks

4. Minimisation of wastage and motivatinq the workers so that they can deliver up to their
maximum potential.

5. Communicating the grievances and feedback to the middle management and bringing in the
changes if required

Q5. Success of dubbawala (who carry tiffins to offices) of Mumbai is example of which
aspect of management? Explain the importance of that aspect.

Answer.

Unity in Diversity

Every large organization has a large number of employees, each with different views or
opinions, activities and background. Therefore, there are diverse activities in an organization.
However, all these activities would not be highly effective in the absence of coordination.
Hence, coordination is important for unity in diversity.

Unity of Direction

An organization needs to integrate the efforts and skills of different employees in order to
achieve common objectives. Coordination also eliminates duplication of work leading to cost-
efficient operations.

Functional Differentiation

An organization has many departments or sections performing different functions. All these
functions are important for achieving the overall goals of the organization. If all departments
work in isolation from the others, then they might not work in tandem. Therefore, coordination
is essential for integrating the functions.

Lesser disputes

Many departments play an important role in helping the organization achieve its goals. They are
also capable of assessing the nature and scope of work they perform. However, they are usually
unaware of the importance of other department’s roles leading to disputes. Coordination can
help solve such disputes.

Reconciliation of goals

All individuals have their own goals which are more important to them than the organization’s
goals. Coordination helps to reconcile the employee’s goals with the departmental and
organizational goals.

Q6. A company wants to modernize its product. What functions or decisions should be
taken by each level to carry on this task?

Answer. Modernisation of product is the need of today's dynamic business environment.

To modernise the product each level must divide their work.

Top level management:

(i) They must plan the technique of modernisation.

(ii) They must organise and assemble necessary resources.

(iii) They must coordinate the efforts of all the departments towards modernisation.

Middle level management:

(i) They must implement the plans made by top level in their respective departments

(ii) They must interpret the plans to their subordinates.

(iii) They must recruit and select necessary employees to carry on the task.

(iv) They must motivate the personnel to work towards accomplishment of task.

Lower/Supervisory level:

(i) They must assign the task to work force.

(ii) They must supervise that the task is carried on in the right direction.

(iii) They must maintain the quality of work and reduce the wastage.

(iv) They must make efforts to improve the loyalty of workers.

Q7. “Coordination is the orderly arrangement of group efforts to provide unity of

action in the pursuit of common purpose.” In the light of this statement, explain the
nature of coordination.

Answer. Nature of Coordination:

(i) Coordination integrates group efforts by unifying diverse interests.

(ii) Coordination ensures unity of action by acting as a binding force between departments.

(iii) Coordination is a continuous process as it begins at the planning stage and continues till
controlling.

(iv) Coordination is a pervasive function as it is required at all levels of management and in

all departments.

(v) Coordination is the responsibility of all managers at the top, middle and lower level.

Q8. “Coordination is needed at all levels of management and it is the responsibility of

all managers." Explain how.

Answer. Coordination is needed 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. Coordination is the responsibility of all managers:

-Top level managers need to coordinate with their subordinates to ensure that the overall
policies of the

organisation are duly carried out.

-Middle level management coordinates with both the top level and first line managers.

-Operational level management coordinates the activities of its workers to ensure that work
proceeds

according to plans.

Q9. Sonali is the manager of a large company manufacturing garments for kids. She
plans her winter collection in the month of August itself. Then, she ensures that there is
adequate workforce. She continuously monitors whether production is proceeding
according to plans. She asks the marketing department to prepare their promotional
and advertising campaigns also.

(a) Identify and explain the concept of management explained in the above para.

(b) What characteristic feature does the above para highlight? State.

Answer. (a) Coordination

It is the force that binds all the functions of management. It is the common thread that runs
through all activities such as purchase, production, sales, finance, etc. to ensure continuity in
the working of the organisation.

Coordination is not a separate function of management. It is the essence of management. It is

implicit and inherent in all functions of management.

- Top management plans for the entire organisation.

- According to these plans, the organisational structure is developed and staffed.

- In order to ensure that these plans are executed according to plans, directing is required.

- Any deviation between the actual and the standard performance is corrected at the stage of
controlling

(b) Coordination is a continuous process. It begins at the planning stage and continues till
controlling.