Nature and Significance of Management

Unit – 01

Learning Objectives

After studying this chapter, the reader will be able to

 Understand the concept of management

 Know the basic features or characteristics of management
 Learn the objectives, functions and importance of management
 Know various levels of management
 Learn the concept and importance of coordination

Introduction

The word ‘Management’ itself represents its value and impact. Its multi-dimensional character
enhances its effectiveness and efficiency. Management is regarded as a universally applicable
and accepted concept. It can be used in every spheres of the society. In this present context, we
are concentrating on the utilization of management in the business organizations. Management
techniques are mostly followed and used in different forms of business organization such as Sole
Trading, Partnership, Joint Stock Company, Non Profit making concerns, Service Sectors etc.
Management helps in extracting the best out of an individual in a concern. At present,
management is considered as an inherent part of a business enterprise. No business can perform
or operate smoothly without having a proper management system. Management can be done
under the leadership of one or more persons namely the owner by taking the help of management
team or group. It is evident from the examples of some of the Top Class and renowned
Companies of the world i.e. Microsoft, Apple I phone, Infosys, WIPRO, Reliance Industries
Limited, Bharti Airtel etc.

 Microsoft is one of the biggest IT industries of all time located at United States of
America controlled and managed by its founder Bill Gates.
 Apple is a leading company across the globe in the field of mobile phone manufacturing
managed by Steve Jobs.
 N. R. Narayana Murthy, one of the most successful entrepreneurs from India managed his
IT Company Infosys and reached new heights during his tenure.
 WIPRO has developed in to a successful venture due to the vision, mission, managerial
efficiency, and effectiveness of the great leader Azeem Premji.
 Reliance Industries Limited cannot forget the contribution of Late Dhirubhai Ambani and
his unique management style. This organization has grown significantly due to an
effective and efficient management system.
Successful and Legendary Managerial Leaders of Business World
Concept of Management

The concept of management is analyzed and interpreted differently by different authors. There
are two schools of thoughts defining the management concept i.e. Traditional or Conventional
and Modern concepts of management.

Traditional or Conventional Concepts of Management

Initially, management was regarded as a technique or method of completion of assignment or

tasks in a business by utilizing human resources. In simple words, management was regarded as
an art of getting things done by others.

Definitions

According to M.P.Follett, “Management is the art of getting things of done through others.”

In the words of Harold Koonz, “Management is an art of getting things done through and with
the help of people in formally organized group.”

Modern Concept of Management

With the passage of time, management evolved as a process to facilitate efficient and effective
performance of business organizations and to attain its basic objectives. In the modern developed
context, management can be regarded as a process of getting work done or completed by others
effectively and efficiently with the intention to achieve the organizational objectives. The word
‘Process’ represents the basic functions of management such as planning, organizing,
controlling, staffing, directing and controlling.

Definitions

According to Henry Fayol, Management is to manage, to forecast and plan, to organize, to

command, to coordinate and to control.

In the words of James L Ludury, “Management is the art of knowing what your men to do and
their seeing that they do it in the best and cheapest way.”

As per F.W.Taylor, “Management is the coordination of all resources through the process of
planning, organizing, directing and controlling in order to attain stated objectives.”

According to Marrie and Douglas, “Management is the process by which a co-operative group
directs actions of others towards common goals.”

As per Kreitner, “Management is the process of working with and through others to effectively
achieve organizational objectives by efficiently using limited resources in the changing
environment.”
Meaning of Effectiveness and Efficiency

‘Effectiveness and Efficiency’ are two interrelated terms distinct from each other in many
respects. Despite of these basic differences, these terms are used interchangeably in the field of
management. Effectiveness refers to the completion of tasks assigned within a given period of
time. It is focused on the end result. On the other hand, efficiency refers to the process of
performing the task assigned accurately by utilizing available resources. It is concentrated
largely on the cost factor. In simple words, efficiency can be defined as completion of work with
the minimum cost correctly and accurately.

Example

Singh and Singh Co. Ltd. is a company situated at New Delhi dealing in manufacturing Bakery
Products. It has set a target of manufacturing 5,000 packets of Biscuits in one week. Targets are
achieved by the employees in time but increased the cost due to high wastage and improper
utilization of resources. It may be regarded as a case of Effectiveness of the employee working in
the company.

Analysis

In the above case, management is effective but not efficient because it has achieved the target of
production in time but at an increased level of cost. If the same target of producing 5,000 packets
of Biscuits is achieved within a week at a price or cost less than expected or anticipated by the
company, then it will be a case of efficiency.

Difference between Effectiveness and Efficiency

Points Effectiveness Efficiency

Meaning Effectiveness is focused on the Efficiency denotes completion of assigned
completion of task within time. task accurately in a cost effective manner in
time.
Motive The sole motive is to complete the The main objective is to complete the task by
task within time. conducting cost benefit analysis.
Nature It is based on time. It is based on Cost.
Characteristics or Features of Management

The main features or characteristics of management are as follows:

Target
Oriented

Intangible Universal
Nature Nature

Contineous Features of Multi-

Process Management Dimensional

Operation Work

People

1. Management is Target Oriented

The primary objective of management is to attain the organizational objective. It is the primary
responsibility of the managers to work towards attainment of the target fixed by the enterprise.
For Example, Atlas & Co. Pvt. Ltd., a cycle manufacturing company has fixed a target to sell
2,500 numbers of cycles in a year. In such a situation, manager of the company is to formulate
action plans, marketing strategies, motivating employees and organizing all available resources
for achieving the target of selling 2,500 cycles.

2. Management is of Universal Nature

Management system can be applied everywhere and not confined to a specific business
organization. This system can be adopted and used in various non-profit making concerns like
educational institutions, hospitals, clubs, societies etc. Management concept can be used all over
irrespective of the geographical boundaries.

3. Management is Multi-Dimensional

There are different activities performed by management such as management of work,

management of human resources or people and management of operations.
 Management

Management Management Management

of Work of People of Operations

Planning Staffing Production

Organizing Directing Sales

Controlling Purchase

Finance

(a) Management of Work

There are different types of activities performed in business concerns. Hence, it is required to
manage different activities undertake in the due course of business operation. For Example, In a
retail outlet, need of the customers are to be taken care of, In case of a hospital, due care must be
taken of the patients, In case of educational institutions, proper mentoring and supervision of
children are highly essential. All these tasks are performed effectively and efficiently through
management.

(b) Management of People

It is crucial to manage the people at work. All these people at work place termed are regarded as
“Employees”. All such employees or workers are controlled and managed to ensure smooth
functioning of any business. These people may differ from each other in terms of personality,
efficiency, skill, background and working style. All these issues are to be managed to induce
them for working towards attainment of the common business objective.

(c) Management of Operations

In a business, the word operation represents a process of completing the production cycle i.e.
conversion of raw materials in to finished products. In order to facilitate a smooth flow of
operational activities, it is required to have an effective management system. Management of
Operations helps in maintaining a proper coordination between people, work and organization.

4. Management is a Continuous process

Management is treated as a continuous process. It consists of several managerial functions like

Planning, Organizing, Staffing, Controlling and directing. It is essential for the managers to
perform all these functions on regular basis. It is a never ending process followed with the active
involvement of the managers of business concerns.
5. Management is a Group Activity

Management is done by a number of people working in a group. In this process, all the group
members are putting their best efforts to achieve the desired organizational objectives. People,
working in an organization may differ from each other many respects but they must work with
unanimity and same spirit for reaching the organizational objectives. Hence, management is
regarded as a group activity rather an individual’s game.

6. Management is a Dynamic Function

Business is affected mostly by the prevailing business environment. Management has to make all
the necessary changes in its targets, plans and policies to cope up with the changes taken place in
the business world. For Example, Samsung and LG has adopted the latest technologies to retain
the customer base and to face the increasing competition.

7. Management is of intangible nature

Management is of intangible nature. It does not have any physical existence but it can be felt. Its
presence is reflected in the operations of management. Inefficient and ineffective management in
a concern may create adverse situations for the business.

For Example, if the inventory or stock level of a concern keeps on increasing, it is a clear
evidence of mismanagement or faulty management system in the field of marketing and sales.

Objectives of Management

Objectives may be regarded as the end target of a business. All the business concerns are
working towards attainment of their objectives. Management is used as an important tool in this
mission of reaching desired target level of the business. Objectives of management can be
subdivided into three parts namely Organizational Objectives, Social Objectives and Personal
Objectives.

Objectives of
Management

Organizational Social Personal

Objectives Objectives Objectives

1. Organizational Objectives

Organizational objectives of a business concern are considered as its primary objective. These
objectives are concentrated on achieving the economic goals of the business enterprise.
Management helps in achieving all these objectives by utilizing the available resources like man,
material and machines. The three basic and important organizational objectives are:
(a) Survival

The main objective of every business organization is survival in the competitive market.
Management helps in generating sufficient revenue to cover costs incurred which ensures the
sustainability and survival of the business organizations.

(b) Profit

Profit making at an adequate level is the most important objective of every business. It is highly
essential for survival, growth and development of any business. Management put enough efforts
to maximize the level of profit of a concern.

(c) Growth

Growth and Development are regarded as one of the most important objectives of a business
concern. Management helps a business in towards inclusive growth and overall development. It
helps in managing various factors responsible for growth of business such as sales, production,
human resources, marketing system etc.

2. Social Objectives

Social objective refers to the obligations of the business towards society. Every business
enterprise is operated in a society. Hence, it becomes essential for the business firms to fulfill
their social responsibilities. The important social objectives are:
 a. Production and Supply of qualitative products and services at reasonable rates
b. Adopting environmental friendly techniques for manufacturing
c. Creating employment opportunities in the country
d. Facilitating economic growth and development
e. Providing financial assistance to the society
f. Arranging several social welfare programmes in the field of education, health and
agriculture etc.
g. Providing support to the social service projects of Government and Non-Government
Sectors
h. Creating awareness among people on various social reform measures

Example

Social Responsibility of Reliance Industries Limited

Reliance Industries support local schools with logistical and financial support, capacity building
of teachers and infrastructure development. It also organizes skill development and income-
generating programmes for local communities. Assistance is also given to such communities by
helping them to start Self Help Groups and empowering them with marketing knowhow.
Reliance conducts several livelihood training programmes and has provided aid and equipment
to the physically challenged. It framed a project in the name ‘Jagruti’ to uplift and bring dyslexic
students from the underprivileged segment into the main stream.

3. Personal Objectives

Personal Objectives are otherwise termed as Individual Objective or Human Resources

Objective. Such objectives are basically connected with the employees or people working in an
organization. There are number of people working in a business concern having different work
ethics, culture, values, experiences, skill, ideas, caliber etc. It is highly essential to take due care
of this important resource of business organization. Management takes necessary steps to fulfill
the need of the employees at work. These are:

a. Providing better salary and packages along with other financial benefits
b. Taking adequate steps towards the growth and development of the people at work
 c. Recognizing the quality and talent of the employees
d. Creating a healthy and harmonious working environment

In case of failure of protecting the interest of employees, it may cause increased labour turnover.
Management puts in efforts to integrate the personal objectives with organizational goals.

Importance of Management

The main importance or advantages of management in a business organization are given as

follows:

Helps in
attaining
personal
objectives

Builds a Helps in
dynamic developing
organization society
Importance of
Management

Helps in
Increases
attaining
efficiency
group
level
targets

(a) Helps in attaining group targets

Management helps in integrating the individual goals in to group targets in a business. It directs
the small individual goals of employees to achieve the organizational group objectives.
For Example, employee working in an organization is intended to earn more salary or wages. On
the other hand, business firm is targeting towards increase in production. Management motivates
employees to get more wages or salary by reaching the target production level.

(b) Increases efficiency level

Managers put maximum efforts in an organization to reduce the cost and enhance production
level. Management helps in developing efficiency and effectiveness through its dynamic
functions such as planning, organizing, staffing, controlling and directing.

(c) Builds a dynamic organization

Environment in which business operates keep on changing from time to time but the people
working in an organization may resist to such changes. Management motivates the employees at
work to accept the changes taken place in business. Management helps in resetting goals or
targets of the organization as per the changing environment for being effective and successful.

(d) Helps in attaining personal objectives

Management is proved as a useful medium of achieving the personal objectives of the business.
It is possible through proper motivation, developing leadership, innovative management
techniques, proper working environment, developing efficiency and effectiveness and team spirit
etc. As a result of which, both organizational and personal objectives are attained within time.

(e) Helps in developing society

Business organizations are established and operated for the people in a society. It is the primary
duty of any business to take due care of its customers and the society. An efficient and effective
management system helps in developing the society and the prevailing socio-economic
conditions. Generally, management concentrates on providing quality goods and services at
affordable prices, generating employment opportunities, welfare of employees, development of
the economic conditions etc.

Nature of Management

There are different perceptions and viewpoints about the nature of management. Management is
considered as a Science by a group of experts whereas some others have portrayed management
as an Art. There is another school of thought which advocates in favour of management as a
profession. It is required to understand the basic nature of management for drawing certain
conclusions on this issue.
 Nature of
Management

Management Management Management

as an Art as Science as Profession

Management as a Science

Science may be regarded as a systematic body of knowledge based on continuous observation

and experimentations. It may create cause and effect relationship between two or more factors
and events. It is a principle based approach.

The major characteristics of science are:

(a) Systematic body of knowledge

Science is recognized as a systematic body of knowledge based on certain principles,

observations, experimentations, facts and findings. Management is also based on principles and
theories, hence considered as science.

(b) Principles are based on continuous observation & experimentation

Principles of Science are based on rigorous observations and experimentations from time to time
in a controlled environment. Such principles cannot be applied in management because managers
have to deal with human beings. Scientific principles provide same results at different conditions
but principles of management may provide different result in different circumstances.

(c) Universal Applicability

The principles followed in the field of science are applied and accepted universally. Principles
underlying in management are not par with scientific principles. Modifications or changes can be
made in management principles as per the situation demand.

Conclusion

Management do not have the most important features or characteristics of science stated in the
last above two sub-points. From the above, it is clear that management is not an exact science. It
may be regarded as an Inexact Science or Social Science.

Management as an Art

The word “Art” refers to a process of application of skills, creativity, ideas and knowledge to
reach the desired goals. It requires regular practice, observation and past experience.

The main features of art are:

(a) Presence of Theoretical Knowledge

In every type of art, presence of theoretical knowledge is inherent. It is evident from the example
of different types of books available in the field of music, singing, acting, dancing etc.
Systematic body of knowledge or theoretical knowledge in the form of literature is also available
in different disciplines of management like marketing, sales, finance, human resources etc.

(b) Personalized applications

People are different from each other in terms of skill, quality, perception and application of their
knowledge. They have developed their own way of working with the help of available theoretical
knowledge. For Example, two Cricketers may different in playing cricket. In a business, manager
also utilizes his or her personal skills and expertise to reach the target. So, this feature of art is
reflected in the management system.

(c) Based on Creativity and Practice

Art is based on creativity and practice. A cricketer is playing good cricket by regular practice
along with own creativity. The player has to use his basic cricketing knowledge in to perfection
through continuous efforts and creative thought of mind. In case of management, some of the
experienced managerial personnel develop their skills and efficiency level through rigorous
practice and creativity. This feature of art is also present in the management.

Conclusion

It is clear from the above points that management consists all the features of art like presence of
theoretical knowledge, personalized applications and creativity & practice. Hence, management
can be considered as an art of getting things done by others.

Management as Science and Art

Management contains features of both of science and art. It has systematic body of knowledge as
science and personalized skills, creativity and practice as art. Management may be regarded as an
art and an inexact science.

For example, a successful chartered accountant must possess all the required knowledge of
accounting principles and their applications. Besides, knowledge and experience, he or she has to
use his/her creativity and innovative ideas to deal with various issues of business organization.

Management as a Profession

Profession refers to an occupation followed by a group of experts having specialized knowledge

in a particular field. These people are termed as Professionals. Profession is defined as a
systematic body of knowledge acquired through proper training and practice.

For Example, Doctors, Lawyers, Chartered Accountants etc. are regarded as professionals.
The main features of profession are:

(a) Specialized body of knowledge

Profession is based on specialized body of knowledge. It can be acquired through learning,

training and regular practice. Professionals are using available resources to build expertise in
their respective fields. In management, managers are also following number of available books
on management studies to learn and develop their knowledge horizon. This feature of profession
is reflected in management system.

(b) Restrictive Entry

It is required to obtain a professional degree for entering in to a profession. For Example, to be a

doctor, one must have the MBBS degree from a recognized institution. No such restrictions are
imposed in the management world. Anyone can become a manager and there is no legal
restriction on this. So, this feature of profession is not applied in case of management.

(c) Professional Association

Each profession has their own representative association. It is required for an individual pursuing
a specific profession to get registered under a professional association. These associations
provide registration numbers, certificate for practice and frame number of guidelines and code of
conduct for the members. It is mandatory for the fellow members to follow the rules and
regulations framed by association.

For Example, Medical Council of India for Doctors, Bar Council of India for Lawyers are the
professional associations established in India.

It is not mandatory or legal binding to have an association in management. At present, there are
number of institutions established as management association like AIMA at New Delhi, NIPM at
Kolkata. This feature of profession is not present in management in recent time. It may be
applied in future years to come.

(d) Code of Conduct

Code of Conduct is highly essential to be followed by all the practicing professionals of different
disciplines as laid down by their respective association. All the professionals have to work as per
the code of conduct issued by association. This procedure is also followed in case of
management. Managers are following ethical code of conduct issued by All India Management
Association (AIMA). But this is not mandatory for all the managers to follow some
predetermined code of conduct. This feature of profession is not reflected in management.

(e) Service Motive

The primary objective of every profession is to provide quality and committed services to its
clients or customers. For Example, the main target of a doctor is to provide dedicated and
committed health services to his or her patients. On the other hand, management is generally
concentrated on profit maximization. It does not possess any service motive. This feature of
management is not presented in management.

Conclusion

From the above discussion, it is clear that management cannot be considered as a profession as it
does not fulfill the required criteria of a profession.

Levels of Management

Management is regarded as a group activity involves number of people. In a company, there are
number of people working at different positions. These people have assigned various
responsibilities to perform in time. It is essential to provide some authority to the people at work
for completing their work efficiently and effectively. Authority and responsibility have delegated
to the employees of a business organization based on the nature of their work. Authorities so
provided created a corporate hierarchy or levels in the management system. Generally, there are
three levels of management available in the chain of authority or hierarchy viz. (a) Top
Management, Middle Level Management, and Supervisory or Operational or Lower Level
Management.

Top Management

Top Level Management consists of people working at the top level of an organization. Chairman,
Board of Directors, Managing Directors, Chief Executive Officers (CEO), Chief Financial
Officer (CFO), Chief Operating Officer, President, Vice President, General Manager etc. These
top level management people are to take important decisions, formulate strategies, design plans
for growth and development of the enterprise. These people are assigning the highest authority in
an organization.

The major functions of Top Management are:

Setting up objectives

Top Management people are responsible for setting objectives of the business. These objectives
may be determined for long term or short term like Expansion the purview of business, Human
Resources Planning, Production Management etc.

Policy Formulation

Top Management officials are formulating various policies related to production, marketing,
finance, human resources etc. from time to time for smooth functioning of business.

Organizing activities of subordinates

Top Management delegates and assign both authority and responsibility to their subordinates.
They organize the entire business into number of sections and departments to achieve the
organizational objectives.

Recruitment of key personnel

Top Management deals with the procedure of selection and recruitment of important posts and
positions in a business firm like departmental heads, Managers and other key personnel in an
organization to facilitate better operation and control of the business.

Controlling

The performance and activities of managers and executives of the organization working at
different positions are reviewed and checked by the top management for accessing better control.

Middle Level Management

Middle Level Management consists of different departmental heads like production, marketing,
human resources managers, executive officers, superintendent of plant etc. It works as a bridge
in between Top Level and Supervisory Level Management through proper communication. If
required, they are also exercising the functions of top level by formulating plans and policies for
their respective departments.

The major functions of middle level management are:

(a) Formulation of departmental objective

Middle level management is determining short term departmental objectives. It deals with
interpretation of policies framed by top level authorities and communicates the same with detail
analysis to the operational level of management.

(b) Delegation of Duties and Responsibilities

It delegates duties and responsibilities to the personnel of operative and supervisory level for
attaining their departmental targets.

(c) Bridging the gap between Top and Supervisory Level

It plays the role of a bridge in between the top and supervisory level management in an
organization.

(d) Communicating information

It communicates circulars, instructions, orders, policy decisions of top level management to the
operative level. It also convenes the suggestions and grievances of employees working at lower
level to the top level authorities for consideration.

(e) Coordination

It helps in maintaining cooperation and coordination among all the departments of a business
concern.

Supervisory or Operational Level Management

It is otherwise termed as lower or bottom level of management. This level of management

consists of supervisors, superintendent, foreman, sub-department executives, clerk etc. Mangers
belonging to this level have to perform their part as per the instructions of the top and middle
level management.

The major functions of supervisory or operational management are:

(a) Communicating instructions of upper level management to the workers

Managers of supervisory level communicate the instructions and orders issued by the middle
level management to the workers in the organization. They pass on the suggestions and
grievances of the workers to the upper level authorities.

(b) Providing better working conditions

It is the responsibility of the managers of supervisory level to provide better working conditions
to the workers. They are also looking for providing adequate support to the workers in the
organization and developing a healthy relation between superiors and subordinates.
(c) Quality management

It ensures quality in production of the organization.

(d) Proper Supervision of work

Managers of this level supervise the work of employees in the organization effectively and
motivate them from time to time for attaining organizational objectives.

(e) Safe and secure working environment

Managers are trying to provide safe and secure working environment to the workers.

(f) Training and Development

Proper training is provided to the workers for improving productivity and efficiency.

Functions of Management

Planning, organizing, Staffing, Directing and Controlling are regarded as the most important
functions of management system.

Organizing

Planning Controlling

Functions of
Management

Staffing Directing

(a) Planning

The basic function of management is planning. Planning is taking decisions in advance. It is

connected with different aspects like what is to be done, how to do, where and when to be done
and finally by whom. Planning is looking ahead. It bridges the gap between where we are at
present and where we want to reach. It helps in determining the objectives of a business
organization well in advance and take appropriate steps for accomplishment of the said
objectives.

(b) Organizing

Organizing may be defined as a technique or process of identifying and grouping various

activities performed in a business and builds a better organizational structure. After the
formulation of plan, managers are looking forward to organize all the resources in the business
unit in a systematic manner to accomplish the organizational objectives. This function helps in
proper utilization of all available resources i.e. men, materials and machines. It involves
developing an organizational structure and allocating human resources. Organizing also involves
the process of designing of individual jobs in the business organization. Organizing at the level
of job involves how best to design individual jobs to most effectively use human resources.

(c) Staffing

Staffing refers to selecting and recruiting the right man for the right job in a business. This is an
important process involves selection, recruitment, training and development of the employees. It
also deals with human resources management in the organization like fixing compensation
packages of employees, their promotion, increments, performance evaluation, personal data base
etc.
(d) Directing

Directing refers to issue of directions to the employees for completing their work in time. This
process is not confined only to issue of production. It involves issue of guidelines, proper
supervision, communicating and motivating the employees to achieve the organizational
objectives.

(e) Controlling

Controlling is considered as the last function of the management process. In this procedure,
actual performance is compared with that of established standard to check deviations if any along
with reasons of such deviations. Controlling is the technique of measuring the performance of
employees and remedial actions taken for improving the efficiency of them.

Focus areas of Management Functions by different levels

Manager is a person performs all the managerial functions like planning, organizing, staffing,
directing and controlling.

 Managerial personnel at Top Level concentrate on planning & organizing;

 Middle Level management focuses on staffing and coordination.
 Lower Level management targets on directing and controlling the workers.
Coordination

There are number of people working in an organization. So, it becomes essential to maintain
proper coordination among the people at work. Coordination is defined as a synchronization of
efforts put in by different group of people belonging to different departments in an organization.
It is regarded as an essence of management. It is regarded as a process of integrating various
managerial activities in a concern.

Co-ordination: The Essence of Management

Coordination is an integral part of management. It is applied in all the functions of management

starting from ‘Planning’ to ‘Controlling’ in the business enterprise. The needs of coordination at
all these levels are described below:

Role of Coordination in Planning

Coordination among all the departments is highly essential for formulating plans and its
implementation. It is required for the manger of production department to consult and coordinate
with the sales and marketing department at the time making plans related with production.
Production Manager is to manufacture products as per the target set by the sales and marketing
department. In the absence of proper coordination, there will be a mismatch between the
production and target sales. It may lead to increase in the level of unsold stock.

Useful in the process of Organizing

The need of coordination is easily felt in the process of organizing various activities of
management. It is useful in delegation of authority and fixation of responsibility and ensures
accountability in the business organization.

Applied in Staffing function

Staffing is a management function requires coordination for matching the skill and ability of the
workers with the jobs and responsibilities assigned in their favour. It helps in compensating the
employees as per their efficiency.

Used in Directing

Coordination is needed in directing function of management. In the process of directing, proper

coordination between superior and subordinates must be made to facilitate proper and effective
communication of commands, instructions and suggestions.

Needed in the function of controlling

Controlling process also requires coordination in between the predetermined standard and actual
level of performance made by the people at work.

Value of Coordination in all Levels of Management

Coordination is also essential at all levels of management. It helps in integrating various

activities undertaken in an organization and taking adequate steps for achievement the
organizational objective.

Conclusion

From the above, it may be concluded that, coordination is a process of synchronization of

different activities undertaken by several departments of an organization. It is not a function of
management as like planning, organizing, staffing, directing and controlling. It is an essence of
management.

Nature or Characteristics of Coordination

The main features or characteristics of coordination are as follows:

 Ongoing Pervasive
Process Function

Works as a Manager’s
binding force responsibility

Nature of Treated as a
Integration of
premeditated
group efforts Coordination function

(a) Integration of group efforts

There are different types of people working in a business concern. Coordination helps in
integrating efforts put in by all these people work as a group to attain the organizational target.

(b) Works as a binding force

Coordination works as a binding force in business by integrating functions of all the

departments. It ensures a proper balance in all the departments. Coordination gives more
emphasis on unity of efforts as a group rather individual target because conflicting efforts may
be harmful for the health of any business.

(c) Ongoing Process

Coordination is an ongoing process and do not have a definite end. Its presence is necessary in
all the steps of management ranging from planning to control. Coordination is required for
effective and efficient operation of business.

(d) Pervasive Function

Coordination is regarded as a universally applicable function of management. It is applied in all

the levels of management along with all the departments. For Example, organizational objectives
of a concern can be achieved by proper coordination among different departments like
production, purchase and sales.

(e) Considered as Manager’s responsibility

Coordination is considered as an important responsibility of managers in an organization.
Managers of different departments are to coordinate with each other for a smooth functioning of
business. Top level managers’ deal with preparing overall plans and policies, operational level
managers are liable for coordinating departmental activities and lower level managers are to
regulate and control the activities of the workers.

(f) Treated as a premeditated function

Each and every manager is to coordinate the activities performed by different employees in an
organization for avoiding confusions and chaos. It is regarded as a premeditated or deliberated
function of management made to integrate the efforts of employees at work.

Conclusion

From the above, it can be concluded that coordination is an important management function
required at all the levels, all departments and all the people associated in a business concern. So,
it is rightly treated as the essence of management.

Importance of Coordination

The main importance of coordination is given as follows:

(a) Nature and Size of the Business

Coordination is mostly required in big size business organization or industries. It is because of

the number of activities to be undertaken by a large number of employees. These people working
in a company may get different from each other in many respects such as perception, skill,
attitude, efficiency etc. So, it becomes essential to maintain a proper coordination among all the
levels of management and all the departments. It leads to synchronization of efforts made by
employees for attainment of organizational objectives.

(b) Functional differentiation

There are different types of functions performed in a business concern by different departments,
units or divisions. All these departments are interconnected and dependent on each other. So, it is
required to coordinate different activities of different departments effectively. Coordination
results in maintaining harmony and integration in the concern.

(c) Specialization

With the advent of technology, business enterprises are also getting updated and advanced.
These advanced technologies need specialized persons or experts in the field and qualified
people to take appropriate decisions at right time. There are number of specialized personnel
working in a business concern. If all these people put efforts to attain their individual targets, it
may lead in creation of chaos and confusions. So, it is required to coordinate the works of all the
specialists and converted their individual goals in to a single group to achieve the organizational
objective.

Summary

Concept: Management is defined as a process to facilitate efficient and effective performance of

business organizations and to attain its basic objectives.

Characteristics

The main characteristics of management are Management is Target Oriented, Management is of

Universal Nature, Management is Multi-Dimensional, Management is a Continuous process,
Management is a Group Activity, Management is a Dynamic Function, and Management is of
intangible nature.

Objectives

There are three objectives of management namely organizational, social and personal or
individual objective.

Importance

The main importance of management is:

(a) Helps in attaining group targets

(b) Increases efficiency level
(c) Builds a dynamic organization
(d) Helps in attaining personal objectives
(e) Helps in developing society

Nature

Management is regarded as an inexact science. It also possesses some features of an art.

Management does not satisfy the features of profession. But it is in the way of fulfilling the
requirements of profession in future years to come.

Levels of Management

There are three levels of management.

Top Level Management consists of Chairman, CEO, CFO, COO, Board of Directors deals in
formulation of business strategies and policies.
Middle Level Management involves managers of different departments are responsible for
implementation of business strategies.

People belonging to Lower Level Management are assigned the work delegated in their favour.

Functions of Management

There are some basic functions performed by management such as planning, organizing, staffing,
directing and controlling.

Coordination

Coordination refers to integration of several activities performed by the people working in the
business organization at different positions.

Coordination: As the essence of management

Coordination is regarded as the essence of management. It is required to perform various

functions of management at all the three levels.

Characteristics of Coordination

The main features of coordination are:

 Integration of group efforts

 Works as a binding force
 Ongoing Process
 Pervasive Function
 Considered as Manager’s responsibility
 Treated as a premeditated function

Importance of Coordination

The main importance of coordination is given as follows:

(a) Nature and Size of the Business

(b) Functional differentiation
(c) Specialization
 Objective Type Questions/MCQs

Multiple Choice Questions (MCQs)

1. Which is not a function of management of the following? (NCERT)
a. Planning
b. Staffing
c. Cooperating
d. Controlling
2. Management is (NCERT)
a. an art
b. a science
c. both art and science
d. neither art nor science
3. The following is not an objective of management (NCERT)
a. earning profits
b. growth of the organization
c. providing employment
d. policy making
4. Policy formulation is the function of (NCERT)
a. Top Level Managers
b. Middle Level Managers
c. Operational Management
d. All of the above
5. Coordination is (NCERT)
a. Functions of management
b. The essence of management
c. An objectives of management
d. None of the above
6. Principle of Management are not
a. Universal
b. Flexible
c. Absolute
d. Behavioral
7. How are principles of management formed?
a. In a laboratory
b. by experience of a manager
c. by experience of customers
d. adaptation of changing technology
8. The principles of management are significant because of
a. Increase in efficiency
b. Initiative
c. Optimum utilization of resources
d. Adaptation to changing technology
9. Management is
a. Target Oriented
b. Continuous process
c. Multi-dimensional
d. All of the above
10. Objectives of management can be subdivided into three parts namely Organizational
Objectives, Social Objectives and
a. Personal Objective
b. Financial Objective
c. Personnel Objective
d. Economic Objective
11. Personal Objective is otherwise known as
a. Individual Objective
b. Social Welfare Objective
c. Employee Welfare Objective
d. None of the above
12. Management helps in
a. Raising Finance
b. Increasing market penetration
c. Attaining individual as well as group targets
d. Generating employment opportunities
13. Management is a
a. Pure Science
b. Exact Science
c. Profession
d. An Inexact Science or Social Science
14. Which function of management works as a bridge in between all the departments of an
organization?
a. Planning
b. Organizing
c. Coordination
d. Directing
15. Which function of management is regarded as the base or foundation stone of all other
functions?
a. Planning
 b. Organizing
c. Coordination
d. Directing
16. Purbasha Pvt. Ltd. has decided to provide free education to the children of its
employees. What type of objective of management is trying to attain?
a. Economic Objective
b. Social Objective
c. Individual or HR Objective
d. Financial Objective
17. Simran is working as a Finance Manager of Rolex Co. Ltd, Mumbai. At what level does
she work in the company?
a. Top Level
b. Middle Level
c. Lower Level
d. None of the above
18. Management is done by a number of people working in a group. In this process, all the
group members are putting their best efforts to achieve the desired organizational
objectives. Which feature of management represent through this?
a. Management is Target Oriented
b. Management is of Universal Nature
c. Management is Multi-Dimensional
d. Management is a group activity
19. There are different activities performed by management such as management of work,
management of human resources or people and management of operations. Name the
feature of management.
a. Management is Target Oriented
b. Management is of Universal Nature
c. Management is Multi-Dimensional
d. Management is a group activity
20. M/s Arun Desai is appointed as the CFO of a multinational company. At what level he
is working in the organization?
a. Top Level Management
b. Middle Level Management
c. Lower Level Management
d. None of the above

21. Match the following:

List – I List – II
 a. Management 1. Code of Conduct
b. Effectiveness 2. Completion of work with the minimum cost
c. Efficiency 3. Multi-dimensional
d. Profession 4. Completion of task within time

Code:

(a) (b) (c) (d)

(A) 1 2 3 4

(B) 3 1 4 2

(C) 4 1 2 1

(D) 3 4 2 1

22. Match the following:

List – I
a. Foreman
b. Marketing Manager
c. Chief Executive Officer
d. Sub-department executives
List – II
1. Top Management
2. Lower Level Management
3. Supervisory Level Management
4. Middle Level Management

Code:

(a) (b) (c) (d)

(A) 2 3 4 1

(B) 3 1 4 2

(C) 4 1 2 3

(D) 3 4 2 1

23. Match the following:

List – I List – II
a. Planning 1. Grouping of departments
b. Organizing 2. Recruitment & Selection of Employees
c. Directing 3. Looking ahead
d. Staffing 4. Issue direction to employees
Code:

(a) (b) (c) (d)

(A) 2 3 4 1

(B) 1 2 3 4

(C) 3 1 4 2

(D) 4 3 2 1

24. Match the following:

List – I List – II
a. Directing 1. Essence of Management
b. Coordination 2. Recruitment & Selection of Employees
c. Management 3. Directing Employees
d. Staffing 4. An inexact science

Code:

(a) (b) (c) (d)

(A) 3 1 4 2

(B) 1 2 3 4

(C) 4 2 3 1

(D) 1 3 4 2

25. Match the following:

List – I List – II
a. Survival 1. Management
b. Social Responsibility 2. Personal Objective
c. Continuous Process 3. Social Objective
d. Welfare of Employees 4. Organizational Objective

Code:

(a) (b) (c) (d)

(A) 3 1 4 2

(B) 1 2 3 4

(C) 4 2 3 1

(D) 4 3 1 2

Answers:

1. (c) Cooperating, 2. (c) Both art and science, 3. (d) Policy making, 4. (a) Top Level
Management, 5. (b) The essence of management, 6. (c) Absolute, 7. (d) Adaptation to
changing technology, 8. (a) Increase in efficiency, 9. (d) All of the above, 10. (a) Personal
Objective, 11. (a) Individual Objective, 12. (c) Attaining individual as well as Group
Targets, 13. (d) An Inexact Science or Social Science, 14. (c) Coordination, 15. (a) Planning,
16. (b) Social Objective, 17. (b) Middle Level, 18. (d) Management is a group Activity, 19.
(c) Management is Multi-Dimensional, 20. (a) Top Management, 21. (D), 22. (A), 23. (C),
24. (A), 25. (D).

State whether the following statements are TRUE or FALSE

1. Management was regarded as a pure science developed by rigorous exterminations.
2. Administration is the art of getting things done through and with the help of people in
formally organized group.
3. Management can be regarded as a process of getting work done or completed by others
effectively and efficiently with the intention to achieve the organizational objectives.
4. Efficiency refers to completion of the tasks assigned within a given period of time.
5. Effectiveness can be defined as completion of work with the minimum cost correctly and
accurately.
6. Management of Operations helps in maintaining a proper coordination between people, work
and organization.
7. If the inventory or stock level of a concern keeps on increasing, it is a clear evidence of
mismanagement or faulty management system in the field of marketing and sales.
8. Objectives of management can be subdivided into three parts namely Organizational
Objectives, Social Objectives and Economic Objectives.
9. Personal Objectives are basically connected with the employees or people working in an
organization.
10. Administration deals with integration of individual goals in to group targets in a business.
11. Management is defined as a systematic body of knowledge acquired through proper training
and practice.
12. Middle Level Management people are to take important decisions, formulate strategies,
design plans for growth and development of the enterprise.
13. Coordination refers to taking decisions in advance regarding what is to be done, how to do,
where and when to be done and finally by whom.
14. Planning is looking ahead.
15. Recruitment refers to selecting and recruiting the right man for the right job in a business.

Answer:

1. False, 2. False, 3. True, 4. False, 5. False, 6. True, 7. True, 8. False, 9. True, 10. False, 11.
False, 12. False, 13. False, 14. True, 15. Staffing.

Fill in the blanks

1. Traditional concept of management ………. management for getting things done.

2. Management is basically concerned with achieving the ………. of the business.
3. Management is a ………..process.
4. ………… is treated as the essence of management.
5. There are three objectives of management namely organizational, individual and
…………
6. …………..refers to completion of the tasks assigned within a given period of time.
7. ………….can be defined as completion of work with the minimum cost correctly and
accurately.
8. Management is of ……………….nature.
9. ……….. objective refers to the obligations of the business towards society. Every
business enterprise is operated in a society.
10. Management is an ………….science.
11. ………..refers to an occupation followed by a group of experts having specialized
knowledge in a particular field.
12. Planning, organizing, Staffing, Directing and ………..are regarded as the most important
functions of management system.
13. ………….is a person performs all the managerial functions like planning, organizing,
staffing, directing and controlling.
14. …………function of management is regarded as the base or foundation stone of all other
functions.
15. ……………is a function involving manning of positions created by organization process.
Answers:
1. Restricted, 2. Objectives, 3. continuous, 4. Coordination, 5. Social, 6. Effectiveness, 7.
Efficiency, 8. Intangible, 9. Social, 10. Inexact, 11. Profession, 12. Controlling, 13. Manager,
14. Planning, 15. Staffing]

Answer the following Questions in One Word

1. The word “Essence of Management” is applicable to which function of management?
2. Name the levels of management deals with formulation and implementation of policies in a
business organization.
3. The universal process applicable in every organization
4. The rules and regulations framed by the organization along with norms and honesty is
5. The management group consists of owners, board of directors, managing directors, chief
executives establishes polices, plans and objectives for the betterment of the management are
known as
6. The basic managerial function which involves thinking before doing is
7. The process of identifying and grouping the work to be performed is
8. The function involves manning the positions created by organization process is
9. The process which is concerned with carrying out the desired plans is known as
10. The essence of management which helps in channelizing the activities of various individuals
in the organization is known as -
11. Which function of management works as a bridge in between all the departments of an
organization?
12. Which function of management is regarded as the base or foundation stone of all other
functions?
13. JPR Pvt. Ltd. decides to provide free education to the children of its employees. What type of
objective of management is trying to attain?
14. Management system can be adopted and used in various non-profit making concerns like
educational institutions, hospitals, clubs, and societies. Which feature of management
represent through this?
15. Management is a process consists of number of functions like Planning, Organizing, Staffing,
Controlling and directing. It represents which feature of management?
16. Bharti Airtel support local schools with logistical and financial support, capacity building of
teachers and infrastructure development. Which business objective is satisfied through this
function?
17. Name the process of synchronizing efforts and activities performed by different employees of
a business organization.
18. Mr. Suresh is working as a Supervisor in the production department of Adani Industries Ltd.
What is the level of management in which he works?
19. At what level of management, managers are responsible for the welfare and survival of the
organization? [CBSE (A.I.) 2012]
20. Identify the nature of management when it is practices as personal application of existing
knowledge to achieve desired results. [CBSE 2012]
21. Name the level of management at which the managers are responsible for implementing and
controlling the plans and strategies of the organization. [CBSE 2012]
22. Name the process of designing and maintaining an environment in which individuals
working together in groups efficiently accomplish selected aims. [CBSE (F) 2008]
23. Name the process of working with and through others to effectively achieve organizational
objectives by efficiently using its limited resources in the changing environment. [CBSE
(A.I.) 2008]
24. At which level of management the managers are responsible the welfare and survival of the
organization? [CBSE (D) 2012]
25. Name the process which provides the requisite amount, quality, timing and sequence of
efforts and ensures that planned objectives are achieved with a minimum of conflict.
[CBSE Sample Paper 2018]
26. Your grandfather has retired from an organization in which he is responsible for
implementing the plans developed by the Top Management. At which level of management
was he working? State any one function. [CBSE (A.I.) 2011]
27. Your grandfather has retired as the Director of a manufacturing company. At which level of
management was he working? State any one function. [CBSE (D) 2011]

Answer: 1. Coordination, 2. Top & Middle Level Management, 3. Management, 4. Code of

Conduct, 5. Top Management, 6. Planning, 7. Organizing, 8. Staffing, 9. Directing, 10.
Coordination, 11. Coordination, 12. Planning, 13. Personal or Individual Objective, 14.
Management is of universal nature, 15. Management is a continuous process, 16. Social
Objectives, 17. Coordination, 18. Lower Level Management, 19. Top Level, 20.
Management is an Art, 21. Middle Level Management, 22. Management, 23. Top Level
Management, 24. Lower Level Management, 25. Coordination, 26. (i) Middle Level
Management, (ii) Formulation of departmental objective, 27. (i) Top Level Management,
(ii) Setting up objectives for business.

Answer the questions in One Sentence each

1. Define the concept of Management.

Management is the art and science of decision making and leadership.

2. What is Profession?

Profession is an occupation which involves rendering personal services of expert nature.

3. Define the concept of Employment.

The contractual service which can render by an individual is called employment.

4. State the basic Objectives of Management.

Managers basically formulate Mission, Objectives, Strategies and Tactics (MOST).

5. Define the concept of Top level Management.

Top level management is responsible for framing policies of the business where all important
decisions are also made at this level.

6. What do you mean by Middle level Management?

Middle level management is the link between top level and low level management and executor
by nature where the heads of the various departmental heads receive orders and instruct from the
top level management or managers and pass it to their subordinates (lower level managers).

7. Define the concept of Lower level Management.

Lower level management is line between middle level management and workers which helps in
building image of the enterprise before workers and also help in creating the sense of
belongingness among them towards the enterprise.

8. What is Code of conduct?

The norms which are used to provide rules and regulations is known as code of conduct.

9. Define the concept of Motivation.

It is a psychological process of creating urge among subordinates in a particular way.

10. Define the concept of Management as a science.

Management is a systematized body of knowledge built by management thinkers and

Practionners.

11. Explain the concept of Management as an art.

Management is an art because one has to use personal skill and knowledge in solving
complicated managerial problems.

12. Define the concept of Management as a profession.

A profession is an occupation backed by specialized knowledge and training and to which entry
is regulated.
13. Define Management is a group activity.

Management is concerned with the integration of activities of all those who are working in the
organization for the achievement of business goals.

14. Define the concept of Management as a process.

Management, when used as a process, refers to all that a manager does.

15. Define Planning.

Planning is a basic managerial function helps in determining the course of action to be followed
for achieving various organizational objectives.

16. What is meant by Organizing?

Organizing is the process of identifying and grouping work to be performed which helps in
assigning the task to individuals, delegation of authority and fixing of responsibility.

17. Define the concept of Staffing.

Staffing is a function involving manning of positions created by organization process.

18. What is meant by Directing?

Directing initiates organized and planned action and ensures effective performance by
subordinates towards the accomplishment of group activities.

19. Define the concept of Controlling.

Control enables management to get its policies implemented and taking corrective actions if
performance is not according to predetermined standards.

20. “Management system can be applied everywhere and not confined to business
organizations.” Which feature or characteristics of management are pointed out in this
given statement?

It is representing “Management is of universal nature”.

21. Reliance Industries started a mission to provide free education to the children of poor
people in India. What type of business objective the company is trying to achieve?

The company is trying to achieve ‘Social Objectives’.

22. What is meant by ‘effectiveness’?

Effectiveness refers to completion of the tasks assigned within a given period of time.
23. What do you mean by ‘efficiency’?

Efficiency refers to performing the assigned task accurately by utilizing available resources.

24. What is meant by Management?

Management is the art of getting things done through and with the help of people in formally
organized group.

25. Purbasha is working as a HR Manager in the Head Office of Montex Co. Ltd. at New
Delhi. At what level does she work in the organization?

She works at Middle Level.

26. Define ‘Management as Multi-dimensional’.

There are different activities performed by management such as management of work,

management of human resources or people and management of operations.

27. Do you consider management as a profession? Support your answer.

No, I do not agree with the above statement that management is a profession. It is rather on the
process of developing as a profession in years to come.

28. What is meant by management? [CBSE (D) 2011, (A.I.) 2012]

Ans. Management can be regarded as a process of getting work done or completed by others
effectively and efficiently with the intention to achieve the organizational objectives.

29. Volvo Ltd’s target is to produce 10,000 shirts per month at a cost of Rs 100 per shirt.
The Production Manager achieved this target at a cost of Rs 90 per shirt. Do you think
the ‘production Manager’ is effective? Give one reason in support of your answer.
[CBSE (D) 2010]

Yes, the production manager is effective because he has succeeded in reaching his target.

30. What is meant by efficiency in management? [CBSE 2015]

Efficiency can be defined as completion of work with the minimum cost correctly and
accurately.

31. Define the concept of ‘Co-Ordination’.

Coordination is defined as a synchronization of efforts put in by different group of people

belonging to different departments in an organization.

32. Give the meaning of ‘Motivation’ as an element of directing. [CBSE 2017]

Motivation refers to a process of stimulating, inspiring and inducing people working in an
organization at different departments, posts and positions.

33. Tarun is appointed as a manager of a Multinational Company. He is assigned the task

of completing 12,000 units per month. Tarun achieved the target but at a higher cost. Is
the work of Tarun efficient or effective?

He is considered as effective due to completion of target in time but not efficient because of the
high cost incurred.

34. Jyoti Cement Ltd. appointed number of well qualified managers possessing MBA
degrees from reputed institutions for different departmental posts. What does this refer
about the nature of management?

Ans. It shows that management is leading towards of being a profession.

Guidelines to NCERT Questions

Multiple Choice Questions

1. Which is not a function of management of the following?

a. Planning
b. Staffing
c. Cooperating
d. Controlling
2. Management is
a. an art
b. a science
c. both art and science
d. neither
3. The following is not an objective of management
a. earning profits
b. growth of the organization
c. providing employment
d. policy making
4. Policy formulation is the function of
a. Top Level Managers
b. Middle Level Managers
c. Operational Management
d. All of the above
5. Coordination is
a. Functions of management
b. The essence of management
 c. An objectives of management
d. None of the above

Answers. 1. (c) Cooperating, 2. (c) Both art and science, 3. (d) Policy making, 4. (a) Top
Level Management, 5. (b) The essence of management

Short Answer Type Questions

1. Define Management.
2. Name any two important characteristics of management.
3. Ritu is the manager of the northern division of a larger corporate house. At what level
does she work in the organization? What are her basic functions?
4. Why management is considered a multi-faced concept?
5. Discuss the basic features of management as a profession.

Long Answer Type Questions

1. ‘Management is considered to be both an art and science’. Explain.

2. Do you think management has the characteristics of a full-fledged profession?
3. Coordination is the essence of management. Do you agree? Give reasons.
4. ‘A successful enterprise has to achieve its goals effect and efficiently’. Explain.
5. ‘Management is a series of continuous interrelated functions’. Comment.

Case Problems (NCERT)

1. Company X is facing a lot of problems these days. It manufactures white goods like
washing machines, microwave ovens, 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 customer expectations. The finance department blames both production and
marketing for declining return on investment and bad marketing.

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?

Ans.

From the above case, it is evident that Coordination is completely missing among different
departments of the organization. The following steps should be taken to bring the company back
on target:

 Integration of efforts of people working in different departments

 Identify the reasons of differences between departmental representatives
 Maintaining proper coordination among all departments of the enterprise
  Converting goals of individuals in to group targets for achieving organizational
objectives

2. 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. What decisions/steps
should each level of management take to give effect to this decision?

Ans.

If the company wants to modify its existing product say, Fairness Cream, to increase its sales, the
company should take the following steps at each level of management and to perform all the
management functions.

Steps to be taken at Top Level

(a) Searching and exploring possible options for developing and modifying the product
(b) Check and measure the prevailing business environment
(c) Formulating plans for introduction of the re-modified product

Steps to be taken at Middle Level

(a) Implementing plans and policies framed by the top level management
(b) Interpreted and analyze the plans and policies to motivate the employees of supervisory level
(c) Delegating duties and responsibilities to the employees at work
(d) Motivating people for attainment of the organizational objectives.

Steps to be taken at Supervisory Level

(a) Assigning the job along with responsibility to workers

(b) Communicating and convening the instructions of superiors to the subordinates
(c) Supervising the work of employees
(d) Putting efforts to attain the business target in time

3. A firm plans in advance and has a sound organization 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. Advise remedy.

Ans.

This is a case where plans and strategies formulated by the top level management are not
properly executed or implemented. As stated in the case, loopholes are identified in supervisory
level or lower level. It is the responsibility of the middle level management to deal in this case
effectively. The following steps should be taken to face these issues:
 (a) Maintaining proper coordination among different departments
(b) Motivate the workers to perform as per plans
(c) Proper training should be given to the employees

Review Exercises
Short Answer Questions

1. Describe management as a process. [CBSE (A.I.) 1995, 97, 99]

2. Define the term management. [CBSE (D) 1995, 97, 99; (A.I.) 1997]
3. State the reasons for considering management of universal nature.
4. What do you mean by Coordination?
5. What are the needs or essentials of coordination in management?
6. Why is management not considered as a full-fledged profession like medical and legal
profession? Explain. [CBSE (D) 1998]
7. What do you understand by the levels management?
8. State any three functions of Top Level Management. [CBSE (D) 2001]
9. Who are considered as operating managers in an organization? [CBSE (A.I.) 1996]
10. Explain briefly management as an art. [CBSE (D) 1992]
11. How is management a social science? [CBSE (D) 2002]
12. Comment on “Management as a Profession – A trend.” [CBSE (A.I.) 2000C]
13. Explain the nature of management. [CBSE (D) 1999]
14. Explain the significance of management in running of a modern organization. [CBSE
(A.I.) 2001]
15. Why is management regarded as a multi-dimensional function?

Long Answer Questions

1. Management is both a science and an art. In the light of this statement explain the nature
of management. [CBSE (A.I.) 2003C]
2. Lack of peeper management results in wastage of time, money and effort. Explain the
importance of management in the light of this statement. [CBSE (D) 2003C]
3. Coordination is needed at all the levels of management. Explain this statement. [CBSE
(D) 1997, 2000; (F) 2001]
4. Management is essential for the growth of business organizations. Comment.
5. “Coordination is regarded as an essence of management rather than a separate function of
manager.” Do you agree with this statement? Give reasons. [CBSE (A.I.) 2001]
6. “Management is both science as well as an art.” Explain this statement. [CBSE (F) 1997,
2002; CBSE (D) 1998]
7. Explain various levels of management.
8. Define Management. Discuss its functions.
 9. Describe briefly any five features of management. [CBSE (A.I.) 2006]
10. Management is a series of continuous interrelated functions. Comment. [CBSE (D)
2006]
11. What is meant by Coordination? How does it “integrate group efforts” and “ensure unity
of actions”? Explain. [CBSE (A.I.) 2012]

Previous Year’s Examination Questions

One Mark Questions

1. Name the process of designing and maintaining an environment in which individuals
working together in groups efficiently accomplish selected aims. [CBSE (F) 2008]
2. Name the process of working with and through others to effectively achieve organizational
objectives by efficiently using its limited resources in the changing environment. [CBSE
(A.I.) 2008]
3. Enumerate any two functions of middle level management. [CBSE (D) 2008C, 2011C]
4. Management increases efficiency. How? [CBSE (D) 2009C]
5. Management helps in development of society. How? [CBSE (A.I.) 2009]
6. Management creates a dynamic organization. How? [CBSE (F) 2009]
7. List any two organizational objectives of management. [CBSE (D & A.I.) 2010]
8. List any two social objectives of management. [CBSE (D) 2010, (A.I.) 2010, 2011]
9. List any two personal objectives of management. [CBSE (D) (A.I) 2011]
10. Volvo Ltd’s target is to produce 10,000 shirts per month at a cost of Rs 100 per shirt. The
Production Manager achieved this target at a cost of Rs 90 per shirt. Do you think the
‘production Manager’ is effective? Give one reason in support of your answer. [CBSE (D)
2010]
11. Your grandfather has retired from an organization in which he is responsible for
implementing the plans developed by the Top Management. At which level of management
was he working? State one more function performed at this level. [CBSE (A.I.) 2011]
12. List any two functions of Top Management. [CBSE (D) 2011]
13. Your grandfather has retired as the Director of a manufacturing company. At which level of
management was he working? Different types of functions are performed at this level. State
any one function. [CBSE (D) 2011]
14. What is meant by management? [CBSE (D) 2011, (A.I.) 2012]
15. What is meant by ‘effectiveness’ in management? [CBSE (D) 2011, (A.I.) 2012]
16. How does management help an individual to develop team spirit, cooperation and
commitment to group success? State. [CBSE (A.I.) 2012]
17. Name the level of management at which the managers are responsible implementing and
controlling the plans and strategies of the organization? [CBSE (A.I.) 2012]
18. At which level of management the managers are responsible the welfare and survival of the
organization? [CBSE (D) 2012]
19. Identify the nature of management when a manager applies the existing theoretical
knowledge in his own unique manner. [CBSE (F) 2012]
20. At which level of management are the mangers responsible for maintaining the quality of
output and the safety standards? [CBSE (F) 2012]
21. At which level of management directing takes place? [CBSE (D) 2013]

Three Marks Questions

22. “Management is the systematized body of knowledge that explains certain general truths.”
Explain. [CBSE (D) 2009, (A.I.) 2012]
23. “Management is skilful and personal application of existing knowledge to achieve desired
results.” Explain. [CBSE (D) 2009, 2012]
24. What is meant by ‘Management as an Art’? Explain with the help of any three features.
[CBSE (D) 2010C]
25. What is meant by ‘Management as a science’? Explain with the help of any three features.
[CBSE (D) 2010C]

Four Marks Questions

26. Justify how coordination is (a) a continuous process (b) an all pervasive function. [CBSE (D)
2009C]
27. Justify how coordination is (a) a continuous process (b) a deliberate function. [CBSE (D)
2009C]
28. “Lack of proper management results in wastage of time, money and efforts.” In the light of
this statement, explain any four points of importance of management. [CBSE (D) 2010C]
29. “Management does not have some features of a profession.” Explain those features. [CBSE
(D) 2012C]
30. “It is important for management to achieve its goals effectively and efficiently.” Explain.
[CBSE (D) 2012C]

Four/Six Marks Questions

31. Is management an ‘Art’? Give any three reasons in support of your answer. [CBSE (D)
2010]
32. State any three organizational objectives of management. [CBSE (D) 2012C]
33. Raman is working as ‘Plant Superintendent’ in Tifco Ltd. Name the managerial level at
which he is working. State any four functions he will perform as ‘Plant Superintendent’ in
this company. [CBSE (D) 2008]
34. 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. [CBSE (A.I.) 2008]
35. Rajat is working as ‘Regional 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. [CBSE (F) 2008]
36. “Management is a series of continuous inter-related functions with no pre-determined
sequence.” Explain. [CBSE (D) 2008C]
37. “Coordination is not a separate function of management. It is the essence of management.”
Explain with the help of a suitable example. [CBSE (D) 2008C, 2009, (A.I. & F) 2009]
38. “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. [CBSE (D) 2009, 2011, (A.I.) 2009,2012, (F) 2009]
39. “Coordination is needed at all levels of management and it is the responsibility function of all
managers.” Explain how? [CBSE (D) 2009, (A.I & F) 2009]
40. Is ‘management a science’? Give any three reasons in support of your answer. [CBSE (D)
2010]
41. Is management a full-fledged profession? Give any three reasons in support of your answer.
[CBSE (D) 2010]
42. “Art is concerned with personal application of knowledge.” In the light of this statement,
compare all the features of art with management and prove that it is an art. [CBSE (A.I.)
2010]
43. “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 the statement, explain the true
nature of management. [CBSE (D) 2011]
44. “Management is a profession like medical or legal profession.” Do you agree with this
statement? Give any five reasons in support of your answer. [CBSE (D) 2011]
45. “Success of every organization depends upon its management.” Explain any five reasons to
justify the above statement. [CBSE (D) 2011C]
46. “Coordination is synchronization of group efforts to achieve organizational objectives.” In
the light of this statement, highlight any five features of coordination. [CBSE (D) 2011C]
47. Explain how management ‘increases efficiency’ and helps in the development of society.
[CBSE (A.I.) 2012]
48. Give the meaning of management and explain how it creates a dynamic organization and
helps in the development of society. [CBSE (D) 2012]
49. What is meant by Coordination? Explain any three points of importance in management.
[CBSE (F) 2012]
50. Describe any five reasons which classify that management is gaining importance day by day.
[CBSE (D) 2013]
51. State any five reasons which highlight the importance of management. [CBSE (A.I.) 2013]
52. Explain any five reasons which clarify that management is gaining importance day by day.
[CBSE (F) 2013]
53. Explain any five features of management. [CBSE (D) 2013]
54. State any five characteristics of management. [CBSE (A.I.) 2013]
55. Explain any five characteristics of management. [CBSE (F) 2013]
56. Explain any five characteristics of ‘coordination’. [CBSE (D) 2013]
57. State any five feature of coordination. [CBSE (A.I.) 2013]
58. 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 day by day, so the company decided to increase villages as very few job
opportunities were available in that area. The company also decided to open schools and
crèches for the children of its employees. [CBSE 2014]

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

(ii) State any two values which the company wanted to communicate to the society.
59. “Management is the process of getting things done’. State the meaning of the term ‘process’
used in this statement. [CBSE (D) 2016]
60. Explain any four points of importance of management. [CBSE (D) 2016]
61. Is management concerned only with doing the right task, completing activities and achieving
goals without taking in to consideration the cost benefit? Give reason in support of your
answer. [CBSE (A.I.) 2016]
62. What is meant by Management? Explain its any three feature that establish it as an Art.
[CBSE (A.I.) 2016]