Nature and Significance of Management / 1

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Nature and Significance
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of Management

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Section - A (Chapter Synopsis)

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1. Concept of Management:
According to Koontz and O’Donnell, “Management is creating an internal environment of an enterprise

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where individuals working together in groups perform efficiently and effectively towards achievement of group
goals.”

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Management is a process of getting things done with the aim of achieving goals effectively and
efficiently.
2. Characteristics of Management:

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• Goal oriented process: Management is a goal oriented process, which is undertaken to achieve
already specified and desired objectives by proper utilisation of available resources.
• Pervasive: Management is universal in nature. It is used in all types of organisations whether
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economic, social or political irrespective of its size, nature and location.

• Multidimensional: Management is multidimensional as it involves management of work,
people and operations.
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• Continuous: Management consists of a series of function to be performed by all managers

simultaneously. The process of management continues till an organisation exists for attaining its
objectives.
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• Group activity: Management is a group activity since it involves managing and coordinating
activities of different people as a team to attain the desired objectives.
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• Dynamic function: Management is a dynamic function since it has to adapt according to needs,
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time and situation of the changing environment.

• Intangible force: Management is an intangible force as it can’t be seen but its effects can be felt
in the form of results like whether the objectives are met and whether people are motivated or
not and there is orderliness and coordination in the work environment.
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3. Importance of Management:
• Management helps in achieving group goals: The task of a manager is to give a common
direction to the individual effort in achieving the overall goals of the organisation.
• Management increases efficiency: The aim of a manager is to reduce costs and increase
productivity through better planning, organising, directing and controlling the activities of the
organisation.
• Management creates a dynamic organisation: Environment is constantly changing. Individuals
resist change as it often means moving from a familiar, secure environment into a newer and
more challenging one. Management helps people to adapt to these changes so organisation can
maintain its competitive edge.
• Management helps in achieving personal objectives: Through Motivation and leadership
management helps individuals to develop team spirit, cooperation and commitment to group
success, thereby achieving personal objectives.
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• Management helps in the development of society: Management helps to provide good quality
products and services, creates employment opportunities, adopts new technology for the greater
good of the people and leads the path towards growth and development.

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4. Management Objectives:
(a) Organisational Objectives:

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• Survival: Ensure that the organisation survives and exists in the future.

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• Profit: Earning adequate profit in order to survive and grow.
• Growth: Growth indicates how well it exploits the potential opportunities.

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(b) Social Objectives:
• Providing quality products at reasonable rates.

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• Generating employment opportunities.
• Community progress and development by providing schools and crèches to employees.
• Environment friendly method of production.

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(c) Personnel Objectives:
• Meeting the financial needs like competitive salaries and perks.

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• Social and safety needs of the employee like peer recognition, self-respect and respect for
colleagues.
• Higher level needs like implementation and monitoring of policies for personal growth and

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survival.
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• Reconcile personal goals with organisational objectives for harmony in the organisation.
5. Levels of Management:
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Top Level: Designations and Functions

• Comprises of CEO, Board of Directors, Managing Director and General Manager.
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• Conceptualizing of organisational goal, policy and strategy formulation.

• Organising, Controlling and Monitoring activities and resources.
• Controlling the work performance.
• Approving Budgets.
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Middle Level: Designations and Functions

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• Comprises of Departmental, Sub-Departmental and Divisional Heads.

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• Execution of plans, policies framed by top level management.

• Preparing organisational set up and appointing employees.
• Issuing instructions and motivating employees.
• Ensuring interdepartmental co-operation.
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Lower Level: Designations and Functions

• Comprise of Supervisors, Foremen and Inspectors.
• Maintain moral, safety and discipline amongst the work force.
• Oversee the work of the workers.
• Forwarding suggestions and feedback to the top level managers.
6. Nature of management as science, art and profession:
Management as a science
• Systematised body of knowledge.
• Universal validity.
• Principles based on experimentation and observation.
As the principles of management are not as exact as the principles of pure science, so it may be called-
an inexact science. The prominence of human factor in the management makes it a social science.
 Nature and Significance of Management / 3

Management as an art
• Existence of theoretical knowledge.

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• Based on practice and creativity.
• Personalised application and skill.
Every manager has his own unique style of managing things and people. He uses his creativity in

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applying management techniques and his skills improve with regular application since all the

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features of art are present in management so it can be called an art.
Management as a profession

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• Well defined body of knowledge.
• Existence of code of conduct.

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• Professional association (AIMA).
• Restricted entry.
• Fees as remuneration for their services.

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Management does not fulfill all the features of a profession and thus it is not a full fledged
profession.

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7. Co-ordination: According to Mooney, “Co-ordination may be defined as the orderly arrangement of
group efforts to provide unity of action in pursuit of a common purpose.”

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Characteristics of Coordination:
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• Coordination integrates group efforts.
• Coordination ensures unity of action.
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• Coordination is a continuous process.

• Coordination is an all pervasive function.
• Coordination is the responsibility of all managers.
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• Coordination is a deliberate function.

Need for Coordination:
• Growth in size.
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• Functional differentiation.
• Specialisation.
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Identifying the Concepts

Concepts Key Words/Phrases
• Management Intangible/multidimensional.
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• Effectiveness Achieving targets.

• Efficiency Reducing cost.
• Coordination Essence of management.
• Coordination Synchronisation of group efforts.
• Organisational Objectives Growth and survival.
• Supervisory Level Lower level management.
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 Nature and Significance of Management / 5

Section - C (NCERT Case Studies)

Caselet 1: Company X is facing a lot of problems these days. It manufactures white goods

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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

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department blames marketing for not meeting sales targets and marketing blames production

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department for producing goods, which are not of good quality for meeting customers‘
expectations. The finance department blames both production and marketing for declining

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return on investment and bad marketing.
(a) Which quality of management do you think the company is lacking? Explain briefly.

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(b) What steps should the company management take to bring the company back on
track?

Solution:
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(a) The company is lacking an important aspect of management that is Coordination. Here
production department, marketing department and finance department are not working
in unity for achieving the goals of the organisation due to which return on investment

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and market share is declining.
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(b) To bring company back on track, proper coordination should be ensured. Coordination
will help in integrating activities of separate units of an organisation to accomplish the
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goals efficiently. Favourable environment should be created where departments instead

of blaming each other can work in harmony with each other for improving the current
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situation of the company.

Caselet 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.
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What decisions/steps should each level of management take to give effect to this decision?
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Solution: Assuming that the company is in business of manufacturing pens. Due to strong
competition the sales of my product are declining. I want to bring changes in my product design
and other aspects.
Following decisions will be made by each management level for the same:
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Top Level
(i) Top level managers will work out the objectives, policies and plans for initiating the
decision of bringing a change in the pens that we offer.
(ii) They will work out the budget that would be needed to bring this decision into action.
(iii) They will get in contact with the machinery suppliers, media and other experts needed.
(iv) They will coordinate with departmental heads to finalise this decision.
Middle Level
(i) Managers at this level would formulate plans and strategies to achieve the goals set by
the top management to bring about changes in our product.
 6 / ABD’s Bull’s Eye – Business Studies (XII)
(ii) They will arrange for the necessary resources like: raw material, machinery, personnel
etc., needed to implement the plan.

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(iii) They will assign duties and responsibilities and set targets for the Lower level managers.
(iv) They will ensure coordination amongst various departments to achieve the goals.

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Lower Level

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(i) The managers at this level will issue instructions to the workers and oversee their work.
(ii) They will guide and motivate the workers to achieve the targets.

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(iii) They will ensure that the work goes on smoothily and as per schedule.

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(iv) They will maintain order and discipline in the organisation.
(v) They will ensure that the work is being carried out effectively and efficiently.

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Caselet 3: 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. Advise remedy.

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Solution: The firm plans in advance and has a sound organisation structure with efficient

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supervisory staff and control system. But yet if there is confusion and duplication of work it
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means firm lacks in directing its personnel effectively.
The following remedies are to be taken for improving the situation:
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(i) A proper communication pattern is to be followed.

(ii) Efforts have to be put in to ensure proper co-ordination is achieved between the
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departments and workers.

(iii) Regular feedback is to be taken by the middle level managers from the lower level
managers.
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(iv) The workforce should be properly trained and motivated to achieve the goals efficiently
and effectively.
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 Nature and Significance of Management / 7

Section - D (CBSE Board’s Previous YYear

ear ’s Case Studies)
ear’s
Caselet 1: Volvo Limited’s target is to produce 10,000 shirts per month at a cost of ` 100/- per

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shirt. The Production Manager achieved this target at a cost of ` 90/- per shirt. Do you think the
Production Manager is effective?

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Give one reason to support your answer. (1 Mark) [CBSE, DELHI 2010]

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Solution: Yes, the production manager has proved effective. This is because effectiveness implies

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the ability to complete a task within the prescribed time limit. In the given situation, the production
manager has achieved the production target of 10,000 shirts within a month.

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Caselet 2: Hero Limited’s target is to produce 10,000 shirts per month at a cost of ` 150 per
shirt. The production manager could achieve this target at a cost of ` 160 per shirt. Do you

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think the production manager is effective?
Give reasons in support of your answer. (1 Mark) [CBSE, OD 2010]

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Solution: Yes, the production manager is effective in his work as he was able to complete the

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assigned target on time. This is because effectiveness implies that the task is completed within the
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prescribed time limit.

Caselet 3: Your grandfather has retired as the director of a manufacturing company. At which
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level of management was he working? Different type of functions are performed at this levels.
State one function. (1 Mark) [CBSE, DELHI 2011]
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Solution: As director of a manufacturing company, he was working at the Top Level of

Management. Of the various functions he would have performed, the most important would
have been formulating the goals and policies of the organisation.
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Caselet 4: ‘Is Management concerned only with doing the right task, completing activities
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and achieving goals without taking into consideration the cost benefit?’
Give reason in support of your answer. (1 Mark) [CBSE, FOREIGN 2016]

Solution: No, management is not only concerned with doing the right task, completing activities
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and achieving goals (effectiveness), but it also has to take into consideration the cost benefit i.e.,
doing the task correctly and with minimum cost (efficiency).

Caselet 5: Das is the Managing Director of ‘Gamut Ltd.’, manufacturing different varieties
of cheese. He has an efficient team working under him consisting of Rajat – the Production
Manager. Vinay – the Marketing Manager and Adit – the Finance Manager. They understand
and interpret the policies made by Das, ensure that their departments have adequate
manpower, assign them the necessary duties and motivate them to achieve the desired
objectives.
State one more function other than those mentioned above, that this team may perform at the
level they are working. (1 Mark) [CBSE, OD 2019]
 8 / ABD’s Bull’s Eye – Business Studies (XII)

Solution: Das team members must cooperate with each other for smooth functioning of the
organisation. At the same time his team members are responsible for all the activities of first line

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managers.

Caselet 6: ‘Adharshila Vidyalaya’ believes in holistic development of students and encourages

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team building through a mix of curricular, co-curricular and sports activities. On its Founders’

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Day a stage performance had to be put up. A committee of ten prefects was constituted to plan
different aspects of the function. They all decided to use recycled paper for decoration. As

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there was a spirit of unity and harmony and all members supported each other with mutual
trust and belongingness, the programme was systematically planned and executed. Arvind,

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one of the prefects, realised that unknowingly the group had applied one of the principles of
management while planning and executing the programme. He was so inspired by the success
of the function, that he asked his father to apply the same principle in his business. His father

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replied that he was already using this principle.
State any three features of management highlighted in the above paragraph.

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(3 Marks) [CBSE, FOREIGN 2015]

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Solution: Features of management:
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(i) Management is pervasive: ‘...he asked his father to apply the same principle in his
business’. Management is pervasive as it can be applied to all types/ levels of
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organisations.
(ii) Management is a group activity: ‘There was a spirit of unity and harmony and all
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members supported each other’. Management is a group activity because it requires

team work and coordination of individual efforts.
(iii) Management is goal Oriented: ‘...the programme was systematically planned and
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executed’. Management is goal oriented as it unites the efforts of different individuals

towards achieving organisational goals.
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(iv) Management is multi-dimensional: ‘....programme was systematically planned and

executed’. OR ‘There was a spirit of unity and harmony and all members supported each
other’. Management is multi-dimensional as it involves management of work, people
and operations.
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(v) Management is intangible: ‘With mutual trust and belongingness...’. OR ‘There was a
spirit of unity and harmony and all members supported each other’. Management is
intangible as it cannot be seen but its presence can be felt in the way the organisation
functions.
Caselet 7: ‘Science is a systematised body of knowledge that explains certain general truths
or the operation of general laws’. Based on the statement identify and state the characteristics
of management that establish it as a science. (3 Marks) [CBSE, OD COMPTT. 2016]

Solution: The characteristics of management that establish it as a science are:

(i) 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.
 Nature and Significance of Management / 9
(ii) 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 outcome of these experiments are not capable

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of being accurately predicted.
(iii) Principles of management like principles of pure science provide managers with certain

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standardised techniques that can be used in different situations. Since they have to be
modified according to a given situation, their application and use is not universal. So,

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this feature of science is not fully present in management.

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Caselet 8: Mita has a successful ice cream business at Bikaner, namely ‘Smartflavours’. Her
ice creams were utterly delicious. She makes ice creams from fresh milk and the same are

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available in a wide range of flavours and packs. She sets viable business objectives and works
with the same in mind in order to ensure that the customers will come back for purchasing.
Having the first mover advantage, her business was doing well. To earn higher profits, she

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started cutting costs. This would sometimes lead to delay in delivery and the ice creams was
not reaching the market in time. Over a period of time, the demand for her ice-cream declined

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because of it the competitors entered the market. She lost some of her market share to
competitors.
At the beginning of summer season, she got back to back orders for supply of 4,000 ice-cream

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packs of different flavours for special occasions. To ensure that the task was completed and
orders delivered in time she hired additional workers. She was thus able to produce and
deliver the ice-cream packs but at a high production cost. While that she was ignoring one of
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the important aspects of management.

Identify the aspects of management that has been ignored by Mita. Also explain the same with
the help of an example. (3 Marks) [CBSE, DELHI 2019]
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Solution: The aspects of management that has been ignored by Mita are:
• Efficiency means doing the task correctly and with minimum cost.
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• Effectiveness in management is concerned with doing the right task, completing activities
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and achieving goals

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For example, it is easier to be effective and ignore efficiency i.e., complete the given task but
at a high cost. Suppose, a company’s target production is 5000 units in a year. To achieve this
target the manager has to operate on double shifts due to power failure most of the time. The
manager is able to produce 5000 units but at a higher production cost. In this case, the manager
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was effective but not so efficient, since for the same output, more inputs (labour cost, electricity
costs) were used.
Caselet 9: ‘Mega Ltd.’ was manufacturing water-heaters. In the first year of its operations,
the revenue earned by the company was just sufficient to meet its costs. To increase the revenue,
the company analysed the reasons of less revenue. After analysis the company decided:
(i) To reduce the labour cost by shifting the manufacturing unit to a backward area where
labour was available at a very low rate.
(ii) To start manufacturing solar water-heaters and reduce the production of electric water-
heaters slowly. This will not only help in covering the risks, but also help in meeting
other objectives too.
Identify and explain the objectives of management discussed above.
(4 Marks) [CBSE, DELHI 2014]
 10 / ABD’s Bull’s Eye – Business Studies (XII)

Solution: The objectives of the management that is being discussed here are:
(i) Organisational Objectives: Management is responsible for setting and achieving

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objectives for the organisation. The main objective of any organisation should be to
utilise human and material resources to the maximum possible advantage, i.e., to fulfill
the economic objectives of a business. Organisational objectives are:

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• Survival: When the organisation earns enough revenue to cover its cost.

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• Profit: When the organisation earns enough revenue to cover costs and risks of the
business.

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• Growth: It implies growth in terms of sales, profit, number of workers, products
produced and sold, etc.

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(ii) Social Objectives: The social objectives of an organisation basically involves the creation
of benefit and development of the society. The following are some of the social objectives
of management that are being indicated in the given situation:

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• Producing environment friendly products such as solar lanterns.
• Setting-up a factory of solar lanterns in order to provide electricity in rural areas.

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• Providing employment opportunities to the needy.
• Developing school and creches for children in rural areas.

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Caselet 10: 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
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an implication on 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.
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(b) State three other functions being performed by Ashutosh Goenka.

(4 Marks) [CBSE, DELHI 2017]
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Solution:
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(a) Top Level.

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(b) Functions of top level management:

(i) To coordinate the activities of different departments.
(ii) To be responsible for welfare and survival of the organisation.
(iii) The formulate overall organisational goals and strategies for their achievement.
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(iv) To be responsible for all the activities of the business and for its impact on the society.

Caselet 11: Hema is one of the most successful managers of her company, ‘Kobe Ltd’. She
uses her creativity and initiative in handling challenging situations at work. The knowledge
gained by her during her student days at a renowned management institute as well as through
her observation and experience over the years is applied by Hema in a skillful manner in the
context of the realities of a given situation. She often reads books and other literature in various
fields of management to keep her knowledge updated.
(a) An aspect of the nature of management is being highlighted in the above description.
Identify the aspect.
(b) Explain any three features of the aspect identified in part (a).
(4 Marks) [CBSE, DELHI COMPTT. 2017]
 Nature and Significance of Management / 11

Solution:
(a) Management as an Art.

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(b) The features that establish management is an art are:
(i) Existence of theoretical knowledge: As in art, in management too, there is a lot of

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literature available in various areas of management which the manager has to

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specialise in.
(ii) Personalised application: Like in any art, in management too, a manager applies his

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acquired knowledge in a personalised and unique manner. This gives rise to different
styles of management.

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(iii) Based on practice and creativity: Management satisfies this criteria as a manager
gains experience through regular practice and becomes more effective.

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Caselet 12: Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing
refrigerators. He found that his department was under-staffed and other departments were

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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 is improved.

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(a) Identify the level at which Rishitosh Mukerjee was working.
(b) Also, state three more functions required to be performed by Rishitosh Mukerjee at
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this level. (4 Marks) [CBSE, OD 2017]

Solution:
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(a) Middle Level.

(b) Functions required to be performed by Rishitosh Mukerjee:
(i) The interpret the policies framed by the top management.
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(ii) To ensure that their department has the necessary personnel.

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(iii) To assign necessary duties and responsibilities to the employees of their respective
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departments for implementation of the plan.

(iv) To motivate employees of their respective departments to achieve the desired
objectives.
(v) To cooperate with the departments for smooth functioning of the organisation.
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Caselet 13: 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?
(5 Marks) [CBSE, DELHI COMPTT. 2015]
 12 / ABD’s Bull’s Eye – Business Studies (XII)

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

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(i) Well-defined body of knowledge: All professions are based on a well-defined body of
knowledge that can be acquired through instruction. Management too is based on a

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systematic body of knowledge comprising of well-defined principles. This feature of
profession is present in management.

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(ii) Restricted entry: The entry to the above stated profession is restricted through a prescribed
qualification. But there is no restriction on anyone being appointed as a manager in any

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business enterprise. So, presently this feature of profession is not present in management.

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(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

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of practising 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

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to be members of such an association. So, 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

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which guides the behaviour of its members. AIMA has devised a code of conduct for
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Indian managers but there is no statutory backing for this code. So, presently this feature
of profession is not present in management.
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(v) Service motive: The motive of legal and medical profession is to serve their client’s
interests by rendering dedicated and committed service. The purpose of management to
help the organisation achieve its goals by providing good quality products at reasonable
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prices, thereby serving the society is being increasingly recognised. So, presently this
feature of profession is not fully present in management.
The above discussion shows that management does not satisfy all the criteria of a profession.
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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
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profession.
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Caselet 14: Kamal, Khan and Devid are partners in a firm engaged in the distribution of
dairy products in Madhya Pradesh. Kamal is a holder of Senior Secondary School Certificate
from Central Board of Secondary Education with Business Studies as one of his elective subjects.
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Khan had done his post-graduation in Hindi literature and Devid in Dairy Farming. One day
there was a serious discussion between Khan and Devid regarding the nature of ‘Management
as a Science’. Khan argued that Management was not a science whereas Devid was of the
opinion that Management was a science. Kamal intervened and corrected both Khan and Devid
about the nature of Management as a Science with the help of his knowledge of Business Studies.
Explain how Kamal would have been able to satisfy both Khan and Devid.
(5 Marks) [CBSE, OD COMPTT. 2015]

Solution: Kamal would have been able to satisfy both Khan and Devid by explaining the
following features of management as a science:
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.
 Nature and Significance of Management / 13
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

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beings the outcome of these experiments are not capable of being accurately predicted.
3. Universal validity: Principles of management like principles of pure science provide

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managers with certain standardised techniques that can be used in different situations.
Since they have to be modified according to a given situation, their application and use

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

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Through the above discussion Kamal would have been able to satisfy both Khan and Devid
by making them understand that management is a science but not an exact science.

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Caselet 15: Narayana Computers Ltd. is a leading company in Computer Technology and IT
services. The Chief Executive Officer of the company attributes the success of the company to

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its managerial team spirit, which have helped to handle rapid changes in technologies and to
transform threats into opportunities. Like any other business enterprise profits are important
for survival and growth of Narayana Computers Ltd. The management of the company believes

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that a satisfied employee creates a satisfied customer, who in turn creates profits that leads to
satisfied shareholders. The company has a strong sense of social responsibility. It has set up
many educational institutions in the field of management, engineering and computer education,

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in which half of the students are girls.
On the basis of the given information about Narayana Computers Ltd. answer the following
questions:
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Identify and explain the objectives of the company discussed in the above para. Also quote the
lines for the identified objectives. (5 Marks) [CBSE, OD COMPTT. 2016]
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Solution:
(i) Organisational objectives refer to the utilisation of human and material resources
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considering the interest of all stakeholders. The main organisational objectives of an

enterprise are:
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• Survival. • Profit • Growth.

Lines: “Like any other business enterprise profits are important for survival and growth
of Narayana Computers Ltd.”
(ii) Social objectives refer to consistently creating economic value for various sections of
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the society. The main social objectives of an enterprise are:

• Providing quality products at reasonable prices.
• Generating employment opportunities.
• Community progress and development by providing schools and creches to
employees.
• Environmental friendly methods of production.
Lines: “The company has set up many educational institutions in the field of management,
engineering and computer education in which half of the students are girls.”
 14 / ABD’s Bull’s Eye – Business Studies (XII)

Section - E (Test YYour

(Test our Knowledge Case Studies: Under./Apply
Under./Apply./Analysing/Evaluating Questions)
./Apply./Analysing/Evaluating
Caselet 1: A.K. Steels Ltd. has decided to contribute to Swaach Bharat Abhiyan by installation

H
of 200 dustbins in Raipur industrial area. Which objective of management is highlighted by
this act of the company? (1 Mark)

AG
T
Solution: The social objective of management that is indicated in the given situation is concern
for environment. The social objective of an organisation basically involves the creation of benefit

AR PO
and development of the society.

LH L B
Caselet 2: Three teams of employees of Core Project Ltd. are working at different positions:
(a) Team X is responsible for survival and growth of organisation. Team X continuously

E
keeps a watch over the business environment with a view of coping with the changes
in the business environment. Team X immediately discusses the change to be brought

DE O
NE , K D
about in company’s plan.
(b) Team Y explains the policies of superiors to the employees and ensures a touch of
cooperation among all the departments.

I
K
(c) Team Z is responsible for maintaining quality and safety standards and minimize the
wastage.
AL O

Identify the levels of management of Core Project Ltd. at which different teams are designated,
by quoting relevant lines. (3 Marks)
IW BO

Solution:
(a) Top level of Management: “Team X immediately discusses the change to be brought
A

about in company’s plans.”

(b) Middle level of Management: “Team Y explains the policies of superiors to the
W
NA YA

employees”
(c) Supervisory level/Lower level: “Team Z is responsible for maintaining quality and
safety standards and minimize the wastage.”
30 AR

Caselet 3: GenX Fashions is planning to launch casual wearline for college students in a
year’s time to extend its product line. At present the company has reduced the prices of its
formal wear by 10% to retain its existing market share.
Giving suitable reasons, identify the objectives of management which GenX Fashions is fulfilling
by undertaking such activities. (3 Marks)

Solution: The main objectives which GenX Fashions is fulfilling by undertaking various activities
are organisational objectives:

(i) Growth - by launching a new product line.

(ii) Survival - by reducing prices.
 Nature and Significance of Management / 15

Caselet 4: After every three months, Mr. Peter, sales manager, offers new trade promotion
schemes to its distributors. He plans to introduce new varieties of products keeping in mind

H
the needs of a customer and promotional schemes from his competitors. This gives him an
added advantage over his competitors.

AG
Identify which characteristics of management is reflected in above situation? Explain it briefly.

T
(3 Marks)

AR PO
Solution: Dynamic Function: Management adapts itself to the changing environment. External
environment consists of various social, economic and political factors. A business enterprise must

LH L B
change itself and its goals according to the needs of the environment.

Caselet 5: Mr. David, the managing director of H. Zinc Ltd. at times get involved in activities

E
like procurement of raw material, production and quality control of goods, employee discipline
etc.

DE O
NE , K D
On the basis of above information, answer the following questions:
(a) Name the level of management which, Mr. David belongs to.

I
(b) Do you think David must be involved in such activities? Give reason.
K
(c) List two important functions, Mr. David must perform? (4 Marks)
AL O

Solution:
(a) Top level management.
IW BO

(b) No, as these are routine functions to be performed by operational managers.

(c) The important functions that Mr. David must perform are:
A

(i) Integrate diverse elements and coordinate activities of different departments in one
direction.
W

(ii) Responsible for welfare and survival of the organisation.

NA YA

Caselet 6: Glenmark management outlined its long term strategy and thoughts on medium
term prospects. The management expects its niche US pipeline to drive growth over the next
few years while specialty initiatives should come to forefront from 2020. Company focused on
30 AR

Respiratory, Dermatology and Oncology products development globally, while tactically looking
at other segments relevant to different markets. Glenmark expects faster approvals and better
quality launches to drive 15-20% revenue growth, despite potentially higher business erosion
due to increasing competition. Several interesting products are lined up for launch namely,
Zetia, Azelaic Acid and Epiduo.
On the basis of the given information about Glenmark Ltd. answer the following questions:
(a) Identify the main objectives of the company discussed in the above case. Also quote
the lines for the identified objective..
(b) Identify the function performed by the managers of Glenmark highlighted in the
above case. Also quote the lines for the identified function. (4 Marks)
 16 / ABD’s Bull’s Eye – Business Studies (XII)

Solution:
(a) (i) Organisational objectives: Organisational objectives refer to the utilisation of human

H
and material resources considering the interest of all stakeholders.
Lines: “The management expects its niche US pipeline to drive growth over the next

AG
few years while specialty initiatives should come to forefront from 2020”.

T
(b) The function performed by the managers of Glenmark is planning:
“Glenmark management outlined its long term strategy and thoughts on medium term

AR PO
prospects”.

LH L B
Caselet 7: Giving suitable reason identify in following situations whether the manager is
effective, efficient, both or neither.

E
(a) Mr. Allen drafted a well documented and factual report on the financial performance of
the company but he could not present it in the board meeting as he could not complete

DE O
NE , K D
it on time.
(b) Mr. Albert of Fast couriers assured to deliver an urgent consignment of its regular
customer Mr. Alex on 5 April, 2019 and charged extra money from Mr. Alex. But the

I
consignment was delivered on 7 April, 2019. (4 Marks)
K

Solution:
AL O

(a) Mr. Allen is efficient but not effective as he was not able to achieve the target within the
stipulated time.
IW BO

(b) Mr. Albert is neither efficient nor effective as he could not control the costs and was not
even able to achieve the target.
A

Caselet 8: In Uflex Ltd., the purchase department purchased 200 tonnes of flex sheet for
production of flex hoardings ignoring the requisition of 150 tonnes placed by production
W

department. As a result, there was overproduction of flex hoardings. The extra hoardings were
NA YA

not accepted by sales department, consequently extra hoardings remained unsold.

On the basis of the given information about Uflex Ltd. answer the following questions:
(a) Identify the aspect of management which is lacking in the above situation?
30 AR

(b) Explain the situations when need for this aspect of management arises. (4 Marks)

Solution:
(a) The aspect of management which is lacking is Coordination.
(b) The need for Coordination arises in the following situation:
(i) Growth in the size of the organisation results in the increase in varied quality of
manpower too, with varied individual aspirations. Coordination seeks to match the
individual goals with the organisational goals.
(ii) Functional differentiation arising out of departmentalisation and division brings
forth a motive for achievement of individual objectives, in isolation from other
objectives leading to departmental clashes. Coordination seeks to iron out these
variations.
 Nature and Significance of Management / 17
(iii) Specialisation can give rise to feeling of superiority and prioritising of their zone of
activities. Coordination seeks to sequence and integrate all the specialists of activities

H
into wholesome efforts.

Caselet 9: Swiss tele-systems is a successful company manufacturing webcams and accessories.

AG
Since last two months the profits of the company are declining. The production department

T
blames marketing department for not meeting revenue target. The marketing department blames
production department for not manufacturing quality products. The finance department blames

AR PO
both production and marketing departments for declining profitability of the company.
On the basis of the given information about Swiss tele-systems, answer the following

LH L B
questions:
(a) Identify the aspect of management which is lacking in above situation?

E
(b) State three features of the aspect of management identified in question (a)?
(4 Marks)

DE O
NE , K D
Solution:

I
(a) The aspect of management which is lacking in Coordination.
K
(b) The features of Coordination are:
(i) Integrates group efforts: It is an orderly arrangement of group effort and not
AL O

individual effort.
(ii) Ensures unity of action: It is a binding force between departments and ensures that
IW BO

all efforts are focused towards achieving the organisational goal.

(iii) Responsibility of every manager: The top level coordinates the overall plan, middle
level coordinates the efforts of the different sections and sub-sections and lower
A

level management coordinates the activities of the workers.

W

Caselet 10: Texmaco Ltd. aims to manufacture and sell 1,500 locomotives in 2020. To achieve
NA YA

this target the production department ensures timely production and sales department takes
all possible steps to generate maximum revenue. Due to combined efforts of all the departments,
Texmaco Ltd. is able to achieve its sales target.
30 AR

On the basis of the given information about Texmaco Ltd., answer the following questions:
(a) Which importance of management is highlighted in above situation? Explain any two
other points of significance of management.
(b) Which other aspect of management is necessary to ensure achievement of sales target
by Texmaco Ltd? (4 Marks)

Solution:
(a) The importance of management highlighted is:
Management helps in achieving group goals: Management is required for achieving
the goals of the organisation. The task of a manager is to give a common direction to the
individual effort in achieving the overall goal of the organisation.
 18 / ABD’s Bull’s Eye – Business Studies (XII)
The other two points of importance of management are:
(i) Management increases efficiency: The aim of a manager is to reduce costs and

H
increase productivity through better planning, organising, directing, staffing and
controlling the activities of the organisation.

AG
(ii) Management creates a dynamic organisation: Environment is constantly changing.

T
Individuals resist change as it often means moving from a familiar, secure
environment into a newer and more challenging one. Management helps people

AR PO
adapt to these changes so organisation maintains its competitive edge.
(b) Coordination is necessary to ensure achievement of sales target by Texmaco Ltd.

LH L B
Caselet 11
11:: Hazel has been working on the position of senior financial executive in Century
Plywood Ltd. On the basis of her performance and dedication, the managing director of the

E
company decided to promote her to the position of finance manager of the company.
On the basis of the given information, answer the following questions:

DE O
NE , K D
(a) Identify the level of management at which she will be working henceforth.
(b) State any three functions that Hazel will perform at this level. (4 Marks)

I
K
Solution:
AL O

(a) Middle level management.

(b) The functions that Hazel will perform at this level are:
IW BO

(i) Acting as a link between top and lower levels of management.

(ii) Implementing and controlling plans and strategies formulated by top management.
(iii) Interpretation of policies framed by the top level management.
A

Caselet 12: Identify the level of management in performing the following tasks with reasons:
W
NA YA

(a) Introducing a new product line.

(b) Devising a suitable advertising campaign to sell a new product/service a company is
launching.
(c) Conducting performance appraisal of supervisors.
30 AR

(d) Deciding the capital structure of company.

(e) Recruitment of daily wages labourers. (5 Marks)

Solution:
(a) Top level management.
(b) Middle level management.
(c) Middle level management.
(d) Top level management.
(e) Lower level management.
 Nature and Significance of Management / 19

Section - F (Source Based Questions)

Caselet 1: Read the source given below and answer the question that follows:

H
For Proctor and Gamble (P&G), producers of vicks; purpose, values and principles are the
foundation for P&G’s unique culture. Throughout its history of over 170 years, business has

AG
grown and changed while these elements have endured, and will continue to be passed down

T
to generations of P&G people to come.
Company’s purpose unifies personnel in a common cause and growth strategy of improving

AR PO
more consumers’ lives in small but meaningful ways each day. It inspires P&G people to make

LH L B
a positive contribution every day. P&G brands and P&G people are the foundation of P&G’s
success.
P&G people bring the values to life as company focus on improving, the lives of the world’s

E
consumers. P&G always tries to do the right things with the aim of earning the gains coupled
enhancement in goodwill and customer satisfaction.

DE O
NE , K D
Identify the main objectives of the company discussed in the above case. Also quote the lines
for the identified objective. (4 Marks)
Source: in.pg.com.

I
K
Solution:
AL O

(i) Organisational objectives refer to the utilisation of human and material resources
considering the interest of all stakeholders. The main organisational objectives of an
enterprise are:
IW BO

• Survival • Profit • Growth

Lines: “P&G always tries to do the right things with the aim of earning the gains
coupled with enhancement in goodwill and customer satisfaction”.
A

(ii) Social objectives refer to consistently creating economic value for various sections of
W

the society. The main social objectives of an enterprise are:

NA YA

• Providing quality products at reasonable rates.

• Generating employment opportunities.
• Community progress and development by providing schools and creches to
30 AR

employees.
• Environmental friendly methods of production.
Lines: “P&G people bring the values to life as company focuses on improving, the lives
of the world’s consumers.”

Caselet 2: Read the source given below and answer the question that follows:
Suhasini is the branch manager of Fabmart, an organisation that promotes the sales of Indian
handloom and handicraft products while providing equitable employment to traditional
artisans. Fabmart sources its products from over 7500 craft persons and artisans across India.
The decision about the products is a difficult task being undertaken by a team of marketing
and design experts to ensure that whatever is produced is in accordance to market demand.
These plans are informed by Suhasini to the rural artisans who actually implement them.
 20 / ABD’s Bull’s Eye – Business Studies (XII)

Fabmart is a private limited company with several branches all over the country. It has a
complex structure in which actual production is in the hands of several skilled artisans and

H
marketing is done by staff at branches. This means constantly providing guidance and
inspiration to her employees. She also has to ensure that production is carried out as per the
objectives in order to ensure regular sales . When Suhasini discovered that her team of

AG
designers had produced bedcovers that were more expensive than they had planned to sell,

T
she decided to change the fabric to keep costs in check.
To what extent did a typical day in Suhasini’s life consists of a series of interrelated functions?

AR PO
Cite the evidences to support your answer.

LH L B
Source: NCERT

Solution: A typical day in Suhasini’s life consists of a series of interrelated functions namely:

E
(i) Planning is the function of determining in advance what is to be done and who is to do
it. This implies setting goals in advance and developing a way of achieving them

DE O
NE , K D
efficiently and effectively. In Suhasini’s organisation the objective is procurement and
sale of traditional Indian handloom and handicraft items.
(ii) Organising is the management function of assigning duties, grouping tasks, establishing

I
K
authority and allocating resources required to carry out a specific plan.
(iii) Staffing is finding the right people for the right job. A very important aspect of
management is to make sure that the right people with the right qualifications are
AL O

available at the right places and times to accomplish the goals of the organisation. This is
also known as the human resource function and it involves activities such as recruitment,
IW BO

selection, placement and training of personnel. In Fabmart needs a team of designers

and craftspeople.
(iv) Directing involves leading, influencing and motivating employees to perform the tasks
A

assigned to them. This requires establishing an atmosphere that encourages employees

to do their best. Suhasini’s design team developed some prints for bedcovers in bright
W

colours on silk. Although they looked very impressive, the use of silk made the product
NA YA

too expensive for the average customer.

(v) Controlling is the monitoring of organisational performance towards the attainment of
organisational goals. The task of controlling involves establishing standards of
30 AR

performance, measuring current performance, comparing this with established standards

and taking corrective action where any deviation is found. When Suhasini discovered
that her team of designers had produced bedcovers that were more expensive than they
had planned to sell, she decided to change the fabric to keep costs in check.
 Nature and Significance of Management / 21

Section - G [Objective TTypes

ypes / Multiple Choice Questions (MCQs)]
1. Which is not a function of management of the following?

H
(a) Planning (b) Staffing (c) Co-operating (d) Controlling
2. Management is:

AG
(a) An art (b) A science

T
(c) Both art and science (d) Neither

AR PO
3. The following is not an objective of management:
(a) Earning profits (b) Growth of the organisation

LH L B
(c) Providing employment (d) Policy making
4. Policy formulation is the function of:

E
(a) Top level managers (b) Middle level managers
(c) Operational management (d) All of these

DE O
NE , K D
5. Co-ordination is:
(a) Function of management (b) The essence of management

I
(c) An objective of management (d) None of these
K
6. Management is creating an ......................... of an enterprise where individuals working
together in groups perform efficiently and effectively towards achievement of group
AL O

goals.
(a) Internal environment (b) External environment
(c) Economic environment (d) Ecological environment
IW BO

7. Management is ......................... as it can’t be seen but its effects can be felt in the form of
results like whether the objectives are met and whether people are motivated or not and
there is orderliness and co-ordination in the work environment.
A

(a) Intangible force (b) Tangible force

W

(c) Internal force (d) External force

NA YA

8. Your grandfather has retired as the Vice President of a manufacturing company. At

which level of management was he working:
(a) Top level management (b) Middle level management
(c) Lower level management (d) None of these
30 AR

9. Rajiv explains the policies of superiors to the employees and ensures a touch of
co-operation among all the departments. At which level of management was he working:
(a) Top level management (b) Middle level management
(c) Lower level management (d) None of these
10. At times, a business may concentrate more on producing goods with fewer resources i.e.,
cutting down cost but not achieving the target production. Consequently, the goods do
not reach the market and hence the demand for them declines and competitors enter the
market. Which aspect of management was ignored in this situation?
(a) Efficiency (b) Effectiveness (c) Productivity (d) Co-ordination
11. Dishaa at Frameworks Ltd., performs several different tasks in a single day. Some days
she may spend more time in planning a future exhibition and on another day she may
 22 / ABD’s Bull’s Eye – Business Studies (XII)
spend time in sorting out an employee’s problem. The task of a manager consists of an
ongoing series of functions. Which aspect of management is highlighted here?

H
(a) Management is a continuous process. (b) Management is multi-dimensional.
(c) Management is a pervasive process. (d) Management is an intangible process.

AG
12. McDonalds, the fast food giant made major changes in its menu to be able to survive in
the Indian market. Which feature of management is highlighted here:

T
(a) Management is a continuous process.

AR PO
(b) Management is multi-dimensional.
(c) Management is a pervasive process.

LH L B
(d) Management is a dynamic function.
13. Organisations are made up of people who have different personalities, backgrounds,
experiences and objectives. They all become part of the organisation to satisfy their

E
diverse needs. Which objective of management is highlighted in aforesaid statement:
(a) Organisational objective (b) Social objective

DE O
NE , K D
(c) Personnel objective (d) None of these
14. A business needs to add to its prospects in the long run, for this it is important for the

I
business to grow. Which objective of management is highlighted in aforesaid statement:
K
(a) Organisational objective (b) Social objective
(c) Personnel objective (d) None of these
AL O

15. Every organisation whether it is business or non-business, has an obligation to fulfill.

This refers to consistently creating economic value for various constituents of society.
IW BO

Which objective of management is highlighted in aforesaid statement:

(a) Organisational objective (b) Social objective
(c) Personnel objective (d) None of these
A

16. The subject of management is taught at different institutions. Some of these have been
set up with the specific purpose of providing management education such as the Indian
W
NA YA

Institutes of Management (IIMs) in India. Entry to different institutes is usually through

an examination. Which aspect of management is highlighted in aforesaid statement?
(a) Management as a science (b) Management as an art
(c) Management as a science and an art (d) Management as a profession
30 AR

17. The principles of management have evolved over a period of time based on repeated
experimentation and observation in different types of organisations. However, since
management deals with human beings and human behaviour, the outcomes of these
experiments are not capable of being accurately predicted or replicated. Which aspect of
management is highlighted in aforesaid statement?
(a) Management as a science (b) Management as an art
(c) Management as a science and an art (d) Management as a profession
18. At times, a business may concentrate more on producing goods with fewer resources i.e.,
cutting down cost but not achieving the target production. In this case the manager is:
(a) Efficient (b) Effective
(c) Efficient as well as effective (d) Neither efficient nor effective
 Nature and Significance of Management / 23
19. Through ...... management helps individuals to develop term spirit, co-operation,
commitment to group success.

H
(a) Co-ordination (b) Supervision (c) Communication (d) Motivation
20. Which of the following is not a characteristics of a profession?

AG
(a) Service motive (b) Retricted entry
(c) Based on creativity (d) Well-defined body of knowledge

T
21. Through their efforts quality of output is maintained, wastage of materials is minimised

AR PO
and safety standards are maintained. Which level of management is highlighted in
aforesaid statement?

LH L B
(a) Top level of management (b) Middle level of management
(c) Operational management (d) None of these
22. Which managerial function is concerned with assigning duties, grouping tasks and

E
establishing reporting relationships?
(a) Planning (b) Organising (c) Staffing (d) Directing

DE O
NE , K D
23. Which managerial function ensures that the right people with the right qualifications
are available at the right place and time to accomplish the goals of the organisation:

I
(a) Planning (b) Organising (c) Staffing (d) Directing
K
24. Which of the following statement is correct in respect of management as an art?
(a) A good manager works through a combination of practice, creativity, imagination,
AL O

initiative and innovation.

(b) There is a lot of literature available in various areas of management like marketing,
IW BO

finance and human resources which the manager has to specialise in.
(c) The basic purpose of manager is to help the organisation achieve its stated goal.
(d) A manager applies this acquired knowledge in a personalised and skillful manner
A

in the light of the realities of a given situation.

25. Following are the managerial functions against their respective aspects:
W
NA YA

Managerial functions Aspects

1. Planning (i) Deviations
2. Staffing (ii) Objectives
3. Direction (iii) Abilities
30 AR

4. Controlling (iv) Leadership

Select the most appropriate combination:
(a) 1. (iv); 2. (iii), 3. (ii), 4. (i) (b) 1. (iv); 2. (i), 3. (iii), 4. (ii)
(c) 1. (ii); 2. (iii), 3. (iv), 4. (i) (d) 1. (iii); 2. (i), 3. (ii), 4. (iv)

ANSWERS
1. (c) 2. (c) 3. (d) 4. (a) 5. (b) 6. (a) 7. (a) 8. (a) 9. (b) 10. (b)
11. (a) 12. (d) 13. (c) 14. (a) 15. (b) 16. (d) 17. (a) 18. (d) 19. (a) 20. (c)
21. (c) 22. (b) 23. (c) 24. (c) 25. (c)
 24 / ABD’s Bull’s Eye – Business Studies (XII)

Section - H (Self-Evaluation Case Studies: Under./Apply

Under./Apply./Analysing/Evaluating Questions)
./Apply./Analysing/Evaluating
Caselet 1: Prime Minister of India, launched the Swaach Bharat Abhiyan and urged all the

H
citizens and business organisations to actively support it. Keeping this in mind,
Armour Helmets Pvt. Ltd. decided to contribute by installing 500 dustbins in and

AG
around major markets of the city.

T
Which objective of management is the company trying to fulfill by this act? (1 Mark)
Hint: Social Objective.

AR PO
Caselet 2: Kitchenking Enterprises, are producers of hand operated grinders. Now with a lot of

LH L B
women in the society going out for jobs there is a greater demand for a product
which is more efficient and works at a great speed. On realising this change, the
company decided to enter into the market for producing electronically operated mixers

E
and grinders and food processors.
Which level of management will take this decision? (1 Mark)

DE O
NE , K D
Hint: Top level management.
Caselet 3: The production manager at Smart Laptops Ltd., was assigned a target of producing

I
5000 laptops in a month. He had 10 workers under him. Each of these workers was
K
allotted the task of producing 500 laptops each. During the course of the month, due
to severe cold, two workers feel sick. The other workers refused to divide their work
AL O

amongst them and concentrated only on the production of their own individual
targets of producing 500 laptops. Thus, at the end of the month the group target of
5000 laptops could not be met.
IW BO

Which characteristic of management is being ignored in the above case? (1 Mark)

Hint: Management is a group activity.
Caselet 4: Management of Supremo Tanks Pvt. Ltd., has installed solar panels for generating
A

electricity to run the machines and equipments in their premises.

W

Which objective of management is being fulfilled by this act? (1 Mark)

NA YA

Hint: Social Objective: Conservation of electricity.

Caselet 5: “The activities involved in managing an enterprise are common to all organisations
whether economic, social or political.”
30 AR

Which characteristic of management is highlighted by this statement? (1 Mark)

Hint: Management is pervasive.
Caselet 6: “In order to be successful an organisation must change its goals according to the
need of the environment.”
Which characteristic of management in highlighted in the statement? (1 Mark)
Hint: Management is a dynamic function.
Caselet 7: 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? (1 Mark)
Hint: He is effective but not efficient.
 Nature and Significance of Management / 25

Caselet 8: “A collection of diverse individuals with different needs but working towards
fulfilling the common organisational goals”.

H
Which characteristic of management is highlighted in aforesaid statement?
(1 Mark)

AG
Hint: Management is a group activity.

T
Caselet 9: Identify the functions of management being reflected by the following statements:
(a) Motivating employees and giving instructions to them to perform the tasks

AR PO
assigned to them.
(b) Recruitment and selection of the personnel.

LH L B
(c) Finding out deficiencies in implementation of plans. (1 Mark)
Hint: (a) Directing, (b) Staffing, (c) Controlling.

E
Caselet 10: Top level Managers at Konoca Corp. decide to have a meeting with the key employees
of the company. The participants are from different departments across the
company. The management decided to target an increase in the sales of the company

DE O
NE , K D
by 25% as compared to the previous year. Plans for the implementation of the same
are drawn out and ideas from all are discussed to get the things moving. However,

I
certain situations change in the external environment and pose a challenge for the
K
company to attain their targets. But the organisation somehow manages to fight
through the adverse situations and manages to attain the goals.
AL O

Identify the various features/characteristics of management highlighted in the

aforesaid situation? (3 Marks)
Hint: Management is goal oriented, multidimensional and dynamic.
IW BO

Caselet 11: Spectra Ltd. is a highly reputed company having many employees performing
different functions at different levels. A clear hierarchy exists between people and
they are bound by it while performing their diverse tasks.
A

Ms. Ananya is responsible for deciding the overall goals and objectives of the
organisation and ensures the welfare and survival of the organisation.
W
NA YA

Mr. Shetty ensures the upkeep and maintenance of machinery and tools, takes care
of the quality of output and prevents any wastage of materials. He also makes sure
that safety standards are maintained.
Ms. Rita assigns necessary duties and the responsibilities to the personnel. She
30 AR

motivates then to achieve targets. Also decides about departmental targets.

At which levels of management are Ms. Ananya, Mr. Shetty and Ms. Rita working?
(3 Marks)
Hint: (i) Ms. Ananya is at Top level. (ii) Mr. Shetty is at Lower level.
(iii) Ms. Rita is at Middle level.
Caselet 12: 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 increased 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.
 26 / ABD’s Bull’s Eye – Business Studies (XII)
Ms. Ananya is responsible for deciding the overall goals and objectives of the
organisation and ensures the welfare and survival of the organisation. (4 Marks)

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Hint: (i) Organisational objectives. (ii) Social objectives.
Caselet 13: Management at Stella Ltd., took steps to modernise their plants, keeping in tune

AG
with the latest technological developments in the environment. To ensure that
workers do not feel out of place with the new technology, proper training facilities

T
are arranged for them. They are thus able to pick up the required skills and are
rather happy with the new and improved machines. Workers are encouraged to

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share their feedback, suggestions, complaints and grievances, if any. This motivates

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the employees to put in their best for goal achievement of the organisation. The
company is also able to supply good quality goods to the members of the society.
Identify and explain the importance of management highlighted in the above case.

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(4 Marks)
Hint: (i) Management helps in achieving group goals.

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(ii) Management creates a dynamic organisation.
(iii) Management helps in achieving personal objectives.

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(iv) Management helps in the development of society.
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Caselet 14: Intello corp. is in the field of providing security alarms for households. It has put in
a number of years and has reached a stage of achieving good profits and growth
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avenues. The company realises that employees are it’s most important assets and
thus has always provided them with competitive salary and good working
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conditions. It also takes care of the society and has opened two hospitals where free
treatment is provided to people from poor families.
Is the management of Intello corp. able to fulfill its objectives? Justify your answers.
A

(4 Marks)
Hint: Yes, it is able to fulfill its objectives:
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(i) Organisational: Earning profits and looking for growth avenues.

(ii) Personnel: Employees are provided with competitive salary and good working
conditions.
(iii) Social: Two hospitals are opened for treatment of poor people.
30 AR

Caselet 15: Amit and Kavya, complete their school education together. After that Amit appears
and qualifies MBBS entrance examinations and joins a reputed Medical college to
pursue a degree in medicine. After 4 years, he will get a degree from Medical
Council of India and start practicing as a doctor. Kavya had to take over her
mother’s business as she passes away in a tragic accident. She assumes the post of
‘Managing Director’ in the company. Kavya also joins National Open School to
complete her graduation along side.
On the basis of above para, identify and explain the main features of a profession.
Also, share your views on whether management is a profession or not. (6 Marks)
Hint: Management as of now is not a full fledged profession, but is fast moving towards
becoming one.
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