GeeTa  Best In Business Studies–XII

Chapter 1

Management is an art or
a process of performing
activities through various
levels of management in
a coordinated manner
with an aim of achieving Nature & Significance
of Management
organisational objectives
effectively and efficiently.

SOME IMPORTANT QUESTIONS zz Picture-Based MCQs

zz Case-Based MCQs
zz Competency-Based Questions

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 PICTURE-BASED MCQs
1. It is not a separate function of management but its very essence. Identify
it.
Planning
Controlling Organising
Binding force
?

Directing Staffing

a Cooperation b Efficiency
c Coordination d Effectiveness

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 ANSWER

1. (c) Coordination

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2. Identify the feature of management highlighted in the given figure—
Planning

Information Human
Resources Resources
Controlling

Organising
Physical Financial
Resources Resources

Directing

a Management is a group activity.

b Management is an intangible force.
c Management is multi-dimensional.

d Management is all-pervasive.
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 ANSWER

2. (c) Management is multi-dimensional.

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3. Identify the feature of coordination illustrated in the picture.

a Pervasive function b Deliberate function

c Continuous process d Integrates group effort

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 ANSWER

3. (d) Integrates group effort

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 CASE-BASED MCQs
1. Vijay works in a bank. The bank is about to lose its position as the
leading bank in the banking industry. Vijay was assigned to find out the
reason behind poor performance of the bank. He analysed the situation
and came out with the conclusion that there was a lack of integration of
efforts made by various departments like human resource, information
technology and customer relationship.
Identify the managerial concept discussed in the above case.
a Cooperation b Coordination
c Effectiveness d Efficiency

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 ANSWER

1. (b) Coordination

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2. IND Dyechem Ltd. is a chemical manufacturing company producing dyes
and pigments both for domestic and international market. It has enjoyed a
considerable market share but lately, it has been facing problems in terms
of target sales and customer satisfaction. This is due to the reason that new
entrants have emerged with better technology and competitive pricing.
The Chairman of the company addressed this issue in the departmental
meeting. The production head, Mr. Kamble, advised the Chairman to
revamp the system and take immediate necessary actions to rectify the
problem so that sales are achieved as per the plans.
Identify the relevant function of management being discussed here
a Organising b Staffing
c Controlling d Planning

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 ANSWER

2. (c) Controlling

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3. Neeraj is the Director of ‘Tulip Public School’ having 2000 students.
There are two Headmasters—one for Senior classes and another for Junior
classes. 50 teachers are under the supervision of the Senior Headmaster
and 60 teachers under the supervision of the Junior Headmaster. No
teacher working under the supervision of the Senior Headmaster is happy
and satisfied, which is affecting the result of the Senior classes. On the
other hand, the teachers working under the supervision of the Junior
Headmaster are performing their duties willingly and achieving their
objectives. All the teachers are happy and satisfied. The Director, Neeraj
can feel how nicely the Junior Headmaster was managing his classes.
The characteristic of management discussed above is:
a Management is a goal-oriented process
b Management is a dynamic function
c Management is an intangible force
d Management is a continuous process

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 ANSWER

3. (c) Management is an intangible force

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4. Bhuvan argues that management is required in all kinds of organisations
whereas Piyush feels that management is not required in non-business
organisations such as school, club, hospitals, etc. Who is correct?
a Bhuvan b Piyush
c Both Bhuvan and Piyush d None of these

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 ANSWER

4. (a) Bhuvan

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5. In an organisation, the objective of marketing department is to increase
sales by 10% by offering discounts. However, the finance department
is reluctant to offer discounts as it means loss of revenue. One of the
benefits of coordination helps to resolve the mentioned conflict.
Identify the benefit.
a Growth in Size b Specialisation
c Functional differentiation d Both (a) and (b)

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 ANSWER

5. (c) Functional differentiation

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6. What is the primary strategic focus of the company, considering its
“The Complete Man” tagline, top position in the menswear industry,
and longstanding collection that has enriched a modern gentleman’s
wardrobe for decades?
a Ensuring ethical sourcing

b Reinforcing cultural heritage

c Establishing a unique identity

d Maximising production efficiency

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 ANSWER

6. (d) Maximising production efficiency

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Meaning of Competency-Based Questions

• Which develop creative-thinking ability in the students.

• Which develop decision-making ability in the real world

scenario/real-life situation.

• Which develop problem-solving skill in the students.

• Which prepare students for Competitive exams.

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 COMPETENCY-BASED QUESTIONS
1. Monica is a manager of a company selling computers. She plans the target
sale of 2,000 computers per month. She allocates necessary resources to
carry out the plan. She has six salesmen working under her. She works
with them, guiding and motivating them to achieve the target sales. At
the end of the month, after comparison of actual sales with the target
sales, she found that actual sales, exceeded the target sales.
Identify, by quoting the lines from the above paragraph, the functions
of management Monica is performing. Explain these functions.

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 ANSWER
1. Monica is performing the following functions of management—
(Explain)
(i) Planning—‘She plans the target .................. per month.’
(ii) Organising—’She allocates .................. out the plan.’
(iii) Directing—‘She works with .................. the target sales.’
(iv) Controlling—‘At the end .................. exceeded the target sales.’

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2. Ayushi works as a soft skill trainer in a corporate house. She begins
a new session every time by acquainting the trainees with a process
which is vital for achieving the goals of the organisation effectively
and efficiently. She also makes them understand the various primary
activities involved in carrying out this process. She emphasises upon
the fact that in the absence of this process it will be difficult for the
employees to attain their personal goals. Moreover, the development
of the society will be hampered as the welfare of the people is also
likely to be overlooked by the organisation.
In the context of the above case—
(a) Identify and explain the process being referred to in the above
lines.
(b) List the primary activities included in this process.
(c) How does this process help to achieve the personal objectives of
the employees?

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 ANSWER
2. (a) 
The process of Management is being referred to in the above
lines.
 Management is the process of designing and maintaining the
environment in which individuals working together in groups
efficiently accomplish selected goals.
(b) 
The primary activities included in management process refer to
the functions of management, namely—planning, organising,
staffing, directing and controlling.
(c) 
Personal objectives are related to the needs of employees of
the organisations which must be given due considerations
like fair wages and salary, growth prospects, good working
conditions, etc.
The management ensures that individual members are able to
achieve personal goals while contributing towards the overall
organisational objectives.

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3. Esha works as the cost and risk management head of a company in a
power sector. As a result of her excellent managerial competence, the
company is able to reduce cost and increase productivity. The company
belongs to the infrastructure sector, wherein regular amendments are
made in the government regulations and policies. She holds regular
meetings to ensure that people in her department are not only aware of
the related changes but are also able to adapt to these changes effectively.
This helps the company to maintain its competitive edge. She motivates
and leads her team in such a manner that individual members are able to
achieve personal goals while contributing to the overall organisational
objective. In the process of fulfilling her duties for the growth of the
organisation, she helps to provide competitive services, adopting new
technology, creating more employment opportunities, etc. for the greater
good of the people at large.
In the context of the above case—
Identify the various reasons that have made management so important
by quoting lines from the paragraph.

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 ANSWER
3. The various reasons mentioned in the above paragraph that have made
management so important are stated below—
(i) Management increases efficiency as it leads to reduction in costs
due to optimum utilisation of resources.
“As a result .................... productivity.”
(ii) Management creates a dynamic organisation so that it is able to
incorporate the corresponding changes in its working with any
change in its business environment.
“The company .................... competitive edge.”
(iii) Management helps to achieve personal objectives of the employees
in the organisation.
“She motivates .................... objective.”
(iv) Management helps in the development of society by contributing
effectively towards it in multiple ways.
“In the process .................... people at large.”
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4. Noori owns a garment factory in Gurugram. She has observed that
frequent conflicts emerge between production and marketing department
which adversely affects the sales of the company.
When she shared this problem with her father, he told her that these
conflicts arise due to the fact that each department is performing activities
in isolation from others and barriers between departments are becoming
more rigid.
In the context of the above case—
(a) Identify and explain the aspect of management which is lacking
because of which each department is performing activities in
isolation from others.
(b) Also, explain any three features of the concept as identified in
part (a) of the question.

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 ANSWER
4. (a) 
Coordination is the aspect of management which is lacking in
the above case because of which each department is performing
activities in isolation from others.
Coordination is the process of integrating the individual and
group efforts in pursuit of common goals.
(b) The three features of coordination are stated below—
(i)  Coordination integrates group efforts—Coordination
integrates group efforts into a purposeful activity by ensuring
that activities are carried out as per predetermined standards.
(ii) Coordination ensures unity of action—Coordination
ensures unity of action as it acts as a binding force between
departments and facilitates smooth working of the
organisation.
(iii) Coordination is a continuous process—Coordination is
a continuous and ongoing process as it is required till an
organisation exists in order to integrate diverse activities of
different individuals and groups.

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5. Devesh works as departmental head (Finance) in an electronics
company. Although over the years, with experience he has been able
to build upon his managerial skills in terms of creativity, imagination
and initiative, yet he feels that the knowledge of certain underlying
theories and principles of management is a must for any aspiring
manager. This is primarily due to the fact that these principles are
evolved through observations and tested through experimentation
and help the managers to take scientific decisions. Thus, a manager
requires both knowledge and certain skills to apply the related
knowledge, in the given situations to be successful in his work.
In context of the above case—
(a) Identify and explain the two aspects of nature of management
which Devesh thinks make a manager successful.
(b) Also, explain the specific feature of one of the aspects of nature
of management as identified in part (a) of the question which
distinguishes it from other physical sciences like Biology, Physics,
Chemistry, etc.

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 ANSWER
5. (a) The two aspects of nature of management which Devesh thinks
make a manager successful are Management is both a science
and an art.
(i) Management as a science forms the basis of knowledge of
underlying theories and principles of management.
(ii) Management as an art enables managers to utilise skilful
and personal application of existing knowledge to achieve
desired results. It also leads to emergence of different styles
of management.
(b) The specific feature of management as science which
distinguishes it from other physical sciences likes Biology,
Physics, Chemistry, etc. is lack of Universal Validity. Unlike
the scientific principles, the principles of management lack
universal validity as it deals with human behaviour which
is complex in nature. Different people react differently to
the same situation and therefore, their behaviour cannot be
predicted with accuracy.
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 Thank You
For more contents and exercises
you can refer Our Book
[Best In Business Studies XII]

From
Geeta Publishing House
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