Cbse Class 12 Business Studies Revision Notes Chapter 1
Introduction to Class 12 Business Studies Chapter 1 Notes
Management is a vital topic in Business Studies as it deals with the orderly operation and thriving economy in any organisation. As stated in the Class 12 Business Studies Chapter 1 Notes, Management is a technique of getting work done within a given time frame. It is learned to fulfil a goal set in by an organisation efficiently and effectively.
This approach toward Efficiency, which is the best way to save money, is discussed in the Chapter 1 Business Studies Class 12 Notes created by the Extramarks. According to the Class 12 Business Studies Chapter 1 Notes, efficiency is defined as a work that is completed with adequate preparation and with the best use of available resources to achieve the desired result. On the other hand, effectiveness refers to the ability to produce a product or complete a project within a specified time frame.
The first Chapter in Class 12 Business Studies Chapter 1 Notes describes these approaches, which are similar yet have different features. As a result, it’s critical to strike a balance between the two.
Key Topics Covered in Class 12 Business Studies Chapter 1 Notes
- Concept:
Meaning:
Management refers to the collection of all activities and actions which contributes to smooth running operations within a company or an organisation. It aids in the organisational instruments necessary for its growth. The successful use of materials, money, tools and labour for producing goods and services is referred to as Management. A management plan is an effective strategy for running a firm efficiently.
Definition:
Management is defined as planning, organising, actuating, and controlling all organisational operations to coordinate the human and material resources essential for the effective and efficient attainment of objectives.
- Terminologies:
Process:
The term ‘Process’ refers to the Management’s significant operations in an organisation to reach the goal. Planning, organising, staffing, directing, and managing are all part of the process.
Effectively:
The term effectively refers to completing work within the given period.
Efficient:
The term efficient refers to completing a task with the least money and the best use of resources.
Differences between Effectiveness and Efficiency:
| Basis | Effectiveness | Efficiency |
| Meaning | It refers to completing the assigned task within the given time frame. | It refers to completing the assigned task with minimum wastage and minimum costs.
|
| Objective | To do work in a given timeframe. | Optimum utilisation of resources at reduced costs.
|
| Main Element | Time | Cost
|
More in-depth explanations about these terminologies are covered in Extramarks Class 12 Business Studies Chapter 1 Notes
- Characteristics of Management:
Students can learn more about the Characteristics of Management topic via Extramarks Class 12 Business Studies Chapter 1 Notes.
Goal-Oriented Process:
Each company has its own set of goals to meet as a final product. Management is responsible for directing the employees’ efforts toward the achievement of these goals. As a result, Management might be defined as a goal-oriented process. It is pointless to operate if a company does not have a precise aim.
All Pervasive:
Management is an all-encompassing activity. It is required in all types of organisations: large and small, and is carried out at all levels of authority: top, middle, and lower. The five management activities are the same for all businesses, regardless of their economic, social, or political borders. The process varies, but the fundamentals and basis stay the same.
Multidimensional:
There are three major dimensions to Management. The following are some of them:
- Workforce management:
Every business has a reason for existing. The main goal is to complete specific tasks to achieve the desired outcome. Management translates the task into goals and assists in their attainment. For instance, a hospital is a facility that provides medical care to patients. A supermarket exists to meet people’s day-to-day needs.
- Management of people:
Management brings together the efforts of a group of people working in an organisation to function as a team. A manager’s job is to get things done for both individuals and groups of people.
- Management of operations:
Every business needs to produce some essential product or service, which necessitates a manufacturing process and operations to transform the inputs into the final result.
Management is a continuous process:
It is a continuous process since it comprises a series of interconnected actions. These tasks should be carried out systematically, ordered, and sequential. It’s a never-ending cycle. Planning, organising, directing, staffing, and controlling are some activities.
Management is a group activity:
It is so because it involves the collective efforts of a group of people. It brings the group’s efforts together and leads them towards a single goal.
A Dynamic Function:
The organisation’s business policies and practices must evolve in response to the business environment, which includes a variety of social, economic, and political aspects. Because the world is growing in every way, new practices and conventions must be followed to meet the environment’s ever-changing needs.
Intangible Force:
Management is a force that is not visible. It is not visible, but it can be felt via accomplishing goals.
- Objectives of Management:
Objectives are the desired outcomes that motivate managers to achieve them. There are three managerial objectives:
Organisational Objectives:
Organisational Objectives are the goals that an organisation’s Management sets for itself over a specified period. An organisation must meet different types of objectives, and these objectives are determined by taking into account the various stakeholder interests. An organisation’s primary goal is to make the best use of its resources most effectively and efficiently. It’s broken down into three sections: survival, profit, and expansion.
- Survival:
The fundamental goal of Management is to ensure long-term market survival by making positive decisions for the company.
- Corporate activity.
An organisation’s primary goal is to generate enough income to cover its production costs.
- Profitability:
The ultimate goal of any person or individual who runs a business is to make a profit. Management ensures that enough profit is generated to meet the company’s diverse needs. To produce a profit, Management makes the best use of money, material, machines, labour and other resources. A higher profit yields a higher return to investors in the form of dividends, interest, etc.
- Growth:
Management should strive to improve the organisation’s performance consistently. Management’s overall goal is to achieve maximum results with fewer resources to increase wealth and growth. An organisation’s development can be measured in various ways by using a variety of indicators. The growth indicators differ from one firm to the next. Some may contemplate expanding sales volume, while others may seek a more significant number of products, and so on.
Organisational Objectives is a crucial topic to understand in organisation management. Extramarks team has developed Class 12 Business Studies Chapter 1 Notes that cover all aspects of this topic.
Social Objectives:
Any organisation that exists does not exist only to make a profit. It also has some social responsibilities and goals that must be met. This may differ from one company to the next.
For Example, some seek to provide basic infrastructure to the nearby people, while others strive to provide maximum employment. Some would want to produce eco-friendly beneficial products.
Personal Objectives:
Everyone joins an organisation to achieve their own goals. Some people join for a decent wage package, some for increased notoriety, and others for survival. As a result, it varies from person to person. An organisation must identify personal goals and connect them with them to achieve organisational harmony.
- Importance of Management:
Attainment of group objectives:
Management instils in a group of individuals cooperation and a sense of belonging. Leadership also motivates group members to contribute their full potential to attain the common goal. Management has established this unified goal.
Optimal resource utilisation:
Management puts together workers, money, material, and machines in the proper proportions to cut costs and increase output.
Cost-cutting:
Management improves efficiency and lowers costs by implementing improved planning, organisation, and control. Management aids an organisation’s ability to compete by removing waste and keeping costs low.
Social development:
Management raises people’s living standards by delivering high-quality products and services. It also aids in creating new jobs and the adoption of new technology.
Achievement of personal objectives:
Management plays a critical role in establishing individual goals and integrating them with companys’ aims to achieve organisational harmony and particular objectives.
Nature of Management:
Over time, Management has changed and has got much more dynamic in recent years. It used to be founded on a system of rules and regulations, or as we would call them, conventions, that evolved to meet the ever-changing needs.
Extramarks Class 12 Business Studies Chapter 1 Notes cover all the above topics at a broader length by giving real-life examples. Students are recommended to register on Extramarks website to access these study notes.
- Management as an Art:
Management as an Art refers to putting one’s knowledge, and abilities into practice to attain goals. It can be learned through various approaches, including observation, study, and training.
Basic characteristics:
- Theoretical Knowledge Existence:
Art entails the use of theoretical knowledge. Management is the art of getting things done through persons to achieve desired outcomes by applying available information.
- Personalised application:
Because information is used differently by different people, Management is an individual skill. Two persons can execute the same work, but their methods will always be distinct.
- Based on practice and creativity:
Management is goal-oriented and results-oriented, based on experience and creativity. In the same way that art demands practice, Management also requires it. Consistent practice sharpens individual talents and creativity.
As a result, Management can be regarded as an art form, as it involves skills, practice, and innovation. This articulation of Management as an Art is covered beautifully in Extramarks Class 12 Business Studies Chapter 1 Notes.
- Management as a Science:
Science is a systematised collection of knowledge that may be learned via observation and experimentation. It’s broadly accepted notions that outline how causes and consequences interact.
Basic characteristics:
- A well-organised body of knowledge:
Management is a systematised body of knowledge with its own set of ideas and concepts based on cause-and-effect relationships.
- Principle-based on experiments and observation:
Fundamental management principles are formed through experiments and observations. Their findings are testable and verifiable.
- Universal Validity:
Management principles do not have the same general validity and application as scientific ideas. The fundamentals of Management are taught to managers, but the remainder must be adjusted to the organisation’s and environment’s needs.
As a result, Management is a science, but it is a social science because it is dependent on human behaviour. Since human behaviour cannot be studied through experiments, Management can be referred to as a soft science.
- Management as a Profession:
A profession is a vocation that involves specific knowledge, practical training, service motivation, and a code of conduct. Below we have given a few essential traits of how we can look at Management as a Profession. More finer aspects on this topic are covered in our Class 12 Business Studies Chapter 1 Notes
Essential traits:
- Well-defined body of knowledge:
A professional domain’s entire set of ideas, concepts, words, and activities.
- Restricted Entry:
Every profession has a set of requirements for entry, such as an Examination or a specific educational degree.
- Professional Associations:
Every profession is linked with a professional association, which governs entry and establishes a code of ethics for the domain. IMA, ICAI, etc.
- Ethical Code of Conduct:
Every profession has an ethical code of conduct that governs its members’ behaviour.
- Service Motive:
A profession’s primary goal is to serve its clients.
- Levels of Management:
Company management operates at different levels as detailed below. Extramarks Class 12 Business Studies Chapter 1 Notes focuses on various elements that impact the management at top, middle and operational levels.
Top Management Roles and Responsibilities:
CEO, Board of Directors, MD, GM, and VP make up this group. The central role is to conceptualise the organisation’s aim, formulate policies and strategies, and organise, control, and monitor activities and resources. Individual work performance is monitored, and budgets are approved.
Middle Management-Designations and Functions:
Its primary responsibility is to carry out plans and policies created by top-level Management, prepare organisational setup, appoint employees, provide instructions, and motivate staff. It is made up of Departmental, Sub-departmental, and Divisional leaders. Moreover, ensuring interdepartmental interaction is one of its functions as well.
Supervisory and operational Level-Designations and Functions:
Forepersons, supervisors, and others make up this group. The significant role is to guarantee that policies are implemented as directed by the top and medium-level managers and bring workers’ problems to the attention of Management and preserve worker discipline.
- Functions of Management:
Planning:
Setting goals and objectives and establishing a strategy and action plan to attain them is the process of planning. It fills the space between where we are now and where we want to be. This is an essential function of an organisation and the first stage of Management.
Organising:
The process of establishing power and responsibility connections is known as organising. It entails delegating responsibilities to people and distributing resources to them.
Staffing:
Staffing is matching the right employee to the right job at the right time. Employee recruitment, selection, placement, induction, and training are all part of this process. It is also known as the organisation’s Human Resource function.
Directing:
Leading, influencing, and encouraging people in the organisation to execute the assigned task successfully and efficiently is referred to as Directing. Employees must be consistently motivated to improve their performance. The fundamental components of directing as functions are leadership and motivation. It tends to bring out the best in people.
Controlling:
Controlling is monitoring an organisation’s performance and comparing it to established criteria. Corrective steps are also conducted if there is a discrepancy between the actual and desired results.
Planning, organising, staffing, directing and controlling are broad topics and require a deeper level understanding of how it works. Students can register on Extramarks website and get access to Class 12 Business Studies Chapter 1 Notes. All these 5 functions of management are explained with multiple examples for quicker understanding of students.
- Coordination:
Coordination is a force that synchronises all five management functions and levels to achieve the organisational aim. Coordination is implicit and fundamental in all the tasks within an organisation and students can refer to Extramarks Class 12 Business Studies Chapter 1 Notes for gaining a better in-depth explanation around how coordination works in sync with all five management functions.
Without coordination, job overlap, duplication, delays, and confusion are risks. The coordination function is derived from the planning function. Coordination thus synchronises the varied activities and actions of multiple organisational units.
Characteristics of Coordination:
- Coordination integrates group efforts:
Coordination integrates group efforts and ensures that the organisation’s performance meets the established standards.
- Coordination ensures unity of action:
Coordination is a force that unites the various departments and guarantees that all efforts are focused on attaining the corporate goals.
- Coordination is a never-ending process:
Coordination is a never-ending and ongoing procedure. It is essential at all levels of Management and in all operations of the company, from beginning to end.
- Coordination is a deliberate function:
Management must purposefully coordinate the activity of many employees inside the organisation. Coordination does not happen by itself. It requires a purposeful and conscious effort on the part of each Management.
- Coordination is the responsibility of all managers:
All employees must operate responsibly and coordinate to achieve the organisation’s objectives or goals.
- Coordination is an all-pervasive function:
Coordination is essential in every organisation, no matter how large or small. It is required at all levels and in all management functions.
Importance of Coordination:
- Growth in Size:
Coordination harmonises individual goals with corporate aims, resulting in increased size. This leads to the organisation’s expansion, which leads to an increase in the number of individuals employed there.
- Functional Differentiation:
Every department within an organisation has its own goals, policies, and working styles. However, to achieve organisational goals, coordination is required to link the operations of all departments.
- Specialisation: Specialisation combines all of the actions of the specialists into a single endeavour.
More information can be found on various study materials and solutions for the Class 12 Business Studies Chapter 1 Notes, all available at the Extramarks website.
Class 12 Business Studies Chapter 1 Notes – Exercise and Solutions
Subject matter experts from the Business Studies domain have prepared Extramarks NCERT Class 12 Business Studies Chapter 1 Notes. These study materials will help students score extra marks and achieve good grades.
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- NCERT Solutions
- CBSE Syllabus
- CBSE Extra Questions
- CBSE Revision Notes
- CBSE Notes
- Important Questions
- CBSE Previous Year’s Question Papers
- CBSE Sample Papers
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Key Features of NCERT Solutions Class 12 Business Studies Chapter 1 Notes
Class 12 Business Studies Chapter 1 Notes will guide students to a better teaching-learning process. Studying from NCERT textbooks might not be enough for students to understand the concept thoroughly. Hence Extramarks has introduced a series of Notes for Class 12 Business Studies, which will help students comprehend this subject and prepare well for examinations.
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Q.1 State the importance of co- ordination.
Ans
Coordination is a process by which a manager synchronises the activities of different departments of an organisation.
1.Coordination ensures unity of action.
2.It results in integrated efforts.
3. Coordination helps in avoiding overlapping and duplication of actions.
4.Coordination is a source of co- operation
5.Coordination creates among different departments
Q.2 The Sales Manager of Essence Ltd. wants to fix 8% as the margin on sales but the Finance Manager insists on it being 12%. Due to this conflict, the sales activities are getting affected and the company recently lost a big contract. Identify the quality of management that the company is lacking in the face of this conflict between the departments. Why is it important for an enterprise?
Ans
The management of the company is lacking in Coordination.
Coordination is the force that binds all the other functions of management and the departments. It ensures continuity in the working of the organisation.
An effective coordination system is important for an enterprise as it:
i. Ensures unity of action in departments
ii. Acts as a source of cooperation
iii. Creates harmony among different departments
Q.3 Simon is a first line manager in a BPO. Identify the functions to be performed by her at that level of management.
Ans
Simoni is a First line manager, hence, he forms part of Lower level management (Operational Management).
The functions to be performed by him at lower level management are:
i. Provide good working conditions and create supportive work environment.
ii. Guide and help the middle level managers when they select and appoint employees.
iii. Ensure that quality standards are maintained by the workers.
Q.4 Explain the co- ordination function of management.
Ans
Co-ordination is the essence of management. It is an orderly arrangement of group efforts to provide unity of action in pursuit of common purpose.
Q.5 Explain functions/ elements of Management.
Ans
Functions/Elements of Management: –
1. Planning: Planning means deciding in advance the future course of actions. It is the basic function of management on which all other functions are based upon. It determines what is to be done, how, when and by whom it is to be done.
2. Organising: Organising means bringing all the resources (human, financial and physical resource) together under one roof. It identifies and groups the different activities of the organisation to establish the authority responsibility relationship.
3. Staffing: Staffing is that function of management which helps organisation in knowing the manpower requirement and then selecting and placing the right one at the right job for achievement of organisational goals.
4. Directing: Directing means giving directions to the employees so that they can perform as per the objectives of the organisation. It involves instructing, guiding, influencing and motivating the employees at work for their maximum efforts. It is the executive function of the management.
5. Controlling: Controlling as the function of management determines the standard performance, measures the actual performance, compare the actual with the standard performance and taking corrective actions after knowing the deviations.
Q.6 Differentiate between effectiveness and efficiency.
Ans
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Effectiveness
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Efficiency
|
|
It refers to completion of task on time
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It refers to completion of task correctly with minimum cost
|
|
It is concerned with end result
|
It is concerned with cost benefit analysis
|
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Concerned with producing target production on time
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Concerned with producing target production to its minimum cost
|
Q.7 Halo Inc., a well-known tyre manufacturing company in the city, has opened a school for its employees’ children as well as for the community.
Ans
The social objective of management is being referred to here. Social Objectives of management refers to the creation of benefit for society. Since every organisation whether business or non business in nature, is a part of the society and has social obligations to fulfill.
For instance Project Shiksha is a national consumer program run by Procter & Gamble (P&G) in Partnership with Child Rights and You (CRY). Shiksha enabled the education of 33052 children in 435 communities in 2006.
Fulfillment of social obligation includes:
Consistently creating economic value for various components of society.
1. Using environment friendly methods of production.
2. Providing developmental and employment opportunities to disadvantaged sections of the society.
3. Providing basic amenities like day care centers and schools of the wards of the employees.
4. Regular supply of good quality products at reasonable prices.
5. Generation of employment opportunities.
Shiksha enabled the education of 33052 children in 435 communities in 2006.
Q.8 Is Management an Art? Comment.
Ans
Art means personal application of knowledge and skills for the achievement of desired goals. Management can be regarded as an art if it fulfills the characteristics of art. The characteristics of art are:
1. Theoretical body of knowledge: Systematic theoretical knowledge is required for every art. Every artist has to follow certain principles and guidelines at the time of performance.
There is a systematic body of knowledge in management which comprises of certain principles and techniques which every manager has to follow while managing the organisation.
2. Personal Skills: In art every artist has his own styles and ways of performing. Similarly, every manager has his own ways of decision making and getting the work done.
3. Practice and creativity based: Art is based on the proverb that “Practice makes a man perfect.” For being a good artist a person has to practice a lot and for becoming different from others he has to be more creative and innovative in his expressions.
In the same way, a person cannot be a good manager without practicing the knowledge he has gained from the management theories and principles. The management will be effective if the manager will be creative and innovative in expressing his ideas in the form of plans and policies.
As management satisfies the parameters of being an art so it can be considered as an art. Thus management is an art of getting things done through and with the people for the achievement of organisational objectives effectively and efficiently.
Q.9 Management is regarded as a perfect science like physics or chemistry. Explain.
Ans
Q.10 What are the functions of middle level management?
Ans
Functions of middle level management :
1. Interpreting and communicating the policies of the top level management.
2. Determining organizational set up of their department.
3. Issuing instructions to low level managers.
4. Motivating subordinates for higher productivity and rewarding them for their outstanding performance.
5. Compiling statistical reports for top-level management and preparing records of their departments.
6. Recommending revised and amended policies of their departments.
Middle level management is the link between top level and low level
management and executory by nature.
Q.11 Differentiate between the levels of management on the basis of their functions.
Ans
| Basis | Top Level Management | Middle Level Management | Supervisory Level Management |
| Time Range | It covers span of period | It covers intermediate range | It is concerned with short period |
| Skills | It requires creative skills | It needs persuasive skills | It is concerned with operative skills |
| Evaluation | It is difficult to evaluate its achievement | It is less difficult to evaluate its performance | It is easy to evaluate its performance |
| Persons | It involves few persons | It concerns moderate number of persons | It is concerned with large number of persons |
| Policy formulation | It is concerned with the formulation of policies to a greater extent | It is moderately concerned with policy formulation | It is least concerned with policy formulation |
Q.12 Identify the function of management that helps to decide who will do a particular task in an organisation.
Ans
Organising function of management helps to decide who will do a particular task, where it will be done and when it will be done in an organisation. Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.
Q.13 Explain management.
Ans
Management means creating an internal environment where people work together effectively and efficiently for the attainment of organisational goals.
Q.14 What do you understand by efficiency?
Ans
Efficiency ensures minimum wastage of resources. It relates to the use of all inputs to produce a given level of output.
Q.15 Name the function of management which ensures issuing instructions and orders and also motivating employees.
Ans
The function of management which ensures issuing instructions and orders and also motivating employees is the Directing function.
Q.16 Explain ‘effectiveness.’
Ans
Effectiveness refers to the completion of task on time.
Q.17 Which aspect of management binds all the functions of management?
Ans
Coordination is the function of management which binds all functions. It is an orderly arrangement of group efforts to provide unity of action in pursuit of common purpose.
Q.18 What are the important inputs required to perform a particular task?
Ans
Man, money, material and machine.
Q.19 Management is an intangible force. How?
Ans
Management cannot be seen but its efforts can be felt, so it is regarded as an intangible force.
Q.20 Management is multi-dimensional. Enumerate any two dimensions of management.
Ans
The two dimensions are:
i. Management of work
ii. Management of people
Q.21 In order to be successful, an organisation must change its goals according to the needs of environment. Which characteristic of management is highlighted in this statement?
Ans
Management is a dynamic function.
Q.22 Discuss the basic features of management.
Ans
Features of management are as follows:
i. Goal Oriented – Management aims at achieving the organisational objectives by uniting the efforts of different individuals in the organisation towards common goal.
ii. Pervasive – Management is universal. It is applicable in profit making, non-profit making, business or non-business organisations.
iii. Continuous Process – Management process consists of series of interrelated functions of planning, organising, staffing, directing and controlling. These functions are simultaneously performed all the time.
iv. Intangible – Management is an intangible force which cannot be seen but its presence can be felt in the way the organisation functions.
Q.23 Describe in brief any four functions of top level management in an organisation.
Ans
Functions of top level management are as follows:
i. Determining objectives of the enterprise – The top level managers formulate the main objectives of the organisation.
ii. Framing of plans and policies – Top level managers frame plans and policies to achieve.
iii. Assembling the resources– The top management arranges all the finance required to carry on day to day activities.
iv. Controlling the performance of the employees– The top level management keeps a check on employees and their performance.
Q.24 Cavin is the manager of eastern division of a large corporate house. At what level does he works in the organisation? What are the basic functions to be performed by him?
Ans
Chandni works at ‘Middle level’. She is a link between top and lower level managers. Her primary role is to implement and control plans and strategies developed by top management.
Her basic functions are:
i. Interpretation of policies framed by top level management
ii. Organising the activities of her department for executing the plans and policies
iii. Recruiting/selecting and appointing the required employees for her department
iv. Assigning necessary duties and responsibilities to the employees
v. Motivating employees to perform the best of their ability
Q.25 Explain the social and personal objectives of management.
Ans
Social Objectives of the organisations deal with the commitment of the organisation towards the society. The major social objectives of organisation are:
i. Supply of quality products at reasonable prices
ii. Contribution towards desirable civic activities
iii. Generation of economic wealth
iv. Generation of employment opportunities
Personal Objectives are related to the objectives of the employees of an organisation. The major individual objectives are:
i. Competitive salary
ii. Personal growth and development
iii. Peer recognition
iv. Good and healthy working conditions
Q.26 Explain the organisational objectives of the organisation.
Ans
Management aims at setting and achieving objectives of the organisation. It has to achieve a variety of objectives.
The organisational objective of the organisation is optimum utilisation of available physical and financial resources. It needs to secure maximum results with minimum efforts. The main objectives can be summarised as:
i. Survival – Management must strive to ensure the survival of the organisation by earning enough revenues to cover costs.
ii. Profit motive – Management has to ensure that the organisation makes profit for covering costs and risks of the business.
iii. Growth –To remain in the industry, management must exploit fully the growth potential of the organisation. Growth can be measured through increase in sales, number of employees and increase in capital investment.
An organisation can ensure it profits, survival & growth though innovation and development of new product or a new method of production.
It needs to build a market standing in relation to its competitors.
Q.27 Management is regarded as a perfect science. Do you agree? Explain in brief any four reasons.
Ans
Science is a systemised body of knowledge pertaining to a specific field of study and contains general facts that explain a phenomenon. It establishes the cause and effect relationship between two or more factors and ascertains the underlying principles governing the relationship. As such, science is characterised by four main features-
(a) Existence of systematic body of observation
(b) Use of scientific methods of observation
(c) Principle based on experiments
(d) Universal validity of principles
On examination, we find, while management has some of these features, it does not have others.
For example, management has a systematic body of knowledge. But the methods of observation followed by management are not cent percent objective because the subject is human being whose behaviour cannot be predicted with absolute accuracy. Also, the management principles are flexible and can be used in different situations with modification. So, these principles do not have universal applicability.
Thus, management may be called a ‘Inexact Science, not perfect Science’.
Q.28 Explain the characteristics of coordination.
Ans
Coordination is the process by which a manager synchronises the activities of different departments. Coordination is the force that binds all the other functions of management.
The characteristics of coordination are as follows:
i. Integrates group activity – Coordination gives a focus to group effort to ensure that performance is as it was planned and scheduled.
ii. All pervasive function – It is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
iii. Responsibility of all managers – It is a function which is performed by every manager as a responsibility.
iv. Promotes unity of action – Coordination acts as a binding force among departments and ensures that all action is aimed at achieving the goals of the organisation.
v. Continuous process – Coordination is not a one-time function but a continuous process. It starts at the time of planning and continues till controlling.
Q.29 Management is a series of continuous interrelated functions. Comment.
Ans
Management is a continuous process which consists of series of interrelated functions performed by the managers in all type of organisations. The functions to be performed are as follows:
i. Planning – It is the basic and foremost function of management. It decides in advance what is to be done in future. Every manager starts with deciding in what is to be accomplished and how to accomplish.
ii. Organising – It means bringing all the resources together for the accomplishment of organisational goals. It establishes the organisation structure to execute the plan.
iii. Staffing – It refers to manning the organisation. It involves recruiting, selecting, appointing and training the employee for the achievement of the target established.
iv. Directing – It involves giving direction and instructions to the employees by supervising, motivating, guiding and communicating with them.
v. Controlling – This function of management deals with establishing the standard targets, measuring the actual performance and comparing the actual and standard performance and finally taking corrective actions.
Q.30 Lack of proper management results in wastage of time, money and efforts. Explain the importance of management in light of this statement.
Ans
Importance of management is as follows:
i. Helps in achieving group goals – Management integrates the objectives of individuals along with the organisational goals. It directs the efforts of all the individuals in the common direction of achieving organisational goals.
ii. Increases efficiency – Management tries to reduce the cost and improve productivity with minimum wastage of resources. Management insists on efficiency and effectiveness in the work through planning, organising, staffing, directing and controlling.
iii. Creates a dynamic organisation – Organisation survives in changing environment. Management helps people in adapting the changes of the environment to maintain the competitive edge.
iv. Helps in achieving personal objectives – Employees of the organisation come from different backgrounds, a manager motivates and leads his team in such a manner that individual members are able to achieve their personal goals while contributing to the overall organisational objectives.
v. Helps in developing society – Management helps in providing high quality goods and services, creates employment opportunities and adopts new technologies for the benefit of the people.
vi. Ensures optimum utilisation of resources – Management ensures best possible utilisation of physical and human resources by eliminating all types of wastages through planning and organising.
Q.31 Management is all pervasive.Explain with a suitable example.
Ans
One of the characteristics of management is that it is all pervasive. This means that the activities involved in managing an enterprise are common to all organisationswhether economic, social and political. However the method of doing the activities may differ from country to country due to difference in culture, tradition and history.Example: A petrol pump needs to be managed as much as a hospital or a school.
Q.32 McDonalds, the fast food giant made major changes in its menu to be able to survive in the Indian market. Which characteristic of management is highlighted by this? Explain.
Ans
The characteristic of management highlighted by this is ‘Management is a dynamic function’. A business has to adapt itself to the changing environment. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.
Q.33 Vaibhav’s father is working in AMTEX Ltd. as the Vice President of company. At what level of management is he working? What are the functions?
Ans
Vaibhav’s father is working at the top level of management.
The function performed by him is basically to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation.
Other functions include:
- Welfare and survival of the organisation
- Analyses of the business environment and its implications for survival of the firm
- Formulate overall organisational goals and strategies for their achievement
He is responsible for all the activities of the business and for its impact on the society. His functions involve commitment to the organisation.
Q.34 A company manufacturing washing machines is facing serious decrease in sales in the market. What steps should be taken at each level of management to solve this issue?
Ans
The reason for decreasing washing machine sales can be its poor features, its quality, cost, electricity consumption, marketing strategies, etc., Hence each level of management has to work in coordination to understand this problem.
Functions of top level:
- plan and add new features
- organise and assemble necessary resources
- coordination the efforts of all the department towards modernisation.
Functions of middle level:
- Implement plans made by top management in their respective departments
- Interpret plans to their subordinates
- Select/recruit effective and efficient employees to perform the task
- Utilise available resources in best possible manner and minimise the cost of product.
Functions of lower/ supervisory level:
- Assign the task according to efficiency and qualification of employees
- Maintain quality of work and avoid wastages
- Make efforts to improve the loyalty of workers
Q.35 Coca cola employs a range of specialists e.g.; marketers,advertisers, skilled technologists, specialist managers, accountants, maintenance specialists, etc.
a) Explain the need of employing specialists in an organisation.
b) What are the demerits of specialisation?
Ans
a) The need of employing specialists in an organisation is due to the complexities of modern technology and the diversity of the tasks to be performed. Specialists areemployed to do specialists work. Hence individuals are able to concentrate on what they can do the best to combine team and company efforts. Organisations therefore need toemploy a number of specialists.
b) Demerits of specialisation are that specialists usually think that they only are qualified to evaluate, judge and decide according to their professional criteria. They do not take advice or suggestions from others in the matters pertaining to their area of specialisation. This often leads to conflict amongst different specialists as well as others in the organisation.
Q.36 Mr. Watson is an employee of an organisation and his work is to make sure that the right people with right qualifications are available at the right place in the organisation. Which function of management is Mr. Watson looking after? Explain.
Ans
The function of Management which Mr. Watson is looking after is staffing.It involves activities such as recruitment, selection, placement and training of personnel. Staffing is also known as human resource function which is finding the right people for the right job.
Q.37 Mere survival is not enough for business. Management has to ensure that organisation makes profit. Explain.
Ans
In order to survive, an organisation must earn enough revenues to cover costs but mere survival is not enough for business, profit is also important. Profit provides a vital incentive for the continued successful operation of the enterprise. Profit is essential for covering costs and risks of the business.
Q.38 To meet objectives of the firm, Baco Ltd., offers employment to physically challenged people. What is the organisation objective, it is trying to achieve? Explain.
Ans
Baco Ltd. is trying to achieve social objectives. It involves the creation of benefit for society. As a part of society every organisation whether business or non business, has a social obligation to fulfill. This refers to consistently creating economic value for various constituents of society. This includes using environmental friendly methods of production, giving employment opportunities to the disadvantageous sections of society and providing basic amenities like schools and crèches to employees.
Q.39 How does management reconcile personal goals with organisational objectives for harmony in the organisation?
Ans
Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level needs such as personal growth and development.
Q.40 Red Agriculture Ltd. is a rice producing company. Everyday 4000 bags of wheat weighing 15 kg each are produced here. In comparison to past year, this year there was less number of bags produced on daily basis. The number is around 3000 which is less than the target of 4000 bags. However, the company was able to reduce the costs in comparison to previous year’s expenses on production and also the packaging of bags has been improved.
Which concept of management is ignored here?
Ans
The concept of management ignored here is effectiveness as it requires output to be completed as per the given task in the required time.
Q.41 Delano Ltd. is a trading company. With time, the employees learn from their seniors about different ways that can help to deal with situations. Also, training is provided as per the requirement. Incentives in the form of monetary as well as non-monetary is given. This makes employees feel motivated and see their career development in the company. The company behaves as a responsible part of society and develops good quality products and services. It has a good reputation in the market. The training provided to employees is well appreciated and the employees are encouraged to try to find unique ways of providing solutions in the with respect to rapidly changing business environment. This has helped the company to adjust frequently in a very positive way.
Which importance of management is highlighted here? Also state the lines.
Ans
Importance of management is highlighted here is:
- Achievement of personal objectives: Management helps in inducing employees to achieve their goals along with contributing to the organisational objective.
Lines quoted: “Incentives in the form of monetary as well as non-monetary is given. This makes employees feel motivated and see their career development in the company.”
- Creates a dynamic organisation: Management helps in creating a sustainable environment for employees to adapt with the changing environment.
Lines quoted: “The training provided to employees is well appreciated and the employees are encouraged to try to find unique ways of providing solutions in the with respect to rapidly changing business environment.”
- Development of Society: Management helps in raising standard of living by offering good quality products and services, new employment opportunities and advanced technology.
Lines Quoted: “The Company behaves as a responsible part of society and develops good quality products and services. It has a good reputation in the market.”
Q.42 Deep Manufacturing Ltd. decides to conduct a meeting with all the employees of different divisions in the organisations. The main objective was to inform employees to increase their target sales by 30% for the year. The meeting involves discussion of ideas regarding the employees and processes involved. Also, new plans were made to utilise the full capability of the employees and streamline the processes. However, with changes in business environment, the company did its best to adapt to such changes. At the end of year, the company was able to achieve what it desired.
What characteristics of management are highlighted here? Also, Quote the lines that display such characteristics of management.
Ans
Following characteristics of management are highlighted:
- Goal Oriented: Management aims at achieving organisational objectives by uniting the efforts of different individuals in an organisation towards common goal.
Lines Quoted: “The main objective was to inform employees to increase their target sales by 30% for the year.”
- Multi-dimensional: Management is a complex activity that has three main dimensions namely management of work, management of people and management of operations.
Lines Quoted: “The meeting involves discussion of ideas regarding the employees and processes involved. Also, new plans were made to utilise the full capability of the employees and streamline the processes.”
- Dynamic: Management has to continuously adapt to the changing environment. It helps an organisation to be successful by changing itself and its goals according to environmental needs.
Lines Quoted: “However, with changes in business environment, the company did its best to adapt to such changes.”
Q.43 A floor manager of a factory is a very efficient manager as he performs all the functions of management so as to get best results and reduces cost of maintenance of his area. He instructs all the workers to achieve the targets and guides them to put their efforts in achievement of these targets. Under his supervision, the workers feel that they learn a lot and are able to meet their goals on time. This also promoted workers and increased in their wages and salaries.
Identify the importance of management reflected above.
Ans
Importance of management reflected above is:
- Achievement of group goals: Management makes people realise the group objectives and channelises their energies in achieving the latter.
- Increase in efficiency: Management helps in combining human and material resources in the right proportion. It helps in reducing costs and increasing productivity through planning, organising, directing, staffing and controlling functions.
- Achievement of personal objectives: Management helps in inducing employees to achieve their goals along with contributing to the organisational objective.
Q.44 FRG Corporates is a firm that provides home and on road car services. It has different decisional units that caters to functions like n this company like Human Resources, Marketing, Finance, Research and Development and Operations. The senior management tries its best to synchronize the activities of different divisions in the best way which leads to increase in efficiency and timely achievement of goals.
With time, the size of the firm increased and its operations expanded to different areas which made management realize that it very crucial to synchronise the growth with the increase in the size of the company and the number of employees. The head of each department of the company are experts in their respective areas and the senior management works with them respecting their opinions on the matter so as to avoid any conflict and ego problems and ensure smooth functioning of the organisation.
State the concept of management highlighted above. Write two merits highlighted in the above paragraph of this concept.
Ans
The concept of management highlighted above is Coordination.
Coordination is the essence of management. It is the process by which a manager synchronises the activities of different departments. It is the force that binds all the other functions of management.
The merits of coordination that can be highlighted from give case is:
- Growth in size: As a company grows, it becomes important to synchronise activities of different department. Hence, coordination is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
- Specialisation: It is not easy to deal with departmental heads who are experts in their field and advise them to do things as it might lead to conflict. Hence, coordination helps to avoid inter department conflicts and proper direction is provided to all the departments.
Q.45 The management of Brown Inc. believes that it is important to maintain coordination between departments. The company is dependent on professional coordination. For this, the company keeps on taking necessary steps. Also, managers make sure that coordination is properly maintained, despite of their managerial level. Also, the activities are carried out smoothly without failure throughout the year. Every department makes sure that its staff member and task performed are guided by the theme of proper coordination. In case an employee wants to take an action, he/she can consult others, whenever needed, thus properly contributing to their team. The process of coordination is just not limited to the employees. All the departments use this binding force to create perfect balance between them so that goals of the company can be fulfilled. All the coordination that takes place in the company is due to proper training and premeditated attempts by the company to get the best results possible.
The above case showcase the nature of coordination. Identify the lines which represent them and also name them.
Ans
- Integrates group activity: Coordination gives a focus to group effort to ensure that performance is as it was planned and scheduled.
Lines Quoted: “In case an employee wants to take an action, he/she can consult others, whenever needed, thus properly contributing to their team.”
- All pervasive function: It is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
Lines Quoted: “Every department makes sure that its staff member and task performed are guided by the theme of proper coordination.”
- Responsibility of all managers: It is a function which is performed by every manager as a responsibility.
Lines Quoted: “Also, managers make sure that coordination is properly maintained, despite of their managerial level.”
- Promotes unity of action: Coordination acts as a binding force among departments and ensures that all action is aimed at achieving the goals of the organisation.
Lines Quoted: “All the departments use this binding force to create perfect balance between them so that goals of the company can be fulfilled.”
- Continuous process: Coordination is not a one-time function but a continuous process. It starts at the time of planning and continues till controlling.
Lines Quoted: “Also, the activities are carried out smoothly without failure throughout the year.”
- Deliberate function: Coordination involves synchronising the efforts of different people in a conscious and deliberate manner.
Lines Quoted: “All the coordination that takes place in the company is due to proper”
Q.46 Green Tech is an organisation that focusses on improving its functioning by proper management. The company has been good record of setting and achieving targets on time. The main reason for its success has been the hard work of all of the employees. The company tries to keep its targets in front of the employees so that each one of them can contribute to the completion of goals. Though their activities may be different yet they contribute to the common targets or goals of the organisation. The company has also been awarded for the best organisation climate. This has been possible due to the maintenance of great managerial discipline which might not be tangible to an outsider in the first look but can be felt in the organisation. Gradually, the organisation has also developed itself into a very successful company. It manufactures customised software as per the needs of its clients. Since last few years, the company has adapted to the requirements of the market and introduced tailor-made software as per the requirements of clients. The managements of three components is always crucial to the company i.e. the employees, process and quantity of work to be done. Controlling these three areas is always a top priority to the company. Recently, a meeting was conducted which emphasised on the need of taking good management to all the levels and departments of the organisation.
In the above case, identify all the characteristics of management and state the lines which help you identify them.
Ans
Characteristics of management highlighted in given case:
- Goal Oriented: Management aims at achieving organisational objectives by uniting the efforts of different individuals in an organisation towards common goal.
Lines Quoted: “The Company has been good record of setting and achieving targets on time.”
- Pervasive: Management is universal. It is applicable in profit making, non-profit making, business or non-business organisations.
Lines Quoted: “Recently, a meeting was conducted which emphasised on the need of taking good management to all the levels and departments of the organisation.”
- Group Activity: Management induces employees to work as a group to fulfill common organisational goals, through team work & proper co-ordination.
Lines Quoted: Though their activities may be different yet they contribute to the common targets or goals of the organisation
- Intangible: Management’s presence can be felt in the way the organisation functions. Its effect can be perceived in the organisation’s achievements, workings as well as environment.
Lines Quoted: “This has been possible due to the maintenance of great managerial discipline which might not be tangible to an outsider in the first look but can be felt in the organisation.”
- Multi-dimensional: Management has three main dimensions i.e. management of work, management of people and management of operations.
Lines Quoted: “The managements of three components is always crucial to the company i.e. the employees, process and quantity of work to be done.”
- Dynamic Function: Management has to continuously adapt to the changing environment. It helps an organisation to be successful by changing itself and its goals according to environmental needs.
Lines Quoted: “Since last few years, the company has adapted to the requirements of the market and introduced tailor-made software as per the requirements of clients.”
Q.47 In a country X, Fitness trainer is considered as a profession. If a person plans to become a fitness trainer, then he/she has to read the books related to healthy diet and exercises. Such books tell what is to be done to be fit, what exercise are appropriate, how to train people in gym, etc. and without reading these books one can’t be considered as Fitness trainer. To test the knowledge of a fitness trainer, an examination is conducted and then a proper diploma/degree is given to the qualified persons who are eligible to train and make other people fit. There is also an association that provides membership to all fitness trainers. There are about 3000 trainers who are compulsorily members of this organisation.
State the three features of profession highlighted here? Also identify the lines highlighted these features?
Ans
Three features of profession highlighted here:
- Well-defined body of knowledge: All professions are based on a well-defined body of knowledge that can be acquired through instruction.
Lines Quoted: “If a person plans to become a fitness trainer, then he/she has to read the books related to healthy diet and exercises.”
- Restricted entry: The entry to the above stated profession is restricted through a prescribed qualification.
Lines Quoted: “To test the knowledge of a fitness trainer, an examination is conducted and then a proper diploma/degree is given to the qualified persons who are eligible to train and make other people fit.”
- Professional Association: Professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct.
Lines Quoted: “There is also an association that provides membership to all fitness trainers. There are about 3000 trainers who are compulsorily members of this organisation.”
Q.48 Aarav works in Highland Projects Inc. and is a very efficient plant superintendent who like to deal with tough situations. He is a perfectionist who believes in doing quality work. Every week, he makes a schedule which helps in reducing wastage of efforts and time of the department. However, Aarav is upset with the cutthroat competition among the staff members as it has a negative impact on the overall production. Despite such problems, he is managing the situation very well. Two days before the deadline, he informs his boss that the target given to him has been achieved and with the best quality. The best part was that there were two days were remaining for the dead line. But his boss was not satisfied as the cost incurred by his team for the completion of project was more than estimated.
In the given case, highlight the concept of management being violated and the concepts followed? Also, state at which level of management does Aarav works?
Ans
The concept of management being violated are:
- Efficiency: It means completing the task with minimum possible cost and resources. However, Aarav was able to complete the project on time but the cost incurred was more than estimated.
- Cooperation: there is no unity among the member as there is competition among the staff members which has a negative impact on the overall production.
The concept of management being followed are:
- Coordination: it involves synchronization of activities so that there is no wastage of resources. Aarav makes a schedule which helps in reducing wastage of efforts and time of the department.
- Effectiveness: It involves completion of work on the right time and with right quality. Aarav makes sure that the targets are achieved before time and with the best quality.
Also, Aarav works at middle level management as a plant superintendents works is a middle level management position.
Q.49 Harry is working as a Superintendant in Amlo Inc. Spot the level of management that he is working at. Also give any two responsibilities that Harry has being at this level.
Ans
Harry is working at middle level of management. He is responsible for:
- Implementing and controlling plans & Strategies developed by top management
- Ensure necessary personnel in the department
Q.50 Do you agree that management is a series of continuous , inter related functions with no predetermined sequence? Elaborate.
Ans
Management is considered as a series of continuous , inter related functions with no predetermined sequence. Management process consists of planning, organising, staffing, directing and controlling functions.
Functions of management are interrelated and it can be understood by the following points:
Planning is the basis for all other functions
Organising is all about creating the organisational structure for implementing plans
Staffing fills the organisation with right people for the job
Directing includes inspiring, leading and directing people towards the objectives and goals of organisation
Controlling ensures that targets are achieved and measured
Q.51 Explain the function of management that involves setting goals and creating specific plans for completing them.
Ans
Planning involves setting goals and creating specific plans for completing them. This involves determining in advance what is to be done and who is to do it and includes activities such as setting goals in advance and developing a way of achieving them efficiently and effectively.
Q.52 Executive managers are responsible for establishing a vision for the organization, developing broad plans and strategies, and directing subordinate managers? Yes or No.
Ans
Yes establishing a vision for the organization, developing broad plans and strategies, and directing subordinate managers is the responsibility of executive managers.
Q.53 Supervisory level of management takes the responsibility for implementing programs that are intended to carry out the broader objectives of an organization set by executives.
Ans
Middle managers are the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. It is also responsible for implementing programs that are intended to carry out the broader objectives of an organization set by executives.
Q.54 Can you state what type of issues are first level managers routinely influenced by?
Ans
First level managers routinely influenced by Short range issues and concerns.
Q.55 It is always better that manager should provide directions and vision to inspire employees. Explain.
Ans
A good manager directs through praise and criticism in such a way that it brings out the best in the employee. Directing includes leading, influencing and motivating employees to perform the tasks assigned to them.
Q.56 A function of management that involves formal measurement and analysis of actions at established checkpoints. Explain.
Ans
This function is controlling. It involves establishing standards of performance, measuring current performance, comparing this with established standards and taking corrective action where any deviation is found.
Q.57 Coordination is not a separate function of management. It is said to be the essence of management. Elaborate.
Ans
Coordination is the essence of management. It is the process by which a manager synchronises the activities of different departments. It is the force that binds all the other functions of management. It is important as it:
- Ensures unity of action.
- Results in integrated efforts.
- Helps in avoiding overlapping and duplication of actions.
- Is a source of co- operation
- Creates among different departments
Q.58 Is it correct to say that coordination integrates group efforts and ensures unity of action?
Ans
Yes, coordination integrates group efforts and ensures unity of action.
Integrates group efforts: Coordination unifies diverse interests, therefore giving them a common focus to ensure that performance is according to pre-determined plans.
Ensures unity of action: Coordination ensures unity for the realisation of common purpose. It acts as a binding force between departments and ensures that all actions are aimed at achieving organisational goals.
Q.59 Justify coordination:
a. Is pervasive
b. Is responsibility of managers
c. Is continuous process
Ans
- Is pervasive: It is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels
- Is responsibility of managers: Coordination is a function which is performed by every manager as a responsibility
- Is continuous process: Coordination is not a one-time function but a continuous process. It starts at the time of planning and continues till controlling.
Q.60 Coordination is required at all levels of management. What does this signify?
Ans
This signifies that coordination is all pervasive. It is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
Q.61 Facier Inc. is manufacturer of electronics goods. But it also deals in items like books, music instruments, laptops and mobile phones. The company had a functional structure with separate heads for production, marketing and finance. All the functional heads were looking after the products, but at times their activities overlapped. This led to problems related to coordination and interdepartmental conflicts. Why do you think is coordination important?
Ans
Importance of coordination can be explained with following points:
Growth in size: As a company grows, it becomes important to synchronise activities of different department. Hence, coordination is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
Specialisation: It is not easy to deal with departmental heads who are experts in their field and advise them to do things as it might lead to conflict. Hence, coordination helps to avoid inter department conflicts and proper direction is provided to all the departments.
Functional Differentiation: There can be separate departments of finance, production, marketing or human resources or functionally different. All departments and individuals are interdependent . Coordination is the process of linking the activities of various departments is accomplished by coordination.
Q.62 Describe any three reasons that clarify that coordination is important element.
Ans
Growth in size: As a company grows, it becomes important to synchronise activities of different department. Hence, coordination is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
Specialisation: It is not easy to deal with departmental heads who are experts in their field and advise them to do things as it might lead to conflict. Hence, coordination helps to avoid inter department conflicts and proper direction is provided to all the departments.
Functional Differentiation: There can be separate departments of finance, production, marketing or human resources or functionally different. All departments and individuals are interdependent . Coordination is the process of linking the activities of various departments is accomplished by coordination.
Q.63 According to you, which level Managers are responsible for coordination ?
Ans
Coordination is all pervasive. It is required at all the levels of management. This is because of the reason that different departments in an organisation are dependent on other.
Q.64 Coordination integrates group efforts. Explain.
Ans
Coordination is said to give a common focus or shape to efforts of a group. This ensures that performance is as planned. Coordination unifies unrelated or diverse interests into purposeful work activity.
Q.65 How are all the functions of management i.e. planning, organising, staffing, directing and controlling are integrated?
Ans
All the functions of management i.e. planning, organising, staffing, directing and controlling are integrated together with the help of function Coordination. It integrates the efforts of different departments at different levels.
Q.66 James is the Vice President of Quina Inc. He makes sure that all the departmental teams like production, marketing and purchase effectively with each other as he believes that effective coordination of all departments help in success of business enterprise.
Do you also think that coordination is important?
Ans
Yes. Coordination is the important element in the organisation. Coordination is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
Q.67 Yara is a supervisor of Watson Inc. She is of the opinion that coordination is responsibility of Tim, CEO, only.
Ans
Coordination is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels. It is the responsibility of managers at all levels.
Q.68 The process of linking the activities of various departments is accomplished by coordination. Explain.
Ans
Coordination ensures unity for the realisation of common purpose. It acts as a binding force between departments and ensures that all actions are aimed at achieving organisational goals.
Q.69 According to Jackson, coordination is a one-time activity to be performed only in the starting of any activity.
Ans
Coordination is a continuous activity. It begins at the planning stage and continues till controlling. It is not a one-time activity.
Q.70 Coordination is said to be a deliberate function. Elaborate.
Ans
It is a responsibility of manager to coordinate the efforts of different people deliberately. Coordination provides a direction to the willing spirit where members of a department willingly cooperate and work.
Q.71 Read the following text and answer the questions: (3 marks)
Kiara works in a large manufacturing company. She takes care of the work bang assigned to her by her general manager and makes sure that it is completed on time. Also, she coordinates with John, who makes sure that the resources are utilised properly and not wasted.
In case, the workers are not able to complete the work, John is accountable to Kiara. Also, Kiara has to report to her General Manager on daily basis about the completion of tasks.
i. Identify the level of management at which John is being appointed in the organisation.
a. Top level management
b. Middle level management
c. Operational level management
d. Senior level management
ii) To which level of management John reports?
a. Top level management
b. Middle level management
c. Autonomous level management
d. Senior level management
iii. Coordination is the important function to be performed by which level of management?
a. Top level management
b. Middle level management
c. Operational level management
d. All the levels of management
Ans
i. c) Operational level management
Operational management or supervisory level management is responsible for minimizing wastages of materials, maintaining quality of output, monitoring efforts of workforce and maintaining safety standards. They ensuring proper work environment for the workers along with efficient completion of tasks by the workers.
ii. b. Middle level management
Middle level of management. It consists of the Departmental / Divisional Heads or Operational Managers, i.e. Production Manager, Sales Manager, Finance Manager, Branch Manager, etc. who are responsible for implementing & controlling the plans and policies formulated by top management.
iii. d. All the levels of management
Coordination is required at each level of management as well as between the different levels to achieve organisational goals.
Q.72 Answer the following questions after going through then following passage: (3 marks)
Yash is one of the most successful General Manager of Omega Ltd. He uses his creativity and innovation in handling challenging situations at work. The knowledge gained by him during his student days at a renowned management college as well as through his observation and experience over the years is applied by Yash in a skillful manner in the context of the realities of a given situation. He often read books and other literature in various fields of management to keep himself updated.
i. An aspect of the nature of management is being highlighted in the above description. Identify the aspect.
a. Management is an art
b. Management is profession
c. Management is a practical aspect only
d. Management is only theoretical concept
ii. At what level of management is Yash working?
a. Top level management
b. Middle level management
c. Operational level management
d. Senior level management
iii. From the following, which one is the function performed by the management at level identified in (ii) point above
a. Staffing
b. Planning
c. Supervising
d. Controlling
Ans
i. a. Management is an art
Existence of theoretical knowledge, personalised application and based on practice and creativity makes the management an art.
ii. a. Top level management
Top level management consists of Board of Directors, Chief Executive Officer, General Manager, Secretary, etc., who are responsible for integrating various elements of the organization and ensuring welfare and survival of the enterprise.
iii. b. Planning
Planning aims at setting goals in advance for the organization and developing strategies for the effective and efficient achievement of goals. This function is performed by Top level of management.
FAQs (Frequently Asked Questions)
1. As per the Class 12 Business Studies Chapter 1 Notes, what role does management play?
To achieve company objectives, Management is required. For the production of goods and services, management is critical. It enables a company to work as a unit and achieve its objectives. Management aids in cost reduction and increased product production. It improves an organisation’s ability to compete. It also assists corporations in implementing effective and modern tactics to enhance high output and commercial growth.
2. What does Management entail as per the Class 12 Business Studies Chapter 1 Notes? Why is it important?
Management is in charge of guiding a company toward its objectives. Management is both a science and an art. It is considered an art since it entails the creative use of many methods for reaching goals.
Another way, as mentioned in the Class 12 Business Studies Chapter 1 Notes, It can also be classified as a science, as it is founded on specific principles and requires systemic knowledge. Management is vital because it offers employees valuable tools to increase productivity, allocate resources and make high yielding decisions. It also assists in adapting to changing circumstances.
3. As per the Class 12 Business Studies Chapter 1 Notes, What are the management principles?
According to the Class 12 Business Studies Chapter 1 Notes, management principles refer to some truth based on cause and effect. Guides help us perform the right actions and make the right decisions. Management ideas can be applied to various businesses, both large and small. People who follow management concepts can quickly address their challenges.
4. What are the primary goals of management covered in Class 12 Business Studies Chapter 1?
As discussed above, the primary goals of Management are profitability, cash flow, and long-term viability.
As mentioned in the Class 12 Business Studies Chapter 1 Notes, an enterprise has three principal aims:
- Organisational
- Social
- Personal
These three collaborate to keep the workplace in a pleasant and harmonious state. This goal also aims to promote environmentally responsible living.
