BS (New) - 12 (Ch-1)

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1 Nature and Significance of

Management
CBSE SYLLABUS
I Management — Concept, Objectives and Importance.
I Management as Science, Art and Profession.
I
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Levels of Management.
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Management Functions — Planning, Organising, Staffing, Directing and Controlling.
Coordination — Concept and Importance.
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
I Understand the concept of management.
I Explain the meaning of ‘Effectiveness and Efficiency.’
I Discuss the objectives of management.
I Describe the importance of management.
I Explain the nature of management as a science, art and profession.
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I Understand the role of top, middle and lower levels of management.

I Explain the functions of management.
I Discuss the concept and characteristics of coordination.
I Explain the importance of coordination.
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INTRODUCTION
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Management is absolutely required in all types of organisations whether they are trading
firms, manufacturing units, a football team, a family, military, educational institution,
government department, city government and even in non-business enterprises. Generally
in an organisation there are a group of people working together and contributing their
hardest efforts towards the attainment of common goals. The management has a crucial
role in helping an organisation to achieve its goals. Management is very essential wherever
group efforts are required to be directed towards certain goals. Management is pervasive in
nature and it has a universal acceptability. An organisation can’t work accurately, efficiently,
effectively and smoothly without a sound management. For example, Maruti, Tata, Infosys,
Wipro, HCL, Reliance, Pepsi, etc. are running successfully and smoothly only because of the
efforts of their managerial team. Management works as a medium through which
organisational problems can be solved. Management can rightly be called as the heart of
any organisation. It is rightly said that success of an organisation largely depends upon its
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management because of its relative importance. In the absence of proper management the
group activities are like a school without a principal. In the absence of proper management
the desired results cannot be achieved. Management consist of a series of interrelated
functions (Planning, Organising, Staffing, Directing and Controlling) that are performed by
all managers.
1.1 CONCEPT OF MANAGEMENT

Management is an activity which is necessary wherever there is a group of people working in
an organisation. People in organisations are performing diverse tasks but they are all working
towards the same goal. Management aims at guiding their efforts towards achieving a common
objective — a goal.
Thus, management has to see that tasks are completed and goals are achieved (i.e., effectiveness)
with the least amount of resources at a minimum cost (i.e., efficiency).
Management is the process of getting things done with the aim of achieving goals effectively and
efficiently.
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Definitions of Management
I “Management is the process of working with and through others to effectively achieve
organisational objectives by efficiently using limited resources in the changing
environment.” — Kreitner
I “Management is the process of designing and maintaining an environment in which
individuals working together in groups, efficiently accomplish selected aims.”
— Harold Koontz and Heinz Weihrich
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I “Management is defined as the process of planning, organising, actuating and controlling

an organisation’s operations in order to achieve coordination of human and material
resources essential in effective and efficient attainment of objectives.”
— Robert L. Trewelly and M. Gene Newport
1.2 Business Studies-12

There are certain terms in the above definition of management, which require elaboration.
These are (a) process, (b) effectively, and (c) efficiently.
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1. Process : ‘Process’ in the definition of management means the primary functions
or activities that management performs to get things done.
These functions are planning, organising, staffing, directing and controlling.
Management is described as the process of planning, organising, directing and controlling
the efforts of organisational members and of using organisational resources to achieve
specific goals.
2. Effectiveness : Being effective or doing work effectively basically means finishing the
given task. Effectiveness is concerned with doing the right task, completing
activities and achieving goals. In other words, it is concerned with end result i.e.,
finishing the given task.
3. Efficiency : It is not enough to just complete the tasks. There is another aspect also, i.e.,
being efficient or as we say doing work efficiently.
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Efficiency means doing the task correctly and with minimum cost.
There is a kind of cost-benefit analysis involved and the relationship between inputs and
outputs.
If by using less resources (i.e., the inputs) more benefits are derived (i.e., the outputs)
then efficiency has increased.
Efficiency is also increased when
for the same benefit or outputs,
fewer resources are used and less
costs are incurred. Input resources
are money, materials, equipment
and persons required to do a particular task.
Obviously, management is concerned with the efficient use of these resources, because
they reduce costs and ultimately lead to higher profits.
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Nature and Significance of Management 1.3

Effectiveness Versus Efficiency
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These two terms are different but they are interrelated. For management, it is important to be
both effective and efficient. Effectiveness and efficiency are two sides of the same coin. But
these two aspects need to be balanced.
I Management at times, has to compromise with efficiency. 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 20,000 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 20,000 units but at a higher production cost. In this case, the manager
was effective but not so efficient, since for the same output, more inputs (labour cost,
electricity costs) were used.
I At times, a business may concentrate more on
producing goods with fewer resources i.e., cutting
down cost but not achieving the target production.
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Consequently, the goods do not reach the market and
hence the demand for them declines and competitors
enter the market. This is a case of being efficient
but not effective since the goods did not reach the
market.
Therefore, it is important for management to achieve goals (effectiveness) with minimum
resources i.e., as efficiently as possible while maintaining a balance between effectiveness
and efficiency.
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KNOWLEDGE BOOSTER
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WOMAN ENTREPRENEUR EMPOWERING OTHER WOMEN THROUGH THE ART
OF CANDLE-MAKING
Smita Rai is a 38 years old entrepreneur belonging to Namchi — a small town in South
Sikkim. She is the founder of ‘Namchi Designer Candles’ which is a Corporate Social
Responsibility (CSR) initiative of NEDFI. The project involves the women of the age group
of 20 to 50 years. Some of them are homemakers while others are unmarried and engaged
with certain activities at home and in the surrounding. Initially, Smita Rai made a group of
20 girls from Namchi and underwent a training programme on candle making under the
banner of NEDFI at Namchi. After the completion of the training programme, Smita Rai
started making it big with the continuous involvement of only 12 women in the project. The
team has also set up an outlet at Namchi and has also been participating in various national
and international exhibitions and events. The Namchi Designer Candles makes varieties of
perfumed candles of different colours. They produce general long stick candles, spiral long
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stick candles, small and big square chips candles, floating candles, wedding candles, heart
candles, Diwali candles, Christmas candles, etc.
Currently, Smita Rai and her members are also engaged in making customized candles for
corporate houses. The main objective of the project is to empower women and make them
independent and self-reliant through their economic upliftment. Apart from designing and
making candles Smita Rai also runs a resto bar at Namchi named ‘Flavours Restaurant and
Mercury Bar’.
Namchi Designer Candles has been receiving number of awards like North East (NE) Women
Entrepreneur of the Year 2015-2016 for Sikkim and Sreemanta Shankar Mission of Guwahati
on April 26, 2018 at New Delhi.
EXAM ORIENTED SAMPLE QUESTION

Q. Various input resources are required by management to complete a task effectively
and efficiently. Name any two. [CBSE 2019 (1)]
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Ans. Following are the input resources required by management to complete a task
effectively and efficiently: (any two)
(i) Money. (ii) Materials. (iii) Equipment. (iv) Persons.
OBJECTIVE TYPE QUESTIONS 1.1

Multiple Choice Questions:
Choose the correct option to answer the following questions:
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1. Effectiveness is concerned with (1)

(a) Doing the task correctly and with minimum cost
(b) Doing the right task, completing activities and achieving goals

(c) Getting things done with the aim of achieving goals effectively and efficiently
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(d) None of the above
2. At times, a business may concentrate on producing goods with fewer resources but
cannot achieve the targeted production. In such a case, the business is said to be:
(a) Effective but not efficient
(b) Efficient but not effective
(c) Both effective and efficient
(d) Neither effective nor efficient [CBSE 2021 (1)]
State whether the following statements are ‘True’ or ‘False’:
3. Efficiency means doing the task correctly and with maximum cost. (1)
4. Efficiency means completing activities and achieving goals. (1)
Fill in the Blanks with appropriate words:
effectively and efficiently.
1.2 CHARACTERISTICS OF MANAGEMENT

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5. Poor management is due to both _________ and _________ .
6. Management is the _________ of getting things done with the aim of achieving goals
The important characteristics of Management are:

(1)
1. Management is a Goal Oriented Process : An organisation has a set of goals which

(1)
are the basic reason for its existence. These should be simple and clearly stated. Different
organisations have different goals, e.g., to earn 20% return on investment (ROI), to
increase sales by 10%, etc. Management unites the efforts of different individuals
in the organisation towards achieving these goals.
Examples:
(a) The goal of the Spastics Society of India is to impart education to children with
special needs.
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(b) If the target of a company is to sell 2,000 TV sets per month then manager will plan
the course of action, motivate all the employees and organise all the resources
keeping in mind the main goal of selling 2,000 TV sets per month.
2. Management is all Pervasive (means everywhere) : Managerial activities are
performed in all types of organisations, in all departments and at all levels.
Management is essential for all organisations, big or small, profit or non-profiteering,
service or manufacturing. A government, a cricket team, a hospital or a school — all
require management. The activities involved in managing a enterprise are common to
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all organisations whether economic, social or political.

3. Management is Multidimensional : Management is a complex activity which has
three main dimensions. These are: (i) Management of Work, (ii) Management of People,
and (iii) Management of Operations.

(i) Management of Work : All organisations exist for the performance of some work.
In a factory, a product is manufactured, in garment store a customer’s need is
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satisfied and in a hospital a patient is treated. Management translates this work
in terms of goals to be achieved and assigns the means to achieve it. This is
done in terms of problems to be solved, decisions to be made, plans to be established,
budgets to be prepared, responsibilities to be assigned and authority to be delegated.
(ii) Management of People : Human resources or people are an organisation’s greatest
asset. Despite all developments in the technology “getting work done through people”
is still a major task for the manager.
Managing people has two dimensions:
• Dealing with employees as
individuals with diverse
needs and behaviours; and
• Dealing with employees as
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a group of people.
The task of management is to
make people work towards
achieving the organisation’s
goals by making their strengths
effective and their weaknesses
irrelevant.
(iii) Management of Operations : Every organisation has some basic product or service
to provide in order to survive. This requires a production process of
transforming input material and the technology into the desired output
for consumption. This is interlinked with both the management of work and the
management of people.
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4. Management is a Continuous Process : Management process is a series of

continuous, composite but separate functions — planning, organising, staffing,
directing and controlling. These functions are simultaneously performed by all

managers all the time. The time spent by managers in different functions, however, is
different. Managers at the top level spend more time in planning and organising than
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managers at lower levels of the organisation.
5. Management is a Group Activity : An organisation is a collection of diverse
individuals with different needs. Every member of the group has a different purpose
for joining the organisation but as members of the organisation they work towards
fulfilling the common organisational goal. This requires team work and coordination of
individual effort in a common direction. At the same time management should enable all
its members to grow and develop as needs and opportunities change.
For example, a marketing manager cannot allow additional credit period to a customer
without consulting finance manager. Similarly, before booking an order to supply goods
on a particular date, he has to consult production manager. Thus, it is right to call
management as a group activity.
6. Management is a Dynamic Function : Management is a dynamic function and has to
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adapt itself to the changing environment. An organisation interacts with its external
environment which consists of various economic, social, legal, technological and political
factors. In order to be successful, an organisation must change itself and its goals
according to the needs of the environment. For example, McDonald’s, the fast food
giant made major changes in its menu to survive in the Indian market.
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7. Management is an Intangible/Invisible/Unseen Force : Management cannot be
seen but its presence can be felt when targets are achieved according to plans,
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employees are happy and satisfied, and there is orderliness instead of chaos.
Examples:
(a) If any company’s progress chart is declining it indicates failure of management or
in other words, mismanagement.
(b) Increasing inventory, strike by the workers, etc. are few other indicators of
mismanagement.
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DO REMEMBER
It must be noted that only the management is intangible or unseen but the people who
perform the management functions are tangible and visible.

Q. Shenoy joined a company after completing graduation in management from a reputed
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business school. During his induction training, he was informed that he would be
working in production department. The company wanted to achieve 30% increase in
output in the next quarter. His general manager, a man with decades of experience,
also said that management is a complex activity. He expected Shenoy to make
production plans, identify incentive schemes for workers to make their strengths
effective and ensure that there is no disruption due to technical glitch. Shenoy realised
very quickly that his job is a series of continuous tasks. After one month, he was
informed by the general manager that due to increase in international demand,
production targets have been raised.
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He called an urgent meeting of his supervisors and senior workers. He offered them
an opportunity to realize their potential and earn more by working overtime and in
multiple shifts. He was delighted that at the end of the quarter, he was able to meet
the targets, workers were happy and there was no chaos.

Identify and explain any four characteristics of management highlighted in the above
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case. (6)
Ans. The characteristics of management highlighted are:- (RTP-1.6)
(i) Management is a Goal Oriented Process
‘The company wanted to achieve 30% increase in output in the next quarter.’
(ii) Management is Multidimensional
‘He expected Shenoy to make production plans, identify incentive schemes for
workers to make their strengths effective and ensure that there is no disruption
due to technical glitch.’
(iii) Management is a Continuous Process
‘Shenoy realised very quickly that his job is a series of continuous tasks.’
(iv) Management is a Dynamic Fuction
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‘After one month, he was informed by the general manager that due to increase
in international demand, production targets have been raised.’
Management is an Intangible Force
‘He was delighted that at the end of the quarter, he was able to meet the targets,
workers were happy and there was no chaos.’

1. Araav has recently started a business to sell computers. He hired a shop in Nehru
Place in New Delhi, where he assembles various components to make computers and
supplies them as per order.
He performs a series of composite but separate functions simultaneously and ensures
that computers are delivered in time as per orders. These functions are performed by
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all managers at all times.

(a) Management is a continuous process
(b) Management is pervasive
(c) Management is dynamic
(d) Management is a group activity [CBSE 2020 (1)]
2. Which of the following is NOT a feature of management? (1)
(a) Management is a dynamic function
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(b) Management is single-dimensional

(c) Management is a goal-oriented process
(d) Management is all pervasive

3. Management is a ______________ process. (1)
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(a) Very easy (b) Wasteful
(c) Goal-oriented (d) None of the above
Match the following:
4. Match the columns on the basis of characteristics of management by using the given
options: (1)
Column I Column II
1. The presence of management cannot be A. Dynamic function
seen but it can be felt the way the B. Intangible force
organisation functions. C. Group activity
2. For success an organisation must change
itself according to the need of an environment.
Choose the correct option:
(a) 1-C; 2-A
(c) 1-B; 2-A
1.3 OBJECTIVES OF MANAGEMENT

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(d) 1-A; 2-B
Management seeks to achieve certain objectives which are the desired result of any activity.
They must be derived from the basic purpose of the business. In any organisation there are
different objectives and management has to achieve all objectives in an effective and efficient
manner.
Objectives can be classified into organisational objectives, social objectives and personnel
objectives.
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A. Organisational/Economic Objectives
Management is responsible for setting and achieving objectives for the organisation. It has to
achieve a variety of objectives in all areas considering the interest of all stakeholders including
shareholders, employees, customers and the government.
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. These are
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survival, profit and growth.

(a) Survival : The basic objective of any business is survival. Management must strive
to ensure the survival of the organisation. In order to survive, an organisation must
earn enough revenues to cover costs.
(b) Profit : Mere survival is not enough for business. Management has to ensure that the
organisation makes a profit. Profit provides a vital incentive for the continued successful
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operation of the enterprise. Profit is essential for covering costs and risks of the
business.
(c) Growth : A business needs to add to its prospects in the long run, for this it is
important for the business to grow. To remain in the industry, management must exploit
fully the growth potential of the organisation.
Growth of a business can be measured in terms of:
• increase in sales volume, • increase in the number of employees,
• increase in the number of products, or • the increase in capital investment, etc.
B. Social Objectives
It involves the creation of benefits for society. As a part of society, every organisation whether
it is business or non-business, has a social obligation to fulfill. This refers to consistently
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creating economic value for various constituents of society. This includes:
• using environment friendly methods of production,
• giving employment opportunities to the disadvantaged sections of society, and
• providing basic amenities like schools and creches to employees.
C. Personnel Objectives
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 like competitive salaries and perks. Social needs like peer
recognition and higher level needs like personal growth and development.
Management has to reconcile personal objectives with organisational objectives for harmony
in the organisation.
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Q. XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote village
as there was no reliable supply of electricity in rural areas. The revenue earned by the
company was sufficient to cover the costs and the risks. The demand of lanterns was
increasing day by day, so the company decided to increase production to generate
higher sales. For this they decided to employ people from the nearby villages as very
few job opportunities were available in that area. The company also decided to open
schools and creches for the children of its employees.
(a) Identify and explain the objectives of management discussed above.
(b) State any two values which the company wanted to communicate to the society.
[CBSE 2014 (4)]
Ans. (a) The objectives of management referred to are: (RTP-1.11)
(i) Organisational Objectives
(a)
(b)
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Survival
“The revenue earned by the company was sufficient to cover the
costs and the risks.”
Growth
“The demand of lanterns was increasing day by day, so the company
decided to increase production to generate higher sales.”
(ii) Social Objectives
“For this they decided to employ people from the nearby villages, as very
few job opportunities were available in that area.”
(b) Values which the company wanted to communicate to the society are:
(i) Providing employment opportunities.
(ii) Development of backward regions.
(iii) Providing education and other facilities to the family of its employees.
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(iv) Concern for the environment. (any two)

1. ‘SORT – IT Ltd.’ is a leading software development company. The company is satisfying
the diverse needs of its employees. Its employees are given competitive salaries and
perks. They have been given chance for their personal growth and development. For
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harmony in the organization management has to reconcile personal goals with

organisational objectives.

Identify the objective of management being met by ‘SORT-IT Ltd.’ [CBSE 2021 (1)]
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(a) Social (b) Personnel
(c) Organisational (d) Both Social and Personnel
2. The objective of management which consistently creates economic value for various
constituents of society is:
(A) Organisational objective
(B) Social objective
(C) Personnel objective
(D) Both Social and Personnel objective [CBSE 2020 (1)]
3. Profit is essential for covering cost and risk of the business. Which management
objective is discussed here? (1)
(a) Social objective
(c) Personel objective

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(b) Organisational objective
4. Sachin the director of Apex Ltd. is engaged in manufacturing furniture. He decided to

keep one-third seats reserved for specially disadvantaged section of society.
Which objective of management is discussed here?
(a) Individual objective
(1)
(b) Social objective

(c) Organisational objective
(d) Personnel objective
Fill in the Blank with appropriate word:
5. In order to survive an organisation must earn enough revenues to cover ______ . (1)
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1.4 IMPORTANCE OF MANAGEMENT

Management is gaining importance day-by-day due to the following reasons:
1. Management helps in Achieving Group Goals : Management is required not for
itself but 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.
2. 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.
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For example, the purchase manager of a leading book shop maintains stock on continuous
basis. It helps him to place orders well in advance, thus avoid facing the situation of
stock shortage. This way he is able to save on delivery cost and maintain his stock levels.
He is always ready to fulfill customer’s need well in time.

3. Management Creates a Dynamic Organisation : All organisations have to function
in an environment which is constantly changing. It is generally seen that individuals in
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an organisation resist change as it often means moving from a familiar, secure
environment into a newer and more challenging one. Management helps people adapt to
these changes so that the organisation is able to maintain its competitive edge.
4. Management Helps in Achieving Personal Objectives : A manager motivates and
leads his team in such a manner that individual members are able to achieve personal
goals while contributing to the overall organisational objective. Through motivation and
leadership, management helps individuals to develop team spirit, coorperation and
commitment to group success.
5. Management Helps in the Development of Society : Management helps in the
development of the society by:
• providing good quality products and services,
• creating employment opportunities,
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• adopting new technology for the greater good of the people, and
• leading the path towards growth and development.
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Q. Lakshay Wadhwa works as the Cost and Risk Management head of a company in
power sector. As a result of his excellent managerial competence, the company is able
to reduce costs and increase productivity. The company belongs to infrastructure sector
wherein regular amendments are made in the government regulations and policies.
He holds regular meetings to ensure that people in his department not only aware of
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the related changes but also able to adopt to these changes effectively. This helps the
company to maintain its competitive edge. He motivates and leads his team in such a
manner that individual members are able to achieve personal goals while contributing
to the overall organisational objectives. In the process of fulfilling his duties for the

growth of the organisation, he helps in providing competitive services, adopting new
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technology, creating more employment opportunities, etc. for the greater good of the
people at large.
Identify the various reasons highlighted above by quoting the lines that have made
management so important. (6)
Ans. Following are the reasons that have made management so important:
(i) Management Increases Efficiency
‘As a result of his excellent managerial competence the company is able to reduce
costs and increase productivity.’
(ii) Management Creates a Dynamic Organisation
‘He holds regular meetings to ensure that people in his department are not only
aware of the related changes but also able to adopt to these changes effectively.’
(iii) Management Helps in Achieving Personal Objectives
‘He motivates and leads his team in such a manner that individual members are
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able to achieve personal goals while contributing to the overall organisational
objectives.’
(iv) Management Helps in the Development of Society
‘In the process of fulfilling his duties for the growth of the organisation, he helps
in providing competitive services, adopting new technology, creating more
employment opportunities, etc. for the greater good of the people at large.’

Multiple Choice Question:
Choose the correct option to answer the following question:
1. ‘The management gives a common direction to the individual effort in achieving the
overall goal of the organization.’
Which point of importance of management is highlighted in this statement?
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(a) Helps in achieving personal objectives.

(b) Helps in achieving group goals.
(c) Helps to increase efficiency.
(d) Helps to create a dynamic organisation. [CBSE 2021 (1)]
State whether the following statement is ‘True’ or ‘False’:
2. Management resist the people to adapt the changes in competitive world. (1)
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3. Match the columns on the basis of ‘Importance of Management’ by using the given
options: (1)
Column-I Column-II
1. Development of society (i) The task of manager is to reduce the cost

2. Increases efficiency and to increase the productivity.
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(ii) Job of the manager is to give common
direction to individual efforts.
(iii) Helps to provide quality production and
creates employment opportunities.
Choose the correct option :
(a) 1-(iii), 2-(i); (b) 1-(ii), 2-(iii); (c) 1-(ii), 2-(i); (d) 1-(iii), 2-(ii)
1.5 NATURE OF MANAGEMENT

The management history often gives very confusing and conflicting views on the nature of
management. Different management thinkers have different views. Some authors describe
management as a science because there are well tested and experimented principles of
management. On the other hand, some authors regard management as an art because more
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practice is needed in management. In addition some practitioners consider that management
is going towards the way of being considered as a profession. In order to determine whether
management is a science, art or profession, we must understand the meaning and features of
science, art and profession and compare them with meaning and features of management.
1.5.1 Management as a Science

Science is a systematised body of knowledge that explains certain truths or the
operation of general laws.
The basic features of science are as follows:
1. Systematised Body of Knowledge : Science is a systematised body of knowledge. Its
principles are based on a cause and effect relationship. For example, the phenomenon
of an apple following from a tree towards the ground is explained by the law of gravity.
2. Principles Based on Experimentation : Scientific principles are first developed
through observation and then tested through repeated experimentation under controlled
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conditions.
3. Universal Validity : Scientific principles have universal validity and application.
Based on the above features, we can say that management is a science but not an exact science
or a social science. It is neither as precise nor as comprehensive as the pure science like Physics
or Chemistry. The following points clearly prove this:
1. Systematised Body of Knowledge : Like science, management is a systematic body of
knowledge with its own theory, vocabulary of terms, concepts and principles that have
developed over a period of time.
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So, this feature of science is present in management.

2. Principles Based on Observation and Experimentation : Like science, the principles
of management are derived over a period of time through observation and repeated
experimentation. However, since management deals with human beings and human

behaviour, the outcomes of those experiments are not capable of being accurately
predicted. Therefore, management can be called an inexact science.
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So, this feature of science is not fully present in management.
3. Universal Validity : The principles of management provide managers with certain
standardised technique that can be used in different situations. These principles are
also used for training and development of managers.
However, the principles of management are not as exact as the principles of science.
Their application and use is not universal. They have to be modified according to a given
situation.
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1.5.2 Management as an Art
Art is the skillful and personal application of existing knowledge to achieve desired
results. It can be acquired through study, observation and experience.
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A goldsmith shaping gold into ornaments, a carpenter making furniture out of wood, music,
acting, dancing, painting, etc. are examples of art.
The basic features of an art are as follows:
1. Existence of Theoretical Knowledge : Any art (literature and dancing, public speaking,
acting or music) presupposes the existence of certain theoretical knowledge.
2. Personalised Application : The use of this basic knowledge varies from individual to
individual. Art is, therefore, a personalised concept. For example, two dancers, two
speakers, or two writers will always differ in demonstrating their art.
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3. Based an Practice and Creativity : All art is practical. Art involves creative practice
of existing theoretical knowledge. Since art is concerned with personal application of
knowledge some kind of creativity is required to practice the basic principles learn. For
example, a musician makes a unique composition based on seven basic notes.

Management can be said to be an art since it satisfies the following criteria :
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1. Existence of Theoretical Knowledge : As in art, in management two, there is a lot of
literature available in various areas of management (like finance, marketing, human
resource, etc.) which the manager has to specialise in. A successful manager practices
the art of management in the day-to-day job of managing an enterprise based on study,
observation and experience.
2. Personalised Application : Like in any art, in management too, a manager applies his
acquired knowledge in a personalised and unique manner. He is involved in the activities
of the organisation, studies critical situations and formulates his own theories for use in
a given situation. This gives rise to different
styles of management.
3. Based on Practice and Creativity :
Management satisfies this criteria as
manager gains experience and achieves
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perfection after long practice. A good manager
works through a combination of practice,
creativity, imagination, initiative and
innovation.
Conclusion : On comparing the characteristics of art with management we find that all
the characteristics of art are present in management. Hence, we call management as an
art of getting things done through people.
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1.5.3 Management as a Profession

A profession has the following characteristics :
1. Well-Defined Body of Knowledge : All professions are based on a well-defined body of
knowledge that can be acquired through instruction.
2. Restricted Entry : The entry to a profession is restricted through an examination or
through acquiring an educational degree. For example, to become a chartered accountant
in India a candidate has to clear a specified examination conducted by the Institute of
Chartered Accountants of India.
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3. Professional Association : All professions are affiliated to a professional association

which regulates entry, grants certificate of practice and formulates and enforces a code
of conduct. To be able to practice in India lawyers have to become members of the Bar
Council of India which regulates and controls their activities.

4. Ethical Code of Conduct : All professions are bound by a code of conduct which guides
the behaviour of its members. All doctors, for example take the oath of ethical practice
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at the time they enter the profession.
5. Service Motive : The basic motive of a profession is to serve their client’s interests by
rendering dedicated and committed service. The task of a lawyer is to ensure that his
client gets justice.
Management is a profession but not a full fledged profession like legal, accounting or medical
profession since it does not meet the exact criteria of a true profession.
The following points clearly prove this :
1. Well-Defined Body of Knowledge : Like a profession, management too is based on a
systematic body of knowledge comprising well-defined principles. This knowledge can
be acquired at different colleges and professional institutes and through a number of
books and journals.
The subject of management is taught at different institutions such as the Indian Institutes
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of Management (IIMs) to provide management education.
So, this feature of profession is present in management.
2. Restricted Entry : Entry to management institutes such as the Indian Institutes of
Management (IIMs) is usually through an examination.
However, there is no restriction on anyone being designated or appointed as manager in
any business enterprise. Anyone can be called a manager irrespective of the educational
qualifications possessed.
Unlike professions such as medicine or law which require a practicing doctor or lawyers
to possess valid degrees, nowhere in the world is it mandatory for a manager to possess
any such specific degree. But professional knowledge and training is considered to be a
desirable qualification, since there is greater demand for those who possess degrees or
diplomas from reputed institutions.
So, presently this feature of profession is not present in management.
3. Professional Association : There are several associations of practicing managers in
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India, like All India Management Association (AIMA) that has laid down a code of conduct
to regulate the activities of their members. There is, however, no compulsion for managers
to be members of such an association.
4. Ethical Code of Conduct : AIMA has devised a code of conduct for Indian managers
but there is no statutory backing for this code.
5. Service Motive : The basic purpose of management is to help the organisation achieve
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its goals by providing good quality products at reasonable prices, thereby serving the
society is being increasingly recognised.
So, presently this feature of profession is not fully present in management.

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Q. 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
Ans.
(i)
(ii)
(i)
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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.
An aspect of the nature of management is being highlighted in the above
description. Identify the aspect.
Explain any three features of the aspect identified in part (i). [CBSE 2017 (4)]
Management is an art. (ii) (RTP-1.18)

1. Which of the following features of a profession is fully satisfied by Management?
(a) Service motive (b) Well defined body of knowledge
(c) Restricted entry (d) Ethical code of conduct
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[CBSE 2021 (1)]

2. Ram Murty, a Professor of Management conducted a class on ‘Management principles’
and explained to his students the significance of Management Principles. In the next
class, the Professor asked his students to play roles of different managers. He gave
them various situations and asked them to think like managers and provide solutions
to the problems given in these situations. Each student applied the principles of
management to the given situation in his own personalized manner, depending upon
his creativity.
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The nature of management highlighted in the above case is:

(a) Management as a Science
(b) Management as an Art

(c) Management both as an Art and as a Science
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(d) Management as a Profession [CBSE 2021 (1)]
3. Which of the following proves that management is not an exact science? (1)
(a) Management has its own theory and principles that have developed over a period
of time, but it also draws on other disciplines such as Economic, Sociology,
Psychology and Mathematics. Like all other organised activity, management has
its own vocabulary of terms and concepts.
(b) Since management deals with human beings and human behaviour, the outcomes
of these experiments are not capable of being accurately predicted or replicated.
(c) The application and use of principles of management is not universal. They have
to be modified according to a given situation.
(d) Both (b) and (c)
4. In order to enter into profession one has to acquire an educational degree by
(a) Restricted entry AL

clearing specified examination conducted by registered institutes. Which feature
of profession is being revealed?
(c) Professional association

(b) Ethical code of conduct
(1)
(d) Well defined body of knowledge

5. The style of singing of Arijit Singh and Guru Randhawa are different to each other,
however they acquired some knowledge of ragas. Identify the feature of art
discussed above. (1)
(a) Based on practice and creativity (b) Universal validity
(c) Existence of theoretical knowledge (d) Personalised application
6. Scientific principles are developed through _________ and _________ . (1)
7. All professions are based on _________ of knowledge. (1)
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1.6 LEVELS OF MANAGEMENT

Management is a universal term used for certain functions performed by individuals in an
enterprise who are bound together in a hierarchy of relationships. Every individual in the
organisational hierarchy is responsible for successful completion of a particular task. To be
able to fulfill that responsibility he is assigned authority or the right to take decisions. This
authority-responsibility relationship binds individuals as superiors and subordinates. It gives
rise to different levels of management in an organisation.
Generally speaking there are three levels in the hierarchy of an organisation :
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A. Top Management
B. Middle Management
C. Supervisory or Operational Management

A. Top Management
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Top management consists of the senior most executives of the organisation. For example,
• Chief Operating Officer • Chief Executive Officer (CEO)
• Chief Marketing Officer (CMO) • Chief Financial Officer (CFO)
• Managing Director • Chairman
• President • Vice-President
Top management is a team consisting of managers from different functional levels, heading
finance, marketing, etc. For example, chief finance officer, vice president (marketing), etc.
Functions
1. Their basic task is to integrate diverse elements and coordinate the activities of different
departments according to the overall objectives of the organisation.
2. These top level managers are responsible for the welfare and survival of the organisation.
3. They analyse the business environment and its implications for the survival of the firm.
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4. They formulate overall organisational goals and strategies for their achievement.
5. They are responsible for all the activities of the business and for its impact on society.
Thus, the job of the top management is complex and stressful, demanding long-hours and
commitment to the organisation.
B. Middle Management
Middle management is the link between top and lower level managers. They are subordinates
to top managers and superior to first line managers. Middle management is responsible for
implementing and controlling plans and strategies developed by top management. At the same
time they are responsible for all the activities of first line managers.
Middle management consists of divisional/departmental heads.
• Human Resource (HR) Manager • Production Manager
• Marketing Manager • Finance Manager
• •
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Operations Manager Plant Superintendent

• Regional Manager • Divisional Manager
Functions
The main task of middle management is to carry out the plans formulated by the top managers.
Their main functions are :
1. To interpret the policies framed by top management.
2. To ensure that their department has the necessary personnel.
3. To assign necessary duties and responsibilities to the employees of their respective
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departments for implementation of the plan.

4. To motivate employees of their respective departments for higher productivity to achieve
the desired objectives.
5. To cooperate with other departments for smooth functioning of the organisation.
C. Supervisory or Operational Management
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Foremen and supervisors comprise the lower level in the hierarchy of the organisation. Their
authority and responsibility is limited according to the plans drawn by the top management.
Functions
1. Supervisors directly oversee the efforts of the workforce. Their authority and responsibility
is limited according to the plans drawn by the top management.
2. Supervisory management interact with the actual workforce and pass on instructions of
the middle management to the workers.
3. Through their efforts quality of output is maintained and wastage of materials is
minimised.
4. They ensure that safety standards are maintained.
The quality of workmanship and the quantity of output depends on the hard work, discipline
and loyalty of the workers.

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Q. Das is the Managing Director of ‘Gamut Ltd.’, manufacturing different varieties of
cheese. He has an efficient team working under him consisting of Rajat – 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. [CBSE 2019 (1)]
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Ans. The team is working at middle level and the function the team may perform other
than those mentioned is : Co-operate with other departments for smooth functioning
of the organisation.

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1. Which level of management is responsible for coordinating the activities of different

departments according to overall objectives of the organization? [CBSE 2021 (1)]
(a) Top level (b) Middle level
(c) Supervisory level (d) Both middle and supervisory level

2. Which level of management is responsible for the welfare and survival of an
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organisation? (1)
(a) Middle level (b) Supervisory level
(c) Operational level (d) Top level
3. Production Manager and Plant Superintendent are part of : (1)
(a) Top level management (b) Middle level management
(c) Lower level management (d) None of the above
4. Mr. Top the Managing Director of Alag Ltd. appointed Production manager
Mr. Produce who was assisted by Mr. Ustad who was to take care of ensuring the
proper and safe working conditions for workers. Where will Mr. Ustad be placed in the
management hierarchy? (1)
(a) Middle level (b) Top level
(c) Operational level (d) All level
options:
Column-I
1. They interact with the
actual workforce.
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5. Match the columns by identifying the levels of management by using the given
2. Responsible for all the activities

Column-II
A. Top level management
(1)
B. Middle level management.

C. Operational level management
of business and its impact on society.
1 2
(a) B C
(b) C A
(c) B A
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(d) C B
1.7 FUNCTIONS OF MANAGEMENT

Management consists of a series of continuous, but interrelated and inter-dependent functions,
that are performed by all managers. These functions are planning, organising, staffing, directing
and controlling.
1. Planning : 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
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them efficiently and effectively.

Planning is defined as setting objectives for a given time period, formulating
various courses of action to achieve them, and then selecting the best possible
alternative from among the various courses of action available.

It must be noted that planning cannot prevent problems, but it can predict them and
prepare contingency plans to deal with them if and when they occur.
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2. Organising : Organising is the management function of assigning duties,
grouping tasks, establishing authority and allocating resources required to carry
out a specific plan.
I Once a specific plan has been established for the accomplishment of an organisational
goal, the organising function examines the activities and resources required to
implement the plan. It determines what activities and resources are required. It
decides who will do a particular task, where it will be done, and when it will be
done.
I Organising involves the grouping of the required tasks into manageable departments
or work units and the establishment of authority and reporting relationships within
the organisational hierarchy.
3. Staffing : Staffing simply means— “finding the right people for the right job”.
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Staffing function of management is concerned with obtaining, utilising and maintaining
a satisfactory and satisfied workforce.
A very important aspect of management is to make sure that the right people with the
right qualifications are 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, selection, placement and training of personnel.
4. Directing : Directing involves leading, influencing and motivating employees to
perform the tasks assigned to them. This requires establishing an atmosphere that
encourages employees to do their best.
Directing has four elements—(i) Motivation (ii) Leadership (iii) Communication and (iv)
Supervision.
Motivation and leadership are two key components of direction.
I Motivating workers means simply creating an environment that makes them want
to work.
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I Leadership is influencing others to do what the leader wants them to do. A good
manager directs through praise and criticism in such a way that it brings out the
best in the employee.
Directing also involves communicating
effectively as well as supervising employees
at work.
5. Controlling : Controlling is the
management function of monitoring
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organisational performance towards the

attainment of organisational goals.
The task of controlling involves establishing
standards of performance, measuring current
performance, comparing this with established standards and taking corrective action
where any deviation is found. Here management must determine what activities and
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outputs are critical to success, how and where they can be measured and who should
have the authority to take corrective action.

Q. Payal is the branch manager of United Handicrafts Pvt. Ltd. The company’s objective
is to promote the sales of Indian handloom and handicraft products. It sells fabric,
furnishings, readymades and household items are made out of traditional Indian
fabrics. Payal decides quantities, variety, colour and texture of all the above items
and then allocates resources for their purchase from different suppliers. She appoints
a team of designers and crafts people in the company, who developed some prints for
bed covers in bright colours on silk. Although they looked very impressive, they where
more expensive than they had planned to sell. Average customer could not afford to
buy it. Praising their effort, Payal suggested that they should keep the silk bed covers
Ans. (i)
(ii)
Planning
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for special occasions like Diwali and Christmas and offer the cotton bed covers on a
regular basis to keep costs under control.
Identify the functions of management which Payal performs by quoting the lines from
the above case. (5)
‘Payal decides quantities, variety, colour and texture of all the above items ...’
Organising
‘... allocates resources for their purchase from different suppliers.’
(iii) Staffing
‘She appoints a team of designers and crafts people in the company ...’
(iv) Directing
‘Praising their effort, Payal suggested that they should keep the silk bed covers
for special occasions like Diwali and Christmas ...’
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(v) Controlling
‘... offer the cotton bed covers on a regular basis to keep costs under control.’
‘... they were more expensive than they had planned to sell.’

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1. “It involves leading, influencing and motivating the employees to perform the assigned
task,” highlighted one of the functions of management. Identify. (1)
(a) Staffing (b) Planning
(c) Directing (d) Controlling

2. “Deciding in advance what is to be done and who is to do it” highlighted one of the
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functions of management. Identify it. (1)
(a) Organising (b) Planning
(c) Directing (d) Controlling
3. Match the columns by identifying the management functions: (1)
Column-I Column-II
1. It bridges the gap between where A. Directing
we are and where we want to be. B. Planning
2. Process of assigning the duties, C. Organising
grouping tasks, establishing
authority and allocating resources.
Choose the correct option
(a) 1–B; 2-A
(c) 1-B; 2-C
1.8 COORDINATION
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(d) 1-A; 2-C
The process by which a manager synchronises the activities of different departments

is known as coordination.
Coordination is the force that binds all the other functions of management. It is the common
thread that runs through all activities such as purchase, production, sales, and finance to
ensure continuity in the working of the organisation.
It is through the process of coordination that a manager ensures the orderly arrangement of
individual and group efforts to ensure unity of action in the realisation of common objectives.
Coordination therefore involves synchronisation of the different actions or efforts of the various
units of an organisation. This provides the requisite amount, quality, timing and sequence
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of efforts which ensures that planned objectives are achieved with a minimum of conflict.
Coordination is important as it integrates the efforts of individuals, departments and specialists.
The primary reason for coordination is that departments and individuals in the organisation
are interdependent, i.e. they depend on each other for information and resources to perform
their respective activities. Thus, managers need to reconcile differences in approach, timing,
effort or interest. At the same time, there is a need to harmonise individual goals and
organisational goals.
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Definitions of Coordination
·I “Coordination is the process whereby an executive develops an orderly pattern of group
efforts among his subordinates and secures unity of action in the pursuit of common
purpose.” —Dalton E.McFarland

·I “Coordination is balancing and keeping together the team by ensuring a suitable
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allocation of tasks to the various members, and seeing that the tasks are performed
with due harmony among the members themselves.” —E.F.L. Brech
·I “Coordination is the orderly synchronisation of the efforts of the subordinates to provide
the proper amount, timing and quality of execution so that unified efforts lead to the
stated objective, namely, the common purpose of enterprise.” —Theo Haimann
Coordination – The Essence of Management

Coordination is sometimes considered a separate function of management. It is however, the
essence of management, for achieving harmony among individual efforts towards the
accomplishment of group goals. Each managerial function is an exercise contributing individually
to coordination. Coordination is implicit and inherent in all functions of an organisation.
I The process of coordinating the activities of an organisation begins at the planning
stage itself. Top management plans for the entire organisation.
I
I
of organising process.
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According to these plans the organisational structure is developed, which is the outcome
The staffing function is performed to fill the roles designed in the organisational structure.
In order to ensure that these plans are executed according to plans, directing is required.
Any discrepancies/deviations between actual and standard performance are taken care
of at the stage of controlling.
Thus, coordination is not a separate function of management, but its very essence. For an
organisation to effectively and efficiently achieve its objectives coordination is required. Like a
thread in a garland, coordination is a part of all management functions.
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1.8.1 Characteristics/Nature of Coordination

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The main characteristics of coordination are as follows:

1. Coordination Integrates Group Efforts : Coordination unifies unrelated or diverse
interests into purposeful work activity. It gives a common focus to group effort to ensure
that performance is as it was planned and scheduled.
2. Coordination Ensures Unity of Action : The purpose of coordination is to secure
unity of action in the realisation of a common purpose. It acts as the binding force between
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departments and ensures that all action is aimed at achieving the goals of the organisation.
3. Coordination is a Continuous Process : Coordination is not a one-time function but
a continuous process. It begins at the planning stage and continues till controlling.
4. Coordination is a Pervasive Function : Coordination is required at all levels of
management due to the interdependent nature of activities of various departments. It
integrates the efforts of different departments and different levels.
5. Coordination is the Responsibility of All Managers : Coordination is the function
of every manager in the organisation.
I Top level managers need to coordinate with their subordinates to ensure that the
overall policies of the organisation are duly carried out.
I Middle level management coordinates with both the top level and first line managers.
Operational level management coordinates the activities of its workers to ensure
I
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that work proceeds according to plans.
6. Coordination is a Deliberate Function : A
manager has to coordinate the efforts of different
people in the conscious and deliberate manner.
Even where members of a department willingly
cooperate and work, coordination gives a direction
to that willing spirit.
1.8.2 Importance of Coordination

Coordination is important as it integrates the efforts of individuals, departments and specialists.
The primary reason for coordination is that individuals and departments in an organisation
are interdependent, i.e., they depend on each other for information and resources to perform
their respective activities. Therefore, managers need to reconcile differences in approach, timing,
effort or interest. At the same time, there is a need to harmonise individual goals and
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The need for coordination arises because of the following reasons :
1. Growth in Size : As organisations grow in size, the number of people employed by the
organisation also increases. At times, it may become difficult to integrate their efforts
and activities. All individuals differ in their habits of work, background, approaches to
situations and relationships with others.
It becomes necessary to ensure that all individuals work towards the common goals of
the organisation. But employees may have their own individual goals also. Therefore,
for organisational efficiency, it is important to harmonise individual goals and
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organisational goals through coordination.

2. Functional Differentiation : Functions of an organisation are divided into departments,
divisions and sections. In an organisation there may be separate departments of finance,
production, marketing or human resources. All these departments may have their own

objectives, policies and their own style of working. For example, the marketing
department’s objective may be to increase sales by 10 per cent by offering discounts. But
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the finance department may not approve of such discounts as it means loss of revenue.
These kinds of conflict arise in organisations because each unit/department is performing
activities in isolation from others and barriers between departments are becoming more
rigid. However, all departments and individuals are interdependent and they have to
depend on each other for information to perform their activities. The activity of each
department needs to be focused on attainment of common organisational goals. The
process of linking the activities of various departments is accomplished by coordination.
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3. Specialisation : Modern organisations are characterised by a high degree of
specialisation. Specialisation arises out of the complexities of modern technology and
the diversity of tasks to be performed. Organisations, therefore, need to employ a number
of specialists. 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
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from others in matters pertaining to their area of specialisation. This often leads to
conflict amongst different specialists as well as others in the organisation. Therefore,
some coordination is required by an independent person to reconcile the differences in
approach, interest or opinion of the specialists.
Q. Shenoy Ltd. is a company which provides car services at home and on road. There are
different departments in this company like Production, Marketing, Finance and Human
Resource. The top management of the company tries its level best to synchronise the
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activities of different departments in the best possible manner. The result is the
increased efficiency and achievement of organisational goals. However, with the passing
of time the size of the company has grown and now there are many branches of this
company. The synchronisation has turned more important with the increase in the

size of the company and the number of employees. The departmental heads of the
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company are specialists in their respective fields and the top management tries to
work with them by respecting their views on the subject. Their ego clashes are avoided
to ensure smooth functioning of the organisation.
(i) Identify the concept of management highlighted in the above para.
(ii) Also, explain any two points of importance of this concept highlighted in the
above para and quote the lines which help in their identification. (6)
Ans. (i) Coordination.
(ii) (a) Functional Differentiaton. (RTP-1.30)
‘There are different departments in this company like Production,
Marketing, Finance and Human Resource. The top management of the
company tries its level best to synchronise the activities of different
departments in the best possible manner.’
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(b) Growth is Size. (RTP-1.30)
‘However, with the passing of time the size of the company has grown and
now there are many branches in this company.’
(c) Specialisation. (RTP-1.31)
‘The departmental heads of the company are specialists in their respective
fields and the top management tries to work with them by respecting their
views on the subject.’

1. ‘It acts as the binding force between departments and ensures that all action are aimed
at achieving the goals of the organization.’ The statement highlights the following
characteristic of co-ordination:
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(a) Co-ordination is an all pervasive functions.

(b) Co-ordination is the responsibility of all managers.
(c) Co-ordination is a continuous process.
(d) Co-ordination ensures unity of action. [CBSE 2021 (1)]
2. The force that binds all other functions of management is called (1)
(a) Controlling (b) Cooperation
(c) Coordination (d) Planning
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3. Coordination act as a _________ force between various departments to ensure unity of

action. (1)
4. Coordination is called the _________ of management. (1)

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Management is the process of getting things done with the aim of achieving goals effectively and efficiently.
Characteristics of Management
1. Management is a goal oriented process. 2. Management is all pervasive.
3. Management is multidimensional. 4. Management is a continuous process.
5. Management is a group activity. 6. Management is a dynamic function.
7. Management is an intangible force.
Objectives of Management
1. Organisational objectives - Survival, Profit and Growth.
2. Social objectives.
3. Personnel objectives.
Importance of Management
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1. Management helps in achieving group goals.
2. Management increases efficiency.
3. Management creates a dynamic organisation.
4. Management helps in achieving personal objectives.
5. Management helps in the development of society.
Nature of Management
1. Management as an Art:
(i) Existence of theoretical knowledge. (ii) Personalised application.
(iii) Based on practice and creativity.
2. Management as a Science:
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(i) Systematised body of knowledge.

(ii) Principle based on observation and experimentation.
(iii) Universal validity.
3. Management as a Profession:
(i) Well defined body of knowledge. (ii) Restricted entry.
(iii) Professional association. (iv) Ethical code of conduct.
(v) Service motive.
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Levels of Management
1. Top management. 2. Middle management.
3. Supervisory/operational management.

Functions of Management
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1. Planning. 2. Organising. 3. Staffing.
4. Directing. 5. Controlling.
Coordination
The process by which a manager synchronises the activities of different departments is called coordination.
Characteristics/Features of Coordination
1. Coordination integrates group efforts. 2. Coordination ensures unity of action.
3. Coordination is a continuous process. 4. Coordination is an all pervasive function.
5. Coordination is the responsibility of all managers.
6. Coordination is a deliberate function.
Importance of Coordination
1. Growth in size.
3. Specialisation.
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OBJECTIVE TYPE QUESTIONS
2. Functional differentiation.
I. Multiple Choice Questions (MCQs)

✓ ) the correct answer
Tick (✓
1. Superintendent belongs to
(a) Operational management (b) Middle management
(c) Top management (d) None of these
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2. Management aim at achieving

(a) Efficiency (b) Effectiveness
(c) Both (a) and (b) (d) None of these
3. Top management consists of
(a) CEO (b) Board of Directors
(c) Departmental heads (d) Both (a) & (b)
4. Efficiency means
(a) Doing the task with minimum cost
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(b) Deriving more benefits by using less resources

(c) Doing the task correctly
(d) All of the above

5. Which of the following is the function performed by operational level of management?
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(a) Looking to safety of workers
(b) Representing the problems of workers before the middle level management
(c) To ensure quality standards are properly followed
(d) All of these
6. Management is essential for successful running of an enterprise. How?
(a) Management helps in achieving group goals
(b) Management creates a dynamic organisation
(c) Management helps in the development of society
(d) All of these
7. Effectiveness is concerned with
(a) Doing the task correctly with minimum cost
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(b) Doing the right task, completing activities and achieving goals
(c) Getting thing done with the aim of achieving goals effectively and efficiently
8. Management is considered as art due to
(a) Personalised application
(b) Based on practice and creativity
(c) Existence of theoretical knowledge
(d) All of the above
9. Coordination is the essence of management because
(a) Coordination is a part of planning function of management
(b) Coordination is a part of staffing function of management
(c) Coordination is a part of controlling function of management
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(d) Coordination is a part of all functions of management

10. Identify the missing functions of management
Planning Organising ? Directing ?
II. Assertion-Reason Based Multiple Choice Questions (MCQs)

Given below are two statements (in each question), one marked as Assertion (A) and other marked as
Reason (R). Read both the statements and choose one of the correct alternatives in each question.
1. Assertion (A) : Successful organisation need not follow a deliberate process, called management, to
achieve its goals.
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Reason (R) : In order to be successful, an organisation must change itself and its goals according to the
needs of the environment.

Alternatives:
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(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of
Assertion (A)
(c) Only Reason (R) is incorrect
(d) Assertion (A) is incorrect but Reason (R) is correct
2. Assertion (A) : Management is considered as a tangible force.
Reason (R) : Management cannot be seen and touched but its presence can be felt.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are True but Reason (R) is not the correct explanation of
Assertion (A)
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(c) Assertion (A) is correct but Reason (R) is incorrect
3. Assertion (A) : Management translates the work in terms of goals to be achieved and assigns the
means to achieve it.
Reason (R) : All organisations exist for the performance of some work.
Alternatives:
Assertion (A)
Assertion (A)
(c) Only Assertion (A) is correct
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4. Assertion (A) : Management is termed as a group activity.

Reason (R) : Every member of a firm joins the organisation with a different purpose and work towards
achievement of personal goals and not organisational goals.
Alternatives:
Assertion (A)
G.
Assertion (A)
(c) Assertion (A) is True but Reason (R) is False
(d) Assertion (A) is False but Reason (R) is True

5. Assertion (A) : Coordination is a one-time function of the top management.
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Reason (R) : Coordination begins at the planning stage and continues till controlling.
Alternatives:
Assertion (A)
Assertion (A)
6. Assertion (A) : Coordination is not a separate function of management.
Reason (R) : Like a thread in a garland, coordination is a part of management functions.
Alternatives:
Assertion (A)
Assertion (A)
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(d) Assertion (A) is incorrect but Reason (R) is correct.
7. Assertion (A) : Coordination is a deliberate function.
Reason (R) : A manager has to coordinate the efforts of different people in a conscious and deliberate
manner.
Alternatives:
Assertion (A)
Assertion (A)
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8. Assertion (A) : Coordination ensures unity of action.
Reason (R) : It is a common focus to the efforts of people with diverse interests.
Alternatives:
Assertion (A)
G.
Assertion (A)
(c) Assertion (A) is True but Reason (R) is False
(d) Assertion (A) is False but Reason (R) is True
9. Assertion (A) : Every manager has his/her own unique style of managing things and people, despite
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learning same management theories annd principles.
Reason (R) : Just like Art, management is based on practice and creativity.
Alternatives:
Assertion (A)
Assertion (A)
10. Assertion (A) : Management creates a dynamic organisation.
Reason (R) : It is generally seen that individuals in an organisation readily accept changes and face
challenges.
Alternatives:
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(a) Both Assertion (A) and Reason (R) are incorrect
(b) Both Assertion (A) and Reason (R) are correct
(c) Only Assertion (A) is incorrect
(d) Assertion (A) is correct but Reason (R) is incorrect
III. Case Based Multiple Choice Questions (MCQs)

CASE STUDY-1
Read the following text and answer questions on the basis of the same:
Vandana and Shalini are good friends, considering the fact that the activities involved in managing an enterprise
are common to all organizations, after completing their master’s in business management, both of them take
up a job at managerial level in different organisations as per their individual areas of interest. Vandana joined
as a marketing manager in a company selling Ladies handbag, she added new product lines in the business viz.
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Ladies shoes and cosmetics. Shalini joins an NGO and works diligently to realize its objective by providing
employment to especially abled persons.
Both Vandana and Shalini make conscious efforts to build team spirit and coordination among diverse individuals.
They motivate their employees in such a manner that individual members are able to achieve personal goals
while contributing to the overall organisational objective.
1. Which feature of management is highlighed in above para?
(a) Management is dynamic (b) Management is pervasive
(c) Management is a continuous process (d) Management is a continuous activity
G.
2. Which objective of management is pursued by Vandana by adding new product lines in the business?
(a) Organisational objectives (b) Social objectives
(c) Personnel objectives (d) None of these

3. Which objective of management is pursued by Shalini by providing employment opportunities to
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especially abled persons?
(c) Personnel objectives (d) Both (a) and (b)
4. “They motivate their employees in such a manner that individual members are able to achieve personal
goals while contributing to the overall organisational objective.”
Which importance of management is highlighted here?
(a) Management helps in achieving group goals
(b) Management helps in development of society
(c) Management helps in achieving personal objectives
(d) Management increases efficiency
5. “Both of them gained experience over a period of time and became more effective.”
(a) Management as Profession

(c) Management as an Art
CASE STUDY-2
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Identify the nature of management highlighted in this line.
(b) Management as Science
Spark Ltd. is a company operating on a large scale. The company realizes that human resources are the most
important assets of their business, So HRM Department is set up to show a developmental path to the
employees through proper training modules and job enrichment. Time to time incentives and awards are
given to employees based on their performance, which keeps the employees highly motivated. Sagar, just a
graduate in humanities is appointed as the Plant Superintendent in the company. Sagar knew that there are
certain theories and principles of management based on deep observation and experimentation. So, he
studied various theories and principles of management before joining the company. Sagar is very energetic
and he likes to deal with severe situations. On November 20th, he informed his boss that the goal he had
been given had been achieved and the quality was the highest. The best part is the there is one day left for the
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deadline, which is November 21. However, his boss was dissatisfied because the expenses incurred by his
team to complete the project exceeded the upper limit.
1. Which objective of management is pursued by management of Spark Ltd.?
(c) Personnel objectives (d) None of these
2. Identify the feature of profession which is not applicable here, “Sagar, just a graduate in humanities is
appointed as the Plant Superintendent in the company.”
(a) Well defined body of knowledge (b) Restricted entry
G.
(c) Ethical code of conduct (d) Service motive

3. Which aspect of management is violated by Sagar in above case?
(a) Planning (b) Efficiency
(c) Effectiveness (d) Controlling
4. Identify the nature of management highlighted in this line, “Sagar knew that there are certain theories
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and principles of management based on deep observation and experimentation.”
(a) Management as Profession (b) Management as Science
(c) Management as an Art (d) None of the above
5. Which aspect of management is followed by Sagar in above case?
(a) Planning (b) Efficiency
(c) Effectiveness (d) Controlling
CASE STUDY-3
Tanmay is the Managing Director of Pluto Limited manufacturing different varieties of cheese. He has an
efficient team working under him consisting of Nitin who is the Production manager, Yash the Marketing
manager and Shaheed the Finance manager. They understand and interpret the policies made by Tanmay to
ensure that their department has adequate manpower, assign them the necessary duties and motivate them
to achieve the desired objective.
(c) Operational level

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1. Tanmay is working at which level of management?
(a) Top level (b) Middle level
(d) All levels
2. Identify another function of the level highlighted in Q.1 above.
(a) Oversee the efforts of the workforce
(b) Integrate diverse elements and coordinate the activities of different departments according to
the overall objectives of the organisation.
(c) Cooperate with other departments for smooth functioning of the organisation
3. The departmental managers Nitin, Yash and Shaheed are working at which level of management?
(a) Supervisory level (b) Middle level
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(c) Lower level (d) Top level

4. Identify another function of the level highlighted in Q.3 above.
(a) Formulate overall organisational goals and strategies
(b) Analyze the business environment and its implication for the survival of the firm
(c) Cooperate with other departments for smooth functioning of the organization
(d) Maintain quality of output, minimize material wastage and maintain safety standards
CASE STUDY-4
G.
A very innovative firm has decided to increase its sales. The company is good but they have noticed that their
growth has stagnated for the last couple of years. The top management calls for an emergency meeting. For
this, they have outlined a series of activities to be performed by each person. The people are told the

activities they have to perform. Thus the work is divided among individuals. The efforts taken by the firm
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turn out to be very productive for the organisation and it gains huge profit. The newspapers and management
institutes also praise the company for its high standards of management. However, as time passed the size of
the organisation grows and thus they think of bringing another concept of management with a lot of precision.
This concept of management is not voluntary but rather based on a lot of clear cut thinking in advance. The
main idea is to reduce confusion among the employees regarding any of the activities they have been assigned.
1. Which function of management is highlighted in the above paragraph which the company follows?
(a) Directing (b) Controlling
(c) Planning (d) Organising
2. Which concept of management the company tries to bring in the above case?
(a) Controlling (b) Planning
(c) Coordination (d) Cooperation
3. Find out one importance of the concept highlighted in Q.2 above.
(a) Specialisation
(c) Growth in size
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4. Find out the feature of the concept reflected in Q.2 above.
(a) Pervasive
(c) Continuous process
CASE STUDY-5
(b) Deliberate function
(d) Responsibility of all managers
Amex Ltd. is a company operating on a large scale. Managing many employees at the same moment is a
challenge which this company always faces. Since the company has many departments it is necessary for the
company to ensure unity of action among various departments. The various departments are human resources,
marketing, finance, operations and sales. The top-level managers coordinate with all middle-level managers.
The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-
level managers coordinate with middle-level managers and the workers. The employees are always concerned
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about the company and are a useful resource to their organisation. Though they have diverse interests and
have to perform different activities the management ensures that the efforts of the employees should be
given a focus so as to achieve the organisational goals. The different departments have their own interests
but, due to proper coordination the conflicts of interest in the departments is minimised to a nil. When it
comes to the employees the organisation shows its concern. The career of employees is shown a developmental
path through proper training modules and job enrichment. Dikshant is a manager who takes care of all the
duties and responsibilities to be assigned to his employees in the department. He uses all sources to develop
a proper communication with them and leaves no attempt to motivate them. This year the company has
decided to give the best manager award to Dikshant for his contribution to the organisation.
G.
1. Which feature of coordination has been reflected in the above case?

(a) Integrates group efforts (b) Unity of action
(c) Responsibility of all managers (d) All of the above

2. Which importance of coordination has been indicated above?
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(a) Growth in size (b) Functional differentiation
(c) Specialisation (d) All of these
3. Identify the type of objective fulfilled in the above case.
(a) Organisational (b) Personnel
(c) Social (d) None of the above
4. At which level of management does Dikshant work?
(a) Middle (b) Operational
(c) Top (d) All of these
CASE STUDY-6
Perfect Ltd. is a company which has improved its functioning by proper management. The company has been
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good in fixing and achieving targets. In previous meeting, it was decided that in the coming years, company
could show increase in the number of workers, number of products produced and also the sales turnover.
However, recently its fame had come down under the impact of resignations put forth by two of its
departmental heads. These departmental heads were experts in their fields. One was leading the marketing
department and the other was a scientist of repute who headed the manufacturing department. In the top
level management meeting it was found that such departmental heads who were specialists in their areas
can’t be tackled by unity of command. They were egoistic as they were specialists.
After the meeting, things started to change for the organisation as all the departments started to work with
one single target of giving the company its lost fame. There was a combined effort which doubled the
revenue of the organisation. A special regulation system of including every level manager was brought into
action. Thus the overall functioning of the organisation was improved.
1. Which characteristic of management is highlighted above?
(a) Management is a goal-oriented process
(b) Management is all pervasive
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(c) Management is an intangible force

(d) Management is multidimensional
2. “... company could show increase in the number of workers, number of products produced and also
the sales turnover.” Identify the type of objective being discussed.
(a) Social (b) Organisational
(c) Personnel (d) None of the above
3. The concept of management missing in the Perfect Ltd. is
G.
(a) Directing (b) Controlling

(c) Coordination (d) Cooperation
4. “... as all the departments started to work with one single target of giving the company its lost fame.”
Which characteristic of coordination is being discussed above?

(a) Pervasive (b) Continuous process
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(c) Responsibility of all managers (d) Unity of action
CASE STUDY-7
Read the following text and answer the following questions on the basis of the same:
Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of
Indian handloom and handicraft products. It sells fabrics, furnishings, ready-mades and household items are
made out of traditional Indian fabrics.
Sana decides quantities, variety, colour and texture of all the above items and then allocates resources for
their purchase from different suppliers. She appoints a team of designers and crafts people in the company,
who developed some prints for bed covers in bright colour on silk. Although the products looked very
attractive and impressive, they were relatively expensive on the front of affordability for an average customer.
Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton
bed covers on a regular basis to keep costs under control. [CBSE 2020]
(c) Planning
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1. “She appoints a team of designers and crafts people in the company, who developed some prints for
bed covers in bright colour on silk.”
Which function of management is highlighted in this context?
(a) Controlling (b) Staffing
(d) Directing
2. In the above case “Company’s objective is to promote the sales of Indian handloom and handicraft
products.” The above line focus on which feature of management?
(a) Management is an intangible force (b) Management is a goal oriented process
(c) Management is pervasive in nature (d) Management is a continuous process
3. With reference to the above case, at which level of management Sana is working?
(a) Lower level (b) Top level
(c) Middle level (d) Shop floor
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4. “Sana suggested that they should keep the silk bed covers for special festive occasions and offer the
cotton bed covers on a regular basis to keep costs under control.”
Which function of management is highlighted in this context?
(a) Controlling (b) Staffing
(c) Organising (d) Planning
CASE STUDY-8
Read the following text and answer the following questions on the basis of the same:
Ananya Ltd. is a highly reputed company having an annual sales of 150 millions. The company has significantly
G.
contributed and played a vital role in boosting social structure. Different functions are performed by different
individuals in this company, who are bound together in a hierarchy of relationships. Every individual in the
hierarchy is responsible for successful completion of a particular task. Shenoy with a vast experience was
appointed last month in the company and is responsible for the welfare and survival of the organization. He

formulates overall organizational goals and strategies for their achievement. Devilal who is working in the
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company from last twelve years ensures that quality of output is maintained, wastage of materials is minimized
and safety standards are maintained. Anamika, a manager is responsible for assigning necessary duties and
responsibilities to the personnel and motivating them to achieve desired objectives as framed by the Board
of Directors of the company.
1. Which characteristic of management is highlighted in the lines, “different functions are performed by
different individuals in this company, who are bound together in a hierarchy of relationships.”?
(a) Management is a continuous process (b) Management is a group activity
(c) Management is a dynamic function (d) Management is all pervasive
2. “Shenoy with a vast experience was appointed last month in the company and is responsible for the
welfare and survival of the organization.” What do you understand by the term ‘survival’ in the
context of the above lines?
(a) Increase in sales volume and number of employees
(a) Planning
(c) Staffing
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(b) An organisation must earn enough revenues to cover costs
(c) Business organization must grow and expand their activities
(d) Maximization of profit
3. Which function of management is fulfilled by Shenoy with respect to the level in which he is working?
(b) Controlling
(d) Directing
4. Anamika is working at _____________ level of management.
(a) Top (b) Middle
(c) Lower (d) None of the above
IV. Fill in the Blanks with appropriate words:

1. Every _____________ restricts the entry on the basis of examination or education.
2. Payal is using environmental friendly methods of production. She is trying to achieve _____________
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objective of management.
3. _____________ level determines the objectives of the organisation.
4. Plant superintendent belongs to _____________ level of management.
5. _____________ is an example of personnel objective.
6. Successful organisations do not achieve their goals by chance but by following a deliberate process
called _____________ .
7. _____________ feature of profession is present in management.
8. _____________ refers to the process by which a manager synchronises the activities of different
G.
departments.
9. One of the organisational objectives of management is _____________ .
10. Management increases _____________ by reducing costs and increasing productivity.

V. True and False
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1. Coordination and cooperation are synonymous.
2. Management is both science and art.
3. Management is an universal activity.
4. Management is needed in all types of organisations.
5. Management is a goal oriented process.
6. Supervisory management is the lowest level of management.
7. Coordination is the essence of management.
VI. Matching Type Multiple Choice Questions (MCQs)

1. Match the columns on the basis of ‘Nature of Management’ by using the given options:
Column I Column II
1. Principles are based on observation A. Management as an art
and experimentation.
and creativity.
(a) 1 — B, 2 — A
(b) 1 — C, 2 — B
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2. Principles are based on practice
B. Management as a profession
C. Management as a science
(c) 1 — A, 2 — C
(d) 1 — C, 2 — A
2. Match the columns by identifying the ‘Levels of Management’ by using the given options:
Column I Column II
(i) Managers are responsible for the 1. Middle level management
welfare and survival of organisation. 2. Operational level management
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(ii) They ensure that the departments 3. Top level management

have necessary personnel.
(i) (ii)
(a) 2 3
(b) 3 1
(c) 2 1
G.
(d) 1 2

3. Match the following ‘Objectives of Management’ by using the given options:
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Column I Column II
I. Organisational Objectives 1. Satisfying financial, social and higher
II. Personnel Objectives level needs of employees.
2. Creating economic value for the society.
3. Survival, profit and growth
4. Creating employment opportunities.
I II
(a) 4 3
(b) 2 3
(c) 3 4
(d) 3 1
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4. Match the columns for identifying the ‘Management Functions’ by using the given options:
Column I
1. It involves monitoring organisation
performance towards attainment of
2. Deciding in advance what to do
Column II
A. Planning
B. Controlling
C. Directing
and how to do.

(a) 1 — C, 2 — A (b) 1 — A, 2 — C
(c) 1 — B, 2 — A (d) 1 — C, 2 — B
5. Match the columns to identify the ‘Importance of Coordination’ by using the given options:
S.
Column I Column II
A. Growth in size 1. When all departments have their own
B. Specialisation objectives, policies and strategies.
2. When organisation is performing on
large scale and more people are employed.
3. When more complexities of modern
technology and diversity of tasks is to be
performed.
G.

(a) A — 3, B — 1 (b) A — 2, B — 3
(c) A — 3, B — 2 (d) A — 2, B — 1

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1. What is meant by management? [CBSE 2011 (1)]
Ans. Management is the process of getting things done with the aim of achieving goals effectively and
efficiently.
2. “Successful organisations do not achieve their goals by chance but by following a deliberate process.”
Name the process. (1)
Ans. Management.
3. What is meant by ‘Effectiveness’ in management? [CBSE 2011 (1)]
Ans. Effectiveness means achieving the predetermined goals on time.
4. What is meant by ‘Efficiency’ in management? [CBSE 2015 (1)]
Ans. Efficiency means doing the task correctly and with minimum cost.
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5. Volvo Ltd.’s target is to produce 10,000 shirts per month at a cost of ` 100 per shirt. The Production
Manager achieved this target at a cost ` 90 per shirt. Do you think the ‘Production Manager’ is
effective? Give one reason in support of your answer. [CBSE 2010 (1)]
Ans. Yes, the production manager is effective because he has been able to achieve the target.
6. ‘Is management concerned only with doing the right task, completing activities and achieving goals
without taking into consideration the cost benefit? Give reason in support of your answer.
[CBSE 2016 (1)]
Ans. No, management is not only concerned with doing the right task, completing activities and achieving
goals but also has to take into consideration the cost benefit i.e., doing the task correctly and with
minimum cost.
7. Why is it said that management is a goal-oriented process? [CBSE 2009 (1)]
Ans. Management is said to be a goal-oriented process because it helps in achieving organisational goals by
uniting the efforts of different individuals.
8. Khem Singh argues that management is required in all kinds of organisations whereas Aman feels that
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management is not required in non-business organisations like charitable trusts, orphanages,

government hospitals, etc. Who is correct and why? (1)
Ans. Khem Singh, because management is all pervasive.
9. “The task of management is to make people work towards achieving the organisation’s goals, by
making their strengths effective and their weaknesses irrelevant.” Name the dimension of management
highlighted here. (1)
Ans. Management of people.
G.
10. List any two organisational objectives of management. [CBSE 2010 (1)]
Ans. (a) Survival. (b) Profit.
11. “One of the organisational objectives of management is ‘Growth’ of a business.” How can growth of
a business be measured? Give any two examples. [CBSE 2013 (1)]

Ans. (a) Increase in number of products. (b) Increase in sales volume.
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12. ‘One of the objectives of management is to consistently create economic value for various constituents
of the society.’ Give two examples of this objective. [CBSE 2013 (1)]
Ans. (a) Using environment friendly methods of production.
(b) Employment generation to the weaker section of the society.
13. List any two personal objectives of management. [CBSE 2010 (1)]
Ans. (a) Fair remuneration and perk. (b) Hygienic and good working conditions.
14. Explain how management helps in achieving group goals. [CBSE 2011 (1)]
Ans. Management helps in achieving group goals by directing the efforts of all the individuals in the common
direction of accomplishing organisational goals.
15. Explain how management helps in the development of society? [CBSE 2015, 2009 (1)]
Ans. Management helps in the development of society by providing good quality products and services
and employment opportunities.
Ans. Management is an art.
Ans.
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16. A manager applies the various theories of management in his unique personalised way. What aspect
of nature of management does this statement indicate?
17. Give any two designations of top level management.

(a) Chairman. (b) Managing Director.
18. Enumerate any two functions of middle level management.
Ans.
(1)
(1)
[CBSE 2008 (1)]

(a) They are responsible for implementing and controlling plans and strategies framed by top
management.
(b) To motivate employees for higher productivity and reward them for their better performance.
19. Which level of management in direct contact with the work force? (1)
Ans. Operational management.
20. Name the process by which a manager synchronises the activities of different departments. (1)
Ans. Coordination.
S.
21. What is meant by ‘Management of People’? [CBSE 2014 (1)]

Ans. Management of people means ‘getting work done through people’. It implies dealing with employees
as individuals and as a group of people.
22. What is meant by ‘Management of Work’. [CBSE 2014 (1)]
Ans. Management of work means ‘goals to be achieved and assigning the means to achieve it’.
23. Management of people involves two dimensions. Enumerate them. (1)
Ans. Managing people has two dimensions:
G.
• Dealing with employees as individuals with diverse needs and behaviour; and
• Dealing with employees as a group of people.
24. How does management help individuals to develop team spirit, cooperation and commitment to
group success? [CBSE 2012 (1)]

Ans. With the help of motivation and leadership techniques, management helps in achieving personal
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objective.
25. At which level of management are the managers responsible for maintaining the quality of output and
the safety standards? [CBSE 2012 (1)]
Ans. Operational/Supervisory management.
26. Name the level of management that is responsible for the welfare and survival of the organisation.
[CBSE 2014, 2012 (1)]
Ans. Top management.
27. To meet the objectives of the company, the management of Dinesh Ltd. offers employment to
physically challenged people. Identify the organisational objective it is trying to achieve. Give reason
in support of your answer. (1)
Ans. Growth; since number of employees is increasing it leads to increase in production and hence growth
of the company.
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28. What is the basic task of top level managers?
Ans. To integrate diverse elements and coordinate the activities of different departments according to
overall objectives of the organisation.
(Answers Strictly as Per CBSE Marking Scheme)

(1)
1. Explain any five ‘features of management’. [CBSE 2010 (4)]

OR
“Management is the process of working with and through others to effectively achieve organisational
objectives by efficiently using limited resources in the changing environment.” In the light of the
above statement, explain any four features of management. [CBSE 2013 (5)]
Ans. Following are the characteristics of management :
S.
(i) Management is a goal oriented process which unites the efforts of different individuals in the
organisation towards achieving goals.
(ii) Management is all pervasive as the activities involved in managing an enterprise are common to
all organisation whether economic, social or political.
(iii) Management is multidimensional as it is a complex activity that has three dimensions : Management
of work, Management of people, Management of operations.
(iv) Management is a process consisting of continuous, composite, but separate functions.
(v) Management is a group activity which ensures team work and coordination of individual effort
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in a common direction.
(vi) Management is a dynamic function and has to adapt itself to the changing environment.
(vii) Management is an intangible force that cannot be seen but its presence can be felt in the way
the organisation functions.

2. Management seeks to achieve various objectives. Explain these objectives. [CBSE 2019 (5)]
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Ans. Management seeks to achieve various objectives. These are:
(i) Organisational objectives : The main objective of any organization should be to utilize human
and material resources to the maximum possible advantage to fulfill the economic objectives of
a business.
(a) Survival – Management must strive to earn enough revenues to cover cost for the survival
of the business.
(b) Profit – Management has to ensure that business earns profit which is essential for covering
cost and risk of the business.
(c) Growth – Management must exploit fully the growth potential of the organization to
remain in the industry.
(ii) Social objectives : It involves the creation of economic value for various constituents of society
like using environmental friendly methods of production, etc.
Ans.
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(iii) Personal Objectives : Management aims to reconcile personal goals with organizational objectives
for harmony in the organisation.
3. State any five points that highlight the importance of ‘Management’. [CBSE 2019 (5)]
(i) It helps in achieving group goals by giving a common direction to individual effort.
(ii) It increases efficiency by reducing costs and increasing productivity.
(iii) It creates a dynamic organisation by making the organisation adopt itself to the changing
environment.
(iv) It helps in achieving personal objectives by motivating and leading in such a way that both
personal goals and organisational objectives are accomplished.
(v) Management helps in the development of society by providing good quality products and services,
creating employment opportunities and adopting new technology, etc.
4. What is meant by ‘Management as a Science’? Explain with the help of any three features.
[CBSE 2010 (3)]
S.
OR
Is management a ‘Science’? Give any three reasons in support of your answer. [CBSE 2010 (5)]
OR
“Management is the systematised body of knowledge that explains certain general truths.” Explain.
[CBSE 2009 (3)]
Ans. Science is a systematised body of knowledge that explains certain general truths or the operation of
general laws.
Management is a science but not an exact science. The reasons are:
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(i) 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.

(ii) Principles Based on Observation and Experimentation : Like science, management principles
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are derived through observation and repeated experimentation.
So, this feature of science is present in management. However, since management deals with
human beings the outcomes of these experiments are not capable of being accurately predicted.
(iii) Universal Validity : Principles of management, like principles of pure science, provide managers
with certain standardised techniques that can be used in different situations. However, since
they have to be modified according to a given situation, their application and use is not universal.
5. What is meant by ‘Management as an Art’? Explain with the help of any three features.
[CBSE 2010 (3)]
OR
Management is skillful and personal application of existing knowledge to achieve desired results.”
Explain. [CBSE 2009 (3)]
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“Art is concerned with personal application of knowledge.” In the light of this statement, compare all
the features of art with management and prove that it is an art.
Management is an art because of the following reasons :

[CBSE 2010 (5)]
Ans. “The skillful and personal application of existing knowledge to achieve desired results is called art”.
(i) Existence of Theoretical Knowledge : As in art, in management too, there is a lot of literature
available in various areas of management which the manager has to specialise in.
(ii) Personalised Application : Like in any art, in management too, a manager applies his acquired
knowledge in a personalised and unique manner.
(iii) Based on Continuous Practice and Creativity : Management satisfies this criteria as a manager
gains experience through regular practice and becomes more effective.
(iv) Creativity : Like any other art, a manager after studying various situations, formulates his own
theories for use in a given situation. This gives rise to different styles of management.
6. What is meant by “Coordination”? How does it “integrate group efforts” and “ensures unity of
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action”? Explain. [CBSE 2012 (5)]

OR
“Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of
a common purpose.” In the light of this statement, explain the nature of coordination.
[CBSE 2011 (5)]
OR
“Coordination is synchronisation of group efforts to achieve organisational objectives.” In the light of
this statement, highlight any five features of coordination. [CBSE 2011 (5)]
G.
OR
Justify how coordination is (a) a continuous process (b) an all-pervasive function. [CBSE 2009 (4)]
Ans. Coordination is the process by which activities of different departments are synchronised to ensure
unity of action.
(i) Coordination integrates group efforts by unifying diverse interests.
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(ii) Coordination ensures unity of action by acting as a binding force between departments.
(iii) Coordination is a continuous process as it begins at planning stage and continues till controlling.
(iv) Coordination is a pervasive function as it is required at all levels of management and in all
departments.
(v) Coordination is the responsibility of all managers at the top, middle and lower level.
(vi) Coordination is a deliberate function as every manager has to coordinate the efforts of different
people in a conscious and deliberate manner.
7. “Coordination is needed at all levels of management and it is the responsibility/function of all managers.”
Explain how? [CBSE 2009 (5)]
Ans. Coordination is needed at all levels of management and in all departments. It integrates the efforts of
different departments and different levels. The purchase, production, finance and sales departmental
efforts must be coordinated for achieving organisational objectives harmoniously.
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Coordination is the responsibility of all managers:
• Top level managers need to coordinate with their subordinates to ensure that the overall
policies of the organisation are duly carried out.
• Middle level management coordinates with both the top level and first line managers.
• Operational level management coordinates the activities of its workers to ensure that work
proceeds according to plans.
8. “Coordination is not a separate function of management. It is the essence of management.” Explain
with the help of a suitable example. [CBSE 2008, 09 (5)]
Ans. Coordination is not a separate function of management. It is the force that binds all other functions
and thus, called the essence of management.
• The process of coordinating the activities begins at the planning stage in which the top
management plans for the entire organisation.
• At the organising stage, the organisational structure is developed as per plans.
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The staffing function is performed thereafter as per the structure developed in the organisational
structure.
• Directing is then required to ensure that these plans are executed accordingly.
• Controlling function ensures that the deviations between actual and planned activities are taken
care off.
• Coordination, therefore, synchronises the efforts through all functions of management and
ensures that the organisational objectives are achieved with a minimum of conflict.
9. Is ‘management’ a full-fledged ‘profession’? Give any three reasons in support of your answer.
G.
[CBSE 2010 (5)]

OR
“Management is a profession like medical or legal profession.” Do you agree with this statement?
Give any five reasons in support of your answer. [CBSE 2011 (5)]

Ans. No, management is not a full-fledged profession like Accounting, Medical and legal professions because
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it does not fulfill all the characteristics of a profession.
(i) There is no restriction on anyone being designated or appointed as manager in any business.
(ii) There are several associations of practicing managers in India, like All India Management
Association (AIMA). But legally, it is not compulsory for managers to be members of such an
association.
(iii) AIMA has laid down a code of conduct to regulate the activities of its members. But its
membership is not compulsory for managers.
(iv) The basic motive of management of an organisation is profit maximisation.
10. What is meant by ‘coordination’? Explain any two points of its importance in management.
[CBSE 2012 (3)]
Ans. Coordination is the process by which activities of different departments are synchronised to ensure
unity of action.
Importance of Coordination :
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(i) Growth in Size : Coordination is needed to integrate efforts of people in the organisation.
(ii) Functional Differentiation : Coordination is needed to ensure unity of action among
interdependent departments like production, marketing, finance, etc.
(iii) Specialisation : Coordination is needed to avoid conflict between the specialists and the other
members of the organisation.
CASE STUDIES
1. Mita has a successful ice cream business at Bikaner, namely ‘Smartflavours’. Her ice creams are
utterly delicious. She makes ice creams from fresh milk and the same are available in a wide range of
flavours and packs. She sets viable business objectives and works with the same in mind in order to
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ensure that the customers will come back for purchasing.
Having the first mover advantage, her business was doing well. To earn higher profits, she started
cutting down costs. This would sometimes lead to delay in delivery and the ice cream was not
reaching the market in time. Over a period of time, the demand for her ice cream declined and
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 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.
G.
While completing activities and finishing the given task for achieving goals, Mita realised that she was
ignoring one of 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. [CBSE 2019 (3)]
Ans. Efficiency
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Efficiency means doing the task correctly and with minimum cost.
Example:
Say, a company’s target production is 5,000 units in a year. The manager wants to achieve the
production target by cutting down costs. He was able to cut down costs but could not achieve the
target production. In this case, the manager was efficient but not effective.
Effectiveness
Effectiveness means doing the right task, completing activities and achieving goals.
Example:
Say, a company’s target production is 5,000 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
5,000 units but at a higher production cost. In this case, the manager was effective but not so
efficient.
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2. Kamal, Khan and David 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. Khan had done his post-graduation in
Hindi literature and David in Dairy Farming. One day there was a serious discussion between Khan
and David regarding the nature of ‘Management as a Science.’ Khan argued that Management was not
a science whereas David was of the opinion that Management was a science. Kamal intervened and
corrected both Khan and David 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 David. [CBSE 2015 (6)]
Ans. Kamal would have been able to satisfy both Khan and David by explaining the following features of
management as a science: (RTP-1.17)
Through the above discussion Kamal would have been able to satisfy both Khan and David by making
them understand that management is a science but not an exact science.
3. “Management is regarded as an Art by some, as Science or as an inexact Science by others. The truth
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seems to be somewhere in between.” In the light of this statement, explain the true nature of
management. [CBSE 2011 (5)]
Ans. Management is regarded as an ‘Art’ because like in any art, in management too, there is :
• Existence of theoretical knowledge (e.g., finance, marketing, etc.);
• Personalised application of scientific methods to a given situation; and
• Continuous practice and creativity which gives rise to formulation of theories and styles of
management.
Management is regarded as ‘Science’ because like science, management is a systematic body of
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knowledge with its own theories and principles which are derived through observation and repeated
experimentation.
However, management is an ‘inexact science’ because the outcomes of these experiments are not
capable of being accurately predicted. Since management deals with human beings and human behaviour,

therefore, their application is not universal.
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True Nature of Management : Management has features of both art and science. The practice of
management is an art. However, managers can work better if their practice is based on the principles
of management. These principles constitute the science of management. Management as an art and a
science are therefore not mutually exclusive, but complementary to each other.
4. In ABC Ltd., the Purchase department purchased 15 tonnes of raw material for the production
department. However, the Production department required only 10 tonnes. Due to this reason,
goods were over-produced and were not accepted by Sales Department. As a result, some goods
remained unsold. Which aspect of Management is lacking in this case? (1)
Ans. ‘Coordination’ is lacking between various departments.
5. Trending India Limited is a chain of ladies garments boutiques where most of the work is done
manually. Due to coming of international brands in India, the company is finding it difficult to compete
on two fronts — finishing and embroidery work. The production manager realised that without
modern machines it would not be possible for them to survive for long. The company purchased new
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hi-tech modern machines from Japan. During the production process, the manager observed that the
quality of production is not as per standard and very often production is disrupted due to break-
down of machinery. The workers get frustrated by continuous rejection of output and started showing
resistance towards new technology. To increase the efficiency of the workers, the company decided
to train their workers on-the-job under the able guidance of specialists. The workers who are able to
pick the skills are promoted and made incharge of the not so trained groups. This created positive
impact and everybody became keen to learn. Suggestions from the workers are valued and workers
are encouraged to communicate freely.
Identify any three points of importance of management highlighted in the above case by quoting the
lines. (3)
Ans. The points of importance of management highlighted in the given case are:
(a) Management increases efficiency
“To increase the efficiency of the workers, the company decided to train their workers on-the-job under
the able guidance of specialists.”
S.
(b) Management helps in achieving personal objectives

“The workers who are able to pick the skills are promoted and made incharge of the not so trained
groups. This created positive impact and everybody became keen to learn.”
(c) Management creates a dynamic organisation
“The production manager realised that without modern machines it would not be possible for them to
survive for long. The company purchased new hi-tech modern machines from Japan.”
6. Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing refrigerators. He found
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that his department was under staffed and other departments were not cooperating with his
department for smooth functioning of the organisation. Therefore, he ensured that his department
has the required number of employees and its cooperation with other department is improved.
(a) Identify the level at which Rishitosh Mukerjee was working.

(b) Also, state three more functions required to be performed by Rishitosh Mukerjee at this level.
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[CBSE 2017 (4)]
Ans. (a) Middle Level Management. (b) (RTP-1.23)
7. Smita Rai is the director of Namchi Designer Candles, which has 100 per cent women as employees.
They also produce varieties of candles. During Diwali, they produce customized candles meant for
the occasion. Smita plans her diwali collection in the month of June itself. She has to then ensure that
there is adequate workforce and continuously monitor whether production is proceeding according
to plans. Her marketing department also has to be briefed in time to prepare their promotional and
advertising campaigns.
At Namchi Designer Candles, the production and sale department coordinate their work, so that
production take place according to the demand in the market.
The purchase, production and sales departmental efforts have to be coordinated by Smita for achieving
organisational objectives harmoniously. The purchase department is responsible for procuring fabric.
This then becomes the basis of the activities of the production department and finally sales can take
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place. If fabric purchased is of an inferior quality or is not according to the specifications of the
production department, further sales will also decline.
Identify and explain by quoting the lines from the above the three features of coordination
Ans. Three features of coordination highlighted are:
(a) Coordination is a continuous process: Coordination is not a one-time function but a continuous
process. It begins at planning stage and continuous till controlling.
“Smita plans her diwali collection in the month of June itself. She has to then ensure that there is
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adequate workforce and continuously monitor whether production is proceeding according to plans.”
(b) Coordination ensures unity of action: The purpose of coordination is to secure unity of action
in the realisation of a common purpose. It acts as the binding force between departments and
ensures that all action is aimed at achieving the goals of the organisation.
“... the production and sales department coordinate their work, so that production takes place according
to the demand in the market.”
S.
(c) Coordination is an all pervasive function: Coordination is required at all levels of management
due to the interdependent nature of activities of various departments. It integrates the efforts
of different departments and different levels.
“The purchase, production and sales departmental efforts have to be coordinated by Smita for achieving
organisational objectives harmoniously. The purchase department is responsible for procuring fabric.
This then becomes the basis of the activities of the production department and finally sales can take place.”
8. Ms Balbir passed her M.B.B.S. examination in the first division in 2016. Later on in the year 2019 she
passed her M.S. examination as an eye surgeon. After completing her studies she joined a big hospital
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as an eye surgeon. She is performing five operations successfully every day. Now tell, what aspect of
Ms Balbir’s above experience is science and what aspect is art? (1)
Ans. As we know that to obtain information about a subject is a Science and putting that information to
practice is an Art, so in this case, it can be said that the study of M.B.B.S. and M.S. is science and
working as an eye-surgeon is an art.
9. Shenoy Ltd. is facing a lot of problems these days. It manufactures electronic goods like washing
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machines, microwave ovens, refrigerators and air-conditioners. The company’s margins are under
pressure and the profits and market share are declining. The production department blames marketing
department for not meeting sales targets and marketing department blames production department
for producing goods, which are not of good quality, to meet customers’ expectations. The finance
department blames both production and marketing departments for declining return on investment
and bad marketing. (5)
(i) What quality of management do you think the company is lacking? Justify your answer.
(ii) State the importance of the concept identified in (a).
Ans. (i) Coordination: This is because production, marketing and finance departmental efforts are not
coordinated for achieving organisational objectives harmoniously. As a result, the company’s
profits and market share are declining.
(ii) Importance of Coordination. (RTP-1.30)
10. Hi-Tech Solutions Ltd. is a company manufacturing IT products. The company’s profits are sufficient
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for the survival and growth. The management of the company believes that a satisfied employee
creates a satisfied customer, who in turn creates profits that lead to satisfied shareholders. So, it pays
competitive salaries and perks to all its employees. All the employees are happily working in the
organisation because of personal growth and development.
The company has strong sense of social responsibility. It has set up educational institutions in the
fields of management, engineering and computer education in which twenty five percent students are
girls to whom the company gives 50% scholarship.
Is the management of Hi-Tech Solutions Ltd. fulfilling its objectives? Identify the objectives by quoting
the lines. (6)
Ans. Yes, the management of Hi-Tech Solutions Ltd. is fulfilling all the objectives-Organisational, Social
and Personal.
(a) Organisational objectives are the economic objectives of a business. These are survival, profit
and growth.
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‘Profits of Hi-Tech Solutions Ltd. are sufficient for the survival and growth.’
(b) Social objectives involve creation of benefits or economic value for the society.
‘Hi-Tech Solutions Ltd. fulfills its social responsibility.’
(c) Personal objectives are related to the employees of the organisation.
‘The management of Hi-Tech Solutions Ltd. satisfies the financial needs of its employees by
giving them competitive salaries and perks. It also satisfies their higher level needs such as
personal growth and development.’
11. Tushar Mining Industry owns and operates coal mines in different parts of the country. It employs
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thousands of workers who do this dangerous and potentially lethal job. Several minors contend with
air filled with dust, develop asthama and other respiratory problems. Many times, fatal accidents take
place due to insufficient safety measures. Garbage from the mines is often dumped in local rivers,
which pollutes the water bodies.

Identify and explain any two management objectives which are being ignored by Tushar Mining Industry.
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(3)
Ans. Personnel and Social objectives. (RTP-1.12)
12. Parvesh Ltd. decides to have a meeting of all the employees of all departments of the company. The
primary aim is to tell the employees to keep the target of 25% increase in sales as the main objective
when they work throughout the year. The meeting is full of ideas regarding the employees and
processes involved. Various plans are made to harness the potential of the employees and streamline
the processes. However, with the passage of time the external business environment checks the
capability of the company to adapt to the situations. The company successfully achieved the target at
the end of the year. Identify and state the characteristics of management highlighted in the above para
by quoting the lines. (6)
Ans. The characteristics of management highlighted are:
(a) Management is a goal oriented process. (RTP-1.6)
‘The primary aim ....... work throughout the year.’
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(b) Management is multidimensional. (RTP-1.6)
(i) Management of people.
(ii) Management of operations.
‘Various plans ......... streamline the processes.’
(c) Management is a dynamic function. (RTP-1.8)
‘However with ......... adapt to the situations.’
13. Payal is the marketing manager of a company selling mobile phones. She plans the target sale of 2000
mobile phones per month. She allocates necessary resources to execute 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. She rewards the efficient employees in order to motivate them.
(a) Identify the four functions of management highlighted above by quoting the lines.
S.
(b) Also state any two values which she wants to communicate to the society by her behaviour. (6)
Ans. (a) Payal performs the following functions of management.
‘She plans the target sale of 2000 mobile phones per month’- (Planning)
‘She allocates necessary resources to carry out the plan’- (Organising)
‘She works with them, guiding and motivating them to achieve the target sales’ - (Directing)
‘At the end of the month, after comparison of actual sales with the target sales, she found that
actual sales exceeded the target sales’- (Controlling)
(b) Values:
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(i) Sense of achievement. (ii) Loyalty. (iii) Belongingness. (any two)

14. Akarsh Ltd. is facing a lot of problems these days. It manufactures electrical goods like washing
machines, microwave ovens, refrigerators, air-conditioners, etc. The company’s margins are under
pressure and the market share is declining. The Production department is blaming the marketing

department for not meeting the sales targets whereas the marketing department is blaming the
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production department for poor quality and higher cost of production. The finance department is
blaming both for the decline in returns on investment.
(a) What quality of management do you think the company is lacking? Explain briefly.
(b) What steps should the company management take to bring the company back on track? (5)
Ans. (a) The quality of management which is lacking in the above problem is ‘coordination’ because
production, marketing and finance departmental efforts are not coordinated for achieving
organisational objectives harmoniously. As a result, the company’s profits and market share are
declining.
(b) The Top management of the company should take the following steps:
(i) All departments should be asked to work for the organisational objectives.
(ii) There should be effective communication among the different departments.
(iii) Coordination should be made between various departmental plans.
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(iv) Periodic meetings of various departmental heads should be held to remove any misgivings
and to integrate their efforts.
(v) Any conflict among different departments must be resolved at the earliest.
15. A company wants to modify its existing product in the market due to decreasing sales. You can
imagine any product about which you are familiar. What decisions/steps should each level of
management take to give effect to this decision? (6)
Ans. If a company wants to modify its existing product say, chocolate, to increase its sales, the company
should take the following steps at each level of management like:
Top Management
(a) Brainstorming among all departments to explore ways and means to modernise the product.
(b) Scope of modification.
(c) Analysis of business environment.
(d) Coordinate the activities of all departments.
S.
Middle Management
(a) Interpret the modification plan to the supervisory level.
(b) Recruit and select employees who will perform the task.
(c) Motivate the people to achieve the task.
(d) Give necessary instructions and guidance to the supervisory level personnel.
Supervisory Management
(a) Assign work to workforce.
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(b) Passing instructions to workforce.

(c) Supervise them.
(d) Maintain quality and minimise waste.

15. A firm plans well in advance and has a sound organisational structure with efficient supervisory staff
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and control system. On several occasions it finds that plans are not being adhered to. It leads to
confusion and duplication of work. Advise remedy. (5)
Ans. In the given case, the company is facing problem in the implementation of its plans. The following
steps should be taken for proper adherence to plans:
(a) There should be proper coordination among various departments.
(b) There should be proper communication system among different departments.
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(c) Financial and non-financial incentives should be offered.
(d) On-the-job and off-the-job training should be provided.
(e) There should be unity of command and unity of direction.
(f) Latest development and technologies should be introduced to the workers.
(g) A cordial atmosphere within the organisation should be created.
(h) Workers’ participation in the management should be encouraged.
Very Short Answer Type Questions

1. What is meant by management? (RTP-1.2)
A
2. Name any two important characteristics of management.
3. Identify and state the force that binds all the other functions of management.
(RTP-1.6)
Ans. Coordination.
4. List any two indicators of growth of an organisation.
Ans. (i) Increase in sales turnover, (ii) Increase in the number of products.
5. Indian Railways has launched a new broad gauge solar power train which is going to be a path
breaking leap towards making trains greener and more environment friendly. The solar power DEMU
(Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of
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diesel and ensure a cost saving of ` 12, 00,000 per year. Name the objectives of management
achieved by Indian Railways in the above case.
Ans. Organisational objectives and social objectives.
Short Answer Type Questions

1. Ritu is the manager of the northern division of a large corporate house. At what level does she work
in the organisation? What are her basic functions? [Hint : Middle level] (RTP-1.23)
2. State the basic features of management as a profession. (RTP-1.19)
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3. Why is management considered to be a multi-dimensional concept? (RTP-1.6)

4. Company X is facing a lot of problems these days. It manufactures white goods like washing machines,
microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and
the profits and market share are declining. The production department blames marketing for not

meeting sales targets and marketing blames production department for producing goods, which are
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not of good quality meeting customers’ expectations. The finance department blames both production
and marketing for declining return on investment and bad marketing. State the quality of management
that the company is lacking? What quality of management do you think the company is lacking?
Explain briefly. What steps should the company management take to bring the company back on
track? (RTP-1.59)
5. Coordination is the essence of management. Do you agree? Give reasons. (RTP-1.29)
6. Ashita and Lakshita are employees working in Dazzling enterprises dealing in costume jewellery. The
firm secured an urgent order for 1,000 bracelets that were to be delivered within 4 days. They were
assigned the responsibility of producing 500 bracelets each at a cost of ` 100 per bracelet. Ashita
was able to produce the required number within the stipulated time at the cost of ` 55,000 whereas,
Lakshita was able to produce only 450 units at a cost of ` 90 per unit. State whether Ashita and
Lakshita are efficient and effective. Give reasons to justify your answer.
Ans. Ashita was effective but not efficient because she completed her task but at a higher production cost.
Long Answer Type Questions

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Lakshita was not effective but efficient as she did not complete her task but bear a less cost.
1. Management is considered to be both an art and science. Explain.

2. Do you think management has the characteristics of a full-fledged profession?
3. “A successful enterprise has to achieve its goals effectively and efficiently.” Explain.
4. Management is a series of continuous interrelated functions. Comment.
(RTP-1.17)
(RTP-1.19)
(RTP-1.3)
(RTP-1.25)
1. Management is a/an ____________ process as it is an ongoing and never-ending process. (1)

(a) Frequent (b) Continuous
(c) Alter (d) Non-continuous
S.
2. If a manager is not able to achieve the target production of 5,000 units but is able to reduce the costs
significantly, then what will he be considered as? (1)
(a) Only effective (b) Only efficient
(c) Both effective and efficient (d) Neither effective nor efficient
3. Art can be acquired through which of the following: (1)
(a) Study (b) Observation
(c) Experience (d) All of the above
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4. Hiring of employees is done by (1)

(a) Middle level (b) Operational level
(c) Top level (d) All of the above

5. Management is a single activity. (True/False) (1)
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6. ____________ is concerned with the end result. (Fill-up)
7. Match the functions of management in Column I with their explanation in Column II: (1)
Column I Column II
(A) Staffing (i) Assigning duties, grouping tasks, establishing authority
and allocating resources required to carry out a
specific plan.
(B) Organising (ii) Leading, influencing and motivating employees to
perform the tasks assigned to them.
(C) Directing (iii) Recruitment and selection of the personnel.
Options:
(a) (A) – (iii), (B) – (i), (C) – (ii)
(b) (A) – (ii), (B) – (i), (C) – (iii)
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(c) (A) – (iii), (B) – (ii), (C) – (i)
(d) (A) – (i), (B) – (iii), (C) – (ii)
8. Define the term ‘Efficiency.’ Name any two input resources required to do a particular task.
9. What is meant by management? State any one characteristic of management.
10. List any two tasks that Mr. Tanmay needs to do, as a production manager, in his firm, to carry out the
plans laid down by the top managers.
(2)
(2)
(2)
11. Name the process of designing and maintaining an environment in which individuals working together
in groups efficiently accomplish selected aims. Also, state its importance by giving any one point. (2)
12. “Coordination is needed at all levels of management.” Name the characteristic of coordination
highlighted in the statement. Also state any other characteristic of coordination. (2)
13. Purity Ltd. is a rice producing company. Everyday 5,000 bags of rice, each weighing 10 kg, are produced
here. In comparison to the previous year this year there has been less number of bags produced on
a per day basis. The number is around 4,500 which is less than the standard target of 5,000 set by the
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company. The company however, has been able to reduce the costs involved in comparison to last
year’s spending on the production and packaging of each bag. The quality of bags has also been up to
the mark
Identify and state the concept of management overlooked here. (2)
14. Initially ‘USHA Ltd.’ was producing grinder mixer, now with the changing scenario and emerging
trends of working women there is a greater demand for a product which is more efficient and multi-
tasker. On analysing the situation, the company decided to penetrate into the market for producing
Food Processor.
G.
Name and explain the characteristic of management highlighted above. (2)

15. Sagar, Managing Director of ‘Darjeeling Tea Limited’ decided that his company will serve the society
by earning a reasonable profit. For achieving this goal, he started the business of tea. In order to
attract the tea consumer of the whole country, he gave an advertisement on the television. The

company had just started capturing the market when a survey report was presented on a news
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channel. This report stated that the people had started liking coffee more than tea and that it was
good for health also. The company had to immediately change its business from that of tea to coffee.
Sagar saved the company from suffering the possible heavy loss through his timely action.
Identify and state the feature of management highlighted in the above case. (2)
16. Praveen has recently joined AMV Ltd., a company manufacturing refrigerators. He found that his
department was under-staffed and other departments were not cooperating with his department for
smooth functioning of the organisation. Therefore, he ensured that his department has the required
number of employees and its cooperation with other departments is improved.
(i) Identify the level at which Praveen was working.
(ii) Also, state three more functions required to be performed by Praveen at this level. (4)
CHECK LIST TO OBJECTIVE TYPE QUESTIONS

Objective Type Questions 1.1
Objective Type Questions 1.2

1. (a) 2. (b) 3. (c) 4. (c)
Objective Type Question 1.3
1. (b) 2. (B) 3. (b) 4. (b) 5. Costs
AL
1. (b) 2. (b) 3. False 4. False 5. Inefficiency, ineffectiveness 6. Process

1. (b) 2. False 3. (a)
1. (b) 2. (b) 3. (d) 4. (a) 5. (a) 6. Observation, experimentation 7. Well-defined body
1. (a) 2. (d) 3. (b) 4. (c) 5. (b)
S.

1. (a) 2. (b) 3. (c)
1. (d) 2. (c) 3. Binding 4. Essence
OBJECTIVE TYPE QUESTIONS

I. Multiple Choice Questions (MCQs)
1. (b) 2. (c) 3. (d) 4. (d) 5. (d) 6. (d) 7. (b) 8. (d) 9. (d) 10. Staffing, Controlling
G.
II. Assertion-Reason Based Multiple Choice Questions (MCQs)

1. (d) 2. (d) 3. (a) 4. (c) 5. (d) 6. (d) 7. (a) 8. (b) 9. (b) 10. (d)
III. Case Based Multiple Choice Questions (MCQs)
Case Study-1 : 1. (b) 2. (a) 3. (b) 4. (c) 5. (c)

Case Study-2 : 1. (c) 2. (b) 3. (b) 4. (b) 5. (c)
AG
Case Study-3 : 1. (a) 2. (b) 3. (b) 4. (c)
Case Study-4 : 1. (d) 2. (c) 3. (c) 4. (d)
Case Study-5 : 1. (d) 2. (b) 3. (b) 4. (a)
Case Study-6 : 1. (a) 2. (b) 3. (c) 4. (c)
Case Study-7 : 1. (b) 2. (b) 3. (c) 4. (a)
Case Study-8 : 1. (b) 2. (b) 3. (a) 4. (b)
IV. Fill in the Blanks with appropriate words
1. Profession 2. Social
3. Top 4. Middle
5. Competitive salaries and perks 6. Management
7. Well defined body of knowledge 8. Coordination
9. Survival 10. Efficiency
V. True and False
AL
1. False 2. True 3. True 4. True 5. True 6. True 7. True
VI. Matching Type Multiple Choice Questions (MCQs)
1. (d) 2. (b) 3. (d) 4. (c) 5. (b)
HINTS/ANSWERS TO EXERCISE
1. (b) 2. (b) 3. (d) 4. (a) 5. False 6. Effectiveness 7. (a)
8. Efficiency means doing the task correctly and with minimum cost. Input resources–Money and
materials.
9. (Explain)
10. State Functions of middle management. (Explain)
11. Management. For importance (Explain)
12. Coordination is an all pervasive function. For characteristic. (Explain)
13. Effectiveness. (Explain)
S.
14. Management is a dynamic function. (Explain)

15. Management is a dynamic function. (Explain)
16. (i) Middle level (ii) (Explain)
G.

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AG

1 Nature and Significance of

I Understand the role of top, middle and lower levels of management.

1.1 CONCEPT OF MANAGEMENT

I “Management is defined as the process of planning, organising, actuating and controlling

1.2 Business Studies-12

Nature and Significance of Management 1.3

1.4 Business Studies-12

EXAM ORIENTED SAMPLE QUESTION

OBJECTIVE TYPE QUESTIONS 1.1

1. Effectiveness is concerned with (1)

Nature and Significance of Management 1.5

effectively and efficiently.

1.2 CHARACTERISTICS OF MANAGEMENT

The important characteristics of Management are:

1. Management is a Goal Oriented Process : An organisation has a set of goals which

all organisations whether economic, social or political.

1.6 Business Studies-12

4. Management is a Continuous Process : Management process is a series of

Nature and Significance of Management 1.7

1.8 Business Studies-12

EXAM ORIENTED SAMPLE QUESTION

Nature and Significance of Management 1.9

OBJECTIVE TYPE QUESTIONS 1.2

all managers at all times.

(b) Management is single-dimensional

1.10 Business Studies-12

1.3 OBJECTIVES OF MANAGEMENT

survival, profit and growth.

1.12 Business Studies-12

(iv) Concern for the environment. (any two)

OBJECTIVE TYPE QUESTIONS 1.3

harmony in the organization management has to reconcile personal goals with

Nature and Significance of Management 1.13

(c) Personel objective

4. Sachin the director of Apex Ltd. is engaged in manufacturing furniture. He decided to

(b) Social objective

1.4 IMPORTANCE OF MANAGEMENT

1.14 Business Studies-12

EXAM ORIENTED SAMPLE QUESTION

Nature and Significance of Management 1.15

OBJECTIVE TYPE QUESTIONS 1.4

(a) Helps in achieving personal objectives.

1.16 Business Studies-12

1.5 NATURE OF MANAGEMENT

1.5.1 Management as a Science

So, this feature of science is present in management.

Nature and Significance of Management 1.17

1.18 Business Studies-12

1.5.3 Management as a Profession

3. Professional Association : All professions are affiliated to a professional association

Nature and Significance of Management 1.19

1.20 Business Studies-12

OBJECTIVE TYPE QUESTIONS 1.5

[CBSE 2021 (1)]

The nature of management highlighted in the above case is:

Nature and Significance of Management 1.21

(a) Restricted entry AL

(c) Professional association