Untitled

 Management - concept, objectives, and
importance
 Management as Science, Art and Profession
 Levels of Management
 Management functions-planning,
organizing, staffing, directing and
controlling
 Coordination- concept and importance
Introduction
'Management at Tata Steel' is an example of a
successful organisation which is amongst the top
companies in India. It has risen to the top because of its
quality of management.
Let us take another example. Smita Rai is a 38-year old
entrepreneur who grew up in a rural district called
Namchi, South Sikkim. She was very good in art and
craft particularly, Wax moulds. She loved to make
candles, often she make into toys and small pieces of
art with wax and used it as a gift for her friends and
relatives. She was loved and appreciated for these.
Smita was never happy with the conditions of the
women in her district as most were poor and jobless,
so she planned to do something to solve their
problems because she knew that imparting skills for
livelihood is needed but she had no idea of how to
implement her idea. In August 2012, she met Abishek
Lama, the Branch Manager of NEDFI, Namchi
Branch, a financial corporation which support local
people with skills development programs and also
channelizes them into revenue generating activities.
Smita got interested. “I love making candles, then,
why not convert my hobby into a venture and involve
these rural women also”, she thought. This led to the
establishment of Namchi Designer Candles with the
help of NEDFI, some financial institutions and
support from different stakeholders in various
dimensions. Since then, the women have never
looked back, despite challenges.
The women also faced a lot of harassment but they
could overcome all those troubles. Namchi Designer
Candles has 100 per cent women as employees and
they also produce varieties of candles. During Diwali,
they produce customized candles meant for the
occasion. These Diwali themed candle has been a
success in Sikkim as its demand increases on a yearly
basis. Namchi Designer Candles has been receiving
numerous awards such as North East Women
Entrepreneur of the year 2015-2016 for Sikkim and
Sreemanta Shankar Mission of Guwahati on 26th
April 2018 at New Delhi. A typical day in Smita’s life
consists of a series of interrelated and continuous
functions. She has to plan a special festive collection
for Diwali. This means organising more funds and
recruiting more workers. She also has to regularly
communicate with her suppliers to ensure that
deadlines regarding delivery of goods are met. In the
course of the day, she meets customers for a general
feedback and any suggestions that they may have.
Successful organisations do not achieve their goals
by chance but by following a deliberate process
called ‘management’.
Management = Manage: men + t (things)
No matter what the organisation is or what its goals
might be, they all have something in common
management and managers.
Management is essential for all organisations big or
small, profit or non-profit, services or manufacturing.
Management is necessary so that individuals make
their best contribution towards group objectives.
Management – Concept, Function
1.1
and Characteristics
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 defined as a process of getting things
done with the aim of achieving goals effectively and
efficiently.
Definitions of Management
 “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
 “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
 “Management is defined as the process of
planning, organising, actuating and controlling an
organisation’s operations in order to achieve
coordination of the human and material resources
essential in the effective and efficient attainment of
objectives.” — Robert L. Trewelly and M. Gene Newport
There are certain terms in the above definition of
management, which require elaboration. These are
(a) process, (b) effectively, and (c) efficiently.
1. Process
‘Process’ in the definition of management
means the primary function 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 in management is concerned with
doing the right task, completing activities and
achieving goals.
In other words, it is concerned with the end result.
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.
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.
Effectiveness versus Efficiency
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.
 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
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.
 Top Tip
Usually high efficiency is associated with high effectiveness
which is the aim of all managers. But undue emphasis on
high efficiency without being effective is also not desirable.
Poor management is due to both inefficiency and
ineffectiveness.
was effective but not so efficient, since for the same
output, more inputs (labour cost, electricity costs)
were used.
 At times, a business may concentrate more on
producing goods with fewer resources i.e., cutting
down cost but not achieving the target
production. Consequently, the goods do not reach
the market and hence the demand for them
declines and competitors enter the market. This is
a case of being efficient but not effective since the
goods did not reach the market.
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 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.
2. Organising
Organising is the management function of assigning
duties, grouping tasks, establishing authority and
allocating resources to carry out a specific plan.
 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.
 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".
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 (iv) Supervision.
Motivation and leadership are two key components of
direction.
 Motivating workers means simply creating an
environment that makes them want to work.
 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 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
outputs are critical to success, how and where they
can be measured and who should have the authority
to take corrective action.
 Top Tip
The various functions of a manager are usually discussed in
the order given above, suggesting that a manager first
plans, then organises, puts staff in position, then directs,
and finally controls. In reality, managers are rarely able to
carry out these functions in isolation. The activities of a
manager are interrelated and it is often difficult to pinpoint
where one ended and the other began.
Characteristics/Features of
Management
1. Management is a goal-oriented process.
An organisation has a set of basic goals which are the
basic reason for its existence. These should be simple
and clearly stated. Different organisations have
different goals. For example, the goal of a retail store
may be to increase sales, but the goal of a school is to
impart education to children.
Management unites the efforts of different
individuals in the organisation towards achieving
organisational goals.
2. Management is a continuous process.
The process of management is a series of
continuous, composite, but separate functions
(planning, organising, directing, staffing 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 managers at lower
levels of the organisation.
3. Management is all pervasive.
Management is pervasive as it is required in all
organisations, in all the departments and at all
levels.
The activities involved in managing an enterprise are
common to all organisations whether economic,
social or political. A petrol pump needs to be
managed as much as a hospital or a school. What
managers do in India, the USA, Germany or Japan is
the same. How they do it may be quite different. This
difference is due to the differences in culture,
tradition and history.
4. Management is an intangible force.
Management is an intangible force that cannot be
seen but its presence can be felt or its effect is
noticeable when targets are met according to plans,
employees are happy and satisfied, and there is
orderliness instead of chaos.
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.
6. Management is a dynamic function.
Management is a dynamic function and has to
adapt itself to the changing environment.
An organisation interacts with its external environment
which consists of various social, economic 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, McDonalds, the fast food
giant made major changes in its menu to be able to
survive in the Indian market , e.g. it offers Aloo Tikki
burger.
7. Management is multi-dimensional.
Management is a complex activity that has three main
dimensions. These are:
(i) Management of work: All organisations exist
for the performance of some work. In a factory, a
product is manufactured, in a garment store a
customer’s need is 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 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 behaviour; and
— dealing with employees as a group of people.
The task of a manager is to make people work
towards the achievement of the organisational
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.
RECAP
Concept of Management
Management is the process of getting things done with the
aim of achieving goals effectively and efficiently.
 Process in the definition means series of primary functions
or activities that management performs to get things done,
i.e. planning, organising, staffing, directing and controlling.
 ‘Effectiveness’ in management is concerned with doing the
right task, completing activities and achieving goals.
 Efficiency means doing the task correctly and with
minimum cost. Efficiency is increased if by using less
resources (i.e., the inputs) more benefits are derived (i.e.,
the outputs).
For management, it is important to be both effective and
efficient, i.e. to achieve goals (effectiveness) with minimum
resources (efficiency).
Characteristics/Features of Management G2IP MCD
1. Management is a oal-oriented process as it strives to
achieve organisational goals.
2. Management is all ervasive as it is required in all
organisations, in all the departments and at all levels.
3. Management is a ontinuous process as it involves an
ongoing series of functions (planning, organising,
staffing, directing and controlling).
4. Management is a ynamic function as it adapts
itself to the changing environment. In order to be
successful, an organisation must change itself and its
goals according to the needs of the environment.
5. Management is an ntangible force as it cannot be
seen but its presence can be felt in the way the
organization functions – When targets are achieved
and there is orderliness instead of chaos.
6. Management is a roup activity as it ensures team
work and coordination; and unites individual effort in
a common direction.
7. Management is ulti-dimensional as it involves
three dimensions: Management of work, Management
of people, Management of operations.
 Management of work means translating the work in
terms of goals to be achieved and assigning the
means to achieve it.
 Management of people means dealing with
employees as individuals with diverse needs and
behaviour as well as dealing with individuals as a
group of people.
 Management of operations means managing a
production process which involves transforming
inputs into desired output for consumption.
Objective Type Questions 1.1
Question 1
Complete the Sentence:
Management is concerned with the efficient use of
resources, because ___________.

Answer 1
they reduce costs and ultimately lead to higher profits.

Question 2
“High efficiency is associated with high effectiveness.”
(True/False)

Answer 2
True: High efficiency and high effectiveness is the aim
of all managers. Poor management is due to both
inefficiency and ineffectiveness.

Question 3
“Effectiveness means doing the task correctly and with
minimum cost.” (True/False)

Answer 3
False

Question 4
“Planning is the function of determining in advance
what is to be done and who is to do it.” (True/False)

Answer 4
True

Question 5
“Planning cannot prevent problems.“
True/False? Give reason.

Answer 5
True: Planning can only predict them and prepare
contingency plans to deal with then if and when they
occur.

Question 6
_________ function of management decides who will
do a particular task, where it will be done, and when it
will be done. (Fill up the blank with correct answer)

Answer 6
Organising

Question 7
Match the following function of management:
Column
ColumnI I Column
ColumnII II
(i) Setting
(i) Setting goals
goals ininadvance
advanceand developing
and developing a way(a) (a)
a way Planning
Planning
of achieving
of achieving them
themeffectively and
effectively effectively.
and effectively.
(ii) Establishing
(ii) Establishing an
anatmosphere
atmosphere that encourages (b) (b)
encourages
that Organising
Organising
employees to do their best.
(iii) Determining what activities and resources are (c) Staffing
(iii) Determining
required. what activities and resources are (c) Staffing
required.
(iv) Recruitment selection, placement and training (d) Directing
of personnel selection, placement and training (d) Directing
(iv) Recruitment
(v) of personnel.what activities and outputs are
Determining (e) Controlling
(v) Determining what activities and outputs are
critical to success (e) Controlling
critical to success.

Answer 7
(i) — (a), (ii) — (d), (iii) — (b), (iv) — (c), (v) — (e)

Question 8
Name the concept of management which involves
the grouping of the required tasks into manageable
departments or work units and establishment of
authority and reporting relationships within the
organisational hierarchy.

Answer 8
Organising

Question 9
____________ function of management is also known
as the human resource function.
(Fill up the blank with correct answer)

Answer 9
Staffing

Question 10
One of the very important aspects of management is
to make sure that the right people with the right
qualification are available at the right places and times
to accomplish the goals of the organisation. Identify the
aspect of management.

Answer 10
Staffing

Question 11
_________ is the management function of monitoring
organisational performance towards the attainment of
organisational goals.

Answer 11
Controlling

Question 12
___________ function of management examines the
activities and resources required to implement the plan.

Answer 12
Organising

Question 13
"McDonalds, the fast food giant made major changes in
its menu to be able to survive in the Indian market."
State the characteristic of management highlighted in the
above statement.

Answer 13
Management is a dynamic function and has to adapt itself
to the changing environment. In order to be successful,
an organisation must change itself and its goals according
to the needs of the environment.

Question 14
Match the following functions of management:
Column
ColumnI I Column
Column II II
(i) Leading,
(i) Setting goals in advance
influencing andand (a) (a)
developingemployees
motivating a way Planning
Organising
of perform
to achieving the
themtasks
effectively and to
assigned effectively.
them.
(ii) Assigning
(ii) Establishing an atmosphere
duties, grouping that establishing (b) (b)
encourages
tasks, Organising
Staffing
authority and allocating resources required to
(iii)carry
Determining plan. and resources are (c) Staffing
what activities
out a specific
required.
(iii) Recruitment and selection of the personnel. (c) Directing

Answer 14
(i) — (c), (ii) — (a), (iii) — (b)

Question 15
Which function of management is concerned with finding
the right people for the right job?
(CBSE 2012)

Answer 15
Staffing

Question 16
‘In order to be successful an organisation must change
its goals according to the needs of the environment.’
Which characteristic of management is highlighted in the
statement?

Answer 16
Management is a dynamic function.

Question 17
“Successful organizations do not achieve their goals by
chance but by following a deliberate process”. Identify the
process highlighted here.
(CBSE SQP 2018-19)

Answer 17
Process highlighted in the statement is ‘Management’.

Question 18
Which function of management relates to assigning
duties, grouping tasks, establishing authority and
allocating resources required to carry out a specific plan?

Answer 18
Organising

Question 19
Match the example in column I with the function in
column II:
Column I Column II
(i) Matching outcomes with targets (a) Planning
(ii) Objectives (b) Organising
(iii) Resources for implementation (c) Directing
(iv) Recruitment and Training (d) Staffing
(v) Supervision and Motivation (e) Controlling

Answer 19
(i) — (e), (ii) — (a), (iii) — (b), (iv) — (d), (v) — (c)

Question 20
A production manager was able to produce the desired
output with minimum cost but not within the required
time. In this case the manager was:
(Choose the correct alternative)
(a) Effective only
(b) Efficient only
(c) Both effective and efficient
(d) Neither effective nor efficient

Answer 20
(b) Efficient only

Question 21
Name the process of working with and through
others to effectively achieve organisational objectives
by efficiently using limited resources in the changing
environment.

Answer 21
Management

Question 22
Suhasini, the General Manager of Fabmart, perfoms the
managerial functions of planning, organising, staffing,
directing and controlling as an ongoing process. Which
management feature is highlighted by this?

Answer 22
Management is a continuous process.

Question 23
Why is management considered a multi-faceted concept?
(NCERT)

Answer 23
Management is considered a multi-facted concept because
management is a complex activity that has three main
dimensions: management of work, management of people
and management of operations.

Case Studies
Question 1
Vrinda Ltd. is able to achieve the target production of
5,000 units within the prescribed period. However, to
achieve the target on time, additional `40,000 were paid
as overtime wages to employees. Do you think Vrinda
Ltd. is effective and efficient in its working? (1 mark)
Case Studies — Analysing, Evaluating & Creating Type Questions

Answer 1
The management of Vrinda Ltd. is effective as the target is
achieved. However, it is not efficient as target is achieved
at a higher cost.

Question 2
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 of `90/- per shirt. Do you
think the Production Manager is effective? Give reasons
in support of your answer. (1 mark)

Answer 2
Yes, the Production Manager is effective because he has
completed the task and achieved the goal of producing
10,000 shirts. He is efficient also as he has achieved the
target at a lower cost since he achieved the target at a
lower cost of `90 per shirt while the standard cost is
`100 per shirt.

Question 3
Hero Ltd.’s target is to produce 10,000 shirts per
month at a cost of `150 per shirt. The Production
Manager could achieve this target at a cost of `160 per
shirt. Do you think the Production Manager is
‘effective’? Give reason in support of your answer.
(1 mark)

Answer 3
Yes, the Production Manager is effective since he is able
to produce the target production of 10,000 shirts. He is
not so efficient, since he could achieve this target at a
higher cost of `160 per shirt whereas the standard cost
is `150 per shirt.

Question 4
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.
(NCERT) (3 marks)
Answer 4
Ashita is effective but not efficient.
Reason: She was able to produce 500 bracelets within the
stipulated time but at a higher cost of `110 per bracelet.
Lakshita is efficient but not effective.

Reason: Though she was able to achieve a lower cost of `90
per bracelet but could not produce the target production of
500 bracelets. She was able to produce only 450 bracelets.

Question 5
Tina, a manager of Shikhar Automobiles Ltd.; establishes
an atmosphere that encourages employees to do their
best. She also creates an environment that makes them
want to work. She directs through praise and criticism in
such a way that it brings out the best in the employee.
Identify the concept of management highlighted in the
above para.
(1 mark)

Answer 5
‘Directing’ function of management

Question 6
Sanjana is the branch manager of ABC Handicrafts Pvt.
Ltd. The company’s objective is to promote the sales of
Indian handloom and handicraft products. Its sells fabrics,
furnishings, readymades and household items are made
out of traditional Indian fabrics. Sanjana 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 were
more expensive than they had planned to sell. Average
customer could not afford to buy it. Praising their effort,
Sanjana suggested that they should keep the silk bed
covers for special occasions like Diwali and Christmas
and offer the cotton bed covers on a regular basis to
keep costs under control.
Identify and state the functions of management which
Sanjana performs by quoting the lines from the above
para.
(5 marks)

Answer 6
The functions of management which Sanjana performs are:
(i) 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 them efficiently and effectively.
‘Sanjana decides quantities, variety, colour and texture
of all the above items...’
(ii) Organising: Organising is the management function of
assigning duties, grouping tasks, establishing authority
and allocating resources required to carry out a
specific plan.
‘.. allocates resources for their purchase from different
suppliers.’
(iii) Staffing: Staffing function of management is concerned
with obtaining, utilising and maintaining a satisfactory
and satisfied workforce.
‘She appoints a team of designers and crafts people in
the company...’
(iv) Directing: Directing involves leading, influencing and
motivating employees to perform the tasks assigned
to them.
‘Praising their effort, Sanjana suggested... ’
(v) Controlling: Controlling is the management function
of monitoring organisational performance towards
the attainment of organisational goals.
‘... offer the cotton bed covers on a regular basis to
keep costs under control.’

Question 7
Directors of Aman Ltd. assigned the task of implementing
the plans and policies framed by the board to all the
departmental heads. Departmental heads appointed
supervisors, superintendent, executives, etc. so that work
can be assigned to workers as per the plan. Supervisors
kept a check on workers as per the plan. Identify the
feature of management highlighted in above para.
(1 mark)

Answer 7
Management is a group activity.

Question 8
Social-Connect Pvt. Ltd. is a mobile manufacturing
company. The managdynamic and a lot of changes were
taking place in the mobile market and hence, the risk of
the product becoming obsolete is high. The designs of
the phones are governed by requirements and
preferences of the customers. He started incorporating
new and advanced features taking clue from the
consumers and with the help of his workers. Identify
the characteristic of management highlighted in this
case.
(1 mark)
Answer 8
Management is a dynamic function.

Question 9
Anushka Fabric Ltd. has been able to achieve its
production targets as per plans using a new German
technology. Its employees are happy and satisfied with
their pay scale and working environment in the
organisation. All the work proceeds as per plans and
there is orderliness in the entire functioning of the
organisation. Identify the feature of the management
discussed above.
(1 mark)

Answer 9
Management is an intangible force.

Objectives, Importance and
1.2
Levels of Management
Objectives of Management
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 personal or individual
objectives.
1. Organisational 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 survival,
profit and growth.
(i) Survival: The basic objectives 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.
(ii) 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 operation of the
enterprise. Profit is essential for covering costs
and risks of the business.
(iii) 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.
2. Social objectives
It involves the creation of benefit 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 creating economic
value for various constituents of society. This
includes:
 using environmental friendly methods of
production,
 giving employment opportunities to the
disadvantaged sections of society, and
 providing basic amenities like schools and crèches
to employees.
3. Personal 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 such as competitive salaries and
perks,
 social needs such as peer recognition, and
 higher level needs such as personal growth and
development.
Management has to reconcile personal goals with
organisational objectives for harmony in the
organisation.
 Top Tip
Personal objectives of management aim at satisfying the
diverse needs of people in the organisation who have
different personalities, objectives, etc. Personal objectives
of management should not be confused with fulfilling
personal objectives of employees.
Providing basic amenities like schools and crèches to
employees is social objective of management, not personal
objective since management of an organisation has to fulfill
its social responsibilities towards various stakeholders,
including employees.
Importance of Management
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, staffing and controlling the activities of the
organisation.
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 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.
 Top Tip
Through and the management helps individuals to develop
team spirit, cooperation and commitment to group success.
5. Management helps in the development of
society.
Management helps in the development of society by:
 providing good quality products and services,
 creating employment opportunities,
 adopting new technology for the greater good of the
people, and
 leading the path towards growth and development.
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 hierarchy is
responsible for successful completion of a particular
task. To be able to fulfill that responsibility he is
assigned a certain amount of authority or the right to
take a decision.
The authority-responsibility relationship binds
individuals as superiors and subordinates and
gives rise to different levels of management in an
organisation.
Generally speaking there are three levels in the
hierarchy of an organisation:
(i) Top level management
(ii) Middle level management
(iii) Supervisory or operational management (i.e.
lower level management).
1. Top Level Management
They consist of the senior-most executives of the
organisation. For example:
 Chief Operating Officer
 Chief Executive Officer (CEO)
 Chief Marketing Officer (CMO)
 Chief Finance Officer (CFO)
 Managing Director
 Chairman
 President
 Vice-President
Functions
(i) Their basic task is to integrate diverse elements
and coordinate the activities of different
departments according to the overall objectives of
the organisation.
(ii) These top level managers are responsible for the
welfare and survival of the organisation.
(iii) They analyse the business environment and its
implications for the survival of the firm.
(iv) They formulate overall organisational goals and
strategies for their achievement.
(v) They are responsible for all the activities of the
business and for its impact on society.
Thus, the job of the top manager is complex and
stressful, demanding long hours and commitment to
the organisation.
 Top Tip
Top management is a team consisting of managers from
different functional levels, heading finance, marketing
etc. For example chief finance officer, vice president
(marketing). However, individually managers from
different functional levels, such as production manager
or marketing manager will be acting as middle level
managers.
2. Middle Level Management
Middle Management is the link between top and lower
level managers.
They are subordinate to top managers and superior to
the first line managers.
They are usually known as division heads. For example:
 Production manager
 Marketing manager
 Finance manager
 Human Resource (HR) manager
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.
 Top Tip
Middle level management also includes the following:
 Operations manager
 Plant Superintendent
 Regional manager
 Divisional manager
Functions
Their main task is to carry out the plans formulated by
the top managers. For this they need to:
(i) interpret the policies framed by top management,
(ii) ensure that their department has the necessary
personnel,
(iii) assign necessary duties and responsibilities to
them,
(iv) motivate them to achieve desired objectives, and
(v) co-operate with other departments for smooth
functioning of the organisation.
3. Supervisory or Operational Management
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
Supervisory management plays a very important role
in the organisation because of the following main
functions they perform:
(i) They interact with the actual workforce and pass
on instructions of the middle management to the
workers.
(ii) Supervisors directly oversee the efforts of the
workforce.
(iii) Through their efforts quality of output is
maintained and wastage of materials is minimised.
(iv) 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.
RECAP
Objectives of Management
1. Organisational or Economic 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.
 Survival – Management must strive to earn enough
revenues to cover cost for the survival of the business.
 Profit – Management has to ensure that business earns
profit which is essential for covering cost and risk of the
business.
 Growth – Management must exploit fully the growth
potential of the organization to remain in the industry.
Indicators of growth are increase in sales turnover, capital
investment and number of products and employees.
2. Social Objectives:
It involves the creation of economic value for various
constituents of society like using environment-friendly
methods of production, providing basic amenities like
schools and crèches to employees, giving employment
opportunities to the disadvantaged sections of the society,
etc.
3. Personal Objectives:
Personal objectives of management aim at satisfying the
needs of the employees such as financial needs by giving
them competitive salary and perks, social needs such as
peer recognition, and higher level needs such as personal
growth and development.
Importance of Management DPS EG
1. Management increases fficiency by reducing costs and
increasing productivity through better planning,
organising, staffing, directing and controlling the activities
of the organisation.
2. Management helps in the development of the ociety
by providing good quality products, creating employment
opportunities and adopting new technology, etc.
3. Management helps in achieving group oals by giving
a common direction to individual effort.
4. Management creates a ynamic organisation by
making the organisation adapt itself to the changing
environment.
5. Management helps in achieving ersonal objectives
by motivating and leading in such a way that both personal
goals and organisational objectives are accomplished.
1. Top Level Management consists of Chief Operating
Officer, Chief Executive Officer (CEO), Chief Finance
Officer, Director, Chairman, President, Vice-President,
etc. Their functions are:
(i) To coordinate the activities of different
departments according to the overall objectives of
the organisation.
(ii) To be responsible for welfare and survival of the
organisation.
(iii) To analyse the business environment and its
implications for the survival of the firm.
(iv) To formulate overall organisational goals and
(v) To be responsible for all the activities of the
business and for its impact on the society.
2. Middle Level Management consists of divisional
/departmental heads, such as Production Manager,
Marketing Manager, Operations Manager, Plant
Superintendent, etc. Their functions are:
(i) To interpret the policies framed by top
management.
(ii) To ensure that their department has the necessary
personnel.
(iii) To assign necessary duties and responsibilities to
the employees of their respective departments for
implementation of the plan.
(iv) To motivate employees of their respective
departments to achieve the desired objectives.
(v) To cooperate with other departments for smooth
3. Operational and Supervisory Management consists of
Supervisors and Foremen. Their functions are:
(i) To oversee the efforts of the workforce.
(ii) To interact with the actual workforce and pass on
the instructions of the middle management to the
workers.
(iii) To ensure that the quality of output is maintained
and wastage of material is minimized.
(iv) To ensure safety standards are maintained.
Question 1
Which of the following is not an indicator of growth of
an organisation?
(a) Increase in number of employees
(b) Increase in number of products
(c) Increase in capital investment
(d) None of the above

Answer 1

Question 2
The following is not an objective of management:
(NCERT) (Choose the correct alternative)
(a) earning profits
(b) growth of the organisation
(c) providing employment
(d) policy making

Answer 2
(d) policy making

Question 3
To meet the objectives of the firm, the Asian Paints
contributed large amount of funds to enable farmers to
use local resources effectively. Identify the management
objective it tried to achieve.

Answer 3
Social objectives of management

Question 4
Radhika Ltd. uses environment-friendly methods of
production. Identify the objective it is trying to achieve.

Answer 4

Question 5
In this first year of operation, the revenues generated
by Max Industries from sale of its products are just
sufficient to cover the cost of production. Which
organisational objective is met in the given case?

Answer 5
Survival

Question 6
Raheja Ltd. is diversifying its product lines. What
organisational objective it is trying to achieve?

Answer 6
Growth

Question 7
To meet the objectives of the firm, the management
of Bhavya Ltd. offers employment to physically
challenged persons. Identify the organisational
objective it is trying to achieve.

Answer 7
Growth; since number of employees is increasing, it
leads to increase in production and hence growth of the
company.

Question 8
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. Enumerate the economic objectives of a
business.

Answer 8
Survival, profit and growth.

Question 9
Through __________ management helps individuals to
develop team spirit, cooperation and commitment to
group success.
(a) Coordination
(b) Supervision
(c) Controlling
(d) Motivation aand leadership.

Answer 9
(d) Motivation and leadership.

Question 10
The authority-responsibility relationship binds individuals
as superiors and subordinates and gives rise to different
____________ in an organisation.

Answer 10
levels of management

Question 11
The main task of the middle level managers is _______.
(Complete the sentence)

Answer 11
to carry out the plans formulated by the top level
managers.

Question 12
__________ comprises the lower level in the hierarchy
(a) Vice president (marketing)
(b) Production manager
(c) Foremen and supervisors
(d) Chief operating officers

Answer 12
(c) Foremen and supervisors

Question 13
Supervisory management plays a very important role of
the organisation since ______ .

Answer 13
they interest with the actual workforce and pass in
instructions of the middle management to the workers.
OR
Supervisors directly oversee the efforts of the workforce
and the quality and quantity of output depends on the
hard work, discipline and loyalty of the workforce.
It is through their efforts that quality of output is
maintained, wastage of materials is minimised and safety
standards are maintained.

Question 14
Name the level of management:
(i) overseeing the efforts of the workforce
(ii) formulating organisational goals

Answer 14
(i) Supervisory management
(ii) Top level management;

Question 15
Foremen and Supervisors comprise _____________.
(a) Top level of management
(b) Middle level of management
(c) Operational management
(d) None of these

Answer 15
(c) Operational management

Question 16
Ritu is the manager of the northern division of a large
corporate house. At what level of management does she
work in the organisation? What is her main task?

Answer 16
Middle level management; Her main task is to carry out
the plans formulated by the top managers.

Question 17
Your grandfather is working in an MNC as chief operating
officer. At which level of management he is working?

Answer 17
Top level management

Question 18
At which level of management are the managers
responsible for maintaining the quality of output and the
safety standards?
(CBSE 2012)

Answer 18
Supervisory/Operational management

Question 19
Name the level of management at which the managers
are responsible for implementing and controlling the
plans and strategies of the organisation.

Answer 19
Middle level management

Question 20
At which level of management the managers are
responsible for the welfare and survival of the
organisation?
(CBSE 2012)

Answer 20

Question 21
Sarthak Jain is responsible for framing plans and policies
of Neel Madhav Ltd. At which managerial level, he is
working?

Answer 21

Question 22
Match the following activities with their respective levels
of management:
Column I Column II
(i) Introducing a new product line and deciding (a) Top Management
the capital structure of the company.
(ii) Recruitment of casual labourers. (b) Middle
Management
(iii) Devise a suitable advertising campaign to (c) Supervisory and
sell a new product/service a company is Operational
launching. Management

Answer 22
(i) — (a), (ii) — (c), (iii) — (b)

Question 23
Dheeraj is working as ‘Operations Manager’ in Tifco Ltd.
Name the managerial level at which he is working.

Answer 23
Dheeraj is working at middle level management.

Question 24
Name the level of management which is a team consisting
of managers from different functional levels, heading
finance, marketing, etc, for example, chief finance officer,
vice president (marketing).

Answer 24

Case Studies
Question 1
ABC Group of companies decided to donate 2% of its
sales to ‘Child Rights and You (CRY)’ for improving the
condition of children in India. This initiative by the
company was highly appreciated by the public and their
sales increased by 10%. Identify the objective of
management depicted in the given case.
(1 mark)

Answer 1
Social Objectives of management

Question 2
Management of Alpha Ltd. has installed a special
recycling plant to recycle the waste instead of dumping
the waste in ground. It is also providing employment
opportunities to local residents. Company started a
school nearby for the children of their employees.
Identify the objective of management the company is
fulfilling.
(1 mark)

Answer 2

Question 3
The manager of Beta Ltd. is very efficient and effective
and makes sure that all the employees and workers in
his team perform the task on time with minimum cost.
His main focus is on cost reduction. So he never listens
to the demand of workers for increasing wages. He
even gives no opportunity to workers for promotion.
As a result workers started becoming frustrated and
disheartened all the time. Which objective of
management could not be achieved by the manager?
(1 mark)

Answer 3
Personal objectives of management

Question 4
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
crèches for the children of its employees.
Identify and explain the objectives of management
discussed above. Also, quote the lines.
(3 marks)

Answer 4
The company is fulfilling the organisatonal and social
objectives of management.
Organisational objectives include survival, profit and
growth.
"In order to survive, XYZ Power Ltd. earns enough revenues."
"Company’s profits are sufficient to the cover the costs and the risks."
“Since demand for lanterns was increasing day by day,
therefore, the company decided to increase production to
generate higher sales, it implies that the company exploits fully
its growth potential."
Social objectives involve the creation of benefits for the
society.
"The company decided to employ people from the nearby
villages as very few job opportunities were available in that
area. It also decided to open schools and crèches for the
children of its employees."

Question 5
H. Tech Ltd. is a company producing IT services. The
company’s profits are enough 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 happy
working in the organisation because of personal growth
and development.
The company has a strong sense of social responsibility.
It has set up an engineering college in which one-third
of the students are girls to whom the company gives
50% scholarship.
Is the management of H. Tech Ltd. fulfilling its objectives?
Justify your answer by by quoting the lines from the
above.
(3 marks)

Answer 5
Yes, the management of H. Tech Ltd. is fulfilling all the
objectives — organisational objectives, social objectives
and personal objectives.
(i) Organisational objectives are the economic objectives
of a business.These are survival, profit and growth.
"Profits of H.Tech Ltd. are enough for the survival and growth."
(ii) Social objectives involve creation of benefits or
economic value for the society.
"H. Tech Ltd. has set up an engineering college in which one-
third of the students are girls to whom the company gives
50% scholarship.
(iii) Personal objectives are related to satisfying diverse
needs of the employees such as financial needs, social
needs and higher level needs.
“...it pays competitive salaries and perks to all its employees.
All the employees are happy working in the organisation
because of personal growth and development.”

Question 6
Rajiv Automobiles aims to produce and sell 1,00,000
cars in 2019. To achieve this objective, the production
department strives for timely production and sales
department takes all possible steps to sell them. Due to
combined efforts of all the departments, the company is
able to achieve its target. Which significance of
management is highlighted in the given case?
(1 mark)

Answer 6
Management helps in achieving group goals.

Question 7
Fashion 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 hi-tech modern machines
from Germany. During the production process, the
manager observed that the quality of production is not
as per standard and very often production is disrupted
Question 7
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 marks)

Answer 7
The points of importance of management highlighted in
the given case are:
(i) 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. ”
(ii) 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. ”
(iii) 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 Germany. ”

Question 8
Mr. Shiv Sharma and Ms. Suhasini are both managers of
HTL Ltd. Mr. Shiv is the CEO of the company and Ms.
Suhasini is a branch manager at HTL Ltd. They manage
the enterprise at different levels. At which levels of
management are they working in HTL Ltd.?
(1 mark)

Answer 8
 Mr. Shiv Sharma, the CEO of the company is working
at the top level management.
 Ms. Suhasini, a branch manager at HTL Ltd. is working
at the middle level management.

Question 9
Ashutosh Goenka was working in ‘Axe Ltd.’, a company
manufacturing air purifiers. He found that the profits had
started declining from the last six months. Profit has an
implication for the survival of the firm, so he analysed
the business environment to find out the reasons for
this decline.
(a) Identify the level of management at which Ashutosh
Goenka was working.
(b) State three other functions being performed by
Ashutosh Goenka.
(CBSE 2017) (4 marks)
Answer 9
(a) Top Level Management
(b) Functions of the top level of management: (any three)
(i) To co-ordinate the activities of different
departments.
(ii) To be responsible for welfare and survival of the
organisation.
(iii) To formulate overall organisational goals and
(iv) To be responsible for all the activities of the
business and for its impact on the society.
Question 10
Rishitosh Mukerjee 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 organization. Therefore, he ensured
that his department has the required number of
employees and its cooperation with other departments
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.
(CBSE 2017) (4 marks)

Answer 10
(a) Middle Level Management
(b) Functions of the middle level of management:
(i) To interpret the policies framed by the top
management.
(ii) To assign necessary duties and responsibilities to
the employees of their respective departments
for implementation of the plan.
(iii) To motivate employees of their respective
departments to achieve the desired objectives.

Question 11
Govinda Ltd. is a highly reputed company. 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.
Mr. Gauranga is responsible for the welfare and survival
of the organisation. He formulates overall organisational
goals and strategies for their achievement.
Mr. Nityanand ensures that quality of output is
maintained, wastage of materials is minimised and safety
standards are maintained.
Mr. Sanatan assigns necessary duties and responsibilities
to the personnel and motivates them to achieve desired
objectives.
At what levels of management are Mr. Gauranga, Mr.
Nityanand and Mr. Sanatan working in Govinda Ltd.?
Justify your answer.
(3 marks)

Answer 11
(i) Mr. Gauranga is working at the top level management.
He is responsible for the welfare and survival of the
organisation. He formulates overall organisational
goals and strategies for their achievement.
(ii) Mr. Nityanand is working at the operational/
supervisory management.
He ensures that quality of output is maintained,
wastage of materials is minimised and safety standards
are maintained.

(iii) Mr. Sanatan is working at the middle level
management.
He assigns necessary duties and responsibilities to
the personnel and motivates them to achieve desired
objectives.

Management as Art, Science and
1.3
Profession
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.
The basic features of an art are as follows:
(i) Existence of theoretical knowledge: Any art
(literature on dancing, public speaking, acting or
music) presupposes the existence of certain
theoretical knowledge.
(ii) 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, two actors,
or two writers will always differ in demonstrating
their art.
(iii) Based on 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 learnt. 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:
1. Existence of theoretical knowledge

As in art, in management too, 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 perfection after
long practice. A good manager works through a
combination of practice, creativity, imagination,
initiative and innovation.
Management as a Science
The basic features of science are as follows:
Science is a systematic body of knowledge. Its
principles are based on a cause and effect
relationship. For example, the phenomenon of an
apple falling from a tree towards the ground is
explained by the law of gravity.
Scientific principles are first developed through
observation and then tested through repeated
experimentation under controlled conditions.
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.
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 these experiments are
not capable of being accurately predicted. Therefore,
management can be called an inexact science.
So, this feature of science is not fully present in
management.
3. Universal Validity
The principles of management provide managers
with certain standardised techniques 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.
So, this feature of science is not fully present in
management.
 Top Tip
Management is both an art and a science.
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 complement each other.
Management as a Profession
A profession has the following characteristics:
(i) Well-defined body of knowledge: All professions
are based on a well-defined body of knowledge that
can be acquired through instruction.
(ii) 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.
(iii) 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.
(iv) 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 at the
time they enter the profession.
(v) 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 professions
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 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 lawyer 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. Profession Association
There are several associations of practicing managers
in 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.
So, presently this feature of profession is not present in
management.
4. Ethical code of conduct
AIMA has devised a code of conduct for Indian
managers but there is no statutory backing for this
code.
So, presently this feature of profession is not present in
management.
5. Service motive
The basic purpose of management to help the
organisation achieve 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.
RECAP
Management as an Art
Art is the skillful and personal application of knowledge to
achieve desired results. Management is an art because of
the following reasons:
1. 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.
2. Personalised application: Like in any art, in
management too, a manager applies his acquired
knowledge in a personalised and unique manner.
3. Based on continuous practice and creativity:
Management satisfies this criteria as manager gains
experience through regular practice and becomes more
effective. 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.
As all the criteria of art are satisfied by management, it
qualifies as an art.
Management as a Science
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:
1. Systematised body of knowledge: Like science,
management is a systematised 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.
2. Principles based on observation and experimentation:
Like science, management principles are derived through
observation and repeated experimentation. However, since
management deals with human beings the outcome of
these experiments are not capable of being accurately
predicted. So, this feature of science is not fully present in
management.
3. 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. So, this feature of science is not fully
present in management.
Management is both an art and a 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 scieznce of
management. Management as an art and a science are
therefore not mutually exclusive, but complementary to
each other.
Management as a Profession SWEEP
Management is a profession but not a full-fledged profession
like legal, accounting or medical professions because it does
not meet the exact criteria of a profession.
1. ell-defined body of knowledge: All professions are
based on a well-defined body of knowledge that can be
acquired through instruction. Management too is based on
a systematic body of knowledge comprising well-defined
principles. This feature of profession is present in
management.
2. Restricted ntry: The entry to the above stated profession
is restricted through a prescribed qualification. But there is
no restriction on anyone being appointed as a manager in
any business enterprise. So, presently this feature of
profession is not present in management.
3. rofessional association: Legal and medical professions
are affiliated to a professional association like bar council
and medical council which regulates entry, grants
certificate of practice and formulates and enforces a code
of conduct. There are several associations of practising
managers in India, like the AIMA that has laid down a code
of conduct to regulate the activities of their members.
There is, however, no compulsion for managers to be
members of such an association. So, presently this feature
of profession is not present in management.
4. thical code of conduct: Legal and medical professions
are bound by a code of conduct which guides the
behaviour of its members. AIMA has devised a code of
conduct for Indian managers but there is no statutory
backing for this code. So, presently this feature of
profession is not present in management.
5. ervice motive: The motive of legal and medical
profession is to serve their clients' interests by rendering
dedicated and committed service. The basic purpose of
management to help the organisation achieve 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.
Question 1
“Management is the systematised body of knowledge
that explains certain general truths.” Identify the nature
of the management highlighted in the statement.

Answer 1
Management is a science

Question 2
“Management is skillful and personal application of
existing knowledge to achieve desired results.” Identify
the nature of the management highlighted in the
statement.

Answer 2
Management is an art

Question 3
Which of the following statement best explains the
“Management is an Art”?
(a) Two managers deal with the same problem differently.
(b) Management has drawn its knowledge from other
disciplines also.
(c) No formal qualification is required for the appointment
as a manager in a company.
(d) Outcomes of managerial actions cannot be predicted
accurately.

Answer 3
(a) Two managers deal with the same problem
differently.

Question 4
Management is:
(a) an art.
(b) a science.
(c) both art and science.
(d) neither art nor science.

Answer 4
(c) both art and science.

Question 5
Which of the following is not a characteristic of a
profession?
(a) Service motive
(b) Restricted entry
(c) Based on practice and creativity
(d) Well-defined body of knowledge.

Answer 5
(c) Based on practice and creativity

Question 6
In today’s scenario, organisations look for individuals with
specific qualifications and experience to manage them. It
has also been observe that there has been an increase in
the corporate form of business and increasing emphasis
on managed business concerns. What does the above
statement imply?

Answer 6
Management is a profession. However, it is not a full-
fledged profession like legal, accounting and medical
professions.

Case Studies
Question 1
A. R. Rehman is the first Indian to win Oscar award for
his composition ‘Jai Ho’. His composition of music is
unique as he has used the singing notes in a manner
that is entirely his own interpretation. Like A. R. Rehman,
Mr. Sugan, General Manager in Star Ltd., uses his
knowledge of management in a unique manner. All the
employees working under his guidance are happy and
satisfied because of his good behaviour. He everyday
rewards/appreciates the employees for coming office on
time, performing their assigned tasks with best of their
capabilities. Moreover, Mr. Sugan treats all his employees
as fairly as possible. He does not discriminate his
employees on the basis of sex, religion, caste, belief, etc.
Identify the nature of the management highlighted in
the above case. (1 mark)

Answer 1
Management is an art.

Question 2
Hema is one of the most successful managers of her
company, ‘Kobe Ltd.’ She uses her creativity and initiative
in handling challenging situations at work. The knowledge
gained by her during her student days at a renowned
management institute as well as through her observation
and experience over the years is applied by Hema in a
skillful manner in the context of the realities of a given
situation. She often reads books and other literature in
various fields of management to keep her knowledge
updated.

(i) An aspect of the nature of management is being
highlighted in the above description. Identify the
aspect.
(ii) Explain any three features of the aspect identified in
part–(i). (CBSE 2017) (4 marks)

Answer 2
(i) Management as an art.
(ii) Three features that establish it as an art are:
(a) 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.
(b) Personalised application: Like in any art, in
management too, a manager applies his acquired
knowledge in a personalised and unique manner.

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

Question 3
Akshat and Kshitiz are managers at the same level of
management in a company. Akshat says that management
is an ‘art’ whereas Kshitiz says that management is a
‘science’. As the director of the company, explain the
true nature of management to Akshat and Kshitiz.
(6 marks)

Answer 3
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 a ‘science’ because like
science, management is a systematic body of knowledge
with its own theories and principles which are derived
through observation and repeated experimentation.
However, since management deals with human beings
and human behaviour, the outcomes of these
experiments are not capable of being accurately
predicted. Therefore, management is called an ‘inexact
science’.

True nature of management
Management is both an art and a 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.

Question 4
Aman, Ahmad and Ally are partners in a firm engaged in
the distribution of dairy products in Maharashtra state.
Aman is a holder of Senior Secondary School Certificate
from Central Board of Secondary Education with
Business Studies as one of his elective subjects. Ahmad
had done his post graduation in History and Ally in dairy
farming. One day there was a serious discussion between
Ahmad and Ally regarding the nature of management.
Ahmad argued that management was a profession
whereas Ally argued against it saying that the legal and
medical professions are the only professions because they
fulfill all the conditions of profession.
Aman on the basis of his knowledge of business studies
explained the nature of management as a profession to
Ahmad and Ally.
Explain, how Aman would have satisfied both Ahmad and
Ally.
(5 marks)

Answer 4
Management is a profession but not a full-fledged
profession like legal, accounting or medical professions
because it does not meet the exact criteria of a
profession.
1. Well-defined body of knowledge: Like a profession,
management too is based on a systematic body of
knowledge comprising well-defined principles.
2. Restricted Entry: The entry to a profession is
restricted through a prescribed qualification. But
there is no restriction on anyone being appointed as
a manager in any business enterprise.
3. Professional association: Like legal and medical
professions are affiliated to bar council and medical
council, there are several associations of practising
managers in India, like the AIMA . However, there is
no compulsion for managers to be members of
such an association.
4. Ethical code of conduct: Legal and medical
professions are bound by a code of conduct which
guides the behaviour of its members. 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 to
help the organisation achieve its goals by providing
good quality products at reasonable prices, thereby
serving the society is being increasingly recognised.

Coordination – Concept,
1.4
Characteristics and Importance
Concept of Coordination
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 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.
Definition of Coordination
 “Coordination is the orderly synchronising of efforts of
subordinates to provide proper amount, timing and
quality of execution so that their united efforts lead to
the stated objectives, namely, the common purpose of
the enterprise.” —Theo Haimann
 “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.” —McFarland
 “Coordination is balancing and keeping together the
team by ensuring suitable allocation of tasks to the
various members and seeing that the tasks are performed
with harmony among the members themselves.”
—E.F.L. Brech
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.
 The process of coordinating the activities of an
organisation begins at the stage itself. Top
management plans for the entire organisation.
 According to these plans the organisational structure
is developed, which is the outcome of process.
 The function is performed to fill the roles designed
in the organisational structure.
 In order to ensure that these plans are executed
according to plans, is required.
 Any discrepancies/deviations between actual and
standard performance are taken care of at the stage of.
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.
Characteristics/Features of Coordination
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 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 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.
5. Coordination is the responsibility of all
managers.
Coordination is the function of every manager in the
organisation.
 Top level managers need to coordinate with their
subordinates to ensure that the overall policies for
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.
6. Coordination is a deliberate function.
A manager has to coordinate the efforts of different
people in a conscious and deliberate manner. Even
where members of a department willingly cooperate
and work, coordination gives a direction to that willing
spirit.
 Top Tip
Cooperation in the absence of coordination may lead to
wasted effort and coordination without cooperation may
lead to dissatisfaction among employees.
Importance of Coordination
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 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,
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.
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 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.
RECAP
Coordination – The essence of management

activities of different departments is called
coordination.
Co-ordination 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 organization.
 At the organizing stage, the organizational structure is
developed as per plans.
 The staffing function is performed thereafter as per the
structure developed in the organization structure.
 Directing is then required to ensure that these plans are
executed accordingly.
 Controlling function ensures that the discrepancies
between actual and planned activities are taken care of.
Coordination, therefore, synchronises the efforts through
all functions of management and ensures that the
organizational objectives are achieved with a minimum
of conflict.
Characteristics/Features of Coordination DU PCR I
1. Coordination ntegrates group efforts by unifying
diverse interests into purposeful work activity.
2. Coordination ensures nity of action by acting as a
binding force between departments and ensuring that
all action is aimed at achieving the goals of the
organisation.
3. Coordination is a ontinuous process as it starts at the
planning stage and continues till controlling.
4. Coordination is a ervasive function as it is required in
all types of organisations, in all the departments and at all
levels. Coordination is required at all levels of management
due to the interdependent nature of activities of various
departments.
5. Coordination is the esponsibility of all managers at
the top, middle and operational level.
 Top level managers need to coordinate with their
subordinates to ensure that the overall policies 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.
6. Coordination is a eliberate function as every manager
has to coordinate the efforts of different people in a
conscious and deliberate manner.
Need and Importance of Coordination
1. Growth in size – As organizations grow in size, the
number of people employed by the organization
increases. Individuals differ in their habits of work, needs
and behavior and may have their own individual goals.
Coordination is necessary to harmonize individual goals
and organizational goals. Coordination ensures that all
individuals work towards the common goals of the
organization.
2. Functional differentiation – Functions of organization
are divided into departments/divisions of finance,
production, marketing or human resources. All these
departments are dependent on each other. Coordination
links the activities of various departments to focus on
attainment of common goals. There may also arise
conflict among them. Coordination is needed to ensure
unity of action to avoid inter-departmental conflicts.
3. Specialisation – Modern organizations have high
degree of specialization and employ a number of
specialists. This leads to conflict as some specialists do
not like to take advice or suggestions from others.
Coordination is required to reconcile their differences.
Question 1
The process of linking the activities of various
departments is accomplished by ________.

Answer 1
Coordination

Question 2
Coordination is a one-time function. (True/False)

Answer 2
False: Coordination is a continuous process. It begins at
the planning stage and continues till controlling.

Question 3
___________ involves synchronisation of the different
actions or efforts of the various units of an organisation.

Answer 3
Coordination

Question 4
In the absence of ________ there is overlapping and
chaos instead of harmony and integration of activities.

Answer 4
Coordination

Question 5
Coordination is the function of the top management.
(True/False)

Answer 5
False: Coordination is the responsibility of all managers
from top level to supervisory level of management.

Question 6
For organisational efficiency, it is important to harmonise
individual goals and organisational goals through ______.

Answer 6
Coordination

Question 7
Identify and state the force that binds all the other
functions of management.

Answer 7
Coordination, which means the process by which
a manager synchronises the activities of different
departments.

Question 8
activities of different departments is known as
_____________.
(a) Coordination
(b) Cooperation
(c) Organising
(d) Supervision

Answer 8
(a) Coordination

Question 9
Which of the following is not a function of management?
(a) Planning
(b) Staffing
(c) Coordination
(d) Controlling

Answer 9
(c) Coordination

Question 10
Coordination is:
(NCERT) (Choose the correct alternative)
(a) a function of management.
(b) the essence of management.
(c) an objective of management.

Answer 10
(b) the essence of management.

Question 11
It is the force which binds all 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. Identify it.

Answer 11
Coordination

Question 12
Name the process which provides the requisite
amount, quality, timing and sequence of efforts and
ensures that planned objectives are achieved with a
minimum of conflict.
(CBSE SQP 2018)

Answer 12
Coordination

Question 13
“Coordination is needed at all levels of management.
“State the characteristic of coordination highlighted
in the statement.

Answer 13
Coordination is an all pervasive function.

Case Studies
Question 1
In X Ltd., the purchase department purchased 10
tonnes of raw material for the production department.
However, the production department needed just 7
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?
(1 mark)

Answer 1
Coordination

Question 2
In Flipmart Co. Ltd. the production and sales department
have to coordinate their work, so that production takes
place according to the demand in the market.
State the feature of coordination highlighted above.
(1 mark)

Answer 2
Coordination ensures unity of action. It acts as the
binding force between departments and ensures that all
action is aimed at achieving the goals of the organisation.

Question 3
Company X is facing a lot of problems these days. It
manufactures white goods like washing machines,
microwave ovens, refrigerators and air conditioners.
The company’s margins are under pressure and the
profits and market share are declining. The production
department blames marketing for not meeting sales
targets and marketing blames production department
for producing goods, which are not of good quality
meeting customers expectations. The finance
department blames both production and marketing for
declining return on investment and bad marketing.
(a) What quality of management do you think the
company is lacking?
(b) Explain any five features of the concept of the
management identified in part (a).
(NCERT) (6 marks)

Answer 3
(a) Coordination
(b) Features of Coordination:
(i) Coordination integrates group efforts by unifying
diverse interests into purposeful work activity.
(ii) Coordination ensures unity of action by acting
as a binding force between departments and
ensuring that all action is aimed at achieving the
goals of the organisation.

(iii) Coordination is a continuous process as it starts
at the planning stage and continues till controlling.
(iv) Coordination is a pervasive function as it is
required in all types of organisations, in all the
departments and at all levels.
(v) Coordination is the responsibility of all managers
at the top, middle and operational level.

Question 4
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 sales
department coordinate their work, so that production
takes 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 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 lines from the above the
three characteristics of coordination.
(6 marks)

Answer 4
Three characteristics of coordination highlighted are:
(i) 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.
"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."

(ii) 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."

(iii) 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."
Question 5
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 from others. This often leads to
conflict amongst different specialists as well as others in
the organisation. State the reason why coordination is
required in such a case. (1 mark)
Answer 5
Coordination is required to reconcile the differences in
approach, interest or opinion of the specialists

Self-Assessment Test 1
Nature and Significance of Management
Time Allowed: 1 hour Maximum Marks: 25

Question 1
Match the columns: (1 mark)
Column I Column II
(i) The force that binds all the other functions (a) Planning
of management.
(ii) Doing the right task, completing activities (b) Coordination
and achieving goals.
(iii) Doing the task correctly and with minimum (c) Efficiency
cost.
(iv) Setting goals and developing a way of (d) Effectiveness
achieving them efficiently and effectively.
Self Assessment Test-1

Answer 1
(i) – (b), (ii) – (d), (iii) – (c), (iv) – (a)

Question 2
Management is:
(Choose the correct alternative) (1 mark)
(a) A Science
(b) An Art
(c) both science and art
(d) Neither

Answer 2
(c) both science and art

Question 3
A firm plans in advance and has a sound
organisation structure with efficient supervisory
staff and control system but on several occasion
it finds that plans are not being adhered to. It
leads to confusion and duplication of work.
Advise remedy.
(1 mark)

Answer 3
The management of the firm must perform
'Directing' function properly, which involves
execution of plans and motivating, leading,
communicating and supervising employees
at work.

Question 4
It is through the process of _______ that a manager
ensure the orderly arrangement of individual and
group efforts to ensure unity of action in the
realisation of common objective.
(a) Management
(b) Organising
(c) Coordination
(e) Controlling
Answer 4
(c) Coordination

Question 5
Justify how coordination is:
(a) a continuous process
(b) an all-pervasive function.
(3 marks)

Question 6
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 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.
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 aspect of management
that has been ignored by Mita. Also explain the
same with the help of an example.
(3 marks)
Answer 6
Efficiency: Efficiency means doing the task correctly
and with minimum cost.
Example: Suppose 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.

Question 7
Successful organisations do not achieve their goals
by chance but by following a deliberate process.
Identify it and explain its importance by giving
any three points.
(4 marks)

Question 8
“Management seeks to achieve certain objectives
which must be derived from the basic purpose of
the business.” In the light of this statement, explain
the objectives of management.
(5 marks)

Question 9
Forex Ltd. is a private limited company with several
branches all over India. It promotes the sales of
Indian handloom and handicraft products while
providing equitable employment to traditional
artisans. Mr. Brijesh, a branch manager of the
company plans his winter collection in the month of
June itself. He has to ensure that there is adequate
workforce and continuously monitor whether
production is proceeding according to plans. He also
provides direction and motivation to his employees
his employees. The purchase, production and sales
departmental efforts are coordinated by Mr. Brijesh
for achieving organisational objectives harmoniously.
The production and the sales department coordinate
their work, so that production takes place according
to the demand in the market. The purchase
department is responsible for procuring material.
This then becomes the basis of the activities of the
production department and finally sales can take
place.
(a) Identify any three functions of management
performed by Mr. Brijesh in Forex Ltd. by
quoting lines from the above case.
(b) Identify and explain any two features of
coordination discussed in the above case.
(6 marks)

Answer 9
(a) The functions of management performed by Mr.
Brijesh in Forex Ltd. are: (any three)
(i) Planning: “...plans his winter collection in the month of
June itself.”
(ii) Staffing: “...ensure that there is adequate workforce.”
(iii) Controlling: “...continuously monitor whether
production is proceeding according to plans.”
(iv) Directing: “...provides direction and motivation to his
employees.”
(b) The features of coordination discussed in the
given case are: (any two with explanation)
(i) Coordination is a continuous process.
“...plans his winter collection... ensure that there is
adequate workforce and continuously monitor
whether production is proceeding according to
plans.”

(ii) Coordination is an all pervasive function.
“The purchase, production and sales departmental
efforts are coordinated by Mr. Brijesh for
achieving organisational objectives harmoniously.”
(iii) Coordination ensures unity of action.
“...The production and the sales department
coordinate their work, so that production takes
place according to the demand in the market.”


Question 1
“Management has to see that takes are completed
and goals are achieved with the least amount of
resources at a minimum cost.”
Identify by quoting lines the two important aspects
of the concept of management highlighted in the
above statement.
(1 mark)

Answer 1
(i) Effectiveness – “ tasks are completed and goals
are achieves.
(ii) Effectively – “goals are achieved with the least
amount of resources at a minimum cost."

Question 2
________ gives a common flows to group effort
to ensure that performance is as it was planned
and scheduled.
(a) Planning
(b) Controlling
(c) Coordination
(e) Directing

Answer 2
(c) Coordination

Question 3
Through ____________ the management helps
individuals to develop team spirit, cooperation
and commitment to group success.
(a) Coordination
(b) Motivation and leadership
(c) Effectiveness
(d) Efficiency

Answer 3
(b) Motivation and leadership

Question 4
Das is the Managing Director of ‘Gamut Ltd.’,
manufacturing different varieties of cheese. He has
an efficient team working under him consisting of
Rajat, the Production manager, Vinay – the
Marketing manager and Adit – the Finance
manager. They understand and interpret the policies
made by Das, ensure that their departments have
adequate manpower, assign them the necessary
duties and motivate them to achieve the desired
objectives.
State one more function other than those mentioned
above, that this team may perform at the level they
are working.
(1 mark)

Answer 4
Co-operate with other departments for smooth

Question 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 diesel and ensure a cost saving
of `12,00,000 per year. Identify and explain the
objectives of management achieved by Indian Railways
in the above case.
(3 marks)
Answer 5
The objectives of management achieved by Indian
Railways are:
(i) Organisational Objectives
(a) Profit: Cost saving of `12,00,000 per year
due to solar power DEMU (Diesel Electric
Multiple Unit) implies increase in profits of
Indian Railways.
(b) Growth: Increase in number of products, i.e.
new broad gauge solar power trains.
Answer 5
(ii) Social Objectives
New broad gauge solar power train is going to
be a path breaking leap towards making trains
greener and more environment friendly.

Question 6
The management of Vrinda Ltd. strongly believes
that the members of an organisation should work
towards fulfilling the common organisational goals.
This requires team work and integration of efforts
of all individuals, departments and specialists. This is
because all the individuals and departments
depend on each other for information and resources
to perform their respective activities. Managers
need to reconcile differences in approach, timing,

effort or interest. At the same time it should
enable all its members to grow and develop.
Thus, there is a need to harmonise individual
goals and organisational goals.
(a) Identify and explain the concept of
management discussed above.
(b) State the characteristic of management
which is reflected from the above para.
(3 marks)
Answer 6
(a) Coordination (give explanation)
(b) Management is a group activity

Question 7
“Science is a systematised body of knowledge that
explains certain general truths or the operation of
general laws.” In the light of this statement, describe
whether management is a science.
(4 marks)

Question 8
“Coordination is the orderly arrangement of group
efforts to provide unity of action in the pursuit of
common purpose.” In the light of this statement,
explain the nature of coordination.
(5 marks)

Question 9
Name the process of designing and maintaining an
environment in which individuals working together
in groups efficiently accomplish selected aims. Also,
explain its importance by giving any five points.
(6 marks)

Answer 9
Management
Importance of management (explain five points)


Question 1
‘Management is defined as a process of getting
things done with the aim of achieving goals
effectively and efficiently.’ ‘Process’ in the
definition means the primary function or activities
that management performs to get things done.
Enumerate these functions or activities.
(1 mark)

Answer 1
Planning, Organising, Staffing, Directing
and Controlling.

Question 2
‘The basic objective of any business is _________.
(a) Survival
(b) Profit
(c) Growth
(d) Personal

Answer 2
(a) Survival

Question 3
_______________ is responsible for implementing
and controlling plans and strategies developed by
the senior most executives of the organisation.
(Fill up the blank with correct answer) (1 mark)

Answer 3

Question 4
The purchase, production and sales managers at
Sharda Ltd, a firm manufacturing ready made
garments are generally at a conflict, as they have
their own objectives. Usually each thinks that only
they are qualified to evaluate, judge and decide on
any matter, according to their professional criteria.
Name the concept which will be required by the
CEO Mr. Raman, to reconcile the differences in
approach, interest or opinion in the organisation. (1)

Answer 4
Coordination.

Question 5
List any three tasks that Mr. Armstrong needs to do,
as a production manager, in his firm, to carry out
the plans laid down by the top managers.
(3 marks)

Answer 5
Following are the tasks that Mr. Armstrong needs to
perform as a production manager in his firm to
carry out the plans laid down by the Top managers:
(any three)
(i) Interpret the policies framed by top
management.
(ii) Ensure that the production department has the
necessary personnel.
(iii) Assign necessary duties and responsibilities to
them. Self Assessment Test-3
(iv) Motivate them to achieve the desired objectives.
(v) Cooperate with other departments for the smooth
functioning of the organization.

Question 6
In a company, the marketing department’s objective is
to increase sales by 10 per cent by offering discounts.
But, the finance department does not approve of such
discounts as it means loss of revenue.
These kinds of conflict arise in organisations because
of the lack of one of the concepts of management.
(a) Identify and explain the concept of management
highlighted above.

(b) State the characteristic of management the
company is violating. (3 marks)

Answer 6
(a) Coordination (give explanation)
(b) Management is a group activity.

Question 7
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 is not a science whereas David was of
the opinion that Management is 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.
(4 marks)
Question 8
"A successful enterprise has to achieve its goals
effectively and efficiently." Explain the statement,
giving examples.
(5 marks)

Question 9
Define management. State any five characteristics
of management.
(6 marks)


Question 1
________________ is concerned with the end result
(Effectiveness/Efficiency).
(Choose the correct option) (1 mark)

Answer 1
Effectiveness

Question 2
Management has to ensure that the organisation
makes a profit. Profit is essential for ___________.
(Complete the sentence) (1 mark)

Answer 2
covering costs and risks of the business

Question 3
Providing basic amenities like schools and crèches to
employees is an example of ________ objectives of
management.
(a) Organisational
(b) Social
(c) Personal
(d) Growth

Answer 3
(b) Social

Question 4
In an organisation, managers need to reconcile
differences in approach, timing, effort or interest. At
the same time, there is a need to harmonies
individual goals and organisational goals.
State the concept of management highlighted in the
above para.
(1 mark)

Answer 4
Coordination, which is the process by which a
manager synchronises the activities of different
departments.

Question 5
One of the objectives of management is to
consistently create economic value for various
constituents of the society. Explain this objective
of management by giving any two examples.
(3 marks)

Question 6
Answer the following:
(a) How does coordination ensure unity of action in
Management?
(b) At which level of management coordination takes
place in an organisation?
(c) How does coordination integrate group efforts?
(3 marks)

Question 7
Nishtha is a manager of a company selling laptops.
She plans the target sale of 2,000 laptops per
month. She allocates necessary resources to carry
out the plan. She has six salesmen working under
her. She works with them, guiding and motivating
them to achieve the target sales. At the end of the
month, after comparison of actual sales with the
target sales she found that actual sales exceeded
the target sales.

Identify, by quoting the lines from the above
paragraph, the functions of management Nishtha is
performing. Explain these functions by quoting the
lines.
(4 marks)

Answer 7
Nishtha is performing the following functions of
management: (explain)
(i) Planning– ‘She plans the target sale of 2,000
laptops per month.’
(ii) Organising– 'She allocates necessary resources
to carry out the plan.’
(iii) Directing– ‘She works with them, guiding and
motivating them to achieve the target sales.’

(iv) Controlling– ‘At the end of the month, after
comparison of actual sales with the target sales
she found that actual sales exceeded the target
sales.’

Question 8
A company’s target production is 5000 units in a
year. To achieve this target the manager has to
operate on double shifts due to power failure most
of the time. The manager is able to produce 5000
units but at a higher production cost.
(a) Is the manager effective and efficient? Give
reasons.
(b) Why is it important for a manager to be both
effective and efficient? Explain. (5)
Answer 8
(a) In this case, the manager is effective since he is
able to produce the company’s target production
is 5000 units in a year. But he is not so efficient,
since for the same output, more inputs (labour
cost, electricity costs) were used.

Question 9
Define management. Do you think management has
the characteristics of a full-fledged profession? Give
reasons in support of your answer.
(6 marks)


Question 1
There is a kind of cost benefit analysis 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.
Name any four input resources required to do a
particular task.
(1 mark)

Answer 1
Money, Materials, Equipment and persons

Question 2
______________ is responsible for all the activities
of first line managers.
(Fill up the blank with correct answer) (1 mark)

Answer 2

Question 3
Management is required not for itself but for
__________.
(Complete the sentence) (1 mark)

Answer 3
achieving the goals the organisation

Question 4
In which two functions of management do managers
at the top level spend more time than managers at
lower level of the organisations?
(1 mark)

Answer 4
Planning and Organising

Question 5
Answer the following:
(a) Why is management a group activity?
(b) How does management increase efficiency?
(c) What is the purpose of coordination?
(3 marks)

Question 6
Why is management considered to be a multi-
dimensional concept? Explain.
(3 marks)

Question 7
Company X is facing a lot of problems these days. It
manufactures white goods like washing machines,
microwave ovens, refrigerators and air conditioners.
The company’s margins are under pressure and the
profits and market share are declining. The
production department blames marketing for not
meeting sales targets and marketing blames
production department for producing goods, which
are not of good quality meeting customers’

expectations. The finance department blames both
production and marketing for declining return on
investment and bad marketing.
What quality of management do you think the
company is lacking? Explain its importance by
giving any three points.
(4 marks)

Answer 7
Coordination (explain)

Question 8
"Coordination is the essence of management." Do
you agree? Give reasons.
(5 marks)

Question 9
B Ltd. wants to modify its existing product, DVD
player in the market due to decreasing sales. State
any two functions of each level of management to
give effect to this decision of the company.
(6 marks)

Answer 9
Top level managers such as the chief executive
officer, the chairman, president, etc. should perform
the following functions:
(i) To modify/modernise their existing product (DVD
player), they must plan to manufacture MP3
player, Blue ray player, etc. They must formulate
overall orginisational goals and strategies for
their achievement.

(ii) They must coordinate the activities of different
departments according to all overall objectives
Middle level managers such as production manager,
marketing manager etc., should perform the
following functions:
(i) They must interpret the policies framed by top
management regarding modernisation of their
product and ensure that their department has the
necessary personnel.
(ii) They must assign necessary duties and
responsibilities to them, motivate them to achieve
desired objectives, and cooperate with other
departments for smooth functioning of the
organisation.
Foremen and supervisors should perform the
following functions:
(i) To pass on instructions of the middle management
to the workforce and to oversee their efforts to

produce new products, i.e. Mp3 player, Blue ray
player etc.
(ii) To maintain quality of output, minimise wastage
of materials, and to maintain safety standards.

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 Management - concept, objectives, and

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