Important Questions for CBSE Class

12 Business Studies Meaning ,

Characteristics , Objectives and
Importance of Management
December 8, 2019 by Sastry CBSE

Nature and Significance of Management

Important Questions for CBSE Class 12
Business Studies Meaning ,
Characteristics , Objectives
and Importance of Management
1. Meaning of Management
Management is the process of planning, organising, staffing, directing and controlling
the enterprise resources efficiently and effectively for achieving the goals of the
organisation.

2. Definition of Management
According to Harold Koontz, ‘Management is the art of getting things done through
others and with formally assingned groups.’

3.Characteristics of management
(i) Goal-oriented process
(ii) Group activity
(iii) Intangible forces
(iv) All pervasive
(v) Multi-dimensional
(vi) Continuous process
(vii) Dynamic function

4. Objectives of Management
(i) Organisational objectives : Survival, profit and growth
(ii) Social objectives : Using environment friendly methods of  production, creating
employment opportunities for the disadvantaged sections of the society, etc.
(iii) Personal objectives of employees : Competitive salary , growth, recognition,
etc.
5. Importance of Mangement
(i) Helps in achieving group goals.
(ii) Creates a dynamic organisation.
(iii) Increase efficiency.
(iv) Helps in achieving personal goals.
(v) Helps in development of society.

Previous Years Examination Questions

1 Mark Questions

1. What is meant by management of work? (All India 2014)

Ans. Every organisation exists to achieve certain goals. Management sets and plans
certain activities, which are to be performed, so that the goals can be achieved. This
is considered as management of work.

2. What is meant by management of people? (Delhi 2014)

Ans. Management of people is an art of getting things done through others. A
manager deals with individuals who have different needs and behaviour. He directs
and motivates them to work towards the organisational goals.

3. What is menat by management of operations? (Foreign 2014)

Ans. Every organisation provides some basic product or service, for the production
of which there is a process of flow of input material and technology for transforming
this input into output for consumption. Thus, management involves management of
operations for converting input into output.

4. Identify the basic characteristic of management involved in the statement.

‘The activities involved in managing an organisation are common to all
organisations, whether economic, social or political’. (Compartment2014)
or
The management principles can be applied to all types of activities. Which
characteristic of management is highlighted by this statement?
(hots; Delhi 2008)
Ans. Management is all pervasive.

5.What is meant by management?(Delhi 2011)

Ans. Management is the process of planning, organising, staffing, directing and
controlling the enterprise resources efficiently and effectively for achieving the goals
of the organisation.

6. What is meant by effectiveness in management?(Delhi 2011)

Ans. Effectiveness in management is concerned with doing the right task/completing
activities/achieving goals within the prescribed time. In other words, it is concerned
with end results.
7. List any two social objectives of management.
(All India 2011,2010; Delhi 2010)
Ans. Two social objectives of management are as follows:
(i) Using environment friendly methods of production.
(ii) Giving employment opportunities to the disadvantaged sections of the society.

8. Explain in one sentence how management increase i efficiency?

(Delhi 2011c; 2009c)
Ans. Management increases efficiency by reducing cost and increasing productivity
through better planning, organising, directing, staffing and controlling the activities of
the organisation.

9. Explain in one sentence how management helps in achieving group

goals? (All India 2011)
Ans. Management helps in achieving the group goals by directing the individual
efforts in achieving the overall goal of the organisation.

10. List any two organisational objectives of management. (All India 2010;
Delhi 2010)
Ans. Two organisational objectives of management are as follows:
(i) Survival (ii) Earning profit

11. List any two personal objectives of management.

(All India 2010; Delhi 2010)
Ans. Personal objectives of management are as follows:
(i) Competitive salaries and perks.
(ii) Personal growth and development of employees.

12. 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. (HOTS; All India 2010)
Ans. Yes, the manager is effective as he has been able to achieve the target by
producing 10,000 shirts but he is not efficient as he is producing the same at a
higher production cost.

13. 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 one reason in
support of your answer. (HOTS; Delhi 2010)
Ans. Yes, the production manager is both efficient and effective. He is effective
because he has achieved the target in time and is efficient because he produced the
shirts at a lower production cost.
NOTE (i) Effectiveness means completing the task within specified time.
(ii) Efficiency means doing the task correctly with minimum cost.
14. Why is it said that ‘management is a goal oriented process’?
(All India2009; Delhi 2009)
Ans. Management is said to be a goal oriented process because it helps in
achieving organisational goals by using the efforts of different individuals.

15. Man gement helps in development of society. How?

(hots; All India 2009)
Ans. Management helps in development of society by producing quality goods at fair
and competitive prices, providing employment and adopting new technologies to
raise the living standard of the society.

16. Why is it said that management is all pervasive’? (All India 2009)
Ans. Management is pervasive because the activities involved in managing an
enterprise are common to all enterprises, whether it is profit making or non-profit
making, social or political.

17. Management is a group activity. Why? (Delhi 2009; All India 2008)
Ans. Management is a group activity because it coordinates the efforts of
organisational members to achieve the pre-determined goals.

18. Name the process of designing and maintaining an environment in which

individuals working together in groups efficiently to accomplish selected
aims. (HOTS; Delhi 2008)
Ans. Management is the process of designing and maintaining an environment in
which individuals working in groups efficiently accomplish selected aims.

19. ‘In an organisation employees are happy and satisfied. There is no chaos
and the effect of management is noticeable’. Which characteristic of
management is highlighted in this statement? (hots; All India 2008)
Ans. Management is an intangible force.

20. Name the process of working with and through others to effectively
achieve organisational objectives by efficiently using its limited resources in
the changing environment. (hots; All India 2008)
Ans. Management is the process of working with and through others to effectively
achieve organisational objectives by efficiently using its limited resources in the
changing environment.

21. ‘Management is an intangible force’. Why? (Delhi2008C)

Ans. Management is intangible as it does not have a physical existence, one can
only feel its presence by the way the organisation functions.

4/5 Marks Questions

22. Mega Ltd was manufacturing water-heaters. In the first year of its
operations, the revenue earned by the company was just sufficient to meet its
costs. To increase the revenue, the company analysed the reasons of less
revenues. After analysis the company decided
(All India 2014c; VBQ)
(i) To reduce the labour cost by shifting the manufacturing unit to a backward
area where labour was available at a very low rate.
(ii) To start manufacturing solar water-heaters and reduce the production of
electric water-heaters slowly.
This will not only help in covering the risks, but also help in meeting other
objectives too.
(a) Identify and explain the objectives of management discussed above.
(b) State any two values which the company wanted to communicate to the
society.
Ans. Mega Ltd is discussing about the achievement of ‘organisational objectives’ in
part (i) and ‘Social objectives’ in part (ii) of the question.
(i) (a) Organisational objectives Management is responsible for setting and
achieving the organisational objectives. It achieves the objectives in such a manner
that the human and financial resources are acquired, used and maintained in the
most economic and efficient manner.
Organisational objectives are survival, profit and growth.

 Survival The most important objective of every businessis to survive

and in order to survive, it should earn enough revenue to cover its costs.
 Profit It is the incentive or reward for the efforts put in by an
entrepreneur, moreover, it is the reason behind carrying out a business.
 Growth It is an extension of the objective of survival and profit.

Business organisations must grow and expand their activities. The success of every
business is measured by the growth rate and growth is measured in terms of sales
profits, number of products produced and sold, etc.
(b) Social objectives Since, organisations are social units, their objectives should
be in line with general needs of the society.
Some of the social objectives of an organisation are:

 Supply of quality products.

 Using environmental friendly methods of production.
 It should provide the employment opportunities to the disadvantaged
sections of the society.

(ii) Two values which the company wants to communicate to the society are:

 Giving employment opportunities to the people of backward area:

 Environment friendly by producing solar heaters and reduced production
of electric heaters.

23. XYZ Power Ltd set up a factory for manufacturing solar lanterns in a
remote village as there was no reliable supply of electricity in rural areas. The
revenue earned by the company was sufficient to cover the costs and the
risks. The demand of lanterns was increasing day-by-day, so the company
decided to increase production to generate higher sales. For this, they decided
to employ people from the nearby villages as very few job opportunities were
available in that area. The company also decided to open schools and creches
for the children of its employees.
(i) Identify and explain the objectives of management discussed above.
(ii) State any two values which the company wanted to communicate to the
society. (Delhi 2014; VBQ)
Ans. (i) It is related with the social objective of management. It deals with the
commitment of an organisation towards society. Such objectives may relate with
producing eco-friendly products, providing employment to the weaker sections of the
society, etc.
By covering the costs and risks, the company has also achieved the organisational
objectives. This objective is related with three aspects:
(a) Survival Ensure the continuity of business operations.
(b) Profit Earn a reasonable profit, which covers the costs and risks of the business.
(c) Growth It ensures the success of business in the long-run.
(ii)Firstly, by manufacturing solar lanterns, company gives due values to the rural
people, now they will be able to enjoy electricity in their respective areas. Secondly,
by giving employment, they will raise the standard of rural people.

24. Explain any five features of management. (Delhi 2013)

or
State any five characteristics of management.(All India 2013)
Ans. Features of management are as follows:
(i) Goal-oriented process Every organisation has a set of economic and social
goals and management is meant to achieve these goals. Management ensures
efficiency and economy in the utilisation of human, physical and financial resources.

(ii) Group activity An organisation is a group of different individuals withdifferent

skills. Management directs and uses all such skills and activities of different
individuals towards the achievement of common organisational goals.
(iii)  Intangible force Management is an intangible force as it cannot be seen but its
presence can be felt, when targets are achieved as per the pre-determined plans.
(iv) All pervasive Management is all pervasive as it is applicable in all types of
organisation, in all activities and at all levels.
(v) Multi-dimensional Management is multi-dimensional as it comprises of three
dimensions, viz management of work, people and operations.

25. Describe any five reasons, which clarify that ‘management is gaining
importance day-by-day’.  (All India 2013)
or
State five points, which highlight the importance of management.
(Delhi 2013)
or
‘Success of every organisation depends upon its management’. Explain any
five reasons to justify the above statement. (Delhi 2011c)
or
‘Lack of proper management results in wastage of time, money and efforts’. In
the fight of this statement, explain any four points of importance of
management.
(Delhi 2010C)
Ans. According to Drucker, ‘Management is the dynamic life-giving element in every
organisation. Without it, the resources of production remain resources’. It is the
activating force that gets things done through people.    ‘
The importance of management can be unt erstood from the following points:
(i) Management helps in achieving group goals An organisation sets certain
goals. Management aims at achieving such goals by directing the individual efforts.
(ii) Management creates a dynamic organisation With the ever changing needs
and demands of the environment, an organisation needs to adopt those changes.
Management helps people to adopt such changes easily, so that the organisation is
able to sustain successfully in the competitive market.
(iii) Management increases efficiency With proper planning, organising, staffing,
directing and controlling the activities of the organisation, management increases the
efficiency by producing ’. maximum output with minimum cost.
(iv) Management helps in achieving personal objectives A manager motivates its
subordinates in such a manner that it boosts their morale and able to achieve their
personal objectives such as competitive salary, peer recognition, etc while
contributing to the organisational objectives.
(v) Management helps in development of society Management in an organisation
helps the society by way of supplying quality products at reasonable price. It also
contributes towards society by providing basic amenities such as schools, hospitals,
dispensaries etc. Moreover, it also generates employment opportunities for the
disadvantaged sections of the society.

26. Give the meaning of management and explain how it creates a

dynamic organisation and helps in the development of society.
(Delhi 2012)
Ans. Management is the process of planning, organising, staffing, directing and
controlling the enterprises’ resources efficiently and effectively for achieving the
goals of the organisation. The traditional viewpoint of the management is concerned
with the opinion that ‘Management is the art of getting things done through others’.
On the other hand, as per the modern concept, ‘Management is a process of getting
things done through others with the aim of achieving goals effectively and efficiently’.
Management creates a dynamic organisation All organisations operate in a
constantly changing environment. However, individuals in an organisation usually
resist change. Management persuades people to adopt environmental changes so
that the organisation can maintain its competitive edge.
Management helps in the development of society Management helps to provide
good quality products and services, creates employment opportunities, adopts new
technology for the betterment of the people and leads the path towards growth and
development.

27. Explain how management increases efficiency and helps in the

development of society?(All India 2012)
Ans. Increases efficiency The aim of a manager is to reduce costs and increase
productivity through better planning, organising, staffing, directing, and controlling
the activities of the organisation.
Helps in the development of society Management helps in the development of
society by providing good quality products and services, creating employment
opportunities, providing fair remuneration, adopting new technology, etc for the
betterment of people.

28. ‘Management is the process of working with and through others to

effectively achieve organisational objectives by efficiently using limited
resources in the changing environment’. In the light of the above statement,
explain any four features of management. (Delhi 2010c)
Ans. The main features which highlight the nature of management are as follows:
(i) Management is a goal oriented process Management always aims at achieving
certain specified objectives. It seeks to achieve predetermined objectives through
efficient use of human and non-human resources.      .
(ii) Management is a continuous process Management is an on-going process.
The management functions are simultaneously performed by all managers all the
time. It involves continuous handling of problems and issues. Managers identify
problems and try to solve them by taking appropriate actions on a regular basis.
(iii) 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 teamwork and coordination of
individual efforts in a common direction.

(iv) Management is a dynamic function Every organisation interacts with

environment. In order to survive, it is necessary that an organisation must change
itself according to the needs of environment.

29. ‘Management seeks to achieve certain objectives which must be derived

from basic purpose of the business’. In the light of the above statement,
explain organisational and social objectives of management. (All India 2010)
Ans. (i) Organisational objectives Management is responsible for setting and
achieving the organisational objectives. It helps to achieve the objectives in such a
manner that the human and financial resources are acquired, used and maintained
in the most economic and efficient manner. Organisational objectives are as follows:
(a) Survival The most important objective of any business is to survive and in order
to survive, it should earn enough revenue to cover costs.
(b)Profit It is the incentive or reward for the efforts put in by an entrepreneur.
Moreover, it is the reason behind carrying out a business.
(c) Growth A business needs to add to its prospects in the long-run and for this it
needs to grow and expand its activities. The success of every business is measured
by the growth rate and growth is measured in terms of sales, profits, number of
products produced and sold, etc.
(ii) Social objectives Since, organisations are social units, their objectives should
be in line with general needs of the society.
Some of the social objectives of an organisation are given below
(a) Supply of quality products at reasonable prices.
(b) Using environmental friendly methods of production.
Should provide the employment opportunities to the disadvantaged sections of the
society.
Important Questions for CBSE Class
12 Nature of Management:
Management as an Art, Science and
Profession
December 8, 2019 by Sastry CBSE

Nature and Significance of Management

Important Questions for CBSE Class
12 Nature of Management: Management
as an Art, Science and Profession
1. Management as a Science
Science is a systematised body of knowledge that explains general truth or the
operation of the general laws. Like science, management has systematised body of
knowledge and has principles based on experiment and observation. However, the
outcome of these principles cannot be accurately predicted, since it deals with
human behaviour which is not constant. With the help of given characteristics we can
make out, why management is considered as an inexact science.
(i) Management is regarded as a science because of
(a) Existence of systematised body of knowledge.
(b) Scientific methods of observation.
(c) Certain principles are universally accepted.
(ii) Management, not pure science but an inexact science Management can be
called as an inexact science or social science also because the principles of
management are not exact as the principles of Physics or Chemistry. Management
principles are flexible and can be modified to suit different situations as it depends
mostly on humans and the human behaviour is not same or constant in all situations.

2. Management as an Art
Like an art, management is a personalised and skillful application of existing
knowledge to achieve desired results.
Mangement is regarded as an art because of:
(a) Existence of theoretical knowledge.
(b) Personalised application.
(c) Based on practice and creativity.

3. Management as a Profession
Like a profession, management has well defined body of knowledge but it is not
considered a full fledged profession because it does not fulfil all the characteristics of
profession.
(i) Management has certain characteristics of profession like:
(a) It has well defined body of knowledge.
(b) Existence of Management Association (AIMA).
(c) Must abide the code of conduct, more and more ethical practices to be followed.
(d) It has service motive, concerns over social responsibility is gaining importance.
(ii) Management not a full fledged profession
(a) One can be a manager in any organisation without a degree of MBA.
(b) It is not compulsory for managers to become members of AIMA. Thus, it is on the
path of becoming profession and not considered as a full fledged profession.
(c) No ethical code of conduct formally applicable.

Previous Years Examination Questions

1 Mark Questions

1. Identify the nature of management when it is said to be a systematised body

of knowledge that explains certain general truths.
(HOTS; Delhi 2012)
Ans. Management as a science.

2. Identify the nature of management when it is practised as personal

application of existing knowledge to achieve desired results.
(All India 2012)
Ans. Management as an art.
3 Marks Questions

3. What is meant by management as an art ? Explain with the help of any three
features. (Delhi 2010c)
Ans. Art is the skillful and personal application of existing knowledge to achieve
desired goals. Management is said to be an art since, it satisfies the following
features of an art:
(i) Manager practices the art of management  in day-to-day job of managing and
enterprise on the basis of study, observation and experience.
(ii) Because of the availability of the theoretical knowledge of management, a
manager is able to apply it in a personalised manner.
(iii) Art requires creativity, similarly manager also requires creativity to apply the
acquired knowledge in a personalised and skillful  manner in real situations.

4. What is meant by management as a science ? Explain with the help of any

three features.
Ans. Management as a Science Science is the systematised body of  knowledge
which establishes the relationship between causes and their effects.
Management is regarded as a science because of the following features of the
management:
(i) Existence of systematic body of knowledge Like science, management has its
own theory and principles that have developed over a period of time. Thus, we can
say, management has a systematised body of knowledge.
(ii) Scientific methods of observation Certain management principles are evolved
from scientific methods of observation. The cause and effect relationship is the art of
science but it is applicable in management also. Therefore, management principles
are accurate and reliable.
(iii) Universally accepted principles Certain management principles are universally
valid. The established principles of modern management have universal applicability.
Principle  of division of labour and specialisation, unity of command, etc are
accepted everywhere

5. ‘Management is the systematised body of knowledge that explains certain

general truths.’ Explain. (Delhi 2009c)
Ans. Management as a science. It is a systematised body of knowledge which
explains certain general truths and it is based on logical observations, facts and
events.
Management as a Science Science is the systematised body of  knowledge which
establishes the relationship between causes and their effects.
Management is regarded as a science because of the following features of the
management:
(i) Existence of systematic body of knowledge Like science, management has its
own theory and principles that have developed over a period of time. Thus, we can
say, management has a systematised body of knowledge.
(ii) Scientific methods of observation Certain management principles are evolved
from scientific methods of observation. The cause and effect relationship is the art of
science but it is applicable in management also. Therefore, management principles
are accurate and reliable.
(iii) Universally accepted principles Certain management principles are universally
valid. The established principles of modern management have universal applicability.
Principle  of division of labour and specialisation, unity of command, etc are
accepted everywhere.

6. Management is skillful and personal application of existing knowledge to

achieve desired results. Explain. (All India 2009c)
Ans. Management as an art. It is the skillful and personal application of existing
knowledge to achieve desired results. It can be acquired through study, observation
and experience.
Art is the skillful and personal application of existing knowledge to achieve desired
goals. Management is said to be an art since, it satisfies the following features of an
art:
(i) Manager practices the art of management  in day-to-day job of managing and
enterprise on the basis of study, observation and experience.
(ii) Because of the availability of the theoretical knowledge of management, a
manager is able to apply it in a personalised manner.
(iii) Art requires creativity, similarly manager also requires creativity to apply the
acquired knowledge in a personalised and skillful  manner in real situations.

4/5 Marks Questions

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.
(Compartment 2014)
Ans. Management is a science but not an exact science. The reasons are:
(i) Systematised body of knowledge Like science, management is a systematic
body of knowledge with its own theories and principles that have developed over a
period of time.
So, this feature is present in management.
(ii) Principles based on observation and experimentation Like science,
management principles are derived through observation and repeated
experimentation.
So, this feature is present in management. However, since management deals with
human beings, the outcome of these experiments are not capable of being
accurately predicted.
(iii) Universal validity Principles of management like principles of pure science
provide managers with certain standardised techniques that can be used in different
situations. Since they have to be modified according to given situation, their
application and use is not universal.
So, this feature of science is not fully present in management.

8. ‘The skillful and personal application of existing knowledge to achieve

desired results is called art’. In the light of this statement, describe whether
management is an art or not. (Compartment 2014)
or
‘Art is concerned with personal application of knowledge’. In the light of this
statement, compare all the features of art with management and prove that it is
an art. (Delhi 2010c)
Ans. Basic features of art are as follows:
(i) Existence of theoretical knowledge.
(ii) Personalised application.
(iii) Based on practice and creativity.
Management can be said an art, since it satisfies the following criteria:
(a) A successful manager practices the art of management in the day-to-day job of
managing an enterprise which is based on study, observation and experience. There
are lot of literature available in various areas of management like marketing, finance
and human resource which the manager has to specialise in.
(b) There are various theories of management propounded by many management
thinkers, which prescribe certain universal principles. A manager applies these
scientific methods and body of knowledge to a given situation, issue or a problem in
his own unique manner.
(c) A manager applies his acquired knowledge in a personalised and skillful manner
in the light ofthe realities of a given situation. He is involved in the activities of the
organisation, studies critical situations and apply his own theories in a given
situation.
(d) Like any other art, a manager, after studying various situations, formulate his own
theories for use in given situation. This gives rise to different styles of management.
9. ‘Management is regarded as an art by some, as science or as inexact
science by others. The truth seems to be somewhere in between.’
In the light of this statement, explain the true nature of management.
(All India 2011; Delhi 2011)
Ans. Management is an art as well as a science or an inexact science.
Management as an Art Management may be regarded as an art because of the
following reasons:
(i) Existence of theoretical knowledge A successful manager practices the art of
management in the day-to-day job of managing an enterprise based on study,
observation and experience.
(ii) Personalised application The use of basic knowledge varies from individual to
individual, therefore, it is a personalised concept, e.g. two dancers, two speakers will
always differ in demonstrating their art.
(iii) Based on practice and creativity A good manager works through a
combination of practice creativity, imagination, initiative and innovation. He uses tact
and creativity to develop his own style. Thus, management is an art because it
satisfies all the characteristics of an art.
Management as a Science Management may be regarded as a science because it
fulfils the following characteristics of science:
(i) Systematised body of knowledge As science, management has a systematised
body of knowledge. It has its own theories and principles that have developed over a
period of time. It also draws some principles from other disciplines such as
economics, sociology, psychology and mathematics.
(ii) Principles based on scientific observation and experiments Like science,
management principles are based on scientific enquiry and observations.
(iii) Universal validity and application Like science, principles of management are
universally applicable. Thus, we can say that management is also a science.
However, the principles of management are not as exact as the principles of Physics
or Chemistry. Management principles are flexible and can be modified to suit
different situations. Thus, management can be called as an inexact science also. In
the light of both the above statement, the true nature of management can be defined
as, management is both an art and a science. Principles of management constitute
the science of management and the practice of management principles is the art of
management.

10. Management is a profession like medical or legal profession. Do you agree

with this statement? Give any four reasons in support of your answer. (All
India 2011)
or
Is management a full fledged profession? Give any three reasons in support of
your answer.         (Delhi 2010)
Ans. No, management is not a full fledged profession like legal and medical
profession because of the following reasons:
(i) Restricted entry The entry to any profession is restricted through a prescribed
qualification. But there is no restriction on anyone being appointed as a manager in
any business enterprise.
(ii) Professional association Though AIMA, is an association for management
graduates, it is not obligatory for managers to get registered with any professional
body like the Medical Council or Bar Council of India, which regulates the
professional conduct of doctors and lawyers respectively.
(iii) 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.
(iv) Service motive The motive of legal and medical profession is to serve their
client’s interests by rendering dedicated and committed service. The basic purpose
of management is to help the organisation to achieve its goals by providing good
quality products at reasonable prices. A manager is expected to adopt the service
motive but the basic motive remains profit maximisation.

11. Is management a science? Give any three reasons in support of your

answer. (Delhi 2010)
Ans. Yes, management is a science but not an exact science. Science is the
systematised body of knowledge which establishes the cause and effects
relationship. Management is regarded as a science, because the following
characteristics of science are applicable to management as well.
Management as a science Management may be regarded as a science because it
fulfils the following characteristics of science:
(i) Systematised body of knowledge As science, management has a systematised
body of knowledge. It has its own theories and principles that have developed over a
period of time. It also draws some principles from other disciplines such as
economics, sociology, psychology and mathematics.
(ii) Principles based on scientific observation and experiments Like science,
management principles are based on scientific enquiry and observations.
(iii) Universal validity and application Like science, principles of management are
universally applicable. Thus, we can say that management is also a science.
However, the principles of management are not as exact as the principles of Physics
or Chemistry. Management principles are flexible and can be modified to suit
different situations. Thus, management can be called as an inexact science also. In
the light of both the above statement, the true nature of management can be defined
as, management is both an art and a science. Principles of management constitute
the science of management and the practice of management principles is the art of
management.

12. Is management an art? Give any three reasons in support of your answer.
(Delhi 2010c)
Ans. Yes, management is an art, because practical applications of knowledge is an
art and management is also the application of skill and knowledge to achieve the
desired results.
Following features of art exist in management:
Management as an art Management may be regarded as an art because of the
following reasons:
(i) Existence of theoretical knowledge A successful manager practices the art of
management in the day-to-day job of managing an enterprise based on study,
observation and experience.
(ii) Personalised application The use of basic knowledge varies from individual to
individual, therefore, it is a personalised concept, e.g. two dancers, two speakers will
always differ in demonstrating their art.
(iii) Based on practice and creativity A good manager works through a
combination of practice creativity, imagination, initiative and innovation. He uses tact
and creativity to develop his own style. Thus, management is an art because it
satisfies all the characteristics of an art.

Important Questions for CBSE Class

12 Business Studies Levels and
Functions of Management
December 8, 2019 by Sastry CBSE

Nature and Significance of Management

Important Questions for CBSE Class 12
Business Studies Levels and Functions
of Management
1. Levels of Management
(i) Top Level Management (consists of the Board of Directors, the Chief Executive
or the Managing Director.)
Functions performed at top level management are:
(a) Responsible for welfare and survival of the organisation.
(b) Analyse business environment.
(c) Formulate overall organisational goals and strategies.
(d) Integrate diverse elements and coordinate the activities of different departments.
(ii) Middle Level Management (consists of heads of functional departments, plant
superintendents, etc.)
Functions performed at middle level management are:
(a) Responsible for implementing and controlling plans and strategies developed by
top management.
(b) Responsible for all the activities of first line managers.
(c) Interpret the plans and policies framed by top management.
(d) Ensuring availability of necessary personnel.
(e) Assigning necessary duties and responsibilities to the personnel.
(f) Cooperate with other departments.
(iii) Lower Level Management or Supervisory Level (consists of supervisors,
foremen and superintendents).
Functions performed at operational/supervisory level are:
(a) They interact with the actual workforce and pass on instructions of the middle
management.
(b) Maintains discipline among workers.
(c) Ensures quality output, minimum wastage and safety standards.

2. Functions of Management
(i) Planning It is an intellectual process. It is a conscious determination of course of
action, which enables an organisation to face uncertainly and change.
(ii) Organising It involves identification and grouping the activities to be performed,
dividing them among the individuals and creating authority and responsibility
relationships among them for the accomplishment of organisational objectives.
(iii) Staffing The managerial function of staffing involves managing the
organisational structure through proper and effective selection, appraisal, and
development of personnel to fill the right person for the right job.
(iv) Directing This function is related with leading, influencing, guiding, supervising
and motivating people towards the attainment of planned targets.
(v) Controlling This is the process of determining what is to be accomplished; what
is being accomplished; evaluating the performance; and if necessary, applying
corrective measures.

Previous Years Examinations Questions

1 Mark Questions

1. At which level of management, the managers are responsible for the welfare
and survival of the organisation?
(Compartment 2014; Delhi 2012; HOTS)
Ans. At the top level of management, the managers are responsible for the welfare
and survival of the ■ organisation.

2. Name the level of management at which the managers are responsible for
implementing and controlling the plans and strategies of the
organisation. (HOTS; AH India 2012)
Ans. Middle level management.

3. Your grandfather has retired as the director of a manufacturing company. At

which level of management was he working? Different type of functions are
performed at this level. State any one function.
(hots; Delhi 2011)
Ans. He was working at the top level of management.
Functions performed at the top level are: (any one)
(i) To set objectives for the organisation, e.g. in the following year, the sales of the
company will have to cross Rs. 1000 crore.
(ii) To analyse, evaluate and deal with the external forces.
(iii) To formulate the policies of business.
(iv) To create an organisational framework consisting of authority responsibility and
relationship.

4. Your grandfather has retired from an organisation in which he is responsible

for implementing the plans developed by the top management. At which level
of management was he working? State one more function performed at this
level. (HOTS; All India 2011)
Ans. He was working at the middle level of management.
Functions performed by the middle level managers are: (any one)
(i) To interpret the policies framed by the top level of 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 plans.
(iv) To motivate employees of their respective departments to achieve the desired
objectives.

5. List any two functions of top level management. (Delhi 2011c)

Ans. The two functions of top level management are:
(i) Laying down the overall objectives and framing policies of the enterprise.
(ii) Coordinating the activities of different departments and assembling all resources.

6. List any two functions of middle level management.

(All India 2011; 2008)
Ans. The two functions of middle level mahagement are:
(i) Interpretation of policies framed by top management to lower management.
(ii) Responsible for implementation and controlling of plans and strategies.

7. Enumerate the levels of management. (Delhi 2008C).

Ans. There are three levels in the hierarchy of management which as follows:
(i) Top level management (ii) Middle level management (iii) Lower or supervisory
level management

 4 / 5 Marks Questions

8. Raman is working as a plant superintendent in Tifco Ltd. Name the

managerial level at which he is working? State any four functions he will
perform as plant superintendent in this company. (hots; Delhi 2008)
Ans. He is working at the middle level of management.
He will perform the following functions:
(a) Responsible for implementing and controlling plans and strategies developed by
top management.
(b) Responsible for all the activities of first line managers.
(c) Interpret the plans and policies.framed by top management.
(d) Ensuring necessary personnel in their departments.

9. ‘Management is a series of continuous, inter-related functions with no

pre-determined sequence’. Explain. (HOTS,-Delhi2008C)
Ans. Management is considered as a series of continuous, inter-related functions
with no pre-determined sequence. The management process includes planning,
organising, staffing, directing and controlling functions.
These functions are inter-related. It is clear from the following facts:
(i) Planning is the primary function and basis for all other functions.
(ii) Organising is creation of the organisational structure to implement the
plans.                .
(ii) Staffing involves filling jobs with right persons in an organisation.
(iv) Directing is concerned with instructing, guiding and inspiring people in the
organisation for achieving its planned objectives through the employees.
(v) The controlling function ensures that action leads to desired targets.
Planning provides the basis (i.e. the standards of performance for management
functions controlling and controlling helps in future planning). Similarly, directing
initiates action and controlling ensures monitoring of performance.
However, the various functions of a manager are discussed in order, i.e. planning,
organising, staffing directing and controlling, but in reality the managers are rarely
able to carry them in isolation. It is often difficult to pinpoint where one ended and the
other began.
Thus, these management functions are inter-related with no pre-determined
sequence, while performing specific function.

Important Questions for CBSE Class

12 Business Studies Features|Nature
and Importance of Coordination
December 8, 2019 by Sastry CBSE

Nature and Significance of Management

Important Questions for CBSE Class 12
Business Studies Features|Nature and
Importance of Coordination
1. Meaning of Coordination
Coordination is a continuous process by which a manager integrates the inter-related
activities of different departments in order to achieve the common organisational
goals.
2. Features/Nature of Coordination
(i) Integration of group efforts          (ii) Unity of action
(iii)Continuous process                   (iv) All pervasive function
(v) Deliberate function                    (vi) Responsibility of all managers

3. Importance of Coordination
(i) Growth in size To integrate individual goals with organisational goals.
(ii) Functional differentiation To ensure unity of action among interdependent
departments like finance, production, marketing, etc.
(iii) Specialisation To eliminate conflict and integrate efforts of various specialists in
the organisation.

Previous Years Examination Questions

4/5 Marks Questions

1. What is meant by ‘coordination’? Explain why coordination is important in

an organisation. (Compartment 2014)
Ans. Coordination is the orderly arrangement of group efforts to provide unity of
action in pursuit of common purpose. It involves unifying, integrating and
harmonising the activities of different departments and individuals for the
achievement of common goal.
Importance of coordination can be understood by following points:
(i) Growth in size As the organisations grow in size, the number of people in the
organisation also increase. Different individuals have different objectives.
Coordination is needed to integrate diverse individual objectives with organisational
objectives.
(ii) Functional differentiation Different departments in the organisation have their
own set of objectives, policies, etc. This creates conflicting situations many a times.
Coordination seeks to intergrate the efforts and activities of various departments.
(iii) Specialisation In modern organisations, high level of specialised activities take
place, which are performed by specialists. Specialists often consider themselves to
be supreme and are not open to suggestions and advice. This brings conflicting
situations, which can be resolved by coordination.

2. Coordination in the essence of management. Explain how. (Compartment

2014)
or
Coordination is not a separate function of management. It is the essence of
management. Explain with the help of a suitable example.
(Ail India 2009,2008; Delhi 2009)
Ans. Coordination is a function that is inherent and pervasive. Coordination is not a
separate function of management. It is the essence of management.                          
The coordination is needed to perform all the functions of management. They are:
(i) Coordination in planning In planning, coordination is needed

 between overall plan of the organisation and the departmental plans.

  between objectives and available physical and human resources, e.g.,
coordination between production department and sales department
targets.

(ii) Coordination in organising In organising, coordination is required

o between resources of an organisation and activities to be

performed.
o among authority, responsibility and accountability, e.g. if a
supervisor is given responsibility to get the work done, he
should also be given the authority to divide the work among
his subordinates.

(iii) Coordination in staffing In staffing, coordination is needed

 between the skills of the workers and the jobs assigned to them.
 between the efficiency of the workers and the compensation, etc, e.g. a
Chartered Accountant should be given work of financial nature.

(iv) Coordination in directing In directing, coordination is required

 among orders, instructions, guidelines and suggestions.

 between superiors and subordinates, e.g. a manager instructs the
subordinates, motivates them and also supervises their work.

(v) Coordination in controlling In controlling, coordination is required

 between the standard and the actual performance.

 between correction of deviations and achievement of objectives, e.g. If
production target for workers is set as 80 units per hour while they are
able to produce only 60 units per hour, then there is a need to
coordinate the plans with actual performance.

Thus, coordination makes planning more purposeful, organisation well knit and
control more effective. It is the key to the success of management.
(vi) Coordination is the essence of management Management function revolves
around making, arranging things, moving things in an organisation in relation to
overall objective of the organisation. Thus, coordination can be considered as the
core function of management which ensures that all the factors in the business work
together smoothly.

3. Explain any five features of coordination. (All India 2013)

or
State any five features of ‘coordination’.  (Delhi 2012)
or
Explain any four characteristics of coordination.
Ans. Coordination is a continuous process, by which a manager integrates the inter-
related activities of different departments in order to achieve the common
organisational goals.
Features of coordination are as follows:
(i) Integration of group efforts All business activities are interdependent.
Therefore, there should be coordination among them. Coordination enables the
business to make efficient use of its available resources.
(ii) Unity of action Coordination enables the manager to secure unity of action in
the direction of a common purpose.
(iii) Continuous process It is a continuous process and not a one-time task. A
manager has to continuously coordinate the activities of different departments in
order to meet the targets by using the available resources efficiently.
(iv) All pervasive function It is an all pervasive function, which runs through all
managerial functions from planning till controlling. It is not only needed among
different departments but also within the departments at all levels.
(v) Deliberate function A manager has to coordinate the efforts of different
individuals working in an organisation in a conscious and deliberate manner.

4. What is meant by coordination? How it integrates group efforts and ensures

unity of action. Explain. (Delhi 2012)
Ans. Coordination is the integration, synchronisation or orderly arrangement of
group efforts to provide unity of action, directed towards the accomplishment of
common objectives.
(i) Coordination integrates group efforts It integrates group efforts by unifying
diverse interests, thereby giving them a common focus to ensure that performance is
in accordance with pre-determined plans.
(ii) Coordination ensures unity of action The purpose of coordination is to ensure
unity of action for the realisation of a common purpose. It acts as the binding force
between departments and ensures that all actions are aimed at achieving the goals
of the organisation.

5. ‘Coordination is a synchronisation of group efforts to achieve

organisational objectives’. In the light of this statement, highlight any three
features of coordination.      (All India 2011)
or
‘Coordination’s 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.         
(All India 2011; Delhi 2011,2009)
Ans. Coordination is the process whereby an excecutive develops an orderly pattern
of group efforts among his subordinates and ensures unity of action in the pursuit of
common purpose.
Features/Nature of Coordination
The features or nature of coordination are as follows:
(i) Integration of group efforts All business activities are interdependent.
Therefore, there should be coordination among them. Coordination enables the
business to make efficient use of its available resources.
For example, supply of material should come, when production needs it. If there is a
mismatch in the time schedule, it is an instance of lack of coordination. It is the
central task of the manager to reconcile differences in approach, timing, efforts or
interests to harmonise individual goals with organisational goals. Coordination is the
effort to ensure a smooth interplay of the functions and forces of all the different
components of an organisation so that its purpose will be realised with minimum
friction and maximum collaborative effectiveness
(iii) Coordination is needed at all levels Coordination is an essential function
which is required at all levels of management. The content and scope of coordination
will vary at different levels. However, it is a part of duty which should be performed
by every managerial personnel right from operational level to the top management.
(iv) Coordination ensures unity of action The purpose of coordination is to unite
the efforts of every individual in the realisation of common purpose.

6.Coordination is needed at all levels of management and is the responsibility

of all managers. Explain how? (All India; Delhi 2009; HOTS)
Ans. Coordination is required in all group efforts, in every organisation at all levels of
management. It is not the responsibility of top management only. Managers at all
levels are responsible for achieving coordinated efforts in their respective
departments or units.
The need of coordination at various levels of management may be described as
follows:
(i) At the top level management It has to take care that there is coordination
between organisational goals and the goals of the units and sub-units formed for
achieving these goals.
(ii) At the middle level management That is the departmental managers, who have
to coordinate their departmental plans with the plans of other departments. This level
links the top level management with the lower level management and coordinates
between them by transmission of orders downward and problems and feedback
reports upward.
(iii) At the lower level management Coordination is required between the actual
operations with the plans made and reconcile the view of management and workers.

7.Justify how coordination is

 a continuous process
 an all pervasive function
 a deliberate function (Delhi 2009C; All India 2009)
Ans. Coordination as
(i) A continuous process ‘To coordinate is to harmonise all the
activities of an organisation so as to facilitate its success’. It is a
continuous process because the goals cannot be achieved with
harmony and sustained efforts. It should start at the planning stage and
continued with the other functions of management. The continuity arises
as a result of being the essence of management rather than being a
separate function.
(ii) An all pervasive function It is required at all levels of management
due to the interdependent nature of activities of different departments. It
integrates the efforts of different departments and different levels.
(iii)  A deliberate function A manager has to coordinate the efforts of
different people in a conscious and deliberate manner even where the
members of a department willingly cooperate and work, coordination
gives a direction to that willing spirit