CHAPTER 1 – NATURE AND SIGNIFICANCE OF MANAGEMENT

(TOTAL MARKS ALLOTTED=1+2+8=11+PRACTICAL)

SECTION-A
1. What is Efficiency?
Ans: -Efficiency means doing the task correctly and with minimum cost.
2. What is Effectiveness concerned with?
Ans:- It is concerned with the end result.
3.Give an example for top level management.
Ans:- Chairman, the chief executive officer, chief operating officer, (any one)
4. Give an example for middle level management.
Ans:-Production Manager is an example for middle level management.
5. Give an example for supervisory level management.
Ans:-Foremen, supervisors is an example for supervisory level management.
6. Which of the following is not a function of management
(a) Planning (b) Staffing (c) Cooperating (d) Controlling
Ans:-(c) Cooperating
7. Management is
(a) an art (b) a science (c) both art and science (d) neither
Ans:-(c) both art and science
8. The following is not an objective of management
(a) earning of profits (b) growth of the organization
(c) providing employment (d) policy making
Ans:-(d) policy making
9. Policy formulation is the function of
(a) Top level management (b) Middle level management
(c) Operational management (d) All of the above
Ans:-(a) Top level management
10. Coordination is
(a) Function of management (b) The essence of management
(c) An objective of management (d) None of the above
Ans:-(b)The essence of management
SECTION-B
1. Define Management.
Ans:-According to Harold Koontz and Heinz Weihrich “Management is the process of
designing and maintaining an environment in which individuals, working together in groups,
efficiently accomplish selected aims.”
2. State any two Organizational Objectives of Management.
Ans:- Two Organizational Objectives of Management are
(i)Survival: Survival is basic objectives of Management.
(ii) Profit: Earning of profits is another Organizational Objectives of Management
3. Define Coordination.
Ans:-According to McFarland “ 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.”
4. Justify the importance of coordination by any two factors.
Ans:-Two Importance of coordination are
(i) Growth in size: For organisational efficiency, it is important to harmonise individual
goals and organisational goals through coordination.
(ii) Specialisation: Some coordination is required by an independent person to reconcile the
differences in approach, interest or opinion of the specialists.
5. Give the meaning of management.
Ans: Management is an art of getting things done through with the help of others in order to
achieve specific organization goals or objectives.
6. What is top level management?
Ans: Top management is at the head of the organization. It consists of, the Board of directors
and its chairman, the chief executive and the senior executive. It has maximum authority and
responsibility.
7. Name economic objectives of the organization.
Ans: 1) Profit 2) Growth 3) Survival.

SECTION-C
1. Explain the Objectives of Management.
1. Organisational Objectives: It is the main objective of the management in any
organisation is to fulfil the economic objectives of organizations. These are survival, profit
and growth.
(a)Survival: The basic objectives of any business are survival.. In order to survive, an
organisation must earn enough revenues to cover costs.
(b)Profit:.every management look into earning the profit it is very essential for meeting the
expenses and for successful continuity of business.
(c)Growth:A business needs to add to its prospects in the long run, for this it
isimportant for the business to grow.
2. Social objectives: Every organization works within the society. It is a part of the society
whether it is business or non-business organization in order to full fill social obligation. This
includes using environmental friendly methods of production, giving employment
opportunities etc.
3. Personal objectives: It is concerned with the employees of the organization. The people in
the organization are having different personalities, baground and experience they all become
part of the organisation to satisfy their needs.
2. Give any four grounds to say Management is important.
Ans:- importance of management are
1. Management helps in achieving group goals: Management helps to achieving group
goals and it integrates and gives common direction to individual for achieving goals.
2. Management increases efficiency: The aim of a manager is to reduce costs and
increase productivity through better planning, organising etc, the activities of the
organisation.
 3. Management creates a dynamic organisation: every organization are functioning in
an environment which is constantly changing hence the management has to adjust for
the changes.
4. Management helps in achieving personal objectives: management of the
organization will also require helping individual employee to achieve them personal
objectives through motivation.

SECTION-D
1. Explain the characteristics of Management.
Ans:-
The important characteristics of Management are
1. Management is a goal-oriented process: every organization is established to achieve
goals each and every organization has different set of goals.
2. Management is all pervasive: The activities involved in managing an enterprise are
common to all organisations whether economic, social or political.
3. Management is multidimensional: Management is a complex activity that has three
main dimensions. These are:
a) Management of work: each and every organization exists for performing some work.
Management translates this work in terms of goals to be achieved.
b) Management of people: management is concerned with getting the things done
through people it is a major task for manager.
c) Management of operations: every organization has to deliver certain goods or
service for its survival through management.
4. Management is a continuous process: Management is a continues process. Because
it includes series of actions like planning, organizing, staffing, directing, co-
coordinating and controlling.
5. Management is a group activity: Management is a group effort. Because all the
activities of an organization are performed by group of persons.
6. Management is a dynamic function: every organization works in a environment
which keeps on changing hence management as to adopt itself change in environment.
7. Management is an intangible force: Management is an intangible force that cannot
be seen but its presence can be felt in the way the organisation functions.
2. “Management as an art and a science are not mutually exclusive, but complement to
each other”-
Ans:- Management as an art:- What is art? Art is the skilful and personal application of
existing knowledge to achieve desired results. It can be acquired through study, observation
and experience. The
Features of an Art
 1. Existence of theoretical knowledge: experts in their respective areas have derived
certain basic principles which are applicable to a particular form of art. Ex: dancing,
literature etc.
2. Practical knowledge: every people require practical knowledge learning of theory is
not enough it is very important to know practical application of theoretical principles.
3. Based on practice and Creativity: management motivates the people for creativity
by applying intelligence and imagination and management is creativity in nature.
4. Personalized application: every manager has his own way of managing things
depending upon his knowledge, experience and personality.

Management as a science: - The basic features of science are as follows:

1. Universal validity: A principle of science represents basic truth about a particular
field of enquiry.
2. Principles based on experimentation: scientific principles have been developed
through observation and experimentation under controlled condition.
3. Systematized body of knowledge: it principles are based on a cause and effect of
relationship. Ex: An apple falling from a tree towards the ground is explained by
the law of gravity.

3. Define Coordination. Explain the characteristics of Coordination.

Ans:- According to McFarland “ 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.”
Characteristics of Coordination are as follows:-
1. Coordination integrates group efforts: it unifies diverse interests in group and gives
common direction to ensure the work to be performed.
2. Coordination ensures unity of actions: the purpose of the co-ordination is to bind and
secure unity in different departmental activities to achieve common organization goals.
3. Coordination is a continuous process: co-ordination is a continuous process it begins
with planning till to controlling in order to maintain efficiency in organization.
4. Coordination is a pervasive: it is required at all levels of management has there is
interdependence among various activities performed by various departments.
5. Coordination is deliberate function: all the managers are required to co-ordinate
deliberately the efforts of different people to achieve common objectives of the
organizations.
6. Coordination is the responsibility of all mangers: It is equally important at all the
three-top, middle and lower levels of management. Thus it is the responsibility of all
managers that they make efforts to establish coordination.

4. ‘Management is a series of continuous interrelated functions’- Comment.

Ans:_ 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.
1. Planning:planning is the first function of management. It is determining in advance
what is to do, when to do, and who is to do it. this implies setting goals in advance and
developing a way of achieving them efficiently and effectively.
Types of plans
Objectives, strategies, policies, procedure, methods
2. Organising:It is the second important function of management. it assigning duties
grouping tasks establishing authority and allocating resources required to carry out a
specific plan.Ex: identification of work, assignment of duties.
3. Staffing:Staffing is the important aspect of management is to make sure that the right
people with the right qualifications are available at the right place to achieve
theorganization goals and it involves activities such as recruitment, selection, training
and development Ex: manpower planning, recruitment, remuneration.
4. Directing:It is the managerial function of instructing, guiding, supervising, and
leading the people of organization towards the accomplishment of the organizational
goals.
Ex: leadership, communication, motivation and supervision.
5. Controlling: It is the process of verifying and comparing the actual performance with
the standard performance and taking corrective measures in case there is any
deviation from the planned program.

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. The activities of a manager are interrelated and it is often difficult to pinpoint
where one ended and the other began.

SECTION-E (PRACTICAL ORIENTED QUESTIONS)

1. Assuming that you are the manager of an organization, draw the neat diagram of
different Levels of Management to specify that authority responsibility relationships
create different levels of management.
Ans: The term “Levels of management” refers to a line demarcation between various
managerial positions in an organisation.

TOP LEVEL (BOD, CEO, MD)

MIDDLELEVEL (finance manager, production manager)

OPERATIONAL LEVEL (supervisor, foreman employees)

1. TOP MANAGEMENT: - Top management is at the head of the organization. It consists
of, the Board of directors and its chairman, the chief executive and the senior executive.
It has maximum authority and responsibility.
2. MIDDLE MANAGEMENT: - Middle level management comes between the top
management and the supervisory management. It consists of Departmental Managers,
Branch Managers and Junior Executives. They are responsible for implementation of
policies and plans of the organization.
3. OPERATIONAL MANAGEMENT: - It comprises of Foremen and the Supervisors.
They are responsible directing the employees or workers. They act as a link between
workers and middle level management.