NCERT Solutions Class 12 Business Studies Chapter 1 Nature and Significance of Management
NCERT Solutions Class 12 Business Studies Chapter 1 Nature and Significance of Management: National Council of Educational Research and Training (NCERT) Class 12 Business Studies Chapter 1 Solutions – Nature and Significance of Management.
Board |
NCERT |
Class |
12 |
Subject |
Business Studies |
Chapter |
1 |
Chapter Name |
Nature and Significance of Management |
Topic |
Exercise Solutions |
‘Very Short Answer Type:
(1) What is meant by management?
Ans: “Management is the process of designing, maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims”.
(2) Name any two important characteristics of management.
Ans: The two important characteristics of management are – management is a good oriented process and management is multidimensional.
(3) Identify and state the force that binds all the other functions of management.
Ans: The force that binds all the other functions of management is co-ordination.
(4) List any two indicators of growth of an organisation.
Ans: Two indicators of growth of a organisation are – Profit and goodwill.
(5) Indian railways has launched a new broad Gauge solar power train which is going to be a path breaking leap towards making trains —- and more environment friendly. The solar power DEMV ha 6 trailer coaches and is expected to save about 21000 litres of diesel and ensure achieved by Indian railways in the above case.
Ans: The objective of management achieved by Indian railways in the above case is social objective.
Short Answer Type:
(1) Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organisation? What are her basic functions?
Ans: Ritu is working at top management, i.e. – to level in the organisation. The basic function of top management are as follows:
(i) Top level managers are responsible for the welfare and survival of the organisation.
(ii) Top level managers analyse the business environment and its implication for the survival of the firm.
(2) State the basic features of management as a profession.
Ans: The features of management as a profession are as follows:
(i) Well-defined body of knowledge: All professions are based on a well-defined body of knowledge and management also has a set of principles and rules.
(ii) Service Motive: Profit maximisation as the objective of management does not hold true and is changing and so the organisation with good management team automatically serves society by providing good quality products at reasonable prices.
(3) Why is management considered to be a multi-dimensional concept?
Ans: Management is considered as multi-dimensional as it is a complex activity that has three main dimensions as follows
(i) Management of work: All organisation exist for the performance of some work.
(ii) Management of people: Managing has two dimensions. It implies dealing with employees with diverse needs and behavior. It also means dealing with individuals as a group of people.
(iii) Management of operation: It involves a production process which entails the flow of input material and technology for transforming this input into the desired output for consumption.
(4) Company x is facing a lot of problems these days. It manufactures white goods like washing machines microwaves etc. The company’s margins are under pressure and the profits and markets share are declining. The production department blames marketing for not meeting sales target and marketing blames production department for producing goods, which are not of good quality meeting customer’s expectations. The finance department blames both production and marketing for declining return on investment and bad marketing. State the quality of management that the company is lacking? Explain briefly. What steps should the company take to bring itself back on track?
Ans: The quality of management that the company is lacking – “Coordination as an essence of management”.
Co-ordination is the force that binds all other functions of management. It is the common thread that runs through all activities to ensure —– in the working of the organisation.
The steps that the company should take to bring itself back track are as follows:
(i) Integration of group efforts: Co-ordination unifies unrelated or diverse interests into purposeful work activity.
(ii) Ensuring unity of action: The purpose of coordination is to secure unity of action in the realization of a common purpose.
(5) Coordination is the essence of management. Do you agree? Give reasons.
Ans: Yes, I agree to the statement of my mentioned above in the question. The reasons for the support of my answer are as follows:
(i) Functional differentiation: In an organisation there are separate departments for finance, production, marketing etc and they have their own objectives. Hence, it is essential to ensure that actively of each department are directed towards attainment of common organisation goals through proper coordination among all these departments.
(ii) Growth in size: with the growth in the size of the organisation, people employed also increases and they belong from different cultural background. So, for organisational goals through coordination.
(iii) Specialisation: Specialisation arises out of the complexity of modern technology & the diversity of tasks to be performed. These complexity in the tasks has to be made simple through proper communication & coordination.
(6) Ashita and Lakshita are employees as working in Dazzling enterprise dealing in costume jewellery. The firm secured in urgent under for 1000 bracelets that were to be delivered within 4 days. They were assigned the responsibility of producing 500 bracelets each at a cost of Rs. 100 per bracelets. Ashita was able to produce —- required number within the stipulated time at the cast of Rs. 55000, whereas, Lakshita was able to produce only 450 unit at a cost of Rs. 90 Per unit. State whether Ashita and Lakshita are efficient and effective. Give reason to justify your answer.
Ans: Ashita is effective but not efficient because although she has achieved her target of producing 500 bracelets per day but she could not be cost-effective as she had incurred at cost of Rs 55000 instead of Rs. 50000. Lakshita is efficient but not effective as she could cover the cost (a Rs 90 per bracelet but could not fulfill her target of producing 500 bracelets.
Long Answer Type Questions:
(1) Management is considered to be both an art and science. Explain
Ans: Management is considered to be both an art and science due to the presence of the following features of both science and art in it.
(i) Existence of theoretical knowledge: Art Presupposes the existence of certain theoretical knowledge an science is a systematized body of knowledge that explains certain general truths. In management also there exist a set of theories and principles that guides the manager.
(ii) Personalised application: Every artist must have personal skills and creativity to apply that knowledge along with theoretical knowledge. Similarly manages also need to be creative in managing employees.
(iii) Principles are based on repeated experiments: Scientific principles are developed through observations and then tested through repeated experiments. The management principles are also developed through observations and experiments.
(iv) Based on practice and creativity: Every artist requires regular practice of art to become more fine and perfect. Similarly, with experience manager also improve their managerial skills and efficiency.
(2) Do you think management has the characteristics of a full-fledged profession?
Ans: No, at present management do not have the characteristics of a full-fledged profession, but in near future it will be soon considered as a full-fledged profession. The main features of profession are as follows:
(i) Well-defined body of knowledge: In every profession there is practice of systematic body of knowledge that helps them to gather knowledge. Incas of management also, there is availability of systematic body of knowledge. So presently this feature of profession is present in management also.
(ii) Restricted Entry: The entry to a profession is restricted through an examination or degree, whereas there is no legal restriction on appointment of a manager and anyone can become a manager irrespective of the educational qualification. So, presently this feature of profession is not present in management but very soon it will be included with statutory backing.
(iii) Presence of professional association: For all the professions, special associations are established and every professional has to get himself registered with his association before practicing that profession. In case of management various management associations are set up at national & international level but legally it is not compulsory for managers to become a part of these organisations b registration.
(3) “A successful enterprise has to achieve its goals effectively and efficiently explain.
Ans: According to modern concept – “management is a process of getting things done with the aim of achieving goals effectively & efficiently”. This concept of management can be explained as follows:
(i) Effectiveness: It is concerned with doing the right task, completing activities and achieving goal. It is concerned with end result. Being effective or doing work effectively means finishing the given task or a achieving the goal.
(ii) Efficiency: It refers to doing the task in the right way with minimum cost and optimum utilization of resources. Efficiency involves cost benefit analysis. It focuses on deriving more benefits by using less resources.
(4) Management is a series of continuous interrelated functions. Comment.
Ans: The functions of management are as follows:
(a) Planning: It is always the first function performed by every manager. Planning refers to deciding in advance what to do, how to do and who is going to do it. Planning bridges the gap between present and future.
(b) Organising: The next function of every manager is to organize the activities and set up the organisation structure to execute the plans.
(c) Staffing: It refers to recruiting, selecting and appointing the employees and assigning them the right task and duties. It also includes training and development of employees.
(d) Directing: It refers to giving directions or instructions to employees by motivating them and supervising them, and guiding them.
(e) Controlling: This involves matching or comparing the actual performance of the employees with the planned or standard performance and finding out the reasons for any such deviations.
(5) A company wants to modify its existing product in the market due to decreasing sales. You can imagine any product about which you are familiar. What decisions/steps should each level of management take to give effect to this decision?
Ans: The following steps should be taken by each level of management to increase the sale of the product.
(a) Top level management: This level managers should concentrate on the ways of acquiring more funds required for massive advertisement and for extensive research and development for innovative products. They should analyse the business environment and market conditions and its implication on the product. They should formulate the plans and policies for the marketing, financing and production departments.
(b) Middle level management: The managers of this level are subordinate to top level managers and superior to the first line managers. They will implement and control the plans and strategies developed by the top level manages. They will have to ensure that the marketing department have sufficient personnel to carry out the promotional and advertising activities and assign them the necessary duties and responsibilities.
(c) Lower level management: This level consists of —– and supervisors. The supervisors will have to keep a check on the workers regarding their performance level. They will have to communicate the plans & policies regarding the development of the product and other strategies formulated by the production & marketing department to the workers.
(6) 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.
Ans: The firm is facing the problem of lack of co-ordination among its various departments and levels of the organisation. The remedy suggested to the firm are as follows:
(a) Integrating Group efforts: Coordination unifies diverse interest into purposeful work activity. It gives a common focus to group effort.
(b) Co-ordination is a continous process: Co-ordination is not a one-time function but a continuous process. It starts from the planning stage and continues till controlling.
(c) Co-ordination is an all pervasive function: It is required at all levels of management due to the interdependent nature of activities of various departments.
(d) Co-ordination is a deliberate function: A manager has to coordinate the efforts of different people in a conscious and deliberate manner. Co-operation in the absence of co-ordination may lead to wasted effort.
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