Chapter 1: NATURE AND SIGNIFICANCE

OF MANAGEMENT
Important Definitions
Management is the process of getting things done with the aim of achieving goals
effectively and efficiently.
Process: refers to the primary function like planning, organising, staffing, directing and
controlling performed by the management to get things done.
Effectiveness: means completing the right task to achieve the deputed goal within the time
frame.
Efficiency: means completion of task using minimum resources
Planning - Setting objectives and targets and formulating an action plan of what is to be
done, how to be done and when to do it.
Organising - Assignment of duties, task, establishment of authority and responsibility
relationships, allocating the resources required to perform the planned task.
Staffing - Finding and placing the right person at the right job at the right time.
Directing - Leading, influencing, and motivating the staff chosen to perform the assigned
task efficiently and effectively.
Controlling - Ensuring/Monitoring the activities in an organisation are performed as per the
plan.
Coordination: The process of achieving unity of action among interdependent activities and
departments of an organisation. It is the essence of management as it is required in all
managerial functions.

Important Notes / Chapter at a Glance

Management is an art of getting things done through others. Management can be defined
as, the process of getting things done with the aim of achieving goals effectively and
efficiently. Management is a vital aspect of the economic life of man, which is an organised
group activity. A central directing and controlling agency is indispensable for a business
concern. The productive resources - material, labour, capital etc. are entrusted to the
organising skill, administrative ability and enterprising initiative of the management. Thus,
management provides leadership to a business enterprise. Without able managers and

effective managerial leadership the resources of production remain merely resources and
never become production. Under competitive economy and ever-changing environment the
quality and performance of managers determine both the survival as well as success of any
business enterprise. Management occupies such an
Efficiency and Effectiveness
Efficiency means doing the task correctly at minimum cost while effectiveness means
completing the task correctly. Although Efficiency and effectiveness are different but they
are interrelated. It is important for management to be both i.e. effective and efficient.
Example: A business produces targeted 1000 units but at a higher cost is effective but not
efficient. Therefore if the business has to be effective and efficient then it has to produce
1000 units within cost.
Characteristics of Management
1. Goal oriented Process : It is a goal oriented process, which is undertaken to achieve
already specified and desired objectives.
2. Pervasive : Management is pervasive in nature. It is used in all types of organizations
whether economic, social or political and at every level.
3. Multidimensional : It is multidimensional as it involves management of Work, People and
operations.
4. Continuous : It is a continuous process i.e. its functions are being performed by all
managers simultaneously. The process of management continues till an organisation exist
for attaining its objectives.
5. Group Activity : It is a group activity since it involves managing and coordinating activities
of different people as a team to attain the desired objectives.
6. Dynamic function : it is a dynamic function since it has to adapt to the changing
environment.
7. Intangible Force : It is an intangible force as it cannot be seen but its effect are felt in the
form of results like whether the objectives are met and whether people are motivated or
not.
Objectives of management
(A) Organizational objectives of Survival (Earning enough revenues to cover cost); Profit (To
Cover cost and risk); & Growth (To improve its future Prospects).

(B) Social Objectives of giving benefits to society like using environmental friendly practices
and giving employment to disadvantaged sections of society etc. Some of the social
objectives are:

Producing quality products at reasonable rates,

generating employment opportunities,
Community progress and development by providing schools and crches to
employees In fact most of the firms have taken upon themselves the concept of
social responsibility as one of the basic element of business objectives .

Environmental friendly method of production

(C) Personal Objectives because diverse personal objectives of people working in the
organization have to be reconciled with organizational objectives. Some of the Personal
objectives are:

Meeting the Financial needs like competitive salaries and perks

Social and safety needs of the employee like peer recognition, self respect and
respect for colleagues
Higher level needs like implementation and monitoring of policies for personal
growth and survival
Reconcile personal goals with organisational objectives for harmony in the
organisation.

Importance of management
(1) Achieving Group Goals : Management helps in achieving group goals. Manager give
common direction to the individual effort in achieving the overall goal of the organisation.
(2) Increases Efficiency : Management increases efficiency by using resources in the best
possible manner to reduce cost and increase productivity.
(3) Creates Dynamic Organisation : Management helps in creating Dynamic organisation
which could adopt changing situations easily.
(4) Achieving Personal Objecti ves : Management hel ps in achieving objectives of
individuals working in the organisation.
(5) Development of Society : Management helps in the development of society by
producing good quality products, creating employment opportunities and adopting new
technology.

Is Management a Science or an Art?

A question often arises whether management is a science or art. It is said that

management is
the oldest of arts and the youngest of sciences. This explains the changing nature of
management
but does not exactly answer what management is? To have an exact answer to the question
it is
necessary to know the meanings of the terms Science and Art.
What is Science?
Science may be described, as a systematic body of knowledge pertaining to an area of
study and
contains some general truths explaining past events or phenomena.
The above definition contains three important characteristics of science. They are:
1. It is a systematized body of knowledge and uses scientific methods for observation,
2. Its principles are evolved on the basis of continued observation and experiment, and
3. Its principles are exact and have universal applicability without any limitation.
Judging from the above characteristics of science, it may be observed that:
1. Management is a systematized body of knowledge and its principles have evolved on the
basis of observation.
2. The kind of experimentation (as in natural sciences) cannot be accompanied in the area of
management since management deals with the human element.
3. In management, it is not possible to define, analyse and measure phenomena by
repeating
the same conditions over and over again to obtain a proof.
The above observation puts a limitation on management as a science. Management like
other
social sciences can be called as inexact science.
What is Art?
Art refers to the way of doing specific things; it indicates how an objective is to be
achieved.
Management like any other operational activity has to be an art. Most of the managerial
acts
have to be cultivated as arts of attaining mastery to secure action and results.
The above definition contains three important characteristics of art. They are:
1. Art is the application of science. It is putting principle into practice.
2. After knowing a particular art, practice is needed to reach the level of perfection.
3. It is undertaken for accomplishing an end through deliberate efforts.
Judging from the above characteristics of art, it may be observed that:
1. Management while performing the activities of getting things done by others is required
to apply the knowledge of certain underlying principles which are necessary for every art.
2. Management gets perfection in the art of managing only through continuous practice.
3. Management implies capacity to apply accurately the knowledge to solve the problems,
to face the situation and to realise the objectives fully and timely.
The above observation makes management an art and that to a fine art.
Management is both a Science as well as an Art

Management is both a science as well as an art. The science of management provides

certain general principles which can guide the managers in their professional effort. The art
of management consists in tackling every situation in an effective manner. As a matter of
fact, neither science should be over-emphasised nor should be the art discounted; the
science and the art of management go together and are both mutually interdependent and
complimentary.
Management is thus a science as well as an art. It can be said that-the art of management
is as old as human history, but the science of management is an event of the recent past.
Management as a profession:
Profession means an occupation for which specialised knowledge and skills are required.
The main features of profession are as follows.
(1) Well defined body of knowledge : All the professions are based on well defined body of
knowledge.
(2) Restricted entry : The entry in every profession is restricted through examination or
through some minimum educational qualification.
(3) Professional Associations : All professions are affiliated to a professional association
which regulates entry and frame code of conduct relating to the profession.
(4) Ethical code of conduct : All professions are bound by a code of conduct which guides
the behaviour of its members
(5) Service Motive : The main aim of a profession is to serve its clients. Management does
not fulfill all the features of a profession and thus it is not a full pledged profession.

Levels of Management: Top, Middle and operational levels.

Top Level
Consists of Chairperson, Chief Executive Officer, Chief Operating Officer or equivalent and
their team. Chief task is to integrate and to coordinate the various activities of the
business, framing policies, formulating organisational goals & strategies.
Middle Level
Consists of divisional heads, Plant Superintendent and Operations Manager etc. Main tasks
are to interpret the policies of the top management, to ensure the availability of resources
to implement Policies & to coordinate all activities, ensure availability of necessary
personnel & assign duties & responsibilities to them.
Lower Level / Supervisory Level
Consists of Foremen and supervisors etc. Main task is ensure actual implementation of the
policies as per directions, bring workers grievances before the management & maintain
discipline among the workers.
Functions of Management: Planning, Organizing, Staffing, Directing and Controlling.

Planning is deciding in advance what to do in future and how to do it. Organizing is to

assign duties, grouping tasks, establishing authority and allocating resources required to
carry out a specific plan. Staffing is finding the right people for the right job. Directing is
leading, influencing and motivating employees to perform the tasks assigned to them.
Controlling is monitoring the organizational performance towards the attainment of
organizational goals.
Coordination: Coordination is the management function of correlating and integrating
the diverse goals and activities in the organisational process. The essence of
Management: Coordination is the force which synchronizes all the functions of
management and activities of different departments.
It integrates the group efforts.
It ensures unity of action.

It is a continuous process.
It is an all pervasive function.
It is a deliberate function.

It is the responsibility of all managers

Importance of coordination

Ensures unity of action

Erases interdepartmental conflicts

Promotes harmonious implementation of plans

Helps in maintaining a high degree of morale amongst employees

VERY SHORT ANSWER TYPE QUESTIONS (1 MARK)

PREVIOUS YEAR QUESTIONS
1. Your grandfather has retired from an organisation in which he is responsible fo r
implementing the plans developed by the top management. At which level of
management was he working? State one more function performed at this level.
(cbse 2011)
Ans. Being the person who implements the plans developed by the top management,
he was working at the middle level of management. One of the functions performed at
this level is assigning the necessary duties to the personnel working in various
departments.
2. Name the level of management at which the managers are responsible for
implementing and controlling the plans and strategies of the organisation. (cbse
2013)
Ans. The level of management at which the managers are responsible for
implementing and controlling the plans and strategies of the organisation is middle
level management.
3. What is meant by 'Management of people'? (cbse 2014)
Ans. Management of people refers to identifying the strengths and weaknesses of
individuals and then making them work towards achieving the organisational goals in
an appropriate manner.
4. What is mean by Co-ordination? Explain how does coordination integrates group
efforts and ensures unity of action.
(cbse 2012)
Ans. Meaning of Coordination and Explanation of relevant features.
5. Identify the nature of management when it is practiced as personal application of
existing knowledge to achieve desired results. (cbse 2012)
Ans. Management as an art.

6. How does management help in achieving personal objectives? State.

Ans. Management helps in achieving personal objectives by providing working
individuals with fair salaries, wages and perks and opportunities to grow and
develop.
7. What is meant by 'effectiveness' in management?
Ans. Effectiveness means completing the given work in the required time. In other
words, it means doing the right things with focus on the end result. It is a very
important aspect of management as it helps in reaching the set goals.
8. Name the level of management that is responsible for the welfare and survival of
the organisation.
Ans. Top level

NCERT TEXT BOOK QUESTIONS

9. What do you mean by management?
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
10. What is the main objective of any organisation?
Ans. Main objective of any organisation is optimum utilisation of resources
11. What is coordination?
Ans. Coordination is the essence of management. It is the process of achieving unity
of action among interdependent activities and departments of an organisation
12. Which level of management has a function of formulating policy?
Ans. Top level managers
13. Name the various Functions of management
Ans. All managers perform the following interrelated functions: Planning,
Organising, Staffing, Directing and Controlling.

ADDITIONAL QUESTIONS
14. Planning, Organizing, Staffing, Directing and controlling is the sequence of
functions in a process. Name it.
Ans. Management
15. Name that intangible force which creates productive relationships among
resources of an organisation.
Ans. Management

16. What is the main objective of any organisation?

Ans. Main objective of any organisation is optimum utilisation of resources
17. Production manager tries to produce goods with minimum costs. Name the
concept which is being focused by management?
Ans. Efficiency
18. What do you mean by effectiveness?
Ans. It means completing the task or achieving the goals within stipulated time
period.
19. "Management is a group activity". Give reasons for statement.
Ans. An organisation is a collection of diverse individuals with needs and purposes
but they work towards fulfilling the common organisational goals.
20. In order to be successful, an organization must change its according to the needs of
the environment. Which characteristic of management is highlighted in the
statement?
Ans. Management is a dynamic function.
21. Give one designation each of top and middle level management?
Ans. Top - CEO, Middle - Divisional Manager
22. Your Grand Father has retired as the director of a manufacturing company. At
what level of management was he working?
Ans. Top management.
23. Why is management called inexact science?
Ans. Management relates to human behaviour, whose cause and effect is not
certain, thats why it is called and inexact science.

SHORT ANSWER TYPE QUESTIONS (2 MARKS)

NCERT TEXT BOOK QUESTIONS
1. Define management.
Ans. Management is a process of getting things done with the aim of achieving
desired common goals effectively and efficiently

2. Name important characteristics of management

Ans. The characteristics of management are: (i) goal oriented process (ii) all
pervasive (iii) multidimensional (iv) continuous process (v) group activity (vi)
dynamic function (vii) tangible force

ADDITIONAL QUESTIONS
3. Explain how management helps in the development of society.
Ans. Management must contribute to the development of the society by producing
good quality products at fair prices, using honest selling practices, creating
employment opportunities, adopting new and improved technology, etc.
4. Identify the nature of management when it is practised as personal application of
existing knowledge to achieve desired result.
Ans. The nature of management when it is practised as personal application of
existing knowledge to achieve desired result is management as art. Management is
considered an art because the manager applies the existing theories and principles
based on his own knowledge, creativity and skill to achieve the desired result.
5. What is meant by 'efficiency' in management?
Ans. Management is the process of getting things done in an efficient manner. Here,
'efficiency' in management implies that tasks or activities are completed without any
error and with minimum incurred cost.
6. How does management help in achieving personal objectives? State.
Ans. Management helps in achieving personal objectives by providing working
individuals with fair salaries, wages and perks and opportunities to grow and
develop.
7. How is management all pervasive?
Ans. Activities involved in management are applicable to every type of organisation
whether economic, social or economic, social or political. For example, a cricket
team needs to be managed as much as a club or a hospital. The activities of
managers in India are similar to their activities in say U.K. or USA. Thus it can be said
that management is all pervasive.
8. Management provides judgement and vision. Explain?
Ans. Management keeps adjusting to the complex and ever-changing external
environment. It helps in decision making. As it visualizes the future and the right
course of action for same, sound decisions become possible. Thus, its foresight
provides judgment and vision.

9. Why is management considered as a discipline?

Ans. Discipline refers to a subject, the study of which can be organized and taught.
Management is considered as a discipline because it is being continuously
researched and studied. Also, it emphasis on knowledge, diversification, theory and
practice, just like any other discipline.
10. Mr. Kunal is working as the Finance Manager of XYZ Ltd. At what level of
management is he working? State any two functions being performed by him?
Ans. He is working as a middle level manager. His functions are as follows.
i)
Deciding various sources from which required funds can be raised.
ii)
Negotiating with banks, brokers, under-writers etc. for raising finance.
11. Coordination is a continuous activity. Explain?
Ans. Coordination is a continuous activity carried out by all mangers at all times. It
starts at the planning stage and continues with the other functions of management.
It is a never-ending process. It integrates all the activities and ensures the orderly
arrangement of individual and group efforts to ensure unity of action in the
realization of common objectives.

SHORT ANSWER TYPE QUESTIONS (3 MARKS)

NCERT TEXT BOOK QUESTIONS
1. Ritu is the manager of the northern division of a large corporate house. At what
level does she work in the organisation? What are her basic functions?
Ans. Ritu works at the middle level of organization. Ritu is performing the basic functions in
the organization are as follows;
Provides a link a between the top level management and acts as a supervisor to her division.
o Interpreting the management for the effective functioning of the unit
Create an organizational structure in order to fulfill the business policies.
Assigning duties to employee

2. Why management is considered a multi-faceted concept?

Ans. Management is considered as multi-faceted concept;
Management of work: Management means getting things done with the efforts of other people.
Objectives of the organization may differ but they have to achieve their goals. Management of
people: Organizations greatest assets are "human resources or people". The major difficult job
for the manager is "getting things done with the efforts of other people".

Management of operations: Management requires the production process which entails the
flow of materials, labour force, technology and desired output for consumption. This is
interlinked with the management of people and work.

3. Discuss the basic features of management as a profession

Ans. A profession is an occupation based on highly specialized skill. The practice of the
profession is controlled by professional body which sets the code of conduct which the
members are expected to observe . The basic features of management as a profession

management as a profession has the following features which are as follows:

Well define boy of knowledge: all professionals are based on a well-defined body
of knowledge that can be acquire through instruction.
Professional association: there are several associations of practicing managers in
India, like the AIMA that has laid the code of conduct to regulate the activities of
their members.
Service motive: all business organizations aim to provide good quality product or
service at a reasonable price thus serving the society.
Thus we can say management does not meet the exact criteria of a profession but it
has some features as professions.

ADDITIONAL QUESTIONS
4. List any two social objectives of Management.
Ans. The following are two social objectives of management:
i. One of the social objectives of an organisation is to use environment-friendly
methods of production. In other words, an organisation must aim at adopting those
methods of production which do not harm the surrounding environment in any
manner.
ii. Another objective includes providing employment opportunities to the weaker
sections of the society. In other words, an organisation must aim at social
development by giving opportunities to the poor in the form of employment.
5. Explain the meaning of management. What do you mean by managers?
Ans. Management is a process of getting things done with the aim of achieving
desired common goals effectively and efficiently persons engaged in performing the
functions of the management are known as managers. In other words, those
managing the organisational resources for releasing its goals are known as
managers.
6. Management is a process Explain?
Ans. Management includes various steps such as planning, organising, staffing ,
directing and controlling. This process begins with those at the top of the
organization and continues in varying degrees at almost every level of the
organisation. These inter-related steps help to achieve organisational goals in

effective manner. That is why management is known as process of employing and

organising resources to accomplish predetermined objectives.
7. What are the personal objectives of the management?
Ans. Personal objectives can be defines as the objectives which are related to the
employees of an organisation. They are as follows:
Financial needs like competitive salaries, incentives and other monetary benefits.
Social needs like recognition in the organisation.
Higher level need which includes personal growth and development.
8. Enumerate the importance of management.
Ans. Following points are the importance of management.
Management helps in achieving group goals.
Management increase efficiency
Management creates a dynamic organisation.
Management helps in achieving personal objectives.
Management helps in development of society.
9. What do you mean by level of management?
Ans. A level of management means the hierarchy of organisation representing the
relationships among managers and subordinates on the basis of their relative
authority, status and responsibility. There are three levels in the hierarchy of an
organisation viz.
Top management
Middle management and
Supervisory or operational management.
10. Define co-ordination. Enumerate the features of co-ordination?
Ans. Coordination is an orderly arrangement of group efforts to maintain harmony
among individuals efforts towards the accomplishment of common goals of an
organisation.
Features of co-ordination

It integrates group efforts.

It unifies the action.
It is a continuous process.
It is an all pervasive function
It is the responsibility of all managers.
It is a deliberate function.

LONG ANSWER TYPE QUESTIONS (5 MARKS)

1. Explain any five features of management?
Ans. Following are the features of management:
(i) Management is a group activity : Management consists of a number of persons who
work as a group. Their efforts are directed towards the common goals. Members initiate,
communicate, coordinate and join their hands for the achievement of organisational
objectives.
(ii) Management is a goal-oriented process: Management aims at common goals through a
process of series of continuous functions viz planning, organizing, directing, staffing and
controlling. These composite functions of management are separately performed by all
managers all the time simultaneously to realize organizational goals
(iii) Management is all pervasive: Whether it is a commercial organisation or non
commercial organisation, big or small all require management to handle their operations
effectively and efficiently.
(iv) Management is a continuous process : Management is a continuous process consisting
of a series of functions viz., planning, organising, directing and controlling. All the managers
perform these functions regularly.
(v) Management is a dynamic function : The environment in which a business exists keeps
on changing. Thus in order to be successful, management must change its goals, plans and
politics according to the needs of its environment.
2. Explain how management increases efficiency and helps in development of society.
Ans. i. Increases efficiency: While aiming at achievement of goals, management works upon
increasing the efficiency. It aims at optimum utilisation of the available human and material
resources. Thus, it helps in achieving the desired goals with minimum cost and resources. All
the functions of management namely planning, organising, staffing, directing and
controlling focus towards increasing the overall efficiency.
ii. Helps in development of society: An organisation is a part of the society. In this view, the
management should work towards contributing its bit towards the society and fulfilling the
social obligations as well. For instance, the management should insist on adopting
environment-friendly methods and contribute towards social causes such as education of
the poor and employment to the weaker sections, etc.
3. Management is multi-dimensional. Explain?
Ans. Management is a complex activity and involves following three main dimensions i) Management of works

In each and every organisation, certain type of work is to be performed. In school, overall
development of a child is to be done; in hospitals, patients are treated etc. Management
converts these works into goals and devises the means to achieve them.
ii) Management of People.
Management is concerned with getting things done through people, which is a very
difficult task. All the employees have different personalities, needs backgrounds and
methods of work. Thus, it becomes managements job to make them work as a group by
giving common direction to their efforts.
iii) Management of operations.
In order to survive, each organisation has to provide certain goods or services. This involves
production process thus, management of operations is inter linked with both the above
dimensions viz., management of work and the management of people.
4. Explain the organisational objectives of management.
Ans. The organisational objectives of management refer to the main objectives required to
fulfil the economic goals of the business organisation. The main objective of management is
to utilize the human and material resources in such a manner that it should give maximum
advantage to the organization. Every management group strives to accomplish these
objectives for its organisation. These objectives of every organisation are survival, profit and
growth.
(a) Survival: The basic objective of every business is to survive for a longer period in the
market. The management must ensure survival of the organisation by earning enough
revenue to cover its costs.
(b) Profit: Only survival is not sufficient for business. Profit earning is essential for meeting
the expenses and for the successful operation of the bus' Thus management must ensure
earning of sufficient profit.
(c) Growth: The next important objective of the management is to ensure future growth
and development of the business.
5. Explain the 'social objectives' of management.
Ans. Each organisation is a part of society and thus it has certain social obligations to fulfill.
Some of them are as follows:
(i) To supply quality goods and services
(ii) Providing basic amenities to the employees like schools and creches for their children,
medical facilities etc.
(iii) To generate employment opportunities especially for the backward classes.
(iv) To provide environment friendly methods of production.
(v) To provide financial support to society by donating for noble causes.
(vi) To organize educational, health and vocational training programmes.

(vii) To participate in social service projects of Government and Non Governmental

Organisations (NGOs).
6. Do you mean by' Personal Objectives' of management? Enumerate personal objectives
of management.
Ans. Personal Objectives refer to the objectives which are related to the individual needs
of the employees of an organisation. All organisations are made up of people with different
values, experiences and objectives. People join an organisation to satisfy their different
needs. These are as follows:
i) Financial needs like competitive salaries, incentives and other monetary benefits.
ii) Social needs like recognition in the organisation.
iii) Higher level need which includes personal growth and development.
7. Explain five functions of top-management.
Ans. Top management performs the following functions.
i) Develops long-term objectives: Top-level managers develop the long term objectives
like expansion of business, manpower planning etc.
ii) Framing of policies: They lay down guidelines for departmental head i.e., policies relating
to production, marketing, personnel, finance public relation etc.
iii) Organizing: Top management organizes the business into various sections and
departments to achieve the desired organisational objectives.
iv) Key appointments: Top-level authorities appoint the departmental heads and some
other key persons to develop the organisational structure for profitable growth of the
enterprises.
v) Controlling: Top-level managers periodically review the work of executives at different
levels to ensure that their performance is as per predetermined plans.
8. What is meant by 'Management'? State any three objectives of management.
Ans. Management is the process of getting the work done with the aim achieving the
organisational goals in an efficient and effective manner.
The following are the objectives of management.
1. Organisational/economic objectives: It involves optimal utilisation of material and
human resources available. It involves the following objectives.
a. Survival: The overall revenue must be adequate to cover the cost.
b. Profit: Profits must be earned such that the risks and costs are covered.
c. Growth: To continue in the long run the organisation must focus on growth in terms of
sales, production, number of employees, etc.
2. Social Objectives: Social obligations such as adoption of environment friendly production
methods, contribution to social causes such as imparting education to children, providing
employment opportunities, etc. must also be considered.

3. Personal Objectives: Personal objectives of the individuals (financial objectives as well as

social objectives) must be accommodated.

VALUE BASED QUESTIONS (3-5 MARKS)

1. Smita had been working as an assistant manager with 'Johnson Enterprises' for the
last ten years. She was very popular amongst her colleagues because of her
commitment and dedication towards the work. When the manager senior to her
retired, all her colleagues thought that now Smita would be promoted. But to
everyone's surprise the vacant post was filled by an outsider, Mrs. Rita. Smita felt
demoralised and her performance started declining. She would abstain herself
often and could not meet her targets.
Mrs. Rita was a good leader, who would not only instruct her subordinates but
would also guide and inspire them. She noticed Smita's behaviour and felt that her
performance could be improved. She started involving Smita in decision making issues related to the organisation and made her a part of high level jointmanagement committee. Smita was now punctual in office and her performance
started improving.
(i)
Identify the function of management being performed by Rita.
(ii)
Name the element of the above function of management which helped
Rita to improve Smita's behaviour
Ans. (i) Directing function of management is performed by Rita.
(ii) Motivation helped Rita to improve Smita's behaviour.
2. Management of Global Ltd. Fulfils all its objectives and the organization is able to work
effectively and efficiently. It is using environment friendly methods of production and
disposing off the waste material either by recycling it or using the same for landfill in such
a manner that the aquatic life is not disturbed. Thus it also provides employment
opportunities to the disadvantaged sections of the society.
a) Identify the objective of management of Global Ltd. Which it wants to fulfill by doing
the above activities.
b) State any two other objectives that the management of Global Ltd. Should fulfil.
c) Identify any two values which management of Global Ltd. Can communicate through
fulfilling the objectives as stated in part (b).
d) Identify any two values which Global Ltd desires to emphasise through its above stated
activities.

Ans

a) Social objective
b) i) Organisational objective. Ii) Personal objective.

c) i) Opportunity for Growth ii) Harmony among the employees of the organization.
d) i) Waste management: By using the waste material for recycling & landfill. ii)
Responsibility towards disadvantaged sections of society. By providing employment
opportunities to the disadvantaged sections of the society.

3. Unique Ltd. is engaged in manufacturing electrical appliances. The company has

been facing lot of problems for the last few months because of chaos between two
departments i.e. Production department and sales department. Sales department
blames production Department for delayed productions. However, production
department blames sales Department for poor sales. The force that integrates the
two departments is missing.
a) Identify the missing force in the above case and list its two characteristics.
b) List any two values which can be cultivated among the employees by using
theforce identified in (a) above.
Ans. a) Co ordination.
Integrates group efforts.
Ensures unity of action.
b)
i) cooperation By integrating all group efforts.
ii) Unity: By ensuring that all activities aim at accomplishments of
organizational goals.

4. Alliance Ltd. is engaged in manufacturing plastic buckets. The objective of the

company is to manufacture 100 buckets a day. To achieve this, the efforts of all
departments are co-ordinated and interlinked and authority-responsibility
relationship is established among various job positions.
There is clarity on who is to report to whom.
Name the function of management discussed above.
Ans. All departments of Alliance Ltd. are interlinked and coordinated. Also, there is
clarity on who is to report whom. Therefore, the function that is described here is
organising. Under organising, plans are implemented after defining the working
relationships and clarifying the jobs to avoid confusion.

5. Rahul Ltd., a leading Manufacturer of iron and steel decided to open up a new branch in
remote area in Rajasthan. So that unemployed youth from the rural areas could get same
opportunities as those available in the urban areas. This initiative has raised the standard
of living of people in rural areas. All children in these families are getting good education

and these families are also actively contributing the nation building through their
dedicated work.
a) Identify the objective e of management highlighted in the above mentioned case.
b) Give any two advantages of following the above objective.
c) Which values can be emphasized by following the above objective?
Ans: a) Social objective.
b) Creation of benefit for society
new branch in rural area
leads to Balanced Regional development.
c) i) Equal Opportunity for growth and development.(ii) Social responsibility(iii) Concern for the
unemployed.

6. In order to achieve target production of 5000 units per month, a Production Manager has
to operate on double shifts. Due to power failure most of the time, the manager isable to
achieve 5000 units, but at a higher production cost.a) In your point of view, what is lacking
in management? b) Identify the values emphasised by management in the above
mentioned case.
Ans:

(a) Efficiency
(b) Values
(i) Optimum utilization of scarce resources.
(ii) Sincerity
(iii) Responsible towards achieving the target.