Question Answers and Case Studies of

Class 12 Business Studies

Chapter 1: NATURE & SIGNIFICANCE OF MANAGEMENT
MRS. DIANA SEKAR
MIND MAP

Question answer (Q.1 to14)…write in note book

Question 1:
Jayant is working as Head Relationship Manager in the wealth management division of a private
sector bank. He has created an internal environment which is conducive to an effective and efficient
performance of his team of ten relationship management executive” A typical day at work in Jay ant‟s
life consists of a series of interrelated and continue functions. He decides the targets for his
department which are in line with the objectives of the organization as a whole. The future course of
action for his team members is laid out well in advance. The various resources required by the
relationship managers like an iPad with GPS system, account opening forms, brochures, details of
account holders etc. are made readily available to them. The executives are given sufficient authority
to carry out the work assigned to them. Jayant works in close coordination with the Human Resource
Manager in order to ensure that he is able to create and maintain a satisfactory and satisfied
workforce in his department. Through constant guidance and motivation, Jayant inspires them to
realise their full potential. He offers them various types of incentives from time to time keeping in view
their diverse individual needs. Moreover, he keeps a close watch on their individual performances in
order to ensure that they are in accordance with the standards set and takes corrective actions
whenever needed.
In context of the above case:

1. Identify the concept being referred to in the following line, “He has created an internal
environment which is conducive to an effective and efficient performance of his team of ten
relationship management executives.”
2. Identify and describe the various functions of the concept as identified in part (a) of the question
by quoting lines from the paragraph.

Answer:

1. The concept of management is being referred to in the following line, “He has created an
internal environment which is conducive to an effective and efficient performance of his team of
ten relationship management executives.”
2. The various functions of the management concept mentioned in the above paragraph are
listed below:
 Planning: It is the function of determining in advance what is to be done and who is to do
it.
“He decides the targets for his department which are in line with the objectives of the
organization as a whole. The future course of actions for the team members are laid out
well in advance.”
 Organising: Organising is the process of bringing together human, physical and financial
resources and establishing productive relations among them for the purpose of achieving
the desired goals efficiently and effectively.
“The various resources required by the relationship managers like an iPad with GPS
system, account opening forms, brochures, details of account holders etc. are made
readily available to them. The executives are given sufficient authority to carry out the
work assigned to them.”
 Staffing: The managerial function of staffing involves manning the organisational
structure in order to fill in the roles designed into the structure.
“Jayant works in close coordination with the human resource manager in order to ensure
that he is able to create and maintain a satisfactory and satisfied workforce in his
department.”
 Directing: Directing involves leading, influencing and motivating employees to
perform the tasks assigned to them.
“Through constant guidance and motivation, Jayant inspires them to realise their full
potential. He offers them various types of incentives from time to time keeping in view their
diverse individual needs.”
 Controlling: Controlling is the management function of ensuring that events conform to
plans.”Moreover, he keeps a close watch on their individual performances in order to
ensure that they are in accordance with the standards set and takes corrective actions
whenever needed.”
Question 2: Difference between effectiveness and efficiency.

Answer

Effectiveness Efficiency

Effectiveness is about accomplishing a task Efficiency is about performing a task in a best possible
or producing a desired result manner

It focuses on achieving the objective It focuses on maximum result with least time and effort

Being effective means doing the right things Being efficient means doing things in right manner

Effectiveness focuses on producing the result Efficiency focuses on completing task using minimum
time, effort and resources

Higher quality result can be expected from an Quick and intelligent work can be expected from an
effective person efficient person

Effectiveness is primarily concerned about Efficiency is primarily concerned on the use of time,
results, not use of resources energy and resources, not necessarily the results

It is not process and time oriented It is process and time oriented

It looks at whether the something is done or It looks at how the activity is done
not

Question 3:
Cyclone Cycles is a leading bicycle manufacturing company. The company decides to manufacture
5000 bicycles by the end of the month. The bicycle manufacturing cost is to be kept below Rs.750
per unit. The bicycles have to be manufactured at the set toughness enduring capacity at the scale of
8 out of 10. With all these parameters in mind the company kick starts its manufacturing. By the 28th
of the month the company is able to achieve the manufacturing of 5050 bicycles. The toughness
endurance scale is well above 8.25 out of 10. When everything seems to have gone well the
manufacturing department reveals that per unit cost of each bicycle is Rs.780.
In the above case do you think that the company has been able to achieve Effectiveness?
Answer:
Yes the company has achieved Effectiveness. Since the quality (toughness scale—8.25 well above
8), quantity (5050 units well above 5000 units) and dead line (the target is achieved on 28th) have
been achieved. The company lacks in efficiency as per unit cost has gone above the set target by
Rs.30.

Question 4:
Josh Enterprises decides to have a meeting of all the key employees of different departments in the
organisation. The main motive is to tell the employees to keep the target of 20% increase in sales as
the main objective when they work throughout the year. The meeting is full of ideas regarding the
employees and processes involved. Various plans are made to harness the potential of the
employees and streamline the processes. However with the passage of a few days the external
business environment checks the capability of the organisation to adapt to the situations. The
company successfully comes out at the end of the year with flying colours.
What are the various characteristics of management you can find highlighted here? Also identify the
lines in which these characteristics have been highlighted.
Answer:
The various characteristics of management involved here are:

3. Goal Oriented. The main motive is to tell the employees to keep the target of 20% increase in
sales as the main objective when they work throughout the year.
4. Multidimensional. Various plans are made to harness the potential of the employees and
streamline the processes. Employees—People, and Streamline the process—Operations.
5. Dynamic. However with the passage of a few days the external business environment checks
the capability of the organisation to adapt to the situations.

Question 5:
A floor manager of a mall is a very good manager as he utilizes all the functions of management to
minimize cost of maintenance of his area. He directs all the staff members under him to follow the
targets and advises them to put their efforts in the direction of achievement of these targets. Under
his guidance the employees admit that they learn a lot and are able to meet their targets. This has led
to the increase in their salaries. Identify the importance of management highlighted above.
Answer:
The importance of management highlighted here are:

A) Management increases efficiency. A floor manager of a mall is a very good manager as he

utilizes all the functions of management to minimize cost of maintenance of his area,
B) Management helps in achieving group goals. He directs all the staff members under him to
follow the targets and advises them to put their efforts in the direction of achievement of these
targets.
C) Management helps in achieving personal objectives. This has led to the increase in their
salaries.

Question 6:
Real Alliance Ltd. is a well-known cement company in India. It is able to earn adequate revenues to
cover costs. Its capital base, number of employees and production turnover has increased manifolds
over the years. The rate of profitability of the business is also creditable. The employees of the
company are happy and satisfied with their remuneration, working conditions, promotion policy etc.
As a part of its moral obligation, the company has taken many initiatives for providing employment to
specially abled persons and promoting literacy in the villages adopted by it.
In the context of the above case:
 Identify and explain the various types of objectives of management being fulfilled by Real Alliance
Ltd by quoting lines from the paragraph.

Answer:
The various objectives of management being fulfilled by Real Alliance Ltd are stated below:

1. Organisational objectives: An organization strives to achieve multiple organisational

objectives, mainly:
 Survival: “It is able to earn adequate revenues to cover costs.”
 Growth: “Its capital base, number of employees and production turnover has
increased manifolds over the years.”
 Profit: “The rate of profitability of the business is also creditable.”
2. Personal objectives: These objectives relate to the needs of the employees of the organization
which must be given due consideration.
“The employees of the company are happy and satisfied with their remuneration, working
conditions, promotion policy etc.”
3. Social objectives: It is expected that every organization should undertake certain initiatives for
the welfare of the society at large.
“As a part of its moral obligation, the company has taken many initiatives for providing
employment to specially abled persons and promoting literacy in the villages adopted by it.”

Question 7:
Ice Air Manufacturers are the leading AC manufacturers. On meeting the record target they decided
to give prize to the best worker of the year. Rajesh who is a very devoted worker wins the prize of the
best worker. He is very happy. Mr. Kulkarni who is the CEO of the company gives a heart-touching
speech. He tells all the workers present that the company should reach new heights this year. Their
contribution will be immense. He tells them that the revenue this year should exceed cost so much so
as to reduce the business risk. So that in the coming years company could show increase in the
number of workers, number of products produced and also the sales turnover. The speech ends with
the promise made by the labour union head that the company will get the full support from the
workers.
In the above case which type of objectives are discussed by Mr. Kulkarni in the speech? What is the
other term used for this category of objectives? At which level of management does Rajesh work in
the company?
Answer:
The type of objectives discussed are Organisational Objectives since

1. Profit—revenue this year should exceed cost so much so as to reduce the business risk; and
2. Growth—increase in the number of workers, number of products produced and also the sales
turnover are discussed here.
The level at which Rajesh works is the non-managerial level since all the workers work at this
level and he is a worker (Rajesh who is a very devoted worker).

Question 8:
A floor manager of a mall is a very good manager as he utilizes all the functions of management to
minimize cost of maintenance of his area. He directs all the staff members under him to follow the
targets and advises them to put their efforts in the direction of achievement of these targets. Under
his guidance the employees admit that they learn a lot and are able to meet their targets. This has led
to the increase in their salaries. Identify the importance of management highlighted above.
Answer:
The importance of management highlighted here are:
 1. Management increases efficiency. A floor manager of a mall is a very good manager as he
utilizes all the functions of management to minimize cost of maintenance of his area,
2. Management helps in achieving group goals. He directs all the staff members under him to
follow the targets and advises them to put their efforts in the direction of achievement of these
targets.

Management helps in achieving personal objectives. This has led to the increase in their
salaries.

Question 9:
Ramarjuna joins an IT firm as a system analyst after completing his masters in Computer Science. As
the nature of his work demands he has to work in very close coordination with all the departmental
heads in the firm, very soon Ramarjuna realizes that each departmental head has own individual style
of working. They differ greatly in their day-to-day approach to work. They tend to deal with a given
situation, an issue or a problem through a combination of their own experience, creativity,
imagination, initiative and innovation.
In the context of the above case:
Identify and explain the nature of management highlighted in the above case.
Answer:
In the above case, management is being considered as an art.
Art is the skillful and personal application of existing knowledge to achieve desired results. The
evaluation of management as an art is given below:

1. Existence of theoretical knowledge: Art presupposes the existence of certain knowledge.

Management fulfills this criterion as there exist a number of theories and principles on
management which have been formulated by various management experts.
2. Personalised applications: Art is a personalised concept. Management fulfills this criterion as
a good manager works through a combination of his own experience, creativity, imagination,
initiative and innovation to carry out the assigned work.
3. Based on practice and creativity: All art is practical. Management fulfills this criterion as a
person becomes a better manager with constant practice and experience. This also leads to
emergence of different styles of management.

Question 10:
Arundhati has been promoted to the post of Marketing Division Head of a soft drink company. Identify
the level of management at which she will be working henceforth. State any four functions that she
will have to perform at this level.
Answer:
Henceforth, Arundhati will be working at middle level of management.
The four functions that she will have to perform at this level are stated below:

1. She has to ensure that her department has the necessary staff.
2. She has to assign duties and responsibilities to the people in her department.
3. She has to motivate the people in her department to achieve the desired objectives.
4. She has to co-operate with the other departments for ensuring smooth functioning of the
organization.

Question 11:
Alpha Beta Inc. decided to go for perfect coordination in the various aspects of the company. They
focus on synchronization of all the activities of the organisation. For this they know coordination will
be the key. At the stage of thinking of what is to be done throughout the year they decide to take into
consideration the harmony between the goals of the organisation and those of the individual
departments. When they hire employees they pay them only after evaluating their worth in terms of
how efficient they are. Finally when the last month of production comes they, time and again check
the deviation between the set targets and the actual production done.

In the above paragraph the main focus is on coordination. However various functions of management
also come into picture. You have to identify the three functions of management highlighted above in
which coordination can be seen.
Answer:
The various functions of management highlighted above are:

1. Planning. At the stage of thinking of what is to be done throughout the year they decide to take
into consideration the harmony between the goals of the organisation and those of the individual
departments.
2. Staffing. When they hire employees they pay them only after evaluating their worth in terms of
how efficient they are.
3. Controlling. Finally when the last month of production came they were time and again
checking the deviation between the set targets and the actual production done.

Question 12:
Kartik joins a garment factory as a plant supervisor in Lucknow. He observes that the output of some
workers is very low as compared to the standards set for their performance. On analyzing the
reasons for the same, he finds out that a lot of time of the workers is wasted in getting the requisite
materials issued from the store. Whereas on asking, the store keeper complains that there is no
harmony in the working of the production department as a whole. Everyday the workers approach him
at the last minute to procure different kinds of threads, laces, mirrors, buttons etc. If it is not available
in the store then he has to place an order with the purchase officer. As a result, a lot of time of the
workers is wasted. So, in order to integrate the various production activities, henceforth, Kartik
ensures,that the store keeper is informed well three days in advance about the requisite material.
Consequently, the store keeper is able to keep the materials ready for the workers every morning in
accordance with their requirements.
In context of the above case:

1. Identify and explain the quality of management that Kartik has introduced in the working of the
production department as a corrective measure to control the output of the workers.
2. State briefly any two points highlighting the importance of quality of management identified in
part (a).

Answer:

1. Coordination is the quality of management that Kartik has introduced in the working of the
production department as a corrective measure to control the output of the workers.
Coordination is the process which helps to integrate the efforts of different individuals with
diverse needs to secure a unity of action in the pursuit of common goals.
2. The two points highlighting the importance of coordination are stated below:
 Growth in the size: With the growth in the size of an organisation, there is a
proportionate increase in the number of its employees. So there is a greater need to unify
the efforts of diverse individuals towards the realisation of organisational goals.
 Functional differentiation: As a result of functional differentiation in an organization, its
people and activities get divided into small departments on the basis of functions like
 marketing, finance etc. Since each such department tends to formulate its own objectives,
policies etc., there is a need to reconcile the goals pursued by each of such departments
with the goals of the organization as a whole.

Question 13:
Clean Sanity ware is a big company. Managing many employees at the same moment is a challenge
which this company always faces. Since the company has many departments it is necessary for the
company to ensure unity of action among various departments. The various departments are human
resources, marketing, finance, operations and sales. The employees are always concerned about the
company and are a useful resource to their organisation. Though they have diverse interests and
have to perform different activities the management ensures that the efforts of the employees should
be given a focus so as to achieve the organisation goals. The different departments have their own
interests but due to proper coordination the conflicts of interest in the departments is minimized to a
nil. When it comes to the employees the organisation shows its concern. The career of employees is
shown a developmental path through proper training modules and job enrichment. Rajeev is a
manager who takes care of all the duties and responsibilities to be assigned to his employees in the
department. He uses all sources to develop a proper communication with them and leaves no attempt
to motivate them. This year the company has decided to give the best manager award to Rajeev for
his contribution to the organisation.
Which characteristics of coordination have been highlighted in the above case? Which type of
objective is fulfilled here? At which level of management does Rajeev work? Which function of
management does he perform here? Also identify the lines in each case.
Answer:
The characteristics of coordination involved above are:

1. Coordination ensures unity of action (characteristic of coordination). Since the company

has many departments it is necessary for the company to ensure unity of action among various
departments.
2. Coordination integrates group efforts (characteristic of coordination). Though they have
diverse interests and have to perform different activities the management ensures that the
efforts of the employees should be given a focus so as to achieve the organisation goals.
3. Functional Differentiation (Importance of coordination). The different departments have
their own interests but due to proper coordination the conflicts of interest in the departments is
minimized to a nil.

The objective which is fulfilled here is the Personal Objective. The career of employees is shown a
developmental path through proper training modules and job enrichment.
Rajeev works at the middle level of management. Rajeev is a manager who takes care of all the
duties and responsibilities to be assigned to his employees in the department.
Rajeev is following the Directing function of management. He uses all sources to develop a proper
communication with them and leaves no attempt to motivate them.

Question 14:
Faulty works Inc. has a very dynamic Plant Superintendent, Amit, who is fond of dealing with tough
situations. He is a perfectionist who believes in doing quality management. Every week he prepares a
schedule which helps in minimization of wastage of efforts and time of the department. He however is
upset with the cutthroat competition among the employees which is having a negative impact on the
overall production. Even after all such problems he is managing the situation very well. On 26th Feb
he informs his boss that the target given to him has been achieved and with the best quality.
The best part was that still two days were remaining for the dead line to be over which was 28th Feb.
However his boss was not pleased as the cost incurred by his team for the completion of project is
more than the allowed limit.
In the above case find out the concepts of management violated and the concepts lollowed? Also tell
at which level of management does Amit work?
Answer:
The concepts of management which have been violated are:

1. Cooperation. There is so much competition among the employees that there is negative
outcome of it.
2. Efficiency. There has been more than expected spending of resources which has led to
increase in overall costs incurred.

The concepts of management which have been followed are:

1. Coordination. Every week he prepares schedule and thus brings down wastage of efforts.
2. Effectiveness. As the work is completed before time and with required quality.
Amit works at the middle level management as Plant Superintendent is a middle level
manager.

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LATEST CBSE QUESTIONS ( EXTRA QUESTIONS )

Question 1:
Ashutosh Goenka was working in „Axe Ltd.‟, a company manufacturing air purifiers. He found that the
profits has started declining from the last six months. Profit has an implication for the survival of the
firm, so he analysed the business environment to find out the reasons for this decline.

1. Identify the level of management at which Ashutosh Goenka was working.

2. State three other functions being performed by Ashutosh Goenka.

Answer:
Ashutosh Goenka was working at top level of management. The three functions being performed by
him at this level are outlined below:

1. He is responsible for formulating the overall organizational goals and strategies.

2. He is responsible for all the business activities and its impact on society.
3. He has to coordinate the activities of different departments in pursuit of common goals.

Question 2:
Rishitosh Mukerjee has recently joined AMV Ltd, a company manufacturing refrigerators. He found
that his department was under-staffed and other departments were not cooperating with his
deparment for smooth functioning of the organisation. Therefore, he ensured that his department has
the required number of employees and its cooperation with other deparments is improved.

1. Idenfity the level at which Rishitosh Mukerjee was working.

2. Also, state three more functions required to be performed by Rishitosh Mukerjee at
this level.
Answer:
Rishitosh Mukerjee is working at middle level of the management. The three more functions that he
has to perform at this level are stated below:

1. He has to assign duties and responsibilities to the people in his department.

2. He has to motivate the people in his department to achieve the desired objectives.
3. He has to interpret the policies framed by top management.

Question 3:
Sridhar‟s father is working as a section in-charge in a government office. Identify the level of
management at which he is working? State any five functions that he has to perform at this level.
Answer:
Sridhar‟s father is working as a section in-charge in a government office. He is working at the lower
level of management.
He has to perform the following functions at this level of management:

1. He has to directly oversee the efforts of the workforce.

2. He has to serve as a link between the workers and middle level managers.
3. He has to ensure sufficient availability of resources and good quality of output.
4. He has to provide guidance and training to workers.
5. He has to ensure that good working conditions are provided to the workers.

Question 4:
Mega Ltd. manufactured 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 behind the less revenues. After analysis, the company decided:

1. to reduce the labour costs by shifting the manufacturing unit to a backward area where labour
was available at a very low rate.
2. 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.

Identify and explain the objectives of management discussed above.

Answer:

The objectives of management discussed above are:

 Organisational objectives: An organisation strives to achieve multiple organizational

objectives in the interest of its stakeholders like owners, employees etc.The main
organizational objectives are survival, profit and growth.
 Social Objectives: It is the obligation of every organisation to undertake such activities
which will benefit the society at large like using eco-friendly methods, contributing towards
weaker sections of the society, generating employment opportunities, promoting literacy
etc.

Question 5:
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. As the demand of lanterns was increasing day- by-day, the company
decided to increase production to generate higher sales. For this/they decided to employ people from
a nearby village 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.

Identify and explain the objectives of management discussed above.

Answer:

The objectives of management discussed above are:

 Organisational objectives: An organisation strives to achieve multiple organizational

objectives in the interest of its stakeholders like owners, employees etc. The main
organisational objectives are survival, profit and growth.
 Social Objectives: It is the obligation of every organisation to undertake such activities
which will benefit the society at large like using eco-friendly methods, contributing towards
weaker sections of the society, generating employment opportunities, promoting literacy
etc.

Question 6:
Your grandfather has retired as the Director of a manufacturing company. At what level of
management was he working? What functions do you think he was performing at that level? State
any two,
Answer::
Since he has retired from the post of Director of a manufacturing company, he was working at the top
level of management.
The main functions that he was performing at this level are outlined below:

1. He was responsible for the success and failure of the organization.

2. He was responsible for all the business activities and its impact on society.
3. He had to coordinate the activities of different departments in pursuit of common goals.

Question 7:
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?
OR
Your grandfather has retired from an organisation in which he was 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.
OR
Deepak‟s father has retired as a purchase manager of a company. At what level of management was
he working? What function do you think he was performing at that level of management?
OR
Dheeraj is working as an Operations Manager in Tifco Ltd. Name the managerial level at which he is
working. State any four functions he will perform as the Operations Manager in this company.
OR
Rajat is working as a Regional Manager in Tifco Ltd. Name the level at which he is working. State any
four functions he will perform as the Regional Manager in this company.
Answer::
Ritu / grandfather / Deepak‟s father / Deeraj / Rajat, all of them are working at the middle level of
management.
The four functions that he will have to perform at this level are stated below:

1. He has to ensure that his department has the necessary staff.

2. He has to assign duties and responsibilities to the people in his department.
3. He has to motivate the people in his department to achieve the desired objectives.
4. He has to co-operate with the other departments for ensuring smooth functioning of the
organization.

Question 8:
Vaibhav Garments 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 the cost of ?160 per shirt. Do you think the
production manager is effective? Give reasons for your answer.
Answer:
Yes, the production manager of Vaibhav Garments Ltd. is effective as he could achieve the target to
produce 10,000 shirts in a month.

Question 9:
Mr. Nitin Singhania‟s father has a good business of iron and steel. He wants to go to the USA for his
MBA but his father thinks that he should join the business. On the basis of emerging- trends, do you
think that Mr. Singhania should send his son to the USA? Give any three reasons in support of your
answer.
Answer:
Yes, according to me, Mr. Singhania should send his son to USA for his MBA because management
is being recognised as a profession to a great extent because of the following reasons:

1. Well defined body of knowledge: Management is considered to be a well-defined body of

knowledge that can be acquired through instructions. As a separate discipline, it contains a set
of theories and principles formulated by various management experts. Moreover, it is taught in
various schools and colleges all over the world.
2. Ethical code of conduct: Management, in practice, like other professions, is bound by a code of
conduct which guides the behaviour of its members. Therefore, acquiring a degree in
management will equip him with the good managerial,, skills and approach.
3. Service motive: A good management course will provide him an insight into the multiple goals
that an organisation should pursue. This knowledge will help him to serve both the objectives of
profit maximization and social welfare effectively for his company.

ADDITIONAL QUESTIONS

Question 1:
Sooraj works as a salesman in a company selling pet accessories and food. He has been given a
target of selling 1200 units of the food packets in a month by offering a maximum of 10% discount to
his customers. In order to meet his monthly sales target, on the last two days of the month, he offers
15% discount to his customers.
In the context of the above case:
Is Sooraj effective in his work? Explain by giving a suitable reason in support of your answer.
Answer:
Yes, Sooraj is effective in his work as he has been able to meet his monthly sales target of selling
1200 units of the food packets.

Question 2:
Sujata works as a designer in an export house. As per the terms of an order received by the export
house, she has to get 1000 units of denim jackets made in 15 days @ ? 2000 per jacket. She is able
to complete her target production in 20 days because in order to complete the order in 15 days she
would have made the workers work over time. As a result, the cost of production per jacket may have
increased by ? 100.
In the context of the above case:
Is Sujata efficient in her work? Explain by giving a suitable reason in support of your answer.
Answer:
Yes, Sujata is efficient in her work as she has been able to get 1000 units of denim jackets made @ ?
2000 per jacket.

Question 3:
Anju and Manju are good friends. Considering the fact that the activities involved in managing an
enterprise are common to all organizations, after completing their masters in business management,
both of them take up a job at managerial level in different organizations as per their individual areas
of interest. Anju takes up a marketing job in a retail company and strives to increase sales whereas
Manju joins an NGO and works diligently to realize its objective related to providing employment to
specially abled persons. Both of them have to perform a series of continuous, composite, but
separate functions. On some days, Anju may spend more time in planning a future display layout and
on another day, she may spend time in sorting out an employee‟s problem. Both Anju and Manju
make conscious efforts to build a feeling of team spirit and coordination among diverse individuals
with different needs who work under them. The effect of their management is noticeable in their
respective departments as the targets are met according to plans, employees are happy and
satisfied, and there is orderliness in its functioning rather than chaos.
In context of the above case:
Identify the various features of management highlighted in the above paragraph by quoting lines from
it.
Answer:
The various features of management highlighted in the above paragraph are stated below:

1. Management is all pervasive: “Considering the fact that the activities involved in managing an
enterprise are common to all organizations, after completing their masters in business
management, both of them take up a job at managerial level in different organizations as per
their individual areas of interest.”
2. Management is a goal-oriented process: “Anju takes up a marketing job in a retail company and
strives to increase sales whereas Manju joins an NGO and works diligently to realize its
objective related to providing employment to specially abled persons.”
3. Management is a continuous process: “Both of them have to perform a series of continuous,
composite, but separate functions. Like on some days, Anju may spend more time in planning a
future display layout and on another day, she may spend time in sorting out an employee‟s
problem.”
4. Management is a group activity: “Both Anju and Manju make conscious efforts to build a feeling
of team spirit and coordination among diverse individuals with different needs who work under
them.”
 5. Management is an intangible force: “The effect of their management is noticeable in their
respective departments as the targets are met according to plans, employees are happy and
satisfied, and there is orderliness in its functioning rather than chaos.”

Question 4:
Esha works as the cost and risk management head of a company in power sector. As a result of her
excellent managerial competence, the company is able to reduce costs and increase productivity.
The company belongs to infrastructure sector, wherein regular amendments are made in the
government regulations and policies. She holds regular meetings to ensure that people in her
department are not only aware of the related changes but are also able to adapt to these changes
effectively. This helps the company to maintain its competitive edge. She motivates and leads her
team in such a manner that individual members are able to achieve personal goals while contributing
to the overall organisational objective. In the process of fulfilling her duties for the growth of the
organisation, she helps in providing competitive services, adopting new technology, creating more
employment opportunities etc. for the greater good of the people at large.
In context of the above case:
Identify the various reasons that have made management so important by quoting lines from the
paragraph.
Answer:
The various reasons mentioned in the above paragraph that have made management so important
are stated below:

1. Management increases efficiency as it leads to reduction in costs due to optimum utilisation of

resources.
“As a result of her excellent managerial competence the company is able to reduce costs and
increase productivity.”
2. Management creates a dynamic organisation so that it is able to incorporate the corresponding
changes in its working with any change in its business environment.
“The company belongs to infrastructure sector, wherein regular amendments are made in the
government regulations and policies. She holds regular meetings to ensure that people in her
department are not only aware of the related changes but are also able to adapt to these
changes effectively. This helps the company to maintain its competitive edge.”
3. Management helps in achieving personal objectives of the employees in the organisation.
“She motivates and leads her team in such a manner that individual members are able to
achieve personal goals while contributing to the overall organisational objective.”
“The employees of the company are happy and satisfied with their remuneration, working
conditions, promotion policy etc.”
4. Management helps in the development of society by contributing effectively towards it in
multiple ways.”In the process of fulfilling her duties for the growth of the organization, she helps
in providing competitive services, adopting new technology, creating more employment
opportunities etc. for the greater good of the people at large.”

Question 5:
Dharam is a well-known businessman in the field of publishing. He owes the success of his business
to his own education in business management and his team of certified management consultants.
Therefore, he decides to send both his children Danush and Damini abroad to acquire a degree in
business management in their individual area of expertise. He feels that all over the world there is
marked growth in management as a discipline, but still it is not considered to be a full-fledged
profession for certain reasons.
In the context of the above case:
 1. Explain the reasons because of which Dharam considers management as a discipline.
2. Critically examine the various reasons because of which management is not considered to be a
full-fledged profession.

Answer:

1. Dharam considers management as a discipline because there exist a number of theories and
principles on management which have been formulated by various management experts. It is
taught in various schools and colleges, all over the world, as a separate subject of study.
2. Management is not considered to be a full-fledged profession because of the following reasons:
 Restricted entry. Unlike management, the entry to the other professions is restricted
through an examination or eligibility criteria like specific percentage in a particular degree
or diploma. However, management as profession does not fulfill this criterion as anyone
can be called a manager regardless of his/her academic qualifications.
 Professional association: Unlike managers, all working professionals have to be a
member of an affiliated professional association which regulates their entry, grants
certificate of practice and formulates and enforces code of conduct. For example,the
practicing lawyers have to be a member of Bar Council of India, the practicing doctors
should have membership of All India Medical Association etc. However, in case of
management, although there exist several management associations like the AIMA (All
India Management Association), neither does it have any statutory backing nor is it
mandatory for the practicing managers to a member of such associations.

Question 6:
Geetika is working in a private sector bank. One of her key function relates to the formulation of the
overall organisational goals and strategies of the bank. Identify the level of management at which she
is working? State any three other functions that she has to perform at this level.
Answer:
Geetika is working at the top level of management in the private sector bank. The three other
functions that she has to perform at this level are outlined below:

1. She is responsible for the success and failure of the organisation.

2. She is responsible for all the business activities and its impact on society.
3. She has to coordinate the activities of different departments in pursuit of common goals.

Question 7:
Ajay and Sanjay are childhood friends. Sanjay had lost his right hand in an accident in childhood.
They meet after a long time in a restaurant. On being asked, Sanjay tells Ajay that he feels very
discontented in managing his family business after the death of his father as it doesn‟t match with his
areas of interest. Ajay knows that Sanjay possess extraordinary skills in management although he
hasn‟t acquired any professional degree in management.
Therefore, he asks Sanjay to wind up his business in India and join him in his hotel business in Dubai
as an Assistant Manager in Sales and Marketing Division.
In context of the above case:

Can Sanjay be deployed at the post of Assistant Manager in Sales and Marketing Division
though he hasn‟t acquired any professional degree in management? Explain by giving suitable
justifications in support of your answer.

Answer:
 Yes, Sanjay can be deployed at the post of Assistant Manager in Sales and Marketing Division
although he hasn‟t acquired any professional degree in management as management is not
considered to be a full-fledged profession because of the following reasons:

 Restricted entry: Unlike management, the entry to the other professions is restricted
through an examination or eligibility criteria like specific percentage in a particular degree
or diploma. However, management as a profession does not fulfill this criteria as anyone
can be called a manager regardless of his/her academic qualifications.
 Professional association: Unlike managers, all working professionals have to be a member of
an affiliated professional association which regulates their entry, grants certificate of practice
and formulates and enforces code of conduct. For example, the practicing lawyers have to be
a member of Bar Council of India, the practicing doctors should have membership of All India
Medical Association etc. However, in case of management, although there exist several
management association like the AIMA (All India Management Association), neither does it
have any statutory backing nor is it mandatory for the practicing managers to a member of
such associations.