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NCERT Solutions for Class 12 Business Studies Chapter wise
Short Answer Questions
Q1. Define management.
Answer: Management is defined as a process of getting things done with the aim of achieving goals effectively and efficiently.
Q2. Name any two important characteristics of management.
Answer: Two important characteristics of management are pervasive and continuous process. It is pervasive as impact of management spans over all aspects of business, irrespective of organisation while it is continuous process as it performs the various functions like planning, organising, directing, staffing and controlling simultaneously.
Q3. 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?
Answer: Ritu works at ‘Middle level’. She is a link between top and lower level managers. Her primary role is to implement and control plans and strategies developed by top management. Her basic functions are:
- Interpretation of policies framed by top level management.
- Organising the activities of her department for executing the plans and policies.
3.Recruiting/selecting and appointing the required employees for her department. - Assigning necessary duties and responsibilities to the employees.
- Motivating employees to perform the best of their ability.
Q4. Why is management considered a multi-faceted concept?
Answer: Management has been defined as a process of getting things done with the aim of achieving goals effectively, Management is a dynamic function and has to adopt itself to the changing environment. An organisation interacts with its external environment which consists of various social, economic and political factors and in order to be successful, an organisation must change itself and its goals according to the needs of the environment.
Moreover it is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently for achieving the goals that is why it is rightly called the multi-faceted concept.
Q5. Discuss the basic features of management as a profession.
Answer: The basic features of management as a profession are:
- Management is based on a systematic body of knowledge.
- There is no restriction on anyone being designated or appointed as manager in any business enterprise.
- There is no compulsion for managers to be members of an association nor does it have any statutory backing.
- If an organisation has a good management team that is efficient and effective it automatically serves society by providing good quality products at reasonable prices.
Long Answer Questions
Q1. Management is considered to be both an art and science. Explain.
Answer: Art is the skillful and personal application of existing knowledge to achieve desired results since art is the systematic application of a skill or know-how to accomplish a desired result. Management is an art because it involves the application of managerial skills to maximise the profits at the minimum possible cost in the most efficient manners. Like all other arts it is personal. The basic features of an art are :
- Existence of theoretical knowledge.
- It is Personalised application.
- It is based on practice and creativity.
- Thus every manager has a district style of working.
Management is also creative in respect that it converts raw material or inputs into output. However in case of art it is believed that “artists are born rather than made” and to be successful, what one needs is refining, and science is a systemetic body of knowledge that explains certain general truths. The basic features of science are as follows
- It is systematised body of knowledge.
- It is principles based on experimentation
- It has universal validity.
But the principles of management are not as exact as the principles of science their application and use is not universal. They have to be modified according to a given situation. However they provide managers with certain standardised techniques that can be used in different situations.
Thus we can say that management has features of both art and science. The practice of management is an art. However, managers can work better if their practise is based on the principles of management. These principles’ constitute the science management. Management as an art and a science are therefore not mutually exclusive, but complement to each other.
Q2. Do you think management has the characteristics of a full-fledged profession?
Answer: Management does not have the characteristics of a full-fledged profession but it does have some qualities which makes it eligible to be called as profession. These are mentioned below.
- Management is a systematic and well-defined body of knowledge which consists of various theories and guiding principles. Such knowledge can be obtained through books, enrolling in management courses.
- Management is regulated by a professional association which looks at the functions of its members. In India AIMA or All India Management Association is the governing body for managers. Joining the organisation is not compulsory.
- Professional knowledge is required criteria and is given preference over degrees. The lack of professional experience is a deterrent for people looking to choose as a profession.
- Only through proper management the business will grow. The guiding principles will help in ensuring smooth functioning of the organisation. Quality goods and services can be made available with management.
- All the business organisations look to provide the best services to the people at the best quality. Thereby serving the society.
Q3. Co-ordination is the essence of management. Do you agree? Give reasons.
Answer: Yes, coordination is indeed the essence of management. Coordination is the process by which a manager synchronises the activities of different departments. It is the force that binds all the other functions of management. It begins right from the stage of planning where we goals and objectives are set for the organisation. It is then required between stage of planning and staffing so that right kind of people are hired for the execution of plan. The function of directing and controlling must be coordinated with each other so as to realise the achievement of desired goals.
The importance of coordination can be highlighted from following points:
- Integrates group activity: Coordination gives a focus to group effort to ensure that performance is as it was planned and scheduled.
- All pervasive function: It is important and it exists at all the levels of management. It integrates the efforts of different departments at different levels.
- Responsibility of all managers: It is a function which is performed by every manager as a responsibility.
- Promotes unity of action: Coordination acts as a binding force among departments and ensures that all action is aimed at achieving the goals of the organisation.
- Continuous process: Coordination is not a one-time function but a continuous process. It starts at the time of planning and continues till controlling.
Q4. A successful enterprise has to achieve its goals effectively and efficiently:’ Explain.
Answer: Effectiveness and efficiency, these two terms are different but interrelated. For management it is important to be both effective and efficient. Effectiveness and efficiency are two sides of the same coin. But these two aspects need to be balanced and management at times, has to compromise with efficiency.
Suppose, a company’s target production is 5000 units in a year. To achieve this target the manager has to operate on double shifts due to power failure most of the time. The manager is able to produce 5000 units but at a higher production cost.
In this case the manager was effective but not so efficient, since for the same output more inputs were used. At times, a business may concentrate more on producing goods with fewer resources i.e. cutting down cost but not achieving the target production. Consequently, the goods do not reach the market and hence the demand for them declines and competitors enter the market.
Q5. Management is a series of continuous inter-related functions. Comment.
Answer: Management is a series of continuous inter-related functions. Each one of them performed to guide and direct the efforts of others.
(i) Planning Planning is the primary function which runs through all other functions. It is the process of thinking before doing. It bridges the gap between where we are and where we want to go.
(ii) Organising It is the process of defining the formal relationship among people and resources to accomplish the desired goals. It involves
(a) Identification and division of work
(b) Departmentalisation
(c) Assigning of duties
(d) Establishing reporting relationships
(iii) Staffing Organisational goals can be achieved only through human efforts. It is the duty of management to make the best possible use of this resource. Thus, placing the right person on the right job is very important. Staffing helps management to motivate, select and place the right person on the right job.
(iv) Directing Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best. Directing comprises of four elements; supervision, motivation, leadership and communication.
(v) Controlling Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. The task of controlling involves
(a) Establishing standards of performance
(b) Measuring current performance’
(c) Comparing this with established standards
(d) Taking corrective action
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