Match the concept of management in Column I with their respective definition in Column II:
Column I
A. Process
B. Efficiency
C. Effectiveness
Column II
(i) Doing the task correctly and with minimum cost.
(ii) Finishing the given task on time.
(iii) The primary functions or activities that management performs to get things done.
a. (i), (ii), (iii)
b. (iii), (i), (ii)
c. (iii), (ii), (i)
d. (i), (iii), (ii)
✔ Answer
b. (iii), (i), (ii) · Process → (iii), Efficiency → (i), Effectiveness → (ii)
Hero Ltd.’s target is to produce 10,000 shirts per month at a cost of ₹ 150 per shirt. The Production Manager was able to produce 10,000 shirts at a cost of ₹ 140 per shirt but not within the stipulated time. As a result, there was loss of revenue. In this case the Production Manager is:
a. effective but not efficient
b. efficient but not effective
c. Neither effective nor efficient
d. All of these
✔ Answer
b. efficient but not effective · (cost lower = efficient, but time overrun = not effective)
‘In an organization employees are happy and satisfied, there is no chaos and the effect of management is noticeable.’ Which characteristic of management is highlighted by this statement?
a. Management is an intangible force
b. Management is a dynamic function
c. It is a continuous process
d. All of the above
✔ Answer
a. Management is an intangible force
Assertion (A): Management is a goal oriented process.
Reason (R): Different organisations have different goals. Management integrates the efforts of all members towards achieving these goals.
a. Both (A) and (R) are true and (R) is the correct explanation of (A)
b. Both (A) and (R) are true and (R) is not the correct explanation of (A)
c. (A) is True but (R) is False
d. (A) is False but (R) is True
✔ Answer
a. Both (A) and (R) are true and (R) is the correct explanation of (A)
Das is the Managing Director of ‘Drap Ltd.’, manufacturing different varieties of cheese. He has an efficient team working under him consisting of Mohit – the Production manager, Vikram – the Marketing Manager and Diwakar – the Finance Manager. They understand and interpret the policies made by Das, ensure that their departments have adequate manpower, assign them the necessary duties and motivate them to achieve the desired objectives. Identify the level of management they are working.
a. Top Level Management
b. Middle Level Management
c. Operational Management
d. All of these
✔ Answer
b. Middle Level Management
In which two functions of management do managers at the top level spend more time than managers at lower level of the organisations?
a. Planning and Organising
b. Planning and Controlling
c. Planning and Directing
d. Planning and Staffing
✔ Answer
a. Planning and Organising
Assertion (A): There is restricted entry in the case of management.
Reason (R): Management consists of systematic knowledge of concepts, theories and principles.
a. Both (A) and (R) are true and (R) is the correct explanation of (A)
b. Both (A) and (R) are true and (R) is not the correct explanation of (A)
c. (A) is True but (R) is False
d. (A) is False but (R) is True
✔ Answer
d. (A) is False but (R) is True · (entry is not restricted in management)
Management of Alpha Ltd. has installed a special recycling plant to recycle the waste instead of dumping the waste in ground. It is also providing employment opportunities to local residents. Identify the objectives of management the company is fulfilling.
a. Organizational objectives
b. Social objectives
c. Personal objectives
d. None of these
✔ Answer
b. social objectives
“Anyone can be called a manager irrespective of the educational qualification possessed.” Identify the characteristic of the profession that management does not fulfill in the statement being discussed above.
a. Ethical code of conduct
b. Professional association
c. Restricted entry
d. Service motive
✔ Answer
c. Restricted entry
Assertion (A): Coordination is not an exclusive function of the top management.
Reason (R): Coordination is the responsibility of all managers of top, middle and operational levels.
a. Both (A) and (R) are true and (R) is the correct explanation of (A)
b. Both (A) and (R) are true and (R) is not the correct explanation of (A)
c. (A) is True but (R) is False
d. (A) is False but (R) is True
✔ Answer
a. Both (A) and (R) are true and (R) is the correct explanation of (A)
“The main objective of any organization should be to utilise human and material resources to the maximum possible, i.e., to fulfill the economic objectives of a business.” Comment.
✔ Answer
Management is responsible for setting and achieving objectives for the organisation. These are:
- Survival – ensuring the organisation continues to exist.
- Profit – earning sufficient returns on investment.
- Growth – expanding the business in terms of sales, assets, etc.
Thus, utilising resources optimally helps fulfil these economic objectives.
Why is management considered to be a multi-dimensional / multi-faceted concept?
✔ Answer
Management is multi-dimensional because it involves:
- Management of Work – deciding what work needs to be done.
- Management of People – handling human resources, motivating, and leading.
- Management of Operations – managing the production process and conversion of inputs into outputs.
Do you think management has the characteristics of a full-fledged profession?
✔ Answer
No, management is a profession but
not a full-fledged profession like legal, accounting or medical professions because it does not meet all the exact criteria. However, it does have some features:
- Well-defined body of knowledge.
- Restricted entry (not strictly enforced).
- Professional associations (e.g., AIMA).
- Ethical code of conduct.
- Service motive.
Since entry is not restricted and no universal license is required, it is not a full-fledged profession.
Whether the following statements are true/false:
a. Coordination is one time function.
b. Coordination is the function of the top management.
c. Planning cannot prevent problems.
✔ Answer
a. False – Coordination is a continuous process. It begins at the planning stage and continues till controlling.
b. False – Coordination is the responsibility of all managers from top level to supervisory level.
c. True – Planning can only predict them and prepare contingency plans to deal with them if and when they occur.
Arvind and Amar are managers at the same level of management in a company. Arvind says that management is an ‘art’ whereas Amar says that management is a ‘science’. As the director of the company, explain the true nature of management to Arvind and Amar.
✔ Answer
Management is both an art and a science.
As an Art:
- Existence of theoretical knowledge.
- Personalized application.
- Based on continuous practice and creativity.
As a Science (but not an exact science):
- Systematized body of knowledge.
- Principles based on observation and experimentation.
- Universal validity (though not as precise as physical sciences).
Thus, management is a social science and a practical art.
“Coordination is the essence of management.” Do you agree? Give reasons.
✔ Answer
Yes, I agree. Coordination is the essence of management because:
- It ensures unity of action among different departments.
- It reconciles individual and organisational goals.
- It is the key to all managerial functions – planning, organising, staffing, directing, and controlling.
- It helps in achieving harmony and avoiding chaos.
Without coordination, even the best plans fail.
Nishtha is a manager of a company selling laptops. She plans the target sale of 2000 laptops per month. She allocates necessary resources to carry out the plan. She has six salesmen working under her. She works with them guiding and motivating them to achieve the target sales. At the end of the month a comparison of actual sales with the target sales she found that actual sales exceeded the target sales.
Identify, by quoting the lines from the above paragraph, the functions of management Nishtha is performing. Explain these functions by quoting the lines.
✔ Answer
Planning: “She plans the target … of 2000 laptops per month.”
Organising: “She allocates necessary resources to carry out the plan.”
Directing: “She works with them guiding and motivating them to achieve the target sales.”
Controlling: “At the end of the month a comparison of actual sales with the target sales she found that actual sales exceeded the target sales.”
The Hockey team want to play whole heartedly. To win the game is their only objective. But their captain does not tell them timely what each one of them is to do. There is no division of work.
The captain of another hockey team divides the work properly at the right time. The work is handed over to all the members of team in accordance with each individual’s skill. But the majority of the team members want to see the captain losing the game. Defeat of such a team is almost definite.
“But their captain does not ……………. is to do.” What is lacking as per this line? Explain the concept discussed above why it is so necessary?
✔ Answer
a. In the first situation
cooperation is present, but
coordination is missing.
b. Coordination is the orderly arrangement of group efforts to ensure unity of action. It is necessary because:
- It integrates efforts of different individuals.
- It ensures that all members work towards common goals.
- It prevents duplication of work and conflicts.
- It is the essence of management and helps in achieving efficiency.
Without coordination, even a skilled team may fail due to lack of synchronisation.
Sanjana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, readymade and household items made out of a traditional Indian fabric. Sanjana decides quantities, variety, colour and texture of all the above items and then allocates resources for their purchase from different suppliers. She appoints a team of designers and craftspeople in the company, who developed some prints for bed covers in bright colours on silk. Although they looked very impressive, they were more expensive than they had planned to sell. Average customer could not afford to buy it. Praising their effort Sanjana suggested that they should keep the silk bed covers for special occasions like Diwali and Christmas and offer the cotton bed covers on a regular basis to keep cost under control.
Identify and state the functions of management which Sanjana performs by quoting the lines from the above paragraph.
✔ Answer
Planning: “Sanjana decides quantities, variety, colour and texture of all the above items.”
Organising: “…allocates resources for their purchase from different suppliers.”
Staffing: “She appoints a team of designers and craftspeople in the company.”
Directing: “Praising their effort Sanjana suggested…”
Controlling: “…offer the cotton bed covers on a regular basis to keep cost under control.”
Amar, Akbar and Anthony are partners in a firm engaged in the distribution of dairy products in Gujarat state. Amar is a holder of senior secondary school certificate from CBSE with Business Studies as one of his elective subjects. Akbar had done his post-graduation in History and Anthony in Dairy Farming. One day there was a serious discussion between Akbar and Anthony regarding the nature of management. Akbar argued that management was a profession whereas Anthony argued against it saying that the legal and medical professions are the only professions because they fulfill all the conditions of profession.
Amar on the basis of his knowledge of Business Studies explained the nature of management as a profession to Akbar and Anthony.
Explain how Amar would have satisfied both Akbar and Anthony.
✔ Answer
Amar would explain that
management is a profession but not a full-fledged profession like legal or medical professions, because it does not meet all the exact criteria. He would highlight:
- Well-defined body of knowledge – management has its own principles and theories.
- Restricted entry – not strictly enforced; anyone can become a manager.
- Professional association – e.g., AIMA, but membership is not mandatory.
- Ethical code of conduct – exists but not legally binding like in medicine.
- Service motive – management also serves society, but profit motive is primary.
Thus, Amar would satisfy both by showing that management has some features of a profession but lacks the strict entry requirements and licensing, making it an emerging profession.