EXAM ORIENTED SAMPLE QUESTION

Q. Various input resources are required by management tocomplete atask efectively

and efficiently. Name any two. [CBSE 2019 (1)]
Ans. Following are the input resources required by management to complete a task
effectively and efficiently: (any two)
(i) Money. (ii) Materials. (iü) Equipment. (iv) Persons.

OBJECTIVE TYPE QUESTIONS 1.1

Multiple Choice Questions:
Choose the correct option to answer the following questions:
1. Effectiveness is concerned with (1)

(a) Doing the task correctly and with minimum cost

) Doing the right task, completing activities and achieving goals
 effectively and efficiently
(e) Getting things done with the aim of achieving goals
(d) None of the above
producing goods with fewer resources kt
2 At times, abusiness may concentrate on to be:
cannot achieve the targetedproduction. In such a case, the business is said
(a) Efective but not efficient
(by Effcient but not effective
(c) Both effective and efficient
(d) Neither effective nor efficient [CBSE 2021 (1))
State whether the following statements are "True' or False':
3. Efficiency means doing the task correctly and with maximum cost. (1)
4. Efficiency means completing activities and achieving goals. (1)
Fill in the Blanks with appropriate words;
5. Poor management is due to both and (1)
6. Management is the hol of getting things done with the aim of achieving goals
effectively and efficiently. (1)
EXAM ORIENTED SAMPLE QUESTION
Q. Shenoy joined a company after completing graduation in management fromn a reputed
business school. During his induction training, he was informed that he would be
working in production department. The company wanted to achieve 30% increase in
output in the next quarter. His general manager, a man with decades of experience.
also said that management is a complex activity. He expected Shenoy to make
production plans, identify incentive schemes for workers to make their strengths
effective and ensure that there is no disruption due to technical gliteh. Shenov realised
very quickly that his job is a series of continuous tasks. After one month, he was
informed by the general manager that due to increase in international demand,
production targets have been raised.
He called an urgent meeting of his supervisors and senior workers. He oftered them
an opportunityto realize their potential and earn more by working overtime and in
muiiple shits. Hewas delighted that at the end of the quarter, he was able to meet
the targets, workers were happy and there was no chaos.
 management
Identify and explain any four
characteristics of highlighted in the
case.
management highlighted are:-(RTP
L.6) above(6)
Ans. The characteristics of Process
(i) Management is a Goal Oriented
The comnpany wanted to achieve 30% inerease in output in the next quarter

(ii) Management is Multidimensional

He expected Shenoy to make production plans, identify incentive schemes for
effective and ensure that there is no
workers to make their strengths
due totechnical glitch.
Process
disrupton
(iii) Management is a Continuous
continuouslsk
'Shenoy realised very quickly that his job is a series of
(iv) Management is a DynamicFuction
that due to
'After one month, he was informed by the general manager increase
raised.'
in internationaldemand, production targets have been
(v) Management is an Intangible Force
He was delighted that at the end of the quarter, he was able to meet the taraot
workers were happy and there was no chaos.

OBJECTIVE TYPE QUESTIONS 1.2

Multiple Choice Questions:
Choose the correct option to answer the following questions:
1. Araav has recently started a business to sell computers. He hired a shop in Nehru
Place in New Delhi, where he assembles various components to make computers and
supplies them as per order.
He performs a series of composite but separate functions simultaneously and ensures
that computers are delivered in time as per orders. These functions are performed by
all managers at all times.
va) Management is a continuous process
(b) Management is pervasive
(c) Management is dynamic
(d) Management is a group activity /CBSE 2020 (1)/
2. Which of the following is NOT a (1)
feature of management?
(a) Management is a dynamic
function
b Management is single-dimensional
(c) Management is a goal-oriented process
(d) Management is all pervasive
 3. Management is a process. (1)
(a) Very easy (b) Wastefu!
(cy Goal-oriented (d) None of the above
Match the following:
4. Match the columns on the basis of characteristies of management by using the given
options: (1)
Column I Coiumn II
1. The presence of management cannot be A. Dynamic function
en but it can be felt the way the
B. Intangible force
organisation functions. C. Group activity
2. For success an organisation must change
itseif according to the need of an environment.
Choose the correct option:
(a) 1-C: 2-A (b) 1-B; 2-C
(c 1-B; 2-A (d) 1-A; 2-B
EXAM ORIENTED SAMPLE QUESTION
Q XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote village
as there wasno reliable supply of clectrieity in rural areas.The revenue earned by the
company was sufficient to cover the costs andthe risks. The demand of lanterns was
increasing day by day, so the company decided to increase production to generate
higher sales. For this they decided to employ people from the nearby villages as very
few job opportunities were available in that area. T'he cornpany also decided to open
schools and creches for the children of its employces.
(a) Identify and explain the objectives of management discussed above.
(b) State any two values which the companywanted to communicate to the society.
/CBSE 2014 (4)/
Ans. (a) The objectives of management referred to are: (RTP- 1. 11)
(i) Organisational Objectives
(a) Survival
"The revenue earned by the company was sufficient to cOver the
costs and the risks."
(b) Growth
"The demand oflanterns was increasing dlay by day, so the company
decided to increase production to generate higher sales."
(ii) Social Objectives
"For this they decided to employ people from the nearby villages, as very
fewjob opportunities were available in that area.
(b) Values which the company wanted to communicate to the society are:
(i) Providing employment opportunities.
(ii) Development of backward regions.
(iii) Providing education and other facilities to the family of its employees.
(iv) Concern for the environment. (any two)

OBJECTIVE TYPEQUESTIONS 1.3

Multiple ChoiceQuestions:
Choose the correct option to answer the following questions:
1. SORT -IT Ltd.' is aleading software development company. The company is satisfying
the diverse needs of its employees. Its employees are given competitive salaries and
perks. They have been given chance for their personal growth and development. For
harmony in the organization management has to reconcile personal goals with
organisational objectives.
 tdentify the objective of management being met by SORT-IT Ltd. CBSE 2021 (1))
(a) Social 5) Personnel
(e) Organisational (d) Both Social and Personnel
he objective of management which consistently ereates economic value for various
constituents of society is:
(A) Organisational objective
JP Social objective
(C) Person nel objective
(D) Both Social and Personnel objective ICBSE 2020 (1)
3. Profit is essential for covering cost and risk of the business. Which management
objective is discussed here? (1)
(a) Social objective
Organisational objective
(c) Personel objective
(d) Individual objective
4. Sachin thedirector of Apex Ltd. is engaged in manufacturing furniture. He decided to
keep one-third seats reserved for specially disadvantaged section of society.
Which objective of management is discussed here? (1)
(a) Individual objective
Social objective
(e) Organisational objective
(d) Personnel objective
Fillin the Blank with appropriate word:
5 In order to survive an organisation must earn enough revenues to cover (a
EXAM ORIENTED SAMPLE QUESTION
Q. Lakshay Wadhwa works as the Cost and Risk Management head of a company in
power sector. As a result of his 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.
He holds regular meetings to ensure that people in his department not only aware of
the related changes but alsoable to adopt tothese changes effectively. This helps the
company to maintain its competitive edge. He motivates and leads his team in such a
manner that individual members are able to achieve personalgoals while contributing
to the overall organisationalobjectives. In the process of fulfilling his duties for the
 he organisation, he helps in providing competitive
services, adopting ne
technology, creating more employment opportunities, ete. for the greater good new
people at large. of the
Identify the various reasons highlighted above by quoting the lines that
management so important. have made
Ans. Following are the reasons that have made management so important: (6)
(i) Management Increases Efficiency
result ofhis excellent managerial competence company is
costs and increase productivity."
able to reduce
(ii) Management Creates a Dynamic Organisation
'He holds regular meetings toensure that people in his department arenot onl:
aware of the related changes but also able to adopt to these changes effectivel
(ii) Management Helps in Achieving Personal Objectives
He motivates and leads his team in such a manner that individual members ane
able to achieve personal goals while contributing to the overall organisational
objectives.
(iv) Management Helps in the Development of Society
In the process offulfilling his duties for the growth of the organisation, he helps
in providing competitive services, adopting new technology, creating more
employmentopportunities, etc. for the greater good of the people at large.'
OBJECTIVE TYPE QUESTIONS 1.4
Multiple Choice Question:
Choose thecorrect option toanswer the following question:
1. The management gives a common direction to the individual effort in achieving the
overall goal of the organization.
Which point of imnportance of management is highlighted in this statement?
(a) Helps in achieving personal objectives.
b Helps in achieving group goals.
(c) Helps to increase efficiency.
(d) Helps to create a dynamnic organisation. [CBSE 2021 (1)/
State whether the following statement is True' or False':
2. Management resist the people to adapt the changes in competitive world. (1)
Matchthe following:
8. Match the columns on the basis of
Importance of Management by using the g
options: (1)
Column-I
Column-I
1. Development of society (i) The task of manager is to reduce the coost
 2. Inereases efficiency and to increase the productivity.
(i) Job of the manager is to give common
direction to individual efforts.
(iii) Helps to provide quality production
creates employment opportunities.
Choose the correct option :
1-(ii), 2-); (b) 1-(ii),2-(iiü); (c) 1-{ii), 2-(i); (d) 1-(iii), 2-(ii)
 EXAM ORIENTED SAMPLE QUESTION
Q. Hema is one of the most successful managers of her company, "Kobe Ltd.' She uses her
creativity and initiative in handling challenging situations at work. The knowledge
gained by her during her student days at a renowned management institute as well as
through her observation and experience over the years is applied by Hema in a skillful
nanner in the context of the realities ofa given situation. She often reads books and
other literature in various fields of management to keep her knowledge updated.
(i) An aspect of the nature of management is being highlighted in the above
description. Identify the aspect.
(ii) Explain any three features of the aspect identified in part (i). [CBSE 2017 (4))
Ans. (i) Management is an art. (iü) RTP-1.18)

OBJECTIVETYPE QUESTIONS 1.5

Multiple Choice Questions:
Choose the correct option to answer the following questions:
1. Which of the following features of a profession is fully satisfied by Management?
(a) Service motive Ab) Well defined body of knowledge
(c) Restricted entry (d) Ethical code of conduct
/CBSE 2021 (1))
2. Ram Murty, a Professor of Management conducted a class on Management principles'
and explained to his students the significance of Management Principles. In the next
class, the Professor asked his students to play roles of different managers. He gave
them various situations and asked them to think like managers and provide solutions
to the problems given in these situations. Each student applied the principles of
management to the given situation in his own personalized manner, depending upon
his creativity.
The nature of management highlighted in the above case is:
(a) Management as a Science
(hr Management as an Art
 (e) Management both as an Art andas a Seiene
d) Management as a Profession CBSE 2021 (DI
8. Which of the following proves that management is not an exact science? ()
(a) Management has its own theory and prineiples that have developedover aperiod
of time, but it also draws on other disciplines such as Eeonomic, Soeiology.
Psvchology and Mathematies. Like allother organised activity, manage has
its own vocabulary of terms and concepts.
(b) Since management deals with human beings and human behaviour, the outcomes
of these experiments are not capable of being aceurately predicted or replicated.
(e) Theapplication and use of principles of management is not universal. They have
to be modified according to a given situation.
Both (b) and (c)
4. In order to enter into profession one has to acquire an educational degree by
clearing specified examination conducted by registered institutes. Which feature
of profession is being revealed? (1)
S Restricted entry (b) Ethical code of conduct
(c) Professional association (d) Well defined body of knowledge
5. The style of singing of Arijit Singh and Guru Randhawa are different to each other,
however they acquired some knowledge of ragas. Identify the feature of art
discussed above. (1)
Based on practice and ereativity (b) Universal validity
(e) Existence of theoretical knowledge (d) Personalised application
Fillin the Blanks with appropriate words:
6. Seientificprinciples are developed
we
through
on ALhre of knowledge.
and erdeisalio (1)
7. All professions are based ()
EXAMORIENTED SAMPLE QUESTION
Q. Das is the Managing Director of 'Gamut Ltd.', manufacturing different varieties of
cheese. He has an efficient team working under him consisting of Rajat Production
manager, Vinay - the Marketing manager and Adit - 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 themto
achieve the desired objectives. State one more function other than those mentioned
above, that this team may perform at the level they are working. [(CBSE 2019 (1)]
t
Ans. The team is working at middle level and the function the team may perform other
than those mentioned is : Co-operate with other departments for smooth functioning
of the organisation.

OBJECTIVE TYPEQUESTIONS 1.6

Multiple Choice Questions:
questions:
Choose thecorrect option toanswer the following
1 Which level of management is responsible for coordinating the
activities of different.
denartments according to overall objectives of the organization
(b) Middle level [CBSE 2021 (1)]
(arTop level
(d) Both
(c) Supervisory level middle and
supervisory level
 2. Which level of management is responsible for the welfare and survival of an
organisation?
(1)
a) Middle level (b) Supervisory level
(c) Operational level (d Top level
3. Production Manager and Plant Superintendent are part of : (1)
(a) Top level management (by Middle level management
c) Lower level management (d) None of the above
4. Mr. Top the Managing Director of Alag Ltd. appointed
Production manager
Mr. Produce who was assisted by Mr. Ustad who was to take care of ensuring the
proper and safe working conditions for workers. Where will Mr. Ustad be placed in the
management hierarchy? ()
(a) Middle level
(b) Top level
(oOperational level (d) All level
Match the following:
5. Match the columns by identifying the levels of
management by using the given
options: (1)
Column-I Column-II
1. They interact with the A. Top level management
actual workforce. B. Middle level management.
2. Responsible for all the activities C. Operational level management
of business and its impact on society.
DOse the correct option:
1 2
(a) B C
(b> C A
(c) B A
(d) C B
EXAM ORIENTED SAMPLEQUESTION
Q. Payal is the branch manager of United Handierafts Pvt. Ltd. The company's objective
is to promote the salesof Indian handloom and handicraft products. It sells fabric,
furnishings, readymades and household items are made out of traditional Indian
fabrics. Payal decides quantities, variety, colour and texture of all the above items
and then allocatesresources for their purchase from different suppliers. She appoints
team of designers and crafts people in the company, whodeveloped some prints for
bed covers in bright colours on silk. Although they looked very impressive, they where
expensive than they had planned to sell. Average customer could not afford to
buy it. Praising their effort, Payal suggested that they should keep the silk bed covers
for specialoccasions like Diwali and Christmas and offer the cotton bed covers
regular basis to keep costs under control.
Identify the functions of management which Payal performs by quoting the lines from
the above case. (5)
Ans. (i) Planning
Payal decides quantities, variety, colour and texture of allthe above items..."
(ii) Organising
. allocates resources for their purchase from different suppliers."
(iiü) Staffing
'She appoints a team of designers and crafts people in thecompany ...'
(iv) Directing
Praising their effort, Payal suggested that they should keep the silk bed covers
for specialoccasions like Diwaliand Christmas.
(v) Controlling
... offer the cotton bed covers on a regular basis to keep costs under control.'
. they were more expensive than they had planned to sell.'

OBJECTIVE TYPE QUESTIONS 1.7

Multiple Choice Questions:
Choose the correct option to answer the following questions:
1. "It involves leading, influencing and
motivating the employees to perform the assigned
task," highlighted one of the functions of management.
(a Staffing Identify. (1)
(b) Planning
(c) Directing (d) Controlling
 2. "Deeiding in advance what is to be done and who is to do it" highlighted one of the
functions of management. Identify it.
(a) Organising (b Planning
(e) Directing (d) Controlling
Match the following:
3. Mateh the columns by identifying the management functions: (1)
Column-I Column-II

1. Itbridges the gap between where A. Directing

we are and where we want to be. B. Planning
2. Process of assigning the duties, C. Organising
grouping tasks, establishing
authority and allocating resources.
Choose the correct option
(a) 1-B; 2-A (b) 1-C; 2-A
(o 1-B; 2-C (d) 1-A; 2-C
EXAM ORIENTED SAMPLEQUESTION
. Shenoy Ltd. is a company which provides car services at home and on road. There are
different departments in this company like Production, Marketing, Finance and Human
Resource. The top management of the company tries its level best to synchronise the
activities of different departments in the best possible manner. The result is the
increased efficiency and achievement of organisationalgoals. However, with the passing
of time the size of the company has grown and now there are many branches of this
company. The synchronisation has turned more important with the increase in the
 size of the company and the number of employees. The departmental heads of the
company are specialists in their respective fields and the top management tries to
work with them by respecting their views on the subject. Their ego clashes are avoided
to ensure smooth functioning of the organisation.
(i) ldentify the conceptof management highlighted in the above
(i) Also, explain any two points of importance of this concept highlighted in the
above para and quote the lines which help in their identification. (6)
Ans. () Coordination.
(ii) (a) Functional Differentiaton. (RTP-1.30)
"There are different departments in this company like Production,
Marketing, Finance and Human Resource. The top management of the
company tries its level best to synchronise the activities of different
departments in the best possible manner.'
(b) Growth is Size. (RTP-1.30)
However, with the passing of time the size of the company has grown and
nowthere are many branches in this company.
(c) Specialisation. (RTP-1.31)
The departmental heads of the company are specialists in their
fields and the topmanagement tries to work with them by respective
views on the subject.' respecting their

OBJECTIVETYPE QUESTIONS 1.8

Multiple Choice Questions:
Choose the correct option to answer the following questions:
1 Tt acts as the binding force
between departments and ensures that all action are aimed
at achieving the goals of the
characteristic of co-ordination:
organization. T'he statement highlights the following
(a) Co-ordination is an all pervasive functions.
(b) Co-ordination is the responsibility of all managers.
(c) Co-ordination is a continuous process.
aY Co-ordination ensures unity of action.
The force that binds all other functions of management is called [CBSE 2021 (1)]
(a) Controlling (b) Cooperation (1)
(Coordination (d) Planning
Fill in the Blanks with appropriate words:
3. Coordination act as a Brdi force between various
action.
Coordination is called the
n departments to ensure unity of
4. management. (1)
(1)
 Applying, Analysing, Evaluating and
Creating Based Questions (with answers)
CASE STUDIES
1. Mita has a successful ice cream business at Bikaner, namely 'Smartfavours'. Her ice creams are
utterty delicious. She makes ice creams from fresh milk and the same are available in a wide range of
favours and packs. She sets viable business objectives and works with the same in mind in order to
ensure that the customers will come back for purchasing.
Having the first mover advantage, her business was doing well. To earn higher profits, she started
cutting down costs. This would sometimes lead to delay in delivery and the ice cream was not
reaching the market in time. Over a period of time, the demand for her ice cream declined and
because of it the competitors entered the market. She lost some of her market share to competitors.
At the beginning of summer season, she got back to back orders for supply of 4,000 ice cream packs
of different flavours for special occasions. To ensure that the task was completed and orders delivered
in time she hired additional workers. She was, thus able to produce and deliver the ice cream packs
but at ahigh production cost.
While completing activities and finishing the given task for achieving goals, Mita realised that she was
ignoring one of the important aspects of management.
ldentify the aspects ofmanagement that has been ignored by Mita. Also explain the same with the
help of an example. [CBSE 20 19 (3)]
 Ans. Efficiency
minimum cost.
Efficiency means doing the task correctly and with
Example:
The manager wants to achieve the
Say, a company's target production is 5,000 units in a year. could not achieve th
production target by cutting down costs. He was able to cut down costs but
efficient but not effective.
target production. In this case, the manager was
Effectiveness
goals.
Efectiveness means doing the right task, completing activities and achieving
Example:
manager has to
Say, a company 's target production is 5,000 units in a year. To achieve this tarzet the
operate on double shifts due to power failure most of the time. The manager is able to produce
5,000 units but at a higher production cost. In this case, the manager was effective but not so
efficient.
2 Kamal. Khan and David are partners in afirm engaged in the distribution of dairy products in Madhya
Pradesh. Kamal is a holder of Senior Secondary School Certificate from Central Board of Secondary
Education with Business Studies as one of his elective subjects. Khan had done his post-graduation in
Hindi literature and David in Dairy Farming. One day there was a serious discussion between Khan
and David regarding the nature of Management as a Science.' Khan argued that Management was not
a science whereas David was of the opinion that Management was a science. Kamal intervened and
corrected both Khan and David about the nature of Management as a Science with the help of his
knowiedge of Business Studies.
Explain. how Kamal would have been able to satisfy both Khan and David. [CBSE 2015 (6)]
Ans. Kamal would have been able to satisfy both Khan and David by explaining the following features of
management as a science: (RTP-|.17)
Through the above discussion Kamal would have been able to satisfy both Khan and David by making
thern understand that management is a science but not an exact science.
3 "Management is regarded as an Art by some, as Science or asan inexact Science by others. The truth
seens to be somewhere in between." In the light of this statement, explain the true nature of
management. [CBSE 20l|(5)]
Ans. Management is regarded as an Art because like in any art, in management too, there is :
Existence of theoretical knowiedge (e.g, finance, marketing, etc.):
Personalised application of scientific methods to a given situation; and
Continuous practice and creativity which gives rise to formulation of theories and styles of
management.

Managenent is regarded as 'Science because like science, nanagement is a systematic body of

knowledge with its own theories and principles which are derived through observation and repeated
expernnentation.
However, management is an 'inexact science' because the outcomes of these experiments are not
capable of being accur ately predicted.Since management deals with human beings and hunan behaviour.
1.54 Business Studies-I2
 therefore, their applicationis not universal.
True Nature of Management :Management has features of both art and science. The practice of
management is an art. However, managers can work better if their practice is based on the principles
of management. These principles constitute the science of management. Management as an art and a
science are therefore not mutually exclusive, but complementary to each other.
4. In ABC Ltd., the Purchase department purchased |5 tonnes of raw material for the production
department. However, the Production department required only 10 tonnes. Due to this reason,
goods were overproduced and were not accepted by Sales Departrnent. As a result, some goods
remained unsold. Which aspect of Managerment is lacking in this case! (1)
Ans. 'Coordination' is lacking between various departments.
5. Trending India Limited is a chain of ladies garments boutiques where most of the work is done
manually. Due to coming of international brands in India, the company is finding it difficut to compete
on two fronts finishing and embroidery work. The production manager realised that without
modern machines it would not be possible for them to survive for long. The company purchased new
hi-tech modern machines from Japan. During the production process, the manager observed that the
quality of production is not as per standard and very often production is disrupted due to break
down of machinery. The workers get frustrated by continuous rejetion of output and started showing
resistance towards new technology. To increase the efficiency of the workers, the company decided
to
to train their workers on-the-job under the able guidance of specialists. The workers who are able
pick the skills are promoted and made incharge of the not so trained groups. This created positive
and workers
impact and everybody became keen to learn. Suggestions from the workers are valued
are encouraged to communicate freely.
quoting the
ldentify any three points of importance of management highlighted in the above case by (3)
lines.
are:
Ans. The points of importance of management highlighted in the given case
(a) Management increases efficiency
workers on-thejob under
"To increase the efficiency of the workers, the company decided to train their
the able guidance of specialists."
objectives
(b) Management helps in achieving personal
made incharge of the not so trained
"The workers who are able to pick the skills are promoted and
became keen to learn."
groups. This created positive inmpact and everybody
() Management creates a dynamic organisation
machines it would not be possible for them to
"The production manager realised that without modern
hitech modern machines from Japan."
survive for long. The company purchased new
Ltd., a company manufacturing refrigerators. He found
6. Rishitosh Mukerjee has recently joined AMV other departments were not cooperating with his
that his department was under staffed and Therefore, he ensured that his department
department for smooth functioning of the organisation.
cooperation with other department is improved.
has the required number of employees and its
was working.
(a) ldentify the level at which Rishitosh Mukerjee
1.55
Nature and Significance of Management
 performed by Rishitosh Mukerjee at this level
(b) Also, state three more functions required to be [CBSE 20 I7 (4))
(a) Middle Level Management.
(b) (RTP-I.23)
Ans.
which has 100 per cent women as employees
7. Smita Rai is the director of Namchi Designer Candles,
they produce customized candles meant fo
They also produce varieties of candles. During Diwali.
June itself. She has to then ensure tha.
the occasion. Smita plans her diwali collection in the month of
is proceeding accordine
there is adequate workforce and continuously monitor whether production
prepare their promotional and
to plans. Her marketing department also has to be briefed in time to
advertising campaigns.
work, so thar
At Namchi Designer Candles, the production and sale department coordinate their
production take place according to the demand in the market.
The purchase. production and sales departmental efforts haveto be coordinated by Smita for achieving
organisational objectives harmoniously. The purchase department is responsible for procuring fabric.
This then becomes the basis of the activities of the production department and finally sales can take
place. f fabric purchased is of an inferior quality or is not according to the specifications of the
production department, further sales will also decline.
ldentify and explain by quoting the lines from the above the three features of coordination (6)
Ans. Three features of coordination highlighted are:
(a) Coordination is a continuous process: Coordination is not a one-time function but a continuous
process. it begins at planning stage and continuous till controling.
"Smiia pians her diwali collection in the month of June itself. She has to then ensure that there is
adequote workforce and continuously monitor whether production is proceeding according to plans.
(b) Coordination ensures unity of action: The purpose of coordination is to secure unity of action
in the realisation of a common purpose. It acts as the binding force between departments and
ensures that all action is aimed at achieving the goals of the organisation.
"..the production and soles department coordinote their work, so that production takes place according
tothe denand in the market."
(c) Coordination is an all pervasive function: Coordination is required at all levels of management
due to the interdependent nature of activities of various departments. It integrates the efforts
of different departments and different levels.
"The purchase, production and sales departmental efforts have to be coordinated by Smita for achieving
orgonisational objectives harmoniously. The purchase department is responsible for procuring fobric.
This then becornes the basis of the activities ofthe production department and finaly sales can take place.
8. Ms Balbir passed her M.B.B.S. examination in the first division in 2016. Later on in the year
2019 she
passed her M.S. examination as an eye surgeon. After completing her studies she joined a big hospital
as an eye surgeon. She is performing five operations successfully every day. Now tell, what aspect of
Ms Balbir's above experience is science and what aspect is art?
(0)
Ans. As we know that to obtain information about a
subject is a Science and putting that information to
practice is an Art, so in this case, it can be said that the study of M.B.B.S. and M.S. is science and
working as an eye-surgeon is an art.
1.56 Business Studies-I2
 9. Shenoy Ltd. is facing a lot of
problems these days. It manufactures electronic goods like
machines, microwave ovens, refrigerators and air-conditioners. The washing8
pressure the profits and market share are declining. The
and company' s margins are under
department for not meeting sales targets and marketing production department blarnes marketing
for producing goods, which are not of department blames
good quality, to meet customers' production department
department blames both production and marketing departments for expectations. The finance
and bad marketing. declining return on investment
(0) What quality of management do you (S)
think the company is lacking? Justify your answer.
(ii) State the importance of the
concept identified in (a).
Ans. (i) Coordination: This is because
production, marketing and finance departmental efforts are not
coordinated for achieving organisational objectives harmoniously. As a result, the company's
profits and market share are declining
(i) Importance of Coordination. (RTP-.30)
10. Hi-Tech Solutions Ltd. is a company
manufacturing T products. The company's profits are sufficient
for the survival and growth. The management of the
creates a satisfied customer, who in turn creates profits company believes that a satisfied employee
that lead to satisfied shareholders. So, it pays
competitive salaries and perks to all its employees. All the employees are happily working in the
onganisation because of personal growth and development.
The company has strong sense of social responsibility. It has set up educational
fields of management,engineering and computer education in which twenty five institutions in the
girls to whom the company gives 50% scholarship.
percent students are
Is the management of Hi-Tech Solutions Ltd. fulfilling its objectives?
the lines.
ldentify the objectives by quoting
(6)
Ans. Yes, the management of Hi-Tech Solutions Ltd. is fulfilling all the
and Personal.
objectives-Organisational, Social
(a) Organisational objectives are the economic objectives of a business. These are survival, profit
and growth.
Profits of H-Tech Solutions Ltd. are sufficient for the survival and growth.'
(b) Social objectives involve creation of benefits or economic value for the society.
HiTech Solutions Ltd. fulfills its social responsibility.
(c) Personal objectives are relatedto the employees of the organisation.
The management of Hi-Tech Solutions Ltd. satisfies the financial needs of its employees by
giving them competitive salaries and perks. It also satisfies their higher level needs such as
personal growth and development.'
T. Tushar Mining lndustry owns and operates coal mines in different parts of the country. It employs
thousands of workers who do this dangerous and potentially lethal job. Several minors contend with
air filled with dust, develop asthama and other respiratory problems. Many times, fatal accidents take
place due to insufficient safety measures. Gartbage from the mines is often dumped in local rivers,
which polutes the water bodies.

Nature and Significance of Management 1.57

 objectives which are being ignored by Tushar Mining Induer
ldentify and explain ony two management
(3
(RTP-I.12)
Ans Personnel and Social objectives. company T
Ltd. decides to have ameeting of all the employees of alldepartments of the
12 Parvesh
enmployees to keep the target of 25% increase in sales as the main obiecs:
primary aim is to tellthe meeting is full of ideas regarding the employees an
when they work throughout the year. The potential of the employees and streamlin
processes involved. Various plansare made to harness the environment cheke sL
passage of time the external business
the processes. However, with the achieved the target .
adapt to the situations. The company successfully
capability of the company to
management highlighted in the above Dara
the end of the year. ldentify and state the characteristics of
(6)
by quoting the lines.
Ans The characteristics of management highlighted are:
(a) Management is a goal oriented process. (RTP-1.6)
The primary aim . . .work throughout the year.'
(b) Management is multidimensional. (RTP-I.6)
(0) Management of people.
(ii) Management of operations.
Various plans streamline the processes."
(c) Management is a dynamic function. (RTP-1.8)
However with adapt to the situations.'
13. Payal is the marketing manager of acompany sling mobile phones. She plans the target sale of 2000
mobile phones per month. She allocates necessary resources to execute 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, after comparison of actual sales with the target sales, she found that actual
sales exceeded the target sales. She rewards the effiient employees in order to motivate them.
(a) ldentity the four functions of management highlighted above by quoting the lines.
(b) Also state any two values which she wants tocommunicate to the society by her behaviour.(6)
Ans. (a) Payal performs the following functions of management.
She plans the target sale of 2000 mobile phones per month- (Planning)
She allocates necessary resources to carry out the plan'- (Organising)
She works with them, guiding and motivating them to achieve the target sales'- (Directing)
'Atthe endof the month, after comparisonof actual sales with the target sales, she found that
actual sales exceeded the target sales'- (Controlling)
(b) Values:
(i) Sense of achievement. (i) Loyalty. (ii) Belongingness. (any two)
14. Akarsh Ltd. is facing a lot of problems these days. It manufactures electrical goods ike washing
machines, microwave ovens, refrigerators, air-conditioners, etc. The company's margins are under
pressure and the market share is declining. The Praoduction department is blaming the marketing
1.58 Business Studies- |2
 departnent for not meeting the sales targets whereas the marketing departrnent is blarning the
prodctkon department for poor quality and higher cost of production. The finance departrnent is
blaning tboth or the dec line in tetuns on investment.
(a) What quality ot management do youthink the connpany is lacking? Explain briefly
(b) What steps sheould the company management take to bring the corpany back on track? (5)
Ans (a) The quality of management which is lacking in the above problern is 'toordiration' because
production, marketing and finance departmental efforts are not coordinated for achieving
nganhational ecbjectives harmoniously.As aresut, the cormpary's profits and market share are
declining
(b) The Top management of the company should take the following steps:
() Al departments should be asked to work for the organisational objectives.
() There should be effective communication among the diterent departrments
(ii) Coordination should be made between various departrnental plans.
(iv) Periodic meetings of various departmentalheads should be held to rernove any rnisgivings
and to integrate their efforts.
(v) Any conflict among different departments must be resolved at the earliest.
I5. Acompany wants to modity its existing product in the market due to decreasing sales. You can
imagine any product about which you are familiar. What decisions/steps should each level of
managenment take to give effect to this decision? (6)
Ans. fa company wants to modify its existing product say, chocolate, to increase its sales, the company
should take the following steps at each level of management like:
Top Management
(a) Brainstorming among all departments to explore ways and means to modernise the product.
(b) Scope of modiication.
(c) Analysis of business environment.
(d) Coordinate the activities of all departments.
Middle Management
(a) Interpret the modification plan to the supervisory level.
task.
(b) Recruit and select employees who will perform the
(c) Motivate the people to achieve the task.
supervisory level personnel.
(d) Give necessary instructions and guidance to the
Supervisory Management
(a) Assign work to workforce.
(b) Passing instructions to workforce.
(c) Supervise them.
(d) Maintain quality and minimise waste.
1.59
Nature and Significance of Management