case study of ch 1 business class 12

myCBSEguide

• Business Studies
• Class 12 Business Studies...

Class 12 Business Studies Case Study Questions

Table of Contents

myCBSEguide App

Download the app to get CBSE Sample Papers 2023-24, NCERT Solutions (Revised), Most Important Questions, Previous Year Question Bank, Mock Tests, and Detailed Notes.

In this article, we will discuss how to get CBSE class 12 Business Studies Case Study Questions from the myCBSEguide App and our Student Dashboard for free.

For the students appearing for class 12 board exams from the Commerce Stream, Business Studies is a core subject. Business Studies as a subject provides a way of perceiving and interacting with the business ecosystem . It well establishes the interdependence of business on various social, political, legal and economic forces and vice-versa. Business Studies is a purely theoretical and a relevantly easier subject for the Commerce students. Business Studies class 12 exam is a highly scoring subject and it facilitates the students to increase their percentile and excel in academics.

12 Business Studies Paper Design

The exam is divided into 2 parts:

• Part A generally contains questions from Principles and Functions of Management and carries 60 marks.
• Part B comprises questions from Business Finance and Marketing, it carries a total of 40 marks.

The syllabus of class 12 Business Studies comprises 12 chapters that are divided into 2 books

• Principles and Functions of Management
• Business Finance and Marketing

Business Studies Syllabus

CBSE has released the latest class 12 syllabus (2022-23) for Business Studies. 

Business Studies Case Study Questions

Case-based questions have always been an integral part of Business Studies class 12 question papers for the past many years. Students are required to focus more on case studies as they require the application of their knowledge of the key business concepts. In the year 2021-22 CBSE introduced a few changes in the question paper pattern to enhance and develop analytical and reasoning skills among students. Sanyam Bhardwaj, controller of examinations, CBSE quoted that case-based questions would be based on real-life situations encountered by the students.

The purpose was to drift from rote learning to competency and situation-based learning. He emphasized the fact that it was the need of the hour to move away from the old system and formulate new policies to enhance the critical reasoning skills of students. Introducing case study questions was a step toward achieving the goals of the National Education Policy (NEP) 2020.

What is a case study question? (Business Studies)

A case study in reference to Business Studies can be thought of as a real-world test of how the implementation works. It is predominantly a report of an organization’s implementation of something such as a practice, a product, a system, or a service. Case studies based on NCERT text form a substantial part of the Business Studies examination. Initially, they were confusing for both students and teachers but now there is a clarity that has made the question paper more student-friendly. A significant weightage has been given to case-based and application-based questions.

Critical and Analytical Thinking

These questions demand critical and analytical thinking on behalf of the students. The best part of these questions is that they provide conceptual hints and keys that point to the right answer. According to the new pattern implemented by CBSE, case-based questions would carry a significant weightage of more than 30% in the Business Studies question paper.

Case Study Passage

As part of these questions, the students would be provided with a comprehensive passage, based on which analytical questions will have to be answered by them. The students would be required to read the passage carefully before attempting the questions. In the coming examination cycle (2022-23), case-based questions have a weightage of around 30%.

Types of Case Study questions in Business Studies

CBSE plans to increase the weightage of such questions in the following years, so as to enhance the intellectual and analytical abilities of the students. Case study questions would be based on various topics and chapters in Business Studies. It is expected from the students to have complete knowledge of the concepts in their syllabus.

They will have to let go of the shortcut techniques and get to read their textbooks with full concentration, especially for solving case-based questions in Business Studies for the passages given are generally lengthy and require an in-depth study. The best part of having these questions is that the question itself projects a hint of its solution.

The questions asked could be :

• Direct and simple-such questions can easily be solved as the answers are either there in the given passage or the student can solve it at ease by reading and analyzing the passage carefully.
• Indirect and application-based- These are the ones that would require the student to have complete knowledge of the topic and could be answered by application of the concepts. The answers to such questions are slightly tricky and not visible in the given passage, though the passage would highlight the concept on which the questions would be asked by CBSE.

Class 12 Business Studies Case Study

Case study questions asked by CBSE were stated to be quite challenging by many students. It prominently focuses on real and present scenarios of the business world. Though the exam, on the whole, was quite direct and its difficulty level was termed out to be moderate. Around 30% of the question paper consisted of case-based questions that required high-order thinking and analytical skills from the students.

Content of Case Study Questions

The concept of case-based questions is not new since CBSE has always included questions based on Higher Order Thinking Skills (HOTs) and case-based questions. Though now we will have an increased percentage of such questions in the question paper. The student has to keep in mind that the concept-based questions can be attempted only with the proper understanding of the business concepts.

Benefits Of Case-based Questions

Class 12 Business Studies syllabus comprises two books and CBSE can ask Case study questions from any of them. Students must prepare themselves thoroughly for both the books. They must practice class 12 Business Studies case-based questions from the various options available to them.

• Enhance the intellectual capabilities of the students.
• Provide a complete and deeper understanding of the subject.
• Inculcate analytical reasoning and temperament in students.
• Help students retain knowledge for longer periods of time.
• Would definitely help to discard the concept of rote learning and cramming without understanding the core of the subject.
• The questions would facilitate bringing out the much-awaited change in the prevalent system of education in India that hinders the strengthening of practical learning.

Some Case-Study Questions (Business Studies) Class 12

Here are some case study questions for CBSE class 12 Business Studies. If you wish to get more case study questions and other related study material, download the myCBSEguide App now. You can also access it through our Student Dashboard .

Business Studies Case Study 1

Read the following text and answer the questions: ABLEX Ltd. is a big and well-reputed company. The biggest challenge for the company is managing many employees at the same time. As the company has various departments like human resources, marketing, finance,etc., it is very necessary for the company to maintain unity in different departments. All the employees work hard for the organisation. Despite their different interest, they all perform various activities together so as to achieve the objectives of the company. The career of employees is shown a developmental path through proper training modules and job enrichment. Ajay is a manager who assigns all duties and responsibilities to his employees in the department. He uses all sources to develop proper communication with them and leaves no attempt to motivate them.

• It integrates Group Efforts
• It is a Continuous process
• It ensures Unity of Action
• It is Pervasive
• Top Level Management
• Middle-Level Management
• Lower Level Management
• Supervisory Level Management
• Economic objectives
• Social Objectives
• Organisational Objectives
• Personal Objectives

Answer Key:

• (c) It ensures unity of action
• (b) Middle-level management
• (c) Personal objectives
• (a) Directing

Business Studies Case Study 2

Read the following text and answer the question: Mohan works in a bulb manufacturing company. Each bulb that is manufactured is of standard size and quality. Further, if there is any unrequited type of bulb manufactured then its production is stopped. Last month when the company came to know that 10-watt bulbs were no more liked by customers, their production was stopped. He works in the purchasing department. His job is to purchase the filaments required to make bulbs. This time when he purchases the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Mohan knows this information should be given immediately to the production department before the assembling process starts. However, he finds that his company’s policies only allow him to give the message to his immediate boss who will further pass this message to his boss. The passing of this message will continue until it reaches the desired person in the production department. Based on the passage answer the following questions:

• Method study
• Fatigue study
• Standardization and simplification
• None of these
• Scalar chain
• Departmentalization
• Division of Work
• None of the above
• Organization
• Authority and Responsibility
• All of these
• Division of work
• Scalar Chain
• (b) Fatigue study
• (a) Scalar chain
• (c) Gang plank
• (a) Division of work

Business Studies Case Study 3

Read the following passage carefully and answer the questions that follow: Two years ago Radhika completed her degree in food technology. She worked for some time in a company manufacturing chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated an action plan to achieve the same. One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months’ credit form farmers cultivating organic crops only. She also decided to follow the steps required for the marketing of the products through her own outlets. She appointed Rakesh as a production manager who decides the exact manner in which the production activities are to be carried out. Rakesh also prepared a statement showing the number of workers that will be required in the factory throughout the year. Radhika informed Mohan about her sales target for different products, area wise for the forthcoming quarter. While working on the production table a penalty of 100 per day for not wearing the caps, gloves and apron was announced.

• Standing Plan
• (a) Objectives
• (c) Procedure
• (b) Programme

Tips to Solve Case Study Questions in Business Studies

Let’s try to comprehend and solve case study questions of class 12 Business Studies. As mentioned earlier, the entire syllabus is divided into 2 books. It is expected from the students to rigorously follow the NCERT book as the language written is quite simple and crisp. The exam in spite of being totally theoretical is quite scoring.

• Read the passage in depth.
• Try to comprehend the situation and focus on the questions asked.
• Generally, the passage given in Business Studies is lengthy but the solutions are brief and simple.
• Can follow a reversal pattern, i.e read the questions before and then search for the answers. You will save time.
• Answer briefly and precisely.
• Focus on solidifying key Business Studies fundamentals for acing any case study. If your concepts are clear, you will hardly face any difficulty in answering them.
• While answering the case study, pick the keywords or any keyline based on which you are withdrawing your conclusion. You need to highlight the reason for your answer.

These simple points if kept in mind will definitely help the student to fetch good marks in case study-based questions in class 12 Business Studies.

WORK HARD, HAVE FUN, AND MAKE HISTORY!

Test Generator

Create question paper PDF and online tests with your own name & logo in minutes.

Question Bank, Mock Tests, Exam Papers, NCERT Solutions, Sample Papers, Notes

Related Posts

• Competency Based Learning in CBSE Schools
• Class 11 Physical Education Case Study Questions
• Class 11 Sociology Case Study Questions
• Class 12 Applied Mathematics Case Study Questions
• Class 11 Applied Mathematics Case Study Questions
• Class 11 Mathematics Case Study Questions
• Class 11 Biology Case Study Questions
• Class 12 Physical Education Case Study Questions

1 thought on “Class 12 Business Studies Case Study Questions”

Case study question answer

Leave a Comment

Save my name, email, and website in this browser for the next time I comment.

Talk to our experts

1800-120-456-456

CBSE Business Studies Chapter 1 - Nature and Significance of Management Class 12 Notes

• Revision Notes
• Business Studies
• Chapter 1 Nature And Significance Of Management

Nature and Significance of Management Notes for CBSE Class 12 Business Studies Chapter 1 - Free PDF Download

Management is a crucial topic of business studies that deals with the systematic running of a firm and economy. Class 12 Business Studies Chapter 1 notes explains that a process of getting work done within the set time is management. It is ideally done to achieve a target set in an organisation through an efficient and effective way.

Vedantu’s class 12 Business studies chapter 1 notes PFD discusses this method of efficiency, and that is the best way to save money. A task that is done by proper planning by utilising available resources gives the desired result is efficiency. Effectiveness, on the other hand, concerns producing a product within a period. 

Class 12 revision notes chapter 1 discusses that these methods are similar yet different in properties. Therefore, it is essential to maintain a balance between the two.

Download CBSE Class 12 Business Studies Chapter-wise Notes 2023-24 PDF

Get CBSE Class 12 Business Studies Chapter-wise Notes FREE for the academic year 2023-24. From the table provided below. Download the PDFs now.

Related Chapters

Get Ahead in Business Studies Chapter 1 Notes - Nature and Significance of Management Class 12

Definition of management.

“Management is defined as the process of planning, organizing, actuating and controlling an organization’s operations in order to achieve coordination of the human and material resources essential in the effective and efficient attainment of objectives.” 

Robert L. Trewelly and M. Gene Newport

Concept of Management

Management is a process that aims to bring the efforts of the people working in the organization to achieve a common objective effectively and efficiently.

Process: The term process refers to the primary activities performed in an organization by the management to achieve the objective. It includes planning, organizing, staffing, directing and controlling.

Effectively: The term effectively refers to completion of the given task in the allotted time frame.

Efficient : The term efficient means completing the task within minimum cost as well as optimum utilization of resources.

Difference between Effectiveness and Efficiency

Characteristics of Management

Goal Oriented Process : Every organization has its own set of objectives to achieve as an end result. It is through management that the efforts of the people working in the organization are directed towards accomplishment of these objectives. Hence, we can say management is a goal oriented process. It is fruitless to operate if an organization doesn't have a set goal.

All Pervasive : Management is a universal process. It is necessary in all types of organization whether big or small and is performed at every level of authority; top, middle or lower.  The five activities of management are the same for all the organizations irrespective of economic, social or political boundaries. Its just that the methodology differs but the basics and foundation remains the same.

Multidimensional: Management has three important dimensions. These are as follows:

Management of work: Every enterprise has a purpose behind its existence. The major purpose is performance of certain works for accomplishment of end results. Management converts the work to be performed in terms of goals and helps in achieving them. For example: A hospital operates for the treatment of patients. A super market exists for the fulfillment of day to day demands of people.

Management of people: Management unites the efforts of the group of individuals working in the enterprise so that they can work together as a team. Human resource or manpower is said to be the biggest asset of an organization. The task of a management is to get things done by individuals as well as groups of people.

Management of operations: Every enterprise has some basic product or service to deliver which requires a production process, and a set of operations where the inputs are converted to final product, this is management of operations.

Continuous Process: Management is a continuous process as it consists of a series of interrelated activities. These functions should be performed in a systematic and orderly manner and in a proper sequence. It is a never ending process. The activities include functions like planning, organizing, directing, staffing and controlling.

A Group Activity: Management is a group activity as it is concerned with the efforts of a group of individuals. It unites the efforts of the members in the group and directs them towards attainment of a common objective.

A Dynamic Function: The business policies and practices of the organization needs to be changed according to the business environment which consists of various social, economic and political factors. The world is changing dynamically in all aspects so new practices and conventions must be followed to cater to the ever-changing needs of the environment.

Intangible Force: Management is an invisible force. It cannot be seen, but it can be felt through the achievement of objectives.

Objectives of Management

Objectives are the desired results that drive the management to work towards it. There are three objectives of management:

Organizational Objectives: Organizational Objectives are those objectives that are set by the management of an organization within a predetermined time period. An organization has different types of objectives to be achieved, these objectives are determined in consideration to the different interests of the stakeholders. The main objective of an organization is optimum utilisation of resources in the most effective and efficient manner. It is further divided into three parts- survival, profit and growth.

Survival: Ensuring survival in the market in the long run by taking positive decisions in respect of business activities is the primary objective of management. Earning enough revenues to cover the cost of production is of utmost importance to an organization.

Profitability: Any person or individual who runs a business has the ultimate objective of earning profit. Management ensures to earn sufficient profit to meet its various needs. Management makes best use of men, money, material, machinery and other resources in order to earn profit. Good amount of profit provides better return to investors in terms of dividend, interest etc.

Growth : Management should aim towards continuously improving the performance of the organization. It is the general objective of management to secure maximum results through minimum resources to increase prosperity and growth. Growth of an organization can be measured in various ways and depending upon various parameters. The growth indicators can vary from organization to organization. Some may consider an increase in sales volume, some may look for an increasing number of products, etc.

Social Objectives: Any organization that operates, doesn't solely have an objective of profit making. It also has some social obligations or social objectives to fulfill towards the society. This may differ from organization to organization. For example: Some aim at providing basic infrastructure to the people living around, some aim at providing maximum employment, some aim at producing products that are environment friendly.

Personal Objectives: Each and every individual joins an organization for pursuing their personal objectives. Some join for a good package of salary, some join for greater recognition, some just for survival. So, this depends upon individual to individual. It is important for an organization to identify the personal objectives to integrate it with the organizational objectives to bring harmony in the organization. 

Importance of Management

Achievement of group objectives: Management creates coordination and team spirit in the group of individuals. Management also inspires the members of the groups to make their best contribution towards the achievement of the common objective. This common objective is set by the management itself.

Optimum utilization of resources: Management brings together men, money, material, machine in the right proportion to reduce cost and maximize production.

Minimization of Cost: Management improves efficiency and reduces cost through better planning, sound organization and effective control. By eliminating wastage and minimum cost, management helps an organization to face cut throat competition.

Social development: Management increases the standard of living of the people by providing good quality products and services at minimum cost. It also helps in generating employment opportunities and adopting new technologies.

Achievement of personal objectives: Each and every individual joins an organization for pursuing their personal objectives. Some join for a good package of salary, some join for greater recognition, some just for survival. So, this depends upon individual to individual. Management plays an important role in identifying the personal objectives so as to integrate it with the organizational objectives to bring harmony in the organization, as well as successful fulfilment of the personal objectives of the individuals.. 

Nature of Management 

Management has evolved over time, it has become very dynamic in modern times. Earlier it was based on a set of rules and regulations or we may state them as conventions that evolve slowly and gradually as per the ever changing needs. 

Management can be an art, science or a profession.

Management as an Art

Art refers to putting the knowledge and capabilities into practise so as to achieve the desired results. It can be acquired through various methods like observation, study and experience. 

The basic features are as follows :

Existence of theoretical Knowledge: Art involves the application of theoretical knowledge. Management is an art of getting things done through individuals for accomplishment of desired results by putting the available knowledge into practice.

Personalized application: The use of knowledge varies from person to person and hence management is basically an individual skill. Two different people can perform the same type of work but will always differ in the way they perform. For example: two singers will always perform differently.

Based on practice and creativity: Management is goal-oriented and result-oriented. As for art, management also requires practice, continuous practice hones the skills and creativity of an individual.

Hence, management can be considered as an art, as both requires skills, practice and creativity.

Management as a Science : 

A systematized body of information that can be learned by observation and experimentation is referred to as science. It is made of universally acknowledged concepts that define the relationships between causes and effects. 

The following are the essential characteristics of science:

A well-organized body of knowledge: Management is a systematised body of knowledge with its own set of ideas and concepts based on cause-and-effect relationships.

Principle based on experiments and observation: Fundamental principles of management are developed through experiments and observations. Their results can be tested and verified.

Universal Validity: The principles of management have no universal validity and application like that of science. The basics of management is imparted to the managers, rest has to be tailored as per the requirement of the organization and environment.

Thus, management is definitely a science, but a social science as it is based on human behaviour. Human behaviour cannot be subjected to experiments and therefore management can be called soft science.

Management as a Profession.

A vocation that requires specific knowledge, practical training, a service motivation, and a code of conduct is referred to as a profession. 

The following are the essential characteristics of a profession:

Specialized Knowledge: Management has its own set of principles, concepts and is a well defined body of knowledge.

Restricted Entry: Every profession has restricted entry through examination or through educational degree. Though, to build a career in management, it is not necessary to have an educational degree etc.

Statutory Body: Every profession is regulated by a legally recognized body like ICAI for a chartered accountant. Management also have their association like All India Management Association but management associations are not statutory bodies.

Code of Conduct: Like every profession, managers also have a code of conduct, but it does not legally bind a manager as compared to the professional code of conduct.

Service Motive: Managers aim to serve the society similarly like other professions.

Hence we can say management does not possess all the characteristics of a profession.

Levels of Management

There are three levels in management – top level, middle level, lower level.

Top Level Management: Top level management comprises chief executing officer, board of directors, managing directors, president, vice presidents etc. Their responsibility is to decide organizational goals, frame policies, formulate strategies and approve budgets. They are responsible for all the major policy making in the organization. 

Middle Level Management: Middle level management comprises departmental heads, branch managers, divisional heads. Their responsibility is to execute the plans and policies framed by the top level management. They are the ones who connect with the lower level management and instructs, guides and motivates them to reach the goal.

Lower Level Management: Lower or operational level management comprises foremen, supervisors, office manager etc. Their responsibility is implementation of the work and policies under the guidance of middle level management. They also bring employees or workers’ grievances in knowledge of middle level management and maintain discipline among the workers.  

The Functions of Management

Planning: Planning is a process of setting goals and objectives and formulating a strategy and an action plan to achieve it. It bridges the gap between our current position and desired position. This is the basic function of an organization and is the first step of management. 

Organizing: Organizing is the process of establishing authority and responsibility relationships. It involves assigning tasks to individuals and allocating resources for the same.

Staffing: Staffing is a process of placing the right person on the right job at the right time. It includes recruitment, selection, placement, induction and training of employees. It can be called as the Human Resource function of the organization. 

Directing: Directing refers to the process of leading, influencing and motivating the individuals working in the organization to complete the assigned task effectively and efficiently. The employees need to be constantly motivated to perform better. Leadership and motivation are the key components of directing as a function. It tends to bring out the best in an employee.

Controlling: Controlling is the process of keeping a check on the performance of the organization and comparing it with the standards set. Also, corrective actions are taken, in case any deviation is found between the actual and desired results.

Coordination - The Essence of Management

Coordination is a force which synchronizes all the five functions and levels of management in order to achieve the goal of the organization. Coordination is implicit and inherent in all the functions of an organization. 

Without coordination there are chances of overlapping, duplication, delays and chaos in the work. The function of coordination starts from the planning function itself. Coordination thus synchronises the different efforts and actions of various units of the organization.

Characteristics of Coordination 

Coordination integrates group efforts: Coordination integrates group efforts and ensures that the performance of the organization is as per the standards set.

Coordination ensures unity of action: Coordination is a force which binds the various departments and ensures that all efforts are directed towards achieving the organizational goals.

Coordination is a never-ending process: Coordination is a continuous and a never-ending process. It is required from beginning to end, at all the levels of management as well as in all the functions of the organization

Coordination is the responsibility of all managers: It is the duty of all the people working in the organization to work in a responsible manner and coordinate with each other to achieve the objectives or the goals of the organization.

Coordination is a deliberate function: Management deliberately needs to coordinate the efforts of different people working in the organization. Coordination cannot be established with itself rather it is a deliberate and conscious effort on part of every manager.

Coordination is an all pervasive function: Coordination is something which is required everywhere and in every organization be it big or small. It is needed at all levels and at every function of the management.

Importance of Coordination  

Growth in Size: Coordination harmonizes individual goals with the organizational goals. This results in the growth of the organization which results in an increase in the number of people employed with it.

Functional Differentiation: The various departments of the organization have their own objectives, policies and their own style of working. But to achieve organizational objective coordination is important so as to link the activities of all departments.

Specialization: Coordination integrates all the specialists activities into a collective effort. 

Business Studies Chapter 1 Notes PDF - Nature and Significance of Management Class 12

Nature and Significance of Management Class 12 notes is both simple as well as summarising in their explanation of various topics. They depict the causes and need for management in a working firm. 

This section discusses various properties and the need for management in an organisation.

Take a look!

Nature and Significance of Management Notes Class 12 Characteristics

Nature and Significance of Management Class 12 Notes explain the characteristics of management. These properties conduct healthy functioning of grapevines and other pyramid systems in an enterprise. 

The Characteristics include

Goal orientation

Omnipresence

Multiple aspects

Group functioning

Energetic function

Elusive force

NCERT Class 12 Business Studies Nature and Significance of Management Notes with Solution

Objective of management.

This segment of class 12 Business studies Chapter 1 notes PDF with solution discusses the purpose behind management. These objectives ideally include profit-making, money flow and sustainability. 

Student by thorough reading will know that an enterprise follows three significant objectives that are-

Organisational

Social 

These three work together to maintain a harmonious and peaceful work structure. This objective also works to attain an environment-friendly living.

Nature and Significance of Management Notes - Importance of Management

Next, the section of this notes talks about the need for management in a firm. Young learners will understand that management works to form team spirit and coordination among employees. A manager plays a significant role in conducting tasks oriented goals and keeping a tab on completion. They help in improving the efficiency of production and reduction of expenses.  Moreover, they also help employees mentally by offering ways of adaptation and survival.

NCERT Solutions of Nature and Significance of Management Class 12 Notes - Management as Art, Science and Profession

The management works in three ways that are arts, science and professionalism. Managers use their preferred style of supervising possessions and people. They use creativity in the pertaining management method and skills for the improvement of work culture. This feature is quite familiar to the arts stream, making it alike.  Again management is scientific in nature as it concerns the human mind and psychology. Lastly, this stream requires specialised education and skills to handle objectives carefully. This makes it professional in nature.

Apart from these topics, class 12 Business studies chapter 1 notes also carry management related exercises. These questions are crucial to revise for a distinctive marks structure. To achieve this target, students can check the education portal like Vedantu.

They have been working to offer quality study materials, live classes, notes, solutions and more at a budget-friendly price. Students desiring to score well in competitive and general exams can check the app today!

The Nature and Significance of Management class 12 notes by Vedantu provide a comprehensive understanding of business studies chapter 1. These notes, available in PDF format, simplify complex concepts. Management's importance is highlighted, emphasizing its role in achieving organizational goals. Vedantu's notes delve into the fundamental principles and functions of management, making them a valuable resource for Class 12 students. The user-friendly format aids in quick comprehension, ensuring students grasp key ideas easily. Overall, these notes offer a concise and insightful overview of the Nature and Significance of Management, serving as an essential study tool for Class 12 business studies.

FAQs on CBSE Business Studies Chapter 1 - Nature and Significance of Management Class 12 Notes

1. What are the three Levels of Management?

The levels of management in an organisation are determined based on the workload, efficiency, responsibility, and authority of the managers. These levels can be categorised as follows:

Top-level management comprises executives holding the highest position in the organisation, responsible for establishing the overall vision, mission and strategic goals of the organisation.

Middle-level management includes managers who implement the plans and policies made by top-level management and coordinate with lower-level managers.

Lower-level management includes supervisors and team leaders, who monitor and direct the work of non-managerial employees, ensuring that they achieve their targets and goals.

2. What are the functions of management?

Managers carry out a number of connected tasks known as management functions in order to accomplish organisational objectives. These activities include of:

Planning: Setting goals and objectives, coming up with strategies, and making plans to achieve them are all part of planning.

Organising: To accomplish the goals and objectives established during the planning stage, organising entails allocating resources, personnel, and tasks.

Staffing: Employers must be recruited, chosen, trained, and developed in order for them to fulfil their roles in an efficient manner. This process is known as staffing.

Directing: This entails directing and inspiring workers to reach their aims and objectives and ensuring that they are productively contributing to the organisation's overall objectives.

Controlling: To ensure that goals and objectives are met, controlling entails keeping an eye on performance, spotting issues, and taking corrective action.

3. What is coordination? What are its uses?

Coordination takes care of the synchronisation of the healthy functioning of an organisation. Lack of this can lead to duplication, overlapping of work and delay. The three levels of management work simultaneously to produce efficient work. The function of coordination is as follows:

Coordination allows an organisation to achieve common aims and objectives by integrating the efforts of multiple departments and personnel.

Coordination aids in the avoidance of duplication of efforts and the reduction of resource waste.

Coordination provides good communication across departments, organisations, and individuals, which aids in the avoidance of misunderstandings and conflicts.

Optimal resource utilisation: Coordination aids in the efficient and effective utilisation of resources, lowering manufacturing costs and increasing profitability.

Improved decision-making: Coordination assists managers in making informed decisions by delivering accurate and relevant information.

Encourages teamwork: Coordination encourages teamwork among employees, which contributes to the development of a strong work culture and increases morale.

4. What is the importance of management in Class 12 Business Studies?

Management is needed for achieving business goals. Management is important for the production of goods and services. It helps an organization to work as a team and achieve business goals. Management helps in reducing the cost and increasing the production of goods. It helps an organization to face the competition. It also helps the company to use effective and modern strategies for increasing good production and helps in the upliftment of business.

5. What is the meaning of management Class 12 Business Studies?

Management means the collection of all activities and actions that helps in the smooth functioning of the business or an organization. It helps in organizing the different tools that are necessary for the growth of a business. Management means the effective use of men's power, materials, money, and tools for the production of goods and services. Management is an effective strategy that is used by an organization to run business effectively.

6. What are the principles of management Class 12 Business Studies?

Principles of management refer to some sort of truth based on cause and effect. Principles guide us to take proper actions and make decisions. The principles of management can be applied to different companies, either big or small. People following the principles of management can solve their problems easily. Principles can help people to find solutions for their problems. 

7. What is the nature and significance of management?

Management directs an organization to achieve goals. Management is an art and science. It is an art because it involves the creativity of different measures for achieving goals. It is a science because it is based on certain principles and involves systemic knowledge. Management is important because it provides employees with useful tools to enhance productivity, schemes to use the resources, help in making decisions, and also help in adapting to the changing environment.

8. What are the features of management Class 12?

Important features of management include:

Management is goal-oriented in the sense that it strives to achieve specified organisational goals and objectives.

Management ideas and strategies can be used in every organisation, regardless of its size, nature, or location.

Management is an interdisciplinary field that draws ideas and approaches from numerous disciplines such as economics, psychology, sociology, and so on.

Management is a continuous process that entails planning, organising, staffing, directing, and managing activities in order to achieve organisational goals.

Group activity: Management entails collaborating with others and coordinating their efforts to attain organisational goals.

Management is a dynamic function that changes and adapts to the changing environment and organisational requirements.

Management is an intangible job since it requires the application of information, skills, and abilities to attain organisational goals.

Management is a situational function that requires managers to adjust their management approach to various settings and circumstances.

Study Materials for Class 12

• NCERT Solutions
• NCERT Class 12
• NCERT Class 12 Business Studies
• Chapter 1: Nature And Significance Of Management

NCERT Solution for Class 12 Business Studies Chapter 1 - Nature and Significance of Management

NCERT Solutions are helpful books while preparing for the CBSE Class 12 Business Studies examinations. These Solutions of NCERT are collated by the subject matter experts to help students grasp the concepts easily.

Download the PDF of NCERT Solutions for Class 12 Business Studies Chapter 1 – Nature and Significance of Management

carouselExampleControls111

Access NCERT Solutions for Class 12 Business Studies Chapter 1

Short Answer Questions for NCERT Business Studies Solutions Class 12 Chapter 1

1. Define management.

The process of getting things done with the purpose of achieving goals efficiently and effectively is called management. In other words, management can be defined as the process of planning, organising, staffing and controlling so as to achieve the goal of the organisation with minimal resource usage.

2. Name any two important characteristics of management .

Two important characteristics of management are a pervasive and continuous process. It is pervasive as the impact of management spans all aspects of business, irrespective of the organisation, while it is a continuous process as it performs various functions like planning, organising, directing, staffing and controlling simultaneously.

3. 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?

Ritu functions as the middle-level management in the organisation. She works as a link between the top-level management and workers. The following will be her basic functions:

1. Understanding the policies set by the top management.

2. Communicating with the top and low levels of management.

3. Motivate employees to achieve productivity.

4. Coordinate with cross-functional heads to maintain transparency.

5. Assigning tasks to various departments under control.

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

It is regarded as a multi-faceted concept due to the following reasons:

1. It involves managing the work, which is meeting the objectives over a period of time. It can also be said to be the goals that need to be achieved.

2. Work is done by the people, therefore, managing the people is a very important part of management which can be in the form of teams or groups of individuals. Management helps in identifying the strengths and weaknesses of the people.

3. An organisation will be involved in production where inputs get transformed into products or some kind of service. There needs to be continuous monitoring of such production processes to ensure proper output. Here, management is required.

5. Discuss the basic features of management as a profession.

The following are the basic features of management as a profession:

1. 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 and enrolling in management courses.

2. Management is regulated by a professional association which looks at the functions of its members. In India, AIMA, or the All India Management Association, is the governing body for managers. Joining the organisation is not compulsory.

3. Professional knowledge is a required criterion and is given preference over degrees. The lack of professional experience is a deterrent for people looking to choose a profession.

4. Only through proper management the business will grow. The guiding principles will help in ensuring the smooth functioning of the organisation. Quality goods and services can be made available with management.

Long Answer Questions for NCERT Business Studies Solutions Class 12 Chapter 1

1. Management is considered to be both an art and a science. Explain.

Management can be regarded as both an art as well as a science from the following points:

A. Management as Art

1. Management has a well-defined literature which is required for gathering knowledge in the theories and accelerating learning. There are many examples of management literature which is available such as Taylor’s Scientific Management Theory and Henry Fayol’s 14 Principles of Management. These theories help in understanding the various concepts of management.

2. Management knowledge can be utilised by everyone in their own way, very much like arts where words can be expressed in the form of writing differently by different poets and music notes arranged by musicians to perform a musical piece, or the use of colours by a painter to draw vivid paintings. Similarly, managers use various theories and principles in trying situations to make use of management knowledge.

3. Arts is all about expressing and innovating using creativity, such as two artists will enact the same scene in two different ways. Similarly, two different managers will be managing the situation differently. Sometimes managers can come up with innovative and fresh ideas to address the situation.

Management as Science

1. Science is a systematic discipline, and management also shares similar characteristics. Like science, management also relies upon theories and principles to address issues that arise. Management has a separate vocabulary and terms that it uses to define certain processes.

2. Theories in science have been developed after prolonged observation and repeated experiments. Similarly, to some extent, management also bases its theories on regular observation and experiments, such theories will act as guidelines for management in the long run.

3. Scientific theories have universal validity, and in management, we also see the principles are to some extent universally valid, and some can change as per the situation. Such theories and principles can be used as basic information for training managers.

2. Do you think management has the characteristics of a full-fledged profession?

Management does not have the characteristics of a full-fledged profession, but it does have some qualities which make it eligible to be called a profession. These are mentioned below.

2. Management is regulated by a professional association which looks at the functions of its members. In India, AIMA or, the All India Management Association, is the governing body for managers. Joining the organisation is not compulsory.

5. All business organisations look to provide the best services to the people at the best quality, thereby serving society.

3. Coordination is the essence of management. Do you agree? Give reasons.

Coordination is essential in management as it helps in binding together all other functions of the management. All the activities, such as sales, purchase and production, are based on coordination with management. The following points will help establish coordination as the essence of management:

1. The combination of efforts of all the groups increases productivity and also provides a common focus to all the group efforts.

2. It is a continuous process and is not a one-time effort. Coordination begins at the planning stage and is concluded at the controlling stage.

3. Coordination is a pervasive function, as it is required at all levels of management. As all management activities are interdependent, coordination improves the efforts at various levels among all departments.

4. It ensures that all the combined efforts of the departments act as a unity which binds all actions together and helps an organisation achieve goals in a better way.

5. It is a deliberate function, as everyone is performing it deliberately. The tasks are done with the objective of achieving the objectives and goals of the organisation.

6. All the departments come together and communicate regarding the work to be done in an organisation. This communication requires coordination among employees.

4. A successful enterprise has to achieve its goals effectively and efficiently. Explain .

Management is defined as the process of getting things done with the purpose of achieving goals efficiently and effectively. The terms effective and efficient are key terms in management and play an important role in the functioning of management.

Effectiveness refers to the process of completing a given work in the time provided. It is the process of doing a task with a primary focus on end result. It is considered a very important aspect of management which helps in achieving goals. Efficiency is the process of completing a given task with minimal use of resources and cost.

For an organisation to be successful, both these factors play a critical role in meeting the objectives of the organisation. Effectiveness helps in achieving the defined goals, while efficiency helps in achieving that with minimum resources and cost. Reducing the cost and resources brings profits for the organisation and also increases it. Therefore, it is essential for an organisation to focus on both effectiveness and efficiency. It is important to complete the work on time, along with minimum resources. Similarly, it is essential to reduce the cost of production and finish the production at the decided time. Hence, successful companies need to be both efficient and effective at the same time in order to gain profits in the long run.

5. Management is a series of continuous, interrelated functions. Comment.

Management is a series of continuous, interrelated functions. It can be explained with the help of the following points:

Management comprises the following functions that work together:

1. Planning: It is the process of determining what works need to be done, who will do it and how it should be done. It involves setting up goals which need to be achieved and determining the ways in which they can be achieved. It helps in laying down a framework based on which the activities can be implemented. It is often said to be the most important step in management.

2. Organising: Planning is followed by Organising. It is the process of identifying tasks and the appropriate resources that are required for executing the plan. Organising allots separate tasks to different departments with a defined plan. The hierarchy is well established, which leads to work being carried out with efficiency and effectiveness.

3. Staffing: Staffing is the process of allotting specialised personnel for specialised work. In other words, hiring the right person for the job. It is a part of human resources and involves hiring and training people.

4. Directing: It is one of the important functions of a manager, which involves directing the human resources to work in an effective manner. It also involves providing motivation to the workers so as to drive productivity.

5. Controlling: Controlling is necessary as it checks if the assigned work is progressing in the right direction or not. It generally involves assessing the work done with the goals of the organisations. By measuring the extent of work, managers ensure that there is no error or discrepancy. If any such errors surface, then appropriate steps will be undertaken so as to rectify the issue.

So, all these make us understand that management functions are interdependent on each other in order to function properly.

The NCERT Solution for Class 12 Business Studies Chapter 1 – Nature and Significance of Management provide us with a brief presentation of the concepts. It furnishes a clear picture of what are the nature and Significance of Management.

• Definition of Management – Management is the process according to which a cooperative group directs the actions of others towards common goals.
• Concepts of Management
• Traditional concept
• Modern concept

The NCERT Solutions for Class 12 Business Studies Chapter 1 provide a broad degree of illustrative examples, which helps the students to comprehend and learn quickly. The above-mentioned are the topics covered in the Class 12 CBSE syllabus. For more solutions and study materials of NCERT Solutions for Class 12 Business Studies, visit BYJU’S or download the app for the best learning experience.

Leave a Comment Cancel reply

Your Mobile number and Email id will not be published. Required fields are marked *

Request OTP on Voice Call

Post My Comment

Thank You Byjus for Indias best learning point

Register with BYJU'S & Download Free PDFs

Register with byju's & watch live videos.

Case Studies - Nature and Significance of Management | Business Studies (BST) Class 12 - Commerce PDF Download

Q.1. Dheeraj is working as ‘Operations Manager’ in Tifco Ltd. Name the managerial level at which he is working. State any four functions he will perform as ‘Operations Manager’ in this company.    (5 marks) Ans.   Dheeraj is working at the middle management level as an Operations Manager in Tifco Ltd.

Four functions he will perform as an Operations Manager in this company include:

Planning : Dheeraj will be involved in strategic and operational planning for the company's operations, including setting objectives, defining strategies, and developing plans to achieve organizational goals efficiently.

Organizing : He will be responsible for organizing resources, such as manpower, materials, and equipment, to ensure smooth and effective operations. This may involve designing workflows, establishing work schedules, and allocating resources appropriately.

Directing : Dheeraj will provide leadership and direction to the operations team, ensuring that employees understand their roles and responsibilities and guiding them to achieve desired performance outcomes. He will also motivate and inspire team members to work towards common objectives.

Controlling : He will monitor and evaluate the performance of operations against predetermined goals and standards, identifying deviations and taking corrective actions as necessary to ensure that operations remain on track. This may involve implementing quality control measures, cost-control initiatives, and process improvements to enhance efficiency and effectiveness.

Q.2. Volvo Ltd’s target is to produce 10000 shirts per month at a cost of Rs. 100/- per shirt. The Production Manager achieved this target at a cost of Rs. 90/- per shirt. Do you think the ‘Production Manager’ is effective? Give one reason in support of your answer.     (1 mark) Ans.  Yes, the Production Manager is effective because he has completed the task and achieved the goal of producing 10000 shirts. He is efficient also as he has achieved the target at a lower cost. Q.3. Yash Ltd. is facing a lot of problems these days. It manufactures electronic goods like washing machines, microwave ovens, refrigeration and air-conditioners. The company’s margins are under pressure and the profits and market marketing department blames production department for producing goods, which are not of good quality to meet customers’ expectations. The finance department blames both production and marketing departments for declining return on investment and bad marketing. 1.  What quality of management do you think the company is lacking? Justify your answer. 2.  State the importance of the concept identified in (a).        ( 5 marks) Ans. 

Quality Management : The company, Yash Ltd., seems to be lacking effective quality management.

• Complaints about product quality indicate that the production department may not be implementing quality control measures effectively.
• Declining return on investment suggests inefficiencies in resource allocation and management, which could be attributed to inadequate quality management practices.
• The blame game between different departments (production, marketing, finance) indicates a lack of coordination and accountability in addressing quality issues, further highlighting the need for effective quality management.

Importance of Effective Quality Management :

• Customer Satisfaction : Quality management ensures products meet or exceed customer expectations, driving satisfaction and loyalty.
• Competitive Advantage : Maintaining high-quality standards gives a competitive edge, differentiating the company's offerings and building a reputation for excellence.
• Cost Reduction : Quality management practices lead to cost savings by reducing waste, rework, and warranty claims.
• Enhanced Reputation : Consistently delivering high-quality products enhances the company's reputation, trust, and credibility.

Q.4. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy products in Maharashtra state. Aman is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Ahmad had done his post graduation in History and Ally in dairy farming. One day there was a serious discussion between Ahmad and Ally regarding the nature of management. Ahmad argued that management was a profession whereas Ally argued against it saying that the legal and medical professions are the only professions because they fulfill all the conditions of profession. Aman on the basis of his knowledge of business studies explained the nature of management as a profession to Ahmad and Ally. Explain, how Aman would have satisfied both Ahmad and Ally.           (6 marks) Ans.  Aman would have satisfied Ahmad and Ally with the following points. (i) The existence of a body of knowledge:  Management is based on a systematic body of knowledge comprising well-defined principles based on a variety of business situations. This knowledge can be acquired at different colleges and professional institutes and through a number of books and journals. The subject of management is taught at different institutions. (ii) Acquisition of knowledge, training and experience:  Like profession managerial skill and knowledge can only be enhanced through training and experience. Though in small business firms, management training may not be provided formally but gained through experience. (iii) Establishment of professional association:  Like professional associations there are several associations of practising managers in India, like the AIMA (All India Management Association) that regulate the activities of their members. (iv) Ethical code of conduct:  The professional associations have also laid down their code of conduct to regulate activities of their members. (v) Service motto:  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. Q.5. To meet the objectives of the firm, the management of Bhavya Ltd. offers employment to physically challenged persons. Identify the organizational objective it is trying to achieve. Give reason in support of your answer .       (1 mark) Ans.  Growth, since number of employees is increasing, it leads to increase in production and hence the growth of the company. Q.6. B Ltd. wants to modify its existing product, CD players in the market due to decreasing sales. What decisions/steps should each level of management take to give effort to this decisions?        (6 marks) Ans. 

Top Management :

• Decision : Set strategic direction and objectives for the product modification initiative.
• Evaluate market trends and customer preferences to understand the reasons behind decreasing sales.
• Define clear goals and objectives for modifying the CD players, such as improving features, reducing costs, or targeting new market segments.
• Allocate resources and budget for research, development, and marketing efforts related to the product modification.
• Provide leadership and support to ensure alignment with the company's overall strategic objectives.

Middle Management :

• Decision : Develop and implement plans to modify the CD players according to the strategic direction set by top management.
• Coordinate cross-functional teams, including product development, marketing, and operations, to execute the modification plans.
• Conduct market research and analysis to identify specific changes or improvements needed to address customer preferences and market demands.
• Collaborate with suppliers and partners to source necessary components or technologies for the modified CD players.
• Oversee the design, testing, and production processes to ensure quality and timely delivery of the modified products.

Lower Management/Supervisory Level :

• Decision : Execute day-to-day activities and monitor progress towards achieving the objectives set by middle management.
• Assign tasks and responsibilities to employees involved in the modification process, ensuring clear communication and accountability.
• Supervise the implementation of plans, providing guidance and support to address any challenges or obstacles encountered.
• Monitor key performance indicators (KPIs) related to product modification, such as development timelines, production costs, and sales projections.
• Collect feedback from frontline employees and customers to identify areas for improvement and make necessary adjustments to the modification plans.

Q.7. Sonali is the manager of a large company manufacturing garments for kids. She plans her winter collection in the month of August itself. Then, she ensures that there is adequate workforce. She continuously monitors whether production is proceeding according to plans. She asks the marketing department to prepare their promotional and advertising campaigns also. 1.  Identify and explain the concept of management explained in the above para. 2.  What characteristic feature does the above para highlight?  State.            (5 marks) Ans. 

Concept of Management : The concept of management illustrated in the above paragraph is planning . Planning involves setting objectives, identifying courses of action, and allocating resources to achieve those objectives efficiently. Sonali, as the manager of the garment manufacturing company, engages in several planning activities:

She plans her winter collection in advance, indicating strategic planning to meet seasonal demand.

Sonali ensures there is an adequate workforce , demonstrating operational planning to align resources with production requirements.

She continuously monitors production progress , suggesting tactical planning to ensure that activities are on track and adjustments can be made as needed.

Sonali also coordinates with the marketing department to prepare promotional and advertising campaigns, emphasizing integrated planning across different functional areas of the organization.

• Characteristic Feature Highlighted : The characteristic feature highlighted in the paragraph is proactive management . Sonali demonstrates a proactive approach by planning her winter collection in advance, ensuring there is adequate workforce availability, and continuously monitoring production progress. By taking these proactive measures, Sonali anticipates and prepares for future events and challenges, rather than reacting to them after they occur. This proactive management style enables the company to better meet customer demands, optimize resources, and achieve its business objectives efficiently.

Q.8. H. Tech Ltd. is a company producing IT services. The company’s profits are enough for the survival and growth. The management of the company believes that a satisfied employee creates a satisfied customer, who in turn creates profits that lead to satisfied shareholders. So, it pays competitive salaries and perks to its all employees. All the employees are happy working in the organization because of personal growth and development. The company has a strong sense of social responsibility. It has set up an engineering college in which one-third of the students are girls to whom the company gives 50% scholarship. Is the management of H. Tech Ltd. fulfilling its objectives? Justify your answer by giving reasons.             (6 marks) Ans.  Yes, the management of H. Tech Ltd. appears to be fulfilling its objectives effectively. Here's the justification:

Employee Satisfaction and Growth : The management believes that satisfied employees lead to satisfied customers and ultimately, satisfied shareholders. By paying competitive salaries and offering perks, the company ensures that its employees are content and motivated. This focus on employee satisfaction contributes to a positive work environment and fosters loyalty and commitment among the workforce.

Customer Satisfaction : The company's emphasis on employee satisfaction as a driver of customer satisfaction aligns with its objective of providing quality IT services. Satisfied employees are more likely to deliver excellent service to customers, leading to higher levels of customer satisfaction and retention. This, in turn, contributes to the company's profitability and growth.

Social Responsibility : By setting up an engineering college and offering scholarships to girls, H. Tech Ltd. demonstrates a strong sense of social responsibility. This initiative not only benefits the community by promoting education and gender equality but also helps the company build a positive reputation and goodwill among stakeholders.

Profitability and Shareholder Satisfaction : The company's profitability, coupled with its commitment to employee satisfaction, customer service, and social responsibility, indicates that it is meeting the needs and expectations of its shareholders. Satisfied shareholders are likely to continue investing in the company and support its growth and expansion efforts.

Q.9. Govinda Ltd. is a highly reputed company. Different functions are performed by different individuals in this company, who are bound together in a hierarchy of relationships. Every individual in the hierarchy is responsible for successful completion of a particular task. Mr. Gauranga is responsible for the welfare and survival of the organization. He formulates overall organizational goals and strategies for their achievement. MR. Nityanand ensures that quality of output is maintained, wastage of materials is minimized and safety standards are maintained. Mr. Sanatan assigns necessary duties and responsibilities to the personnel and motivates them to achieve desired objectives  At what levels of management are MR. Gauranga, Mr. Nityanand and Mr. Sanatan working in Govinda Ltd.?  Justify your answer.          (3 marks) Ans. 1. Mr. Gauranga is working at the top level management. He is responsible for the welfare and survival of the organization.He formulates overall organizational goals and strategies for their achievement. 2. Mr. Nityanand is working at the lower level management . He ensures that quality of output is maintained, wastage of materials is minimized and safety standards are maintained.

3. Mr. Sanatan is working at the middle level management. He assigns necessary duties and responsibilities to the personnel and motivates them to achieve desired objectives. Q.10. The management of Vrinda Ltd. strongly believes that the members of an organization should work towards fulfilling the common organizational goals. This requires team work and integration of efforts of all individuals, departments and specialists. This is because all the individuals and departments depend on each other for information and resources to perform their respective activities. Managers need to reconcile differences in approach, timing, effort or interest. At the same time it should enable all its members to grow and develop. Thus, there is a need to harmonize individual goals and organizational goals. 1. Identify the concept of management discussed above. 2. State any three features of the concept identified in (a). 3.  Identify and explain the characteristic of management which is reflected from the above para.         (6 marks) Ans. 

Concept of Management : The concept of management discussed above is organizational integration and teamwork .

Features of the concept:

• Integration of Efforts : It emphasizes the need for coordination and collaboration among individuals, departments, and specialists to achieve common organizational goals.
• Interdependence : Recognizes that all individuals and departments rely on each other for information and resources to perform their respective activities.
• Harmonization of Goals : Highlights the importance of aligning individual goals with organizational goals to ensure that all members work towards a common purpose.

Characteristic of Management reflected:

• Coordination : The characteristic of coordination is reflected in the paragraph. Coordination involves reconciling differences in approach, timing, effort, or interest among individuals and departments to ensure that organizational goals are achieved efficiently. By emphasizing the need for teamwork, integration of efforts, and harmonization of goals, the management of Vrinda Ltd. demonstrates its commitment to coordinating activities across the organization to achieve common objectives.

Planning Function :

• "Sanjana decides quantities, variety, colour and texture of all the above items..." - This line reflects the planning function of management. Sanjana is involved in strategic planning by determining the quantities, variety, and characteristics of the handicraft products.

Organizing Function :

• "She appoints a team of designers and craftspeople in the company..." - The appointment of a team of designers and craftspeople demonstrates the organizing function. Sanjana is organizing resources by assembling a skilled team to contribute to the development of products.

Directing Function :

• "Praising their effort, Sanjana suggested..." - The act of praising the team and providing suggestions represents the directing function. Sanjana is providing guidance and direction to the team, encouraging positive efforts.

Controlling Function :

• "Although they looked very impressive, they were more expensive than they had planned to sell." - This line highlights the controlling function. Sanjana is assessing the results of the team's efforts and identifying an issue (higher cost than planned), indicating the need for corrective action.

Coordinating Function :

• "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..." - This suggests the coordinating function. Sanjana is aligning the product offerings with market demand, coordinating the release of silk bed covers for special occasions and offering more affordable cotton bed covers regularly.

Q.12. 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. 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. The company also decided to open schools and crèches for the children of its employees. 1.  Identify and explain the objectives of management discussed above. 2.  The company is fulfilling the organizational and social objectives of management.             (4 marks) Ans.  1.  The company is fulfilling the organizational and social objectives of management. Organizational objectives  include survival, profit and growth: (i) In order to survive, XYZ Power Ltd. earns enough revenues. (ii) Company’s profits are sufficient to the cover the costs and the risks. (iii) Since demand for lanterns was increasing day by day and so the company decided to increase production to generate higher sales, it implies that the company exploits fully its growth potential. (iv) Social objectives involve the creation of benefits for the society. (v) The company decided to employ people from the nearby villages as very few job opportunities were available in that area. It also decided to open schools and crèches for the children of its employees.’ 2.  Values (i) Providing employment opportunities in rural areas (ii) Concern for the environment (iii) Socially responsible behavior (iv) Community development by opening schools and crèches for children (any two)

Q.13. Nishtha is the marketing 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, after comparison of actual sales with the target sales she found that actual sales exceeded the target sales. She rewards the efficient employees to motivate them. 1.  How does Nishtha prove the importance of management?  Explain. 2.  Also state any two values which she wants to communicate to the society by her behavior .        ( 5 marks) Ans. 

Nishtha demonstrates the importance of management through her actions in planning, organizing, leading, and controlling the sales activities of the company:

• Planning : By setting a target sale of 2000 laptops per month, Nishtha establishes clear objectives for the sales team, providing direction and focus for their efforts.
• Organizing : Nishtha allocates necessary resources, such as sales staff and promotional materials, to carry out the sales plan effectively, ensuring that the team has the support needed to achieve their goals.
• Leading : Nishtha works closely with her sales team, providing guidance, support, and motivation to help them achieve the target sales. Her leadership fosters a positive work environment and encourages collaboration and teamwork.
• Controlling : Nishtha monitors the performance of the sales team and compares actual sales with the target sales, allowing her to assess progress and take corrective action as needed. By rewarding efficient employees, she reinforces desired behavior and encourages continuous improvement. Overall, Nishtha's management skills contribute to the success of the sales department and the company as a whole, highlighting the importance of effective management in achieving organizational objectives.

Values communicated by Nishtha's behavior:

• Efficiency and Excellence : Nishtha's recognition and reward of efficient employees communicate a value of efficiency and excellence. By acknowledging and incentivizing high performance, she promotes a culture of excellence within the organization and encourages employees to strive for success.
• Fairness and Equity : Nishtha's practice of rewarding efficient employees demonstrates a commitment to fairness and equity. By recognizing and rewarding employees based on their performance, rather than favoritism or bias, she reinforces principles of fairness and meritocracy in the workplace, promoting a positive and inclusive work environment.

Q.14. 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 months, 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". Ans.   In evaluating Sooraj's effectiveness in his work, we need to consider both his ability to achieve his sales target and the strategies he employs to do so.

Sooraj's ability to meet his monthly sales target of 1200 units is commendable. However, his decision to offer a higher discount (15%) on the last two days of the month to push sales raises some concerns about the sustainability of his approach.

While offering discounts can sometimes be an effective strategy to stimulate sales, relying on such tactics to meet targets may indicate a short-term focus rather than a sustainable, long-term approach. By offering a higher discount only at the end of the month, Sooraj may be sacrificing profitability and potentially undermining the company's pricing strategy.

Additionally, Sooraj's reliance on last-minute discounts to achieve his targets may mask underlying issues with his sales techniques or customer engagement throughout the month. If Sooraj is consistently falling short of his targets and resorting to last-minute discounts as a quick fix, it suggests a need for improvement in his sales approach and customer relationship management skills.

Q.15. 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 100 units of denim jackets made in 15 days @ Rs. 2000 per jacket. She is able to complete her target production in 20 days because in order to complete it he 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 Rs. 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". Ans.   In assessing Sujata's efficiency in her work, we need to consider her ability to meet the production target within the specified time frame and at the expected cost.

Sujata's completion of the production target of 100 units of denim jackets demonstrates her effectiveness in delivering the desired output. However, her inability to complete the order within the originally specified time frame of 15 days raises concerns about her efficiency.

While Sujata was able to complete the production in 20 days, she had to extend the production timeline due to not making the workers work overtime. This decision likely led to increased production costs, as she mentions that completing the order in 15 days would have resulted in a higher cost of production per jacket by Rs. 100.

Efficiency in this context would involve completing the production target within the specified time frame while minimizing costs. Sujata's decision to prioritize regular working hours for her workers may have contributed to a more sustainable and equitable work environment. However, the increased production costs incurred by extending the production timeline suggest a potential inefficiency in her work.

Q.16.  "Anju and Manju are good friends. Considering the cast 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 tales up a marketing job in a retail company and strives to increase sales where as 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. Ans. 

Common Activities in Managing an Enterprise :

• "Considering the fact that the activities involved in managing an enterprise are common to all organizations..." - This line highlights the commonality of management activities across different types of organizations, suggesting that fundamental management principles apply universally.

Diverse Job Roles :

• "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." - This line illustrates how Anju and Manju pursue different career paths aligned with their individual areas of interest, showcasing the diversity of job roles within the field of management.

Continuous, Composite Functions :

• "Both of them have to perform a series of continuous, composite, but separate functions." - This line emphasizes that management involves performing a variety of interconnected functions continuously, indicating the complexity and dynamic nature of managerial roles.

Planning and Problem-Solving :

• "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." - This line highlights the importance of planning and problem-solving in management, indicating that managers like Anju engage in activities aimed at both long-term strategic planning and day-to-day operational issues.

Building Team Spirit and Coordination :

• "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." - This line underscores the role of managers in fostering a positive work culture and promoting teamwork and coordination among employees, regardless of the organizational context.

Achieving Targets, Employee Satisfaction, and Orderliness :

• "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." - This line highlights the outcomes of effective management, including the achievement of targets, high employee satisfaction, and the maintenance of order and efficiency in organizational functioning.

Q. 17. 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: 1.  Identify and explain the various types of objectives of management being fulfilled by Real Alliance Ltd by quoting lines from the paragraph. 2.  List any two values that real Alliance Ltd. wants to communicate to the society. Ans. 

Objectives of Management Fulfilled by Real Alliance Ltd :

• Profitability Objective : "It is able to earn adequate revenues to cover costs." - This line indicates that Real Alliance Ltd fulfills the profitability objective of management by generating sufficient revenues to cover its costs and ensure financial sustainability.
• Employee Satisfaction Objective : "The employees of the company are happy and satisfied with their remuneration, working conditions, promotion policy etc." - Real Alliance Ltd satisfies the objective of employee satisfaction by ensuring that its employees are content with their remuneration, working conditions, and promotion policies.
• Social Responsibility Objective : "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." - Real Alliance Ltd fulfills the social responsibility objective of management by taking initiatives to provide employment opportunities to specially abled persons and promote literacy in the villages it has adopted.

Values Communicated by Real Alliance Ltd to Society :

• Social Responsibility : Real Alliance Ltd communicates a value of social responsibility by taking initiatives to provide employment to specially abled persons and promote literacy in the villages it has adopted. This demonstrates the company's commitment to making a positive impact on society beyond its core business activities.
• Employee Welfare : Real Alliance Ltd communicates a value of employee welfare by ensuring that its employees are happy and satisfied with their remuneration, working conditions, and promotion policies. This reflects the company's commitment to valuing and prioritizing the well-being of its workforce.
• Specialization

Q.35. Mr. Rajiv and Arun are responsible for welfare of the whole organization. Their job is very complex they have to develop long term objectives, policies and review the work of different heads at different level. Mr. John and Mr. Singh are responsible for the working of department they are heading, they formulate short term departmental objectives in accordance with organizational objectives. Mr. Philip, Mrs. Archana, Mrs. Kamlesh and Mrs. Kavita are in direct contact with the workforce consisting of various employees and workers.  They are responsible for quality of work and providing good working conditions to workers. 1.  State the three level of management. 2.  Name the persons who are involved in different level from the above para. Ans.  1. Top level, middle level, supervisory level. 2. (a) Top level – Mr. Rajiv and Arun

(b) Middle level – Mr. John and Singh (c) Supervisory level – Mr. Philip, Mrs. Archana, Kamlesh and Kavita

Q.36. The manager of Alpha Ltd. is very efficient and effective and makes sure all the employees and workers in his team perform the task on time with minimum cost. His main focus is on cost cutting so he never listens to the demand of workers for increasing wages.  He even gives no opportunity to worker for promotion. As a result workers started becoming frustrated and disheartened all the time. 1.  Which objective of management could not be achieved by the manager. 2.  State other two objectives of management. 3.  State any one value ignored by the manager. Ans. 1.  Personal/Human or individual objective. (i) Economic (ii) Social 2.  Value of humanity, Care. Q.37. The management of Amaira Ltd. strongly believes that the members of the organization should work toward fulfilled the common organizational goals. This requires team work and integration of efforts of all individuals departments and specialists. This is because all the individuals and departments depend on each other for information and resources to perform their respective activities. Manager needs to reconcile differences in approach, timing, efforts and interest. At the same time it should enable all its members to grow and develop. Thus, there is a need to harmonize individual goals and organizational goals. 1.  Stat the concept of management discussed above. 2.  State any three features of the concept identified in above para. 3.  State value referred in above para. Ans. 1.   Coordination. 2. Give features of coordination. 3. Value of Harmony between employees and management. Q.38. Mega Ltd. manufactured water-heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its cost. To increase the revenue, the company analysed the reasons behind the less revenues. After analysis, the company decided: 1.  To reduce the labour cost 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 meting other objectives. 1.  Identify and explain the objectives of management discussed above. 2.  State any two values which the company wanted to communicate to society. Ans.  1.  The objectives of management discussed above are: (i) Organizational objectives (ii) Social Objectives 2. The two values that the company wanted to communicate to the society are: (i) Rural development (ii) Environment sustainability Q.39. Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organization?  What are he basic functions? Ans.  Ritue / grandfather / Deepak’s father / Deeraj / Rajat, all of them are working at the middle level of management. Q.40. 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. Ans.  Yes, according to me, Mr. Singhania should send his son to USA for his MBA because management is being recognized as a profession to a great extent because of the following reasons: 1. Well defined body of knowledge 2. Ethical code of conduct 3. Service motive Q.41.  "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 executives. A typical day at work in Jayant’s life consists of a series of interrelated and continuous functions. He decides the targets for his department which are in line with the objectives of the organizaitonas 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 Paid 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 work force in his department. Through constant guidance and motivation, Jayant inspires them to realize 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 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 liens from the paragraph . Ans.  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: (i) Planning (ii) Organizing (iii) Staffing (iv) Directing (v) Controlling Q. 42.  "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 discounted 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: 1. 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. 2.  List any two values that are reflected in this act of Ajay. Ans.  1.   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:- (i) Restricted entry (ii) Professional association 2.  The two values that are reflected in this act of Ajay are: (i) Compassion (ii) Responsibility

Top Courses for Commerce

FAQs on Case Studies - Nature and Significance of Management - Business Studies (BST) Class 12 - Commerce

mock tests for examination

Case studies - nature and significance of management | business studies (bst) class 12 - commerce, previous year questions with solutions, video lectures, sample paper, practice quizzes, shortcuts and tricks, important questions, objective type questions, study material, semester notes, viva questions, extra questions, past year papers.

Case Studies - Nature and Significance of Management Free PDF Download

Importance of case studies - nature and significance of management, case studies - nature and significance of management notes, case studies - nature and significance of management commerce questions, study case studies - nature and significance of management on the app.

Welcome Back

Create your account for free.

Forgot Password

Unattempted tests, change country, practice & revise.

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management updated for Session 2024-25. All the answers are prepared as per new syllabus issued by CBSE. Class 12 Business Studies Part 1 Chapter 1 is given here with all types of questions.

Class 12 Business Studies Chapter 1 NCERT Solutions

• Class 12 Business Studies Chapter 1 Solutions
• Class 12 Business Studies Chapter 1 MCQ
• Very Short Answers Questions Chapter 1
• Short Answers Questions Chapter 1
• Long Answers Questions Chapter 1
• Study Material English Medium
• NCERT Book Chapter 1 in English
• Study Material Hindi Medium
• NCERT Book Chapter 1 in Hindi
• Class 12 Business Studies NCERT Solutions
• Class 12 all Subjects NCERT Solutions

Class 12 Business Studies Chapter 1 Short Answer Type Questions

What is management.

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

Why is management considered both an art and a science?

Management is an art because it involves the skillful application of knowledge to achieve desired results. It is considered a science because it has a systematized body of knowledge and follows general principles.

What are the functions of management?

The functions of management include planning, organizing, staffing, directing, and controlling.

What does effectiveness in management entail?

Effectiveness in management means completing activities and achieving goals, essentially doing the right task and reaching the intended end result.

How does efficiency relate to management?

Efficiency in management refers to doing tasks correctly with minimum cost, involving a cost-benefit analysis to maximize resource utilization.

Can management be considered a profession, and why?

Management shares some characteristics with professional fields, such as a systematic body of knowledge and educational pathways. However, it lacks strict entry regulations like other professions and cannot be called a profession.

What is the role of coordination in management?

Coordination in management involves synchronizing the efforts of various departments and aligning activities and efforts towards achieving organizational goals effectively.

What is meant by management? Management is defined as the process of planning, organizing, staffing, directing and controlling an organization’s operations in order to achieve coordination of the human and material resources essential in the effective and efficient attainment of objectives.

Name any two important characteristics of management. Two important characteristics of management are: Pervasive: The activities involved in managing an enterprise are common to all organizations whether economic, social or political. A petrol pump needs to be managed as much as a hospital or a school. What managers do in India, the USA, Germany or japan do the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history. Continuous: The process of management is a series of continuous, composite, but separate functions (planning, organizing, directing, staffing and controlling). These functions are simultaneously performed by all managers all the time. You may have observed that fabmart performs several different tasks in a single day. Some days it spends more time in planning a future exhibition and on another day it’s may spend time in sorting out an employee’s problem. The task of a manager consists of an ongoing series of functions.

Identify and state the force that binds all the other functions of management. Coordination is the force that binds all the other functions of management. Coordination is the process of achieving unity of action among interdependent activities and department of an organization. In other words, process of synchronizing the activities of different departments.

List any two indicators of growth of an organization. Two indicators of growth of an organization area:

• Organization is growing when the company is earning profit which increases continuously then it is considered as growing organization.
• When there is an increase in the sale volume and capital investment.

Indian Railways has launched a new broad gauge solar power train which is going to be a path breaking leap towards making trains greener and more environment friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12, 00,000 per year. Name the objectives of management achieved by Indian Railways in the above case. Social Objective: The Indian railway achieves social objective for the benefit of society and uses environmental friendly method.

Class 12 Business Studies Chapter 1 Important Question Answers

Why is planning considered a critical management function.

Planning involves setting objectives and deciding in advance the best course of action to achieve these goals, making it essential for systematic growth and achieving efficiency.

What does organizing entail in management?

Organizing in management refers to arranging resources and tasks in a structured way to achieve the organization’s goals, involving the delegation of authority and assignment of responsibilities.

What is the importance of staffing in management?

Staffing ensures that the organization has the right people with the right skills in the right positions to achieve its objectives, which involves recruitment, selection, and placement.

Describe the directing function of management.

Directing is about leading, motivating, and providing direction to staff to ensure they work towards the organization’s goals. It includes supervision,leadership, communication, and motivation.

What does controlling involve in management?

Controlling involves setting performance standards, measuring actual performance, and taking corrective actions to ensure that organization’s objectives are achieved.

How do top managers contribute to an organization?

Top managers set overall goals, formulate strategies, and ensure the organization’s long-term survival and growth by aligning various departments towards common objectives.

What are the tasks of middle management?

Middle managers translate top management strategies into operational plans, coordinate departments, and ensure resources are available to achieve these plans.

What is the role of supervisory or operational management?

Supervisory managers directly oversee the work of frontline employees, ensuring tasks are performed efficiently and effectively, maintaining quality and meeting production targets.

What is the significance of the systems approach in management?

The systems approach views the organization as a system composed of interrelated parts, emphasizing the importance of coordination and interaction between these parts for organizational success.

Rita is a manger of the northern division of a large corporate house. At what level does she work in the organization? What are her basic functions? Rita being the manager of the northern division of the organization is in the middle- level management. She and others managers like her act as a link between the top management and the operational management. Her main task is to oversee the implementation of the plans and policies formulated by the top management by directing and supervising the functions of the lower management. 1. Top Management 2. Middle Management 3. Operational Management The following are her basic functions. 1. Interpreting the policies formulated by the top management. 2. To make sure that each department under her division has the required personnel and staff for carrying out the assigned work.

• To assign the necessary duties and responsibilities to the persons working in various departments.
• To encourage and motivate personnel towards achieving the goals.
• Co-operate with other departments for smooth functioning of the organization.

Discuss the basic features of management as a profession. The following are the basic features according to which management can be viewed as a profession.

• Systemized Knowledge: Management is based on a systemized and well-defined body of knowledge comprising of principles and theories. This knowledge can be attained through various colleges, institutes and books.
• Professional Association: As every profession, management is also affiliated to a professional association that regulates the functions of the members. For example, in India the AIMA (All India Management Association) regulates the functioning of its member managers. However, there is no compulsion for every manager to be member of the association.
• Restriction to Entry: Although no specific qualifications or degrees are required to be a manager, however, professional knowledge in terms of management degrees and diplomas are preferred. To some extent, this restricts the entry of people in management as profession.
• Code of Conduct: Every profession follows a particular code of conduct that acts as a guiding principle for the ethical behavior of its members. Through good management, the production takes place in an effective and efficient manner and quality goods and services are provided to the society at a fair price.

Class 12 Business Studies Chapter 1 New Pattern Question Answers

How does globalization affect management practices.

Globalization requires managers to adapt and manage across cultural, geographical, and economic boundaries, necessitating a broader understanding of global markets and practices.

What impact does technology have on management?

Technology influences management through the introduction of new tools and platforms for communication, data management, and operations, enhancing efficiency and enabling more informed decision-making.

Why is ethical conduct important in management?

Ethical conduct ensures that the organization and its managers act responsibly towards employees, customers, and the community, maintaining trust and a good reputation.

How does management help in achieving personal objectives of employees?

Management helps align individual goals with organizational objectives through motivation, leadership, and creating opportunities for personal and professional growth.

What challenges do managers face in a dynamic environment?

Managers face the challenge of adapting to rapid changes in the market, technology, and regulations, requiring flexibility and continuous learning.

How does management contribute to societal development?

Management drives societal development by providing employment, adopting sustainable practices, and contributing to economic growth.

What is strategic management and its importance?

Strategic management involves long-term planning and positioning of the organization in a way that maximizes its competitiveness and effectiveness in the market.

What are managerial ethics?

Managerial ethics are the moral principles that guide the behaviours and decisions of managers, ensuring fairness, transparency, and integrity in business practices.

Why management is considered a multi-dimensional concept? Management is a complex activity that has three main dimensions. These are: 1. Management of work: All organizations exist for the performance of some work. In a factory, a product is manufactured, in a garment store a customer’s need is satisfied and in a hospital a patient is treated. Management translates this work in terms of goals to be achieved and assigns the means to achieve it. This is done in terms of problems to be solved, decisions to be made, plans to be established, budgets to be prepared, responsibilities to be assigned and authority to be delegated. 2. Management of people: Human resources or people are an organization’s greatest asset. Despite all developments in technology “getting work done through people is still a major task for the manager. Managing people has two dimensions : a) It implies dealing with employees as individuals with diverse needs and behavior; b) It also means dealing with individuals as a group of people. The task of management is to make people work towards achieving the organization’s goals, by making their strengths effective and their weaknesses irrelevant. 3. Management of operations: No matter what the organization has – some basic products or service to provide in order to survive. This requires a production process which entails the flow of input material and the technology for transforming this input into the desired output for consumption. This is interlinked with both the management of work and the management of people.

Class 12 Business Studies Chapter 1 Revision Question Answers

How do managers deal with conflicts within an organization.

Managers address conflicts through negotiation, mediation, and setting clear policies for communication and behaviour within the organization.

What is the role of a manager in crisis management?

In crisis management, a manager’s role is to lead the organization through emergencies by making quick decisions, communicating effectively, and ensuring the safety and continuity of operations.

How does management facilitate innovation?

Management facilitates innovation by creating an environment that encourages creativity, investing in research and development, and supporting initiatives that drive new ideas.

What are the qualities of an effective manager?

Effective managers possess qualities such as leadership, strategic thinking, empathy, communication skills, and the ability to motivate and inspire teams.

What role does communication play in management?

Communication in management is essential for disseminating information, ensuring alignment with goals, and fostering a collaborative work environment.

Management is considered to be both an art and a science. Explain? Management fulfills the criteria of both an art as well as a science. The following points explain the features of management as an art and as a science. Management as an art Art is the skillful and personal applications of existing knowledge to achieve desired results. It can be acquired through study, observation and experience. Since art is concerned with personal application of knowledge, some kind of ingenuity and creativity is required to practice the basic principles learnt. Management satisfies the following criteria for it to be called an art. 1. Existence of theoretical knowledge: Art presupposes the existence of certain theoretical knowledge. Experts in their respective areas have derived certain basic principles which are applicable to a particular form of art. Various theories and principles have been developed in management for example Taylor’s scientific management theory. 2. Personalized application: The use of this basic knowledge varies from individual to individual. Art, therefore, is a very personalized concept. Example- two dancers, two speakers, two actors, or two writers will always differ in demonstrating their art. 3. Based on practice and creativity: All art is practical. Art involves the creative practice of existing theoretical knowledge. We know that all music is based on seven basic notes. However what makes the composition of a musician unique or different is his use of these notes in a creative manner that is entirely his own interpretation. Management as a science Science is a systematized body of knowledge that explains certain general truths or the operation of general laws. As a science, management fulfills the following criteria. 1. Systematic body of knowledge: Its principle is based on a cause and effect relationship. Example, the phenomenon of an apple falling from a tree towards the ground is explained by the law of gravity. 2. Principles based on experimentation: Scientific principle are first developed through observation and then tested through repeated experimentation under controlled conditions. 3. Universal validity: In science, the principles have universal validity. In management also the theories and principles are valid to some extent if not universal. Although the application of the theories and their outcomes vary from situation to situation, however they act as standards for actions in different situations. That is, these principles can be used for the basic training of the managers

Do you think management has the characteristics of a full-fledged profession? Although management does not satisfy all the criteria of a profession, however, it does possess some of the characteristics that qualify it to be a profession. The following are the characteristics of management as a profession. 1. Well defined body of Knowledge: Management has a systemized and well-defined body of knowledge. It is based on several theories and principles that are developed over years with continuous experimentation and observation. The knowledge of management can be attained through various colleges, institutes and books. Management as a course is offered by many colleges and professional institutes. Example, in India, the Indian institute of management (IIM) is the premier institute of management. 2. Restriction to Entry: Management satisfies this criterion only to some extent. As against other professions such a doctor or a lawyer, no specific qualification or degree are required to be a manager. That is, any person holding any degree or qualification can be a manager. However, the entry is restricted as persons with professional management degree or diploma are preferred. 3. Professional Association: A professional has to be a member or should be associated with a statutory body which is responsible for stating the laws and authorities of that profession. Management is affiliated to a professional association that regulates the functions of the members. In India, the AIMA (All India Management Association) is an association for the managers. But, it is not requisite for managers to be a part of them. 4. Motive: The basic purpose of management is to help the organization achieve its stated goal. This may be profit maximization for a business enterprise and service for a hospital. However, profit maximization as the objective of management does not hold true and is fast changing. Therefore, if an organization has a good management team that is efficient and effective, it automatically serves society by providing good quality products at reasonable price. Thus, it can be said that to some extent management satisfies the criteria for it to be called a profession.

What is the chapter 1 of Class 12 Business Studies all about?

This is an introductory chapter explaining the functions of management, the levels of management in an organization and it also explains the importance of coordination as an essence of management.

Is the chapter 1 of 12 B. St. having any practical importance?

This is the foundation for the study of management as a discipline. Discipline means separate field of study.

What are the main important questions from Class 12 B St Chapter 1?

Few of the important question from this topic are functions of different levels of management, importance of coordination, management as a science, art and profession.

What should be kept in mind while revising Chapter 1 of 12th Business Studies?

The significance of management and the significance of principles of management (chapter 2) are similar questions. One should be careful in the examination.

Copyright 2024 by Tiwari Academy | A step towards Free Education

Gurukul of Excellence

Classes for Physics, Chemistry and Mathematics by IITians

Join our Telegram Channel for Free PDF Download

Case Study Questions for Class 12 Business Studies (BST)

• Last modified on: 11 months ago
• Reading Time: 6 Minutes

Here you will find Case Study Questions for CBSE Class 12 Business Studies (BST).

Units and Chapter List:

Unit 1 – Nature and Significance of Management, Principles of Management and Business Environment

Chapter 1: Nature and Significance of Management Case Studies Chapter 2: Principles of Management Case Studies Chapter 3: Business Environment Case Studies

Unit 2 – Planning and Organising

Chapter 4: Planning Case Studies Chapter 5: Organising Case Studies

Unit 3 – Staffing, Directing and Controlling

Chapter 6: Staffing Case Studies Chapter 7: Directing Case Studies Chapter 8: Controlling Case Studies

Unit 4 – Financial Management and Financial Market

Chapter 9: Financial Management Case Studies Chapter 10: Financial Market Case Studies

Unit 5 – Marketing and Consumer Protection

Chapter 11: Marketing Case Studies Chapter 12: Consumer Protection Case Studies

How to Tackle Business Studies Case Studies in Exams

Here’s a tip on how to approach and answer case study questions for Class 12 BST (Business Studies) exams:

1. Understand the Format:

• Case study questions are designed to test your ability to analyze and apply your knowledge to real-world situations.
• These questions are usually longer in length, but your answers should be concise and to the point.

2. Careful Reading:

• Begin by carefully reading the entire case study. Don’t rush; understand the context and details provided.
• Pay attention to any data, statistics, or specific information presented in the case.

3. Examine the Question:

• Before diving into the case study, read the question(s) associated with it. This will help you focus on what to look for while reading the case.
• Identify the key concepts or issues the question is addressing.

4. Highlight Key Information:

• While reading the case, underline or highlight important facts, figures, or statements that seem relevant to the question.
• Make notes if necessary to organize your thoughts.

5. Analyze the Situation:

• Once you have a good grasp of the case and its details, analyze the situation. Consider the cause-and-effect relationships, potential solutions, and any ethical or business principles involved.

6. Structure Your Answer:

• Start your answer with a brief introduction, summarizing the main problem or situation presented in the case.
• Organize your response logically. You can use bullet points or numbered lists for clarity.
• Present your analysis, providing relevant business theories or concepts as appropriate.
• Offer solutions or recommendations based on your analysis. Be clear and concise in your suggestions.

7. Use Simple Language:

• Write your answers in clear and simple language. Avoid unnecessary jargon or complex vocabulary.
• Ensure your answers are easy to understand for the examiner.

8. Practice with Sample Papers:

• Practice case study questions from sample papers and previous year papers to get a feel for the format and types of questions that may be asked.
• Writing practice answers will help you refine your approach.

Remember to practice, and you’ll become more proficient at tackling case study questions effectively.

Download CBSE Books

Exam Special Series:

• Sample Question Paper for CBSE Class 10 Science (for 2024)
• Sample Question Paper for CBSE Class 10 Maths (for 2024)
• CBSE Most Repeated Questions for Class 10 Science Board Exams
• CBSE Important Diagram Based Questions Class 10 Physics Board Exams
• CBSE Important Numericals Class 10 Physics Board Exams
• CBSE Practical Based Questions for Class 10 Science Board Exams
• CBSE Important “Differentiate Between” Based Questions Class 10 Social Science
• Sample Question Papers for CBSE Class 12 Physics (for 2024)
• Sample Question Papers for CBSE Class 12 Chemistry (for 2024)
• Sample Question Papers for CBSE Class 12 Maths (for 2024)
• Sample Question Papers for CBSE Class 12 Biology (for 2024)
• CBSE Important Diagrams & Graphs Asked in Board Exams Class 12 Physics
• Master Organic Conversions CBSE Class 12 Chemistry Board Exams
• CBSE Important Numericals Class 12 Physics Board Exams
• CBSE Important Definitions Class 12 Physics Board Exams
• CBSE Important Laws & Principles Class 12 Physics Board Exams
• 10 Years CBSE Class 12 Chemistry Previous Year-Wise Solved Papers (2023-2024)
• 10 Years CBSE Class 12 Physics Previous Year-Wise Solved Papers (2023-2024)
• 10 Years CBSE Class 12 Maths Previous Year-Wise Solved Papers (2023-2024)
• 10 Years CBSE Class 12 Biology Previous Year-Wise Solved Papers (2023-2024)
• ICSE Important Numericals Class 10 Physics BOARD Exams (215 Numericals)
• ICSE Important Figure Based Questions Class 10 Physics BOARD Exams (230 Questions)
• ICSE Mole Concept and Stoichiometry Numericals Class 10 Chemistry (65 Numericals)
• ICSE Reasoning Based Questions Class 10 Chemistry BOARD Exams (150 Qs)
• ICSE Important Functions and Locations Based Questions Class 10 Biology
• ICSE Reasoning Based Questions Class 10 Biology BOARD Exams (100 Qs)

✨ Join our Online NEET Test Series for 499/- Only for 1 Year

Leave a Reply Cancel reply

Editable Study Materials for Your Institute - CBSE, ICSE, State Boards (Maharashtra & Karnataka), JEE, NEET, FOUNDATION, OLYMPIADS, PPTs

Discover more from Gurukul of Excellence

Subscribe now to keep reading and get access to the full archive.

Type your email…

Continue reading

CBSE Class 12 Case Studies In Business Studies – Nature and Significance of Management

Management: Definition Management is the process of designing and maintaining an environment in which individuals working together in groups efficiently and effectively accomplish selected goals.

Objectives of Management

• Use eco-friendly methods
• Generate employment opportunities
• Fair wages and salary
• Good working conditions
• Growth prospects

Effectiveness: Definition According to Koontz, “Effectiveness means doing the right thing.” It means taking correct decisions and actions in every situation to achieve the targets.

Importance of Management

• Management helps in achieving group goals.
• Management increases efficiency of the employees.
• Management creates a dynamic organization.
• Management helps in achieving personal objectives.
• Management helps in the development of society.

Features of Management

• Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals.
• Management is pervasive as it is applicable to all types of organizations (economic, social and political), all sizes of organization (small, medium and large) and at all levels of management (top, middle and lower).
• Management of work i.e. to translate the work in terms of goals to be achieved and to assign the means to achieve it.
• Management of people, which implies dealing with employees as individuals with diverse needs and also as a group of people.
• Management of operations, in order to ensure the conversion of inputs into desired outputs for consumption.
• Management is a continuous process as it is a series of continuous, composite, but separate functions i.e. planning, organizing, staffing, directing and controlling to be performed simultaneously all the time till an organization exists.
• Management is a group activity requiring team work and coordination of the efforts of the diverse individuals in a common direction.
• Management is a dynamic function as a business operates in an ever changing environment and this necessitates a constant review and revision of its goals and operations so as to adapt itself effectively to these changes.
• Management is an intangible force which cannot be seen but the good quality of management is reflected through various indicators like achievement of goals, satisfaction among employees etc.

Functions of Management

• Managment as a process contains a series of interrelated and interdependent functions namely, planning, organising, staffing, directing and controlling.
• Planning relates to determining in advance what is to be done and who is to do it.
• Organizing 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.
• Staffing involves manning the organizational structure in order to fill in the roles designed into the structure.
• Directing involves leading, influencing and motivating employees to perform the tasks assigned to them.
• Controlling is the management function of ensuring that events conform to plans.

Functions of Levels of Management

COORDINATION

Coordination: Definition Coordination is the process of integrating the individual and group efforts in pursuit of common goals.

Importance of Coordination

• Growth in 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 organisation, its people and activities get divided into It facilitates the achievement of desired  objectives with minimum conflicts by providing the necessary amount, quality, timing and sequence of efforts.small departments on the basis of functions like marketing, finance etc. Therefore, there is a need to reconcile the goals pursued by each of the departments with the goals of the organisation as a whole.
• Specialisation: More number of specialists are deployed in the present day organizations keeping in mind the need for specialisation due to greater complexity and diversity in their way of functioning. In order to integrate the different approaches, interests or opinion of the specialists and resolve conflicts between them, coordination is essential

Features of Coordination:

• It integrates group efforts into purposeful work activity.
• It ensures unity of action as it acts as a binding force between and among departments.
• It is a continuous on-going process as it is required till an organisation exists.
• It is all pervasive as it is required at all levels of management.
• It is the responsibility of all managers however the scope of their operations varies.
• It is a deliberate function.

Coordination – The Essence of Management:

• Although sometimes coordination is considered a separate function of management, it is the essence of management. It helps in creating harmony among individual efforts towards the realization of group goals.
• It is the force that binds all the other functions of management.
• It is the common thread that runs through all organizational activities like production, marketing, finance etc. to ensure continuity in the business operations.
• It prevails through all the functions of management starting from the planning stage itself. The organizational structure is developed in line with the plans. The staffing function is carried out in accordance with the organizational structure. The directing function is performed by guiding, inspiring and motivating employees in the desired manner. The controlling function helps to take care of any discrepancies between actual and planned activities.
• If facilities the achievement of desired objectives with minimum conflicts by providing the necessary amount, quality, timing and sequence of efforts.

LATEST CBSE 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.

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

• He is responsible for formulating the overall organizational goals and strategies.
• He is responsible for all the business activities and its impact on society.
• 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.

• Idenfity the level at which Rishitosh Mukerjee was working.
• 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:

• He has to assign duties and responsibilities to the people in his department.
• He has to motivate the people in his department to achieve the desired objectives.
• 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:

• He has to directly oversee the efforts of the workforce.
• He has to serve as a link between the workers and middle level managers.
• He has to ensure sufficient availability of resources and good quality of output.
• He has to provide guidance and training to workers.
• 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:

• to reduce the labour costs by shifting the manufacturing unit to a backward area where labour was available at a very low rate.
• 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.
• State any two values which the company wanted to communicate to society.
• 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.
• Rural development
• Environment sustainability

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.

• State any two values which the company wanted to communicate to the society.
•  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.
• Promoting literacy

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:

• He was responsible for the success and failure of the organization.
• He was responsible for all the business activities and its impact on society.
• 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:

• He has to ensure that his department has the necessary staff.
• 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:

• 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.
• 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.
• 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: 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:

• 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.”
• Identify and describe the various functions of the concept as identified in part (a) of the question by quoting lines from the paragraph.
• 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.”
• 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: 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 3: 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 4: 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:

• 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.”
• 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.”
• 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.”
• 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.”
• 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 5: 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.
• List any two values that Real Alliance Ltd. wants to communicate to the society.

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

• 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.”
• 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.”
• 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.”
• Social welfare
• Respect for their employees

Question 6: 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:

• 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.”
• 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.”
• 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.”
• 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 7: 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:

• 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.
• 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.
• 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 8: 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:

• Explain the reasons because of which Dharam considers management as a discipline.
• Critically examine the various reasons because of which management is not considered to be a full-fledged profession.
• 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.
• 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 9: 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:

• 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.
• State briefly any two points highlighting the importance of quality of management identified in part (a).
• 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.
• 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 10: 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:

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

Question 11: 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:

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

Question 12: 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.
• List any two values that are reflected in this act of Ajay.
• 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.
• Responsibility.

Case Studies in Business Studies Business Studies Case Studies Business Studies Commerce

CBSE Class 12 Business Studies Chapter 1 – Nature and Significance of Management Class 12 Notes

Nature and significance of management class 12 revision notes  .

The Nature and Significance of Management class 12 notes help you to identify and describe the characteristics of management and its importance in an organization. It explains the nature of management as an art, science, and profession. It also explains the functions of management and appreciates the nature and importance of coordination. Management is essential for all types of organizations like big or small, profit or non-profit, services or manufacturing. It helps individuals to make their best contribution towards achieving group objectives. We use it extensively for all types of activities and mainly for taking charge of different activities in any enterprise.

Management consists of a series of interrelated functions that all managers in an organization perform. It is the process of planning, organizing, staffing, directing and controlling the enterprise resources effectively and efficiently for achieving the goals of the organization. Effectiveness means doing the right task, completing activities and achieving goals. Efficiency deals with doing the task correctly with minimum cost.

Download Toppr app for Android and iOS or signup for free.

Sub-topics covered under Nature and Significance of Management :

• Introduction to Management and its Characteristics/Objectives : This sub-topic explains about the management. It deals with its characteristics and objectives.
• Coordination and Management in the Twenty-First Century : It deals with coordination among the managers of the organization. In the twenty-first century, we see management from a global perspective.
• Levels and Functions of Management : It explains the top, middle and operational levels of management. It also explains functions of management like planning, organizing, staffing, directing and controlling.
• Management as an Art : This sub-topic explains that art is the skillful and personal application of existing knowledge to achieve desired results.
• Management as Profession : In this sub-topic, we will observe that organizations look for individuals with specific qualifications and experience to manage them.
• Management as Science : This sub-topic explains that science is a systematized body of knowledge that explains certain general truths or the operation of general laws.

Customize your course in 30 seconds

Which class are you in.

CBSE Class 12 Business Studies Revision Notes

• CBSE Class 12 Business Studies Chapter 13 – Entrepreneurship Development Class 12 Notes
• CBSE Class 12 Business Studies Chapter 12 – Consumer Protection Class 12 Notes
• CBSE Class 12 Business Studies Chapter 11 – Marketing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 10 – Financial Markets Class 12 Notes
• CBSE Class 12 Business Studies Chapter 9 – Financial Class 12 Notes
• CBSE Class 12 Business Studies Chapter 8 – Controlling Class 12 Notes
• CBSE Class 12 Business Studies Chapter 7 – Directing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 6 – Staffing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 5 – Organising Class 12 Notes
• CBSE Class 12 Business Studies Chapter 4 – Planning Class 12 Notes

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Download the App

NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12

Business Studies Class 12 Important Questions Chapter Wise Pdf | BST Important Questions Class 12

Business Studies Class 12 Important Questions Chapter Wise Pdf 2022-2023: CBSE Important Questions for Class 12 Business Studies Chapter Wise Pdf free download was designed by expert teachers from latest edition of NCERT books to get good marks in board exams. Here we have given Business Studies Important Questions Class 12.

Important Questions for Class 12 Business Studies Chapter Wise | Class 12 Business Studies Important Questions

BST Important Questions Class 12 Term 2 Part 1 Principles and Functions of Management

• Chapter 1 Nature and Significance of Management Class 12 Important Questions
• Chapter 2 Principles of Management Class 12 Important Questions
• Chapter 3 Business Environment Class 12 Important Questions
• Chapter 4 Planning Class 12 Important Questions
• Chapter 5 Organising Class 12 Important Questions
• Chapter 6 Staffing Class 12 Important Questions
• Chapter 7 Directing Class 12 Important Questions
• Chapter 8 Controlling Class 12 Important Questions

Important Questions of Business Studies Class 12 Part 2 Business Finance and Marketing

• Chapter 9 Financial Management Class 12 Important Questions
• Chapter 10 Financial Markets Class 12 Important Questions
• Chapter 11 Marketing Class 12 Important Questions
• Chapter 12 Consumer Protection Class 12 Important Questions
• Chapter 13 Entrepreneurship Development Class 12 Important Questions

Class 12 Business Studies Important Questions Topic Wise

1. Nature and Significance of Management

• Meaning , Characteristics, Objectives and Importance of Management
• Nature of Management: Management as an Art, Science and Profession
• Levels and Functions of Management
• Features/Nature and Importance of Coordination

2. Principles of Management

• Meaning, Nature and Importance of Management Principles
• Fayol’s Principles of Management
• FW Tayolr’s Scientific Management Its Principles and Its Techniques
• Fayol Vs Taylor

3. Business Environment

• Meaning, Features Importance and Dimensions of Business Environment
• Impact of Changes in Government Policy on Business and Industry

4. Planning

• Meaning Definition, Features and Importance of Planning
• Limitations of Planning
• Steps in Planning Process
• Different Types of Plan

5. Organising

• Concept, Importance and Process of Organising
• Organisational Structure and Types of Organisation Structure
• Formal and Informal Organisation
• Delegation and Decentralisation

6. Staffing

• Meaning, Definition, Importance and Process of Staffing
• Staffing as a Part of Human Resource Management
• Recruitment and Its Sources
• Selection and Process of Selection
• Training, Development and Methods of Training

7. Directing

• Concept, Characteristics, Importance and Elements of Directing
• Meaning and Importance of Supervision
• Motivation, Maslow’s Need Hierarchy Theory of Motivational and Financial and Non-financial Incentives
• Concept, Importance and Style of Leadership 
• Meaning, Importance and Types of Communication Barriers and Measures to Overcome Them

8. Controlling

• Meaning, Importance and Limitations of Controlling
• Relationship between Planning and Controlling
• Steps in the Process of Controlling

9. Financial Management

• Meaning, Role and Objectives of Financial Management
• Meaning, Importance and Objectives of Financial Planning
• Financial Decisions, Capital Structure
• Fixed Capital and Working Capital

10. Financial Markets

• Meaning, Functions and Classification of Financial Market
• Stock Exchange, Functions and Trading Procedure on a Stock Exchange
• SEBI: Reasons for Setting up, Objectives and Functions

11. Marketing

• Marketing and Marketing Management
• Marketing and Selling
• Marketing Mix, Product Mix and Price Mix
• Place/Physical Distribution Concept Channels of Distribution
• Major Tools of Promotion i.e Advertising, Personal Selling and Sales Promotion

12. Consumer Protection

• Concepts, Importance of Consumer Protection and Framework for Consumer Protection in India
• Consumer Rights and Responsibilities as per CPA, 1986
• Ways and Means of Consumer Protection, Redressal Agencies under Consumer Protection Act, 1986
• Role of Consumer Organisations and NGOs

Free Resources

NCERT Solutions

Quick Resources

• CBSE Class 12

CBSE Class 12 Business Studies Deleted Syllabus 2025: Check Details Here!

  cbse class 12 business studies deleted syllabus 2025: get the latest insights on the deleted business studies topics from the cbse class 12 business studies syllabus for the 2025 board examinations..

CBSE Class 12 Business Studies List of Deleted Content 2024-25

CBSE Class 12 Business Studies Updated Course Structure 2024-2025

Suggested Question Paper Design Business Studies (Updated)

The latest and revised 2025 syllabus for Class 12  Business Studies, CBSE, is provided here. Students can also check the course structure, course content, practical syllabus 2025, and many more by clicking on the link mentioned below:

Check:   CBSE Class 12 Business Studies Syllabus 2024-25

• CBSE Business Studies Previous Year Question Paper Class 12
• NCERT Class 12 Business Studies Textbook 2023-24

Get here latest School , CBSE and Govt Jobs notification and articles in English and Hindi for Sarkari Naukari , Sarkari Result and Exam Preparation . Download the Jagran Josh Sarkari Naukri App .

• CTET Result 2024
• UGC NET Admit Card 2024
• AFCAT Admit Card 2024
• IBPS RRB Exam Analysis 2024
• UPSC CAPF Exam Analysis 2024
• UPSC CAPF Question Paper 2024
• SSC CHSL Answer Key 2024
• IBPS RRB PO Exam Review 2024
• India Post GDS Cut Off
• Education News
• CBSE Class 12 Syllabus
• CBSE Class 12 NCERT Books

Latest Education News

What are the legal challenges in the way of the Great Nicobar Infrastructure project?

What is the Bailey Bridge that is constructed after landslides in Wayanad?

Who is Carolina Marin? Early Life, Education, Career and Achievements

Only a sharp-eyed genius can find the turtle in the cacti in 9 seconds!

Masoud Pezeshkian Sworn in as President of Iran: Here's the list of all the Presidents of Iran Through the Years

Today’s School Assembly Headlines (5th August): Top 10 Most Popular Global Leaders In 2024- PM Narendra Modi Tops The List, CBSE Compartment Result 2024, Neeraj Chopra Winning Gold At Paris Olympics?

Top 5 Word of the Day for School Morning Assembly: 5 August 2024

Paris 2024 Olympics Hockey: Final Results, Schedule and Medal Tally

UPSC CAPF Question Paper 2024: Download Today's Paper 1 and 2 PDF for All Sets

UPSC CAPF Exam Analysis 2024: Check Paper 1 and 2 Review, Difficulty Level, Good Attempts and Questions Asked

Brain Teaser: Only High IQ Minds Can Spot the Hidden Alphabet

Happy Friendship Day 2024: 70+ Quotes, Wishes, Images, Messages to Share with Your Girl and Boy Friends

AKTU Result 2024 OUT at aktu.ac.in; Direct Link to Download Semester UG Marksheet PDF

IBPS RRB PO Exam Analysis 2024, 4th August: All Shifts Exam Review, Difficulty Level, Good Attempts

Today’s School Assembly Headlines (2nd August): Supreme Court Gives Landmark Verdict On SC, ST Quota, Heavy Rains Ahead In Second Half Of Southwest Monsoon, Paris Olympics 2024

UPSC CAPF प्रश्न पत्र 2024: डाउनलोड करें यूपीएससी सीएपीएफ पेपर 1 और 2 PDF

Optical Illusion IQ Test: Can You Spot the Cat in 5 Seconds?

Brain Teaser IQ Test: Move Only 1 Matchstick To Fix This Equation In 8 Seconds!

Picture Puzzle IQ Test: Are You A Genius? Spot The Hidden Chick In 12 Seconds!

Picture Puzzle IQ Test: Can You Find 6 Hidden Words in This Classroom In 12 Seconds?

LIVE Course for free

• Ask a Question

NCERT Solutions Class 12 Business Studies Chapter 1 Nature and Significance of Management

NCERT Solutions Class 12, Business Studies, Chapter- 1, Nature and Significance of Management

The NCERT solutions for Class 12 Business Studies offer students a structured and comprehensive approach to mastering the curriculum. Developed by subject experts, these solutions offer a comprehensive analysis of all key concepts discussed in the chapters. They are meticulously aligned with the current CBSE syllabus to ensure that you are thoroughly prepared and confident for your examinations.

In these  NCERT Solutions for Class 12 Business Studies , we have discussed all types of  NCERT intext questions and exercise questions.

Concepts covered in Class 12 Business Studies chapter- 1 Nature and Significance of Management, are :

• Characteristics of Management
• Objectives of Management
• Importance of Management
• Nature of Management
• Management As An Art
• Management As An Science
• Management As An Profession
• Levels of Management
• Functions of Management
• Coordination - The Essence of Management
• Characteristics of Coordination
• Importance of Coordination
• Management in The Twenty - First Century

The NCERT solutions for Class 12 Business Studies are a valuable resource for students aiming to excel in their business studies curriculum. By providing detailed explanations, practice exercises, and illustrative examples, these solutions enhance students' understanding of complex business concepts and prepare them for academic success. Utilizing these solutions effectively can lead to a deeper comprehension of business principles and better performance in exams.

Now, all the solutions and practice questions are readily accessible to help you get started.

• ncert solutions
• ncert solutions class 12
• ncert solutions class 12 business studies
• nature and significance of management

Please log in or register to add a comment.

Please log in or register to answer this question..

Very Short Answer Type:

1. What is meant by management?

Management is the process of getting a task done with the aim of achieving the goals of the organization in an effective and efficient manner.

The different functions of management are planning, organizing, staffing, directing and controlling.

The term effective means completing the given task and efficient means completing the task with minimum cost and time.

In short, management is the process of planning, organizing, staffing, directing and controlling in such a manner that the goals of the organization are met with minimum cost and time.

2. Name any two important characteristics of management.

i) All pervasive

ii) multidimensional 

3. Identify and state the force that binds all the other functions of management.

Coordination binds all the functions of management.

Coordination is not a function or an objective of an organization.

The process of management is continuous. All the function of management planning, organizing, staffing, directing and controlling are performed simultaneously.

The activities of different departments are coordinated towards achieving the common goals of the organizaion.

4. List any two indicators of growth of an organisation.

The two indicators of growth of an organization are:

Profit - If an organization earns a profit on a regular basis, it can be said that it is growing.

Expansion - Expansion leads to more employees and turnover which is a good indicator of growth.

5. Indian Railways has launched a new broad gauge solar power train which is going to be a path breaking leap towards making trains greener and more environment friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12, 00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.

The Management objective achieved by the Indian Railways is the Social objective. Creating benefits for humanity is one of the social objectives. This entails consistently producing economic worth for society as a whole.

Short Answer Type:

1. Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organisation? What are her basic functions?

Ritu functions as the middle-level management in the organisation. She works as a link between the top-level management and workers. The following will be her basic functions:

• Understanding the policies set by the top management.
• Communicating with the top and low levels of management.
• Motivate employees to achieve productivity.
• Coordinate with cross-functional heads to maintain transparency.
• Assigning tasks to various departments under control.

2. State the basic features of management as a profession.

The following are the basic features of management as a profession:

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 and enrolling in management courses.

Management is regulated by a professional association which looks at the functions of its members. In India, AIMA, or the All India Management Association, is the governing body for managers. Joining the organisation is not compulsory.

Professional knowledge is a required criterion and is given preference over degrees. The lack of professional experience is a deterrent for people looking to choose a profession.

Only through proper management the business will grow. The guiding principles will help in ensuring the smooth functioning of the organisation. Quality goods and services can be made available with management.

3. Why is management considered to be a multi-dimensional concept?

Management is called a multidimensional concept as it has three dimensions which areto the following:

Management of work: All the organizations have to perform some work such as production or sale. A work is defined with the goals that it's achieved and the method of doing so.

Management of people: The main asset of an organization is human labour. Managing people is extremely important. The employees have to considered as individuals well as a team. Personal goals have to be achieved along with the firm’s goal.

Management of operations: All the organizations either engage in producing a good or selling a good. It means the conversion of inputs into outputs. This production process requires management.

4. Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining return on investment and bad marketing. State the quality of management that the company is lacking? What quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?

Coordination is missing in the management.The production, marketing, and finance department are not working together to achieve the goals of the organizations.This has led to a fall in market share and investment.

The organization must improve its coordination. It would help to bind together different department’s activities.The goals could be met more efficiently.

5. Coordination is the essence of management. Do you agree? Give reasons.

Yes, coordination is the essence of management.

If there is no coordination among the different functions of the management, the organisation cannot be achieved.

It would lead to a chaotic situation causing distress among the employees.

The department may even hamper the progress of other departments.

Coordination is extremely important to coordinate the different departments and to be synchronized to achieve the goals of the organisation.

6. Ashita and Lakshita are employees working in Dazzling enterprises dealing in costume jewellery. The firm secured an urgent order for 1,000 bracelets that were to be delivered within 4 days. They were assigned the responsibility of producing 500 bracelets each at a cost of Rs 100 per bracelet. Ashita was able to produce the required number within the stipulated time at the cost of Rs 55,000 whereas, Lakshita was able to produce only 450 units at a cost of Rs 90 per unit. State whether Ashita and Lakshita are efficient and effective. Give reasons to justify your answer.

• Management is the process of getting a task done with the aim of achieving the goals of the organization in an effective and efficient manner. The term effective means completing the given task and efficient means completing the task with minimum cost and time.
• Ashita was effective because she completed her task within time but not efficient as they had to bear a high-cost of Rs 55000.
• Lakshmi was neither effective or efficient as she did not complete her task on time.

Long Answer Type:

1. Management is considered to be both an art and science. Explain.

Management can be regarded as both an art as well as a science from the following points:

Management as Art

Management has a well-defined literature which is required for gathering knowledge in the theories and accelerating learning. There are many examples of management literature which is available such as Taylor’s Scientific Management Theory and Henry Fayol’s 14 Principles of Management. These theories help in understanding the various concepts of management.

Management knowledge can be utilised by everyone in their own way, very much like arts where words can be expressed in the form of writing differently by different poets and music notes arranged by musicians to perform a musical piece, or the use of colours by a painter to draw vivid paintings. Similarly, managers use various theories and principles in trying situations to make use of management knowledge.

Arts is all about expressing and innovating using creativity, such as two artists will enact the same scene in two different ways. Similarly, two different managers will be managing the situation differently. Sometimes managers can come up with innovative and fresh ideas to address the situation.

Management as Science

Science is a systematic discipline, and management also shares similar characteristics. Like science, management also relies upon theories and principles to address issues that arise. Management has a separate vocabulary and terms that it uses to define certain processes.

Theories in science have been developed after prolonged observation and repeated experiments. Similarly, to some extent, management also bases its theories on regular observation and experiments, such theories will act as guidelines for management in the long run.

Scientific theories have universal validity, and in management, we also see the principles are to some extent universally valid, and some can change as per the situation. Such theories and principles can be used as basic information for training managers.

2. Do you think management has the characteristics of a fullfledged profession?

No, management does not possess all the characteristics of a full fledged profession. The reasons go as follows

(i) Well-defined Body of Knowledge All professions are based on a well-defined body of knowledge that can be acquired teaching – learning process. This feature of a profession is possessed by management as well. There is vast knowledge available on management in the form of definitions, concepts, theories, principles etc.

(ii) Restricted Entry All professions have a restriction or the entry of its practitioners. They have to acquire a specific degree to be professional e.g., LLB for a lawyer MBBS for a doctor etc. But a manager can be an MBA qualified or not.

(iii) Professional Association All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates a code of conduct e.g., ail lawyers have to be a member of Bar Council to practice law. It is not compulsory for all managers to be a member of AIMA.’

(iv) Ethical Code of Conduct All professions are bound by a ethical code of conduct which guides the behaviour of its members. But as it is not compulsory for all managers to be members of AIMA, they all may not be aware of the prescribed code of conduct of AIMA.

(v) Service Motive All basic motive to serve their client’s interest, e.g., -lawyers to get justice for their clients, doctors to treat the patients etc. All managers also work in a manner where by they show their effectiveness and efficiency in the form of good quality goods provided to the customer at a reasonable price.

Thus, management possesses some characteristics of a profession but not all.

3. “A successful enterprise has to achieve its goals effectively and efficiently.” Explain.

“A successful enterprise has to achieve its goals effectively and efficiently”. Thus, management has to see that task are completed and goals are achieved with the minimum resources. Management is thus getting things done with the aim of achieving goals effectively and efficiently. Being effective or doing work effectively basically means finishing the given task. It is concerned with end result, it is achieved or not. Efficiency means doing the work correctly and with minimum cost. If by using less resources more benefits are derived then efficiency has increased. It is thus essential for any organisation to focus on efficiency as well as effectiveness. It is not only important to complete the work correctly but equally important to complete it with minimum cost. In the same manner, it is not only important to reduce cost but equally important to complete the work correctly.

4. Management is a series of continuous interrelated functions. Comment.

Management is a series of continuous, interrelated functions. It can be explained with the help of the following points:

Management comprises the following functions that work together:

Planning : It is the process of determining what works need to be done, who will do it and how it should be done. It involves setting up goals which need to be achieved and determining the ways in which they can be achieved. It helps in laying down a framework based on which the activities can be implemented. It is often said to be the most important step in management.

Organising : Planning is followed by Organising. It is the process of identifying tasks and the appropriate resources that are required for executing the plan. Organising allots separate tasks to different departments with a defined plan. The hierarchy is well established, which leads to work being carried out with efficiency and effectiveness.

Staffing : Staffing is the process of allotting specialised personnel for specialised work. In other words, hiring the right person for the job. It is a part of human resources and involves hiring and training people.

Directing : It is one of the important functions of a manager, which involves directing the human resources to work in an effective manner. It also involves providing motivation to the workers so as to drive productivity.

Controlling : Controlling is necessary as it checks if the assigned work is progressing in the right direction or not. It generally involves assessing the work done with the goals of the organisations. By measuring the extent of work, managers ensure that there is no error or discrepancy. If any such errors surface, then appropriate steps will be undertaken so as to rectify the issue.

So, all these make us understand that management functions are interdependent on each other in order to function properly.

5. A company wants to modify 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 management take to give effect to this decision?

The decision taken at each step of management to increase the sales are:

Top management: To study the product carefully, and to formulate policies to increase sales.

Middle management: To interpret the policies formulated by the top management, to encourage the workers to achieve the goals and assign them duties. To coordinate among the division heads of various departments.

Lower management: To ensure the quality of the product, to give periodic reports to the above levels of management, and to assign duties to the employees.

6. A firm plans in advance and has a sound organisation structure with efficient supervisory staff and control system but on several occasion it finds that plans are not being adhered to. It leads to confusion and duplication of work. Advise remedy.

The firm lacks in directing its employees. This issue can be solved by the following steps:

The employees must be properly trained.

A proper pattern of communication must be followed.

The middle-level management must consist of good leaders who can motivate the employees from time to time.

Find MCQs & Mock Test

• JEE Main 2025 Test Series
• NEET Test Series
• Class 12 Chapterwise MCQ Test
• Class 11 Chapterwise Practice Test
• Class 10 Chapterwise MCQ Test
• Class 9 Chapterwise MCQ Test
• Class 8 Chapterwise MCQ Test
• Class 7 Chapterwise MCQ Test

Related questions

• ncert solutions class 12 hindi
• सिल्वर वैडिंग
• principles of management
• business studies
• controlling

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam , ICSE Board Exam , State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

• All categories
• JEE (36.7k)
• NEET (9.4k)
• Science (784k)
• Mathematics (256k)
• Statistics (3.0k)
• Environmental Science (5.4k)
• Biotechnology (704)
• Social Science (126k)
• Accounts (22.6k)
• Business Studies (27.8k)
• Economics (18.3k)
• Entrepreneurship (2.1k)
• Electronics (3.9k)
• Computer (21.7k)
• Artificial Intelligence (AI) (3.3k)
• Information Technology (21.6k)
• Programming (13.1k)
• Political Science (10.6k)
• Home Science (8.1k)
• Psychology (4.4k)
• Sociology (7.1k)
• English (68.2k)
• Hindi (30.8k)
• Aptitude (23.7k)
• Reasoning (14.8k)
• Olympiad (535)
• Skill Tips (91)
• RBSE (49.1k)
• General (73.0k)
• MSBSHSE (1.8k)
• Tamilnadu Board (59.3k)
• Kerala Board (24.5k)
• Send feedback
• Privacy Policy
• Terms of Use
• Refund Policy