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

Class 12 NCERT Solutions Business Studies – Nature and Significance of Management – Free PDF Download

NCERT Solutions for Class 12 Business Studies Chapter 1 by Commerceschool.in covers all the essential concepts you need to know. It provides a solid foundation in management principles and the policies that shape Business Studies. This resource is designed to help students like you grasp these ideas easily. Each key point is explained clearly and concisely, ensuring that there’s no room for confusion once you’ve gone through the material. If you’re new to the subject, this will give you a great understanding of management concepts and useful techniques to succeed.

Very Short Answer Type

Q. 1. What is meant by Management?

Ans.

Management is the process of planning, organizing, directing, and controlling resources like people, money, and materials to achieve organizational goals efficiently and effectively. It involves decision-making, leadership, and coordination to ensure productivity and success. Good management ensures smooth functioning, teamwork, and growth in businesses, institutions, and organizations.

Q. 2. Name any two important characteristics of management.

Ans.

(i) Management is a goal oriented process;

(ii) Management is all Pervasive.

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

Ans.

The force that binds all the other functions of management is ‘Coordination’.

Coordination is the process by which a manager synchronises the activities of different departments towards the achievement of a common goal.

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

Ans.

Two indicators of the growth of an organisation are:

(i) Sales Volume;

(ii) Increase in number of employees

Q. 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 ₹ 12,00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.

Ans.

(i) Social Objective;

(ii) Organisational objective

Short Answer Type

Q. 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?

Ans.

Ritu is working at Middle Level.

Ritu plays an important role in the organization as a middle-level manager. She connects the higher management with the workers.

Here are her main responsibilities:

1. Understanding the rules set by the top management.
2. Communicating with both top management and employees.
3. Motivating workers to increase their productivity.
4. Working with different department heads to ensure everyone is on the same page.
5. Assigning tasks to various departments that she oversees.

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

Ans.

The main features of management as a profession are:

Well Defined body of Knowledge:-

A manager is a professional who can gain specific knowledge by studying books or taking courses related to their field.

Restricted Entry:–

While having a professional degree is usually necessary, a person with strong management skills can still become a manager even without a formal degree.

Professional Association:–

Professionals should connect with relevant organizations in their field. There are groups for management professionals, but it’s not required for all managers to join.

Ethical Code of Conduct:–

Professionals must follow the guidelines set by their organizational bodies. Although managers are expected to act ethically, there isn’t a strict code of conduct specifically for them.

Service Motive:–

Both professionals and managers aim to provide dedicated and committed services that help their clients succeed.

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

Ans.

Management of Work:

Every organization has tasks to complete. Management helps to turn these tasks into clear goals that need to be achieved and finds the best ways to reach those goals.

Management of People:

People are the most important part of any organization. Management’s job is to make sure that everyone works together. This involves communicating effectively, encouraging their strengths, and helping them improve on their weaknesses.

Management of Operations:

Organizations offer certain products and services to stay afloat. This means they need a system that changes raw materials into the final products or services that they provide.

Q. 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 customer’s 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?

Ans.

a) Company X is facing a problem with “Coordination”. Right now, the production, marketing, and finance departments are working separately and not as a team. Because of this, they aren’t able to reach the company’s goals and they are blaming each other for the drop in sales and profits.

b) Here are some steps to help get the company back on track:

(i) Each department needs to realize that working together is really important for management. Good coordination will help link the activities of different departments so they can reach the company’s goals more effectively.

(ii) The company should clearly share its goals with all departments.

(iii) There should be good teamwork among departments so they can work together instead of blaming one another.

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

Ans.

Yes, I agree. Coordination is something that begins right from the planning stage. Every activity in an organization needs to be well coordinated to achieve a common goal. It connects different activities of the organization to ensure everyone is working towards the same objective.

Coordination ensures unity of action:

Coordination keeps all departments working together. It helps everyone understand the common goal that needs to be reached.

Coordination integrates group efforts:

It brings together the different interests of all departments, focusing them on one shared objective.

Coordination is a continuous process:

Coordination starts with planning in the organization and goes on until the controlling stage.

Coordination is an all-pervasive function:

It is important at every level of management because all activities are linked to one another.

Coordination is a responsibility of all managers:

Managers at all levels—whether top, middle, or bottom—must make sure that work is carried out as planned.

Q. 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.

Ans.

In the case we discussed:

Akshita:

Akshita was effective since she finished her task on time, but she couldn’t keep her costs down, so she wasn’t efficient. This means she’s good at getting things done, but she could improve on managing expenses.

Lakshita:

Lakshita wasn’t effective or efficient because she didn’t complete her tasks by the deadline.

To clarify, effectiveness is about meeting deadlines and finishing the work required, while efficiency refers to doing that work with the least amount of cost and resources possible.

Long Answer Type:

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

Ans.

Management is often seen as both an art and a science because it exhibits qualities of each. Let’s break down how management fits into both categories.

Management as an Art:

1. Theoretical Knowledge:
   Management includes a set of foundational principles that can be applied to various organizations. Successful managers rely on their studies, experiences, and observations to handle daily challenges.
2. Personalized Application:
   Each manager adapts universal principles in their own way, depending on the specific circumstances they face. This customization is essential, as requirements can change over time.
3. Practice and Creativity:
   A skilled manager uses different theories creatively, adjusting them to meet the unique needs of their organization.

Management as a Science:

1. Systemized Body of Knowledge:
   Similar to science, management is organized and has developed through theories over time. It also includes a specific vocabulary that managers around the world use.
2. Principles Based on Experimentation:
   Management principles have emerged through experience and can change to fit what managers need, whereas scientific principles come from rigorous observation, testing, and repeated experimentation.
3. Universal Validity:
   In science, theories are consistent and universally accepted. In management, while some basic principles are used in training, they often require adjustments to fit specific organizational contexts.

In summary, when we compare science and management, we can see that management is an art and shares several characteristics with science.

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

Ans.

Management does not fully resemble a traditional profession, but it possesses certain qualities that justify its classification as one. Here are the key points:

Well-Defined Body of Knowledge:

Management comprises a structured and clearly defined body of knowledge that includes various theories and guiding principles. This knowledge can be acquired through reading literature and participating in management courses.

Restricted Entry:

Typically, a professional degree is required to enter most professions. However, one can become a manager with strong managerial skills, even without a formal professional degree. This characteristic makes management more accessible, opening the door for anyone interested in learning management skills.

Professional Association:

Many professions require affiliation with professional associations that regulate entry, award practice certificates, and develop codes of conduct. In contrast, management does not necessitate belonging to a management association, so this aspect does not apply here.

Ethical Code of Conduct:

Every profession is governed by a strict ethical code of conduct. This does not hold true for management, as there is no established code specifically for managers.

Service Motive:

Both professionals and managers strive to provide dedicated services to their clients. However, in management, the primary focus is often on profit maximization rather than a pure service motive.

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

Ans.

Management is fundamentally the process of accomplishing tasks efficiently and effectively to achieve goals. Two crucial concepts in management are effectiveness and efficiency, both of which are vital for the successful operation of any organization.

Effectiveness is all about completing tasks within the given timeframe, with the main focus on achieving the desired results. This aspect of management is essential as it directly relates to reaching the organization’s goals. On the other hand, efficiency refers to accomplishing tasks while using the least amount of resources and incurring minimal costs.

For an organization to thrive, it is essential to balance both effectiveness and efficiency. Effectiveness ensures that the organization meets its objectives, while efficiency allows it to do so in a cost-effective manner. By minimizing resource usage and costs, an organization can maximize profits and foster growth.

Thus, it is crucial for organizations to prioritize both effectiveness and efficiency. Completing tasks on time while utilizing minimal resources is paramount. Likewise, reducing production costs without delaying deadlines is necessary for success. Therefore, to achieve long-term profitability, successful companies must be both effective and efficient in their operations.

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

Ans.

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:

This is the process of figuring out what tasks need to be done, who will take care of them, and how they should be accomplished. It involves setting goals to achieve and deciding the best methods to reach them. Planning creates a framework for carrying out activities and is often considered the most crucial step in effective management.

Organising:

After planning, the next step is organising. This involves identifying the tasks and resources needed to carry out the plan. Organising divides the work into separate tasks assigned to different departments, creating a clear structure. This established hierarchy allows work to be completed efficiently and effectively.

Staffing:

Staffing is about assigning skilled personnel to specific tasks, which means hiring the right people for the job. This function falls under human resources and includes finding, hiring, and training individuals who will help the organization succeed.

Directing:

Directing is an essential function of a manager that involves guiding and motivating employees to work effectively. This helps boost productivity and ensures that everyone is aligned with the organization’s goals.

Controlling:

Finally, controlling is crucial as it checks whether the assigned tasks are progressing as planned. This function assesses the work done against the organization’s goals. By measuring progress, managers can identify any errors or discrepancies and take appropriate actions to correct them.

In conclusion, these management functions are interdependent, meaning that each function relies on the others to operate smoothly and successfully.

Q. 5. A company wants to modify its existing product in the market due ot 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?

Ans.

Strategies for Management Levels to Boost Product Sales

To successfully enhance product sales in the market, each level of management has specific roles to undertake. Here’s a breakdown of the steps they should follow:

A. Top-Level Management

1. Analyze the Business Environment: Conduct a thorough assessment of the current market conditions and identify necessary modifications.
2. Set Objectives and Formulate Plans: Establish clear objectives for the changes, and create comprehensive plans and policies for their implementation.
3. Organize Resources: Gather and allocate both physical and human resources essential for the modifications.
4. Communicate and Coordinate: Inform all departments about the upcoming changes and ensure effective coordination among their activities.

B. Middle-Level Management

1. Relay Information to Top Management: Communicate potential modifications, market demands, and expectations to senior management.
2. Interpret and Instruct: Translate plans and policies from top management into actionable steps for lower-level managers.
3. Recruit and Train Personnel: Identify and train the required personnel to facilitate the changes.
4. Assign Responsibilities: Clearly define and assign tasks to lower-level managers to ensure smooth execution.

C. Lower-Level Management

1. Provide Feedback on Modifications: Offer insights regarding the necessary changes or technology before any decisions are finalized.
2. Issue Orders: Direct the workforce by issuing clear orders and instructions for implementing the plans.
3. Guide the Workforce: Provide training and support to employees in performing their production tasks effectively.
4. Supervise Operations: Monitor work closely to guarantee that tasks are completed efficiently and effectively.

Q. 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.

Ans.

The firm’s planning is commendable, but there’s a challenge in execution. To address this, the firm should consider the following steps:

Maintain Interdepartmental Interdependency:

Ensure that all departments remain mutually dependent and supportive of each other.

Align Individual and Organizational Goals:

Make sure that personal goals of employees align with the important needs of the organization.

Resolve Departmental Differences:

Work towards resolving any existing conflicts or differences between departments.

Encourage Collaborative Efforts:

Motivate all departments to work collaboratively towards achieving both common objectives and their individual departmental goals.

Facilitate Clear Communication and Guidance:

Provide clear and proper communication and guidance to prevent misunderstandings.

Promote Timely Follow-ups and Feedback:

Encourage regular follow-ups and feedback from the lower management levels to the higher levels.

Foster Transparent and Organized Work Patterns:

Develop and maintain transparent, organized, and clear work patterns to avoid miscommunication.

Conduct Regular Meetings:

Hold meetings at regular intervals to ensure the smooth flow of operations.

Provide Comprehensive Training:

Offer both on-the-job and off-the-job training to employees to ensure they perform their tasks with utmost efficiency and effectiveness.