Please refer to Nature and Significance of Management Class 12 Business Studies Important Questions with solutions provided below. These questions and answers have been provided for Class 12 Business Studies based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these problem solutions as it will help them to gain more marks in examinations. We have provided Important Questions for Class 12 Business Studies for all chapters in your book. These Board exam questions have been designed by expert teachers of Standard 12.
Class 12 Business Studies Important Questions Nature and Significance of Management
Question: Ashutosh Goenka was working in’AxeLtd.’as CEO,a company manufacturing air purifiers.He found that the profits had 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.
(a) Identify the level of management at which Ashutosh Goenka was working.
(b) State three other function being performed by Ashutosh Goenka.
Answer: (a) Ashutosh Goenka was working at ‘top level management’.
(b) The other functions performed by managerial staff employed at top level are enlisted below:
Coordinates different activities of the organisation for the accomplishment of the common goals Works towards the survival of the organisation by analysing the business environment. Drafting of necessary plans and policies for increasing the profits of the company.
Question: Give functions of management.
Answer: The various functions of the management are given below:
Question: State various objective of management.
Answer: Objective of management- organizational, personnel and social.
Question: A company manufacturing mobiles is facing the problem of decreasing sales in the market. You can imagine any product about which you are familiar. What decisions/ steps, each level of management should take to give effect to this decision?
Answer: Modernization of product is needed to increase its market share. Hence to modernize the product each level should work as follows:
Top level management
- Concentration research and development and add new features to their products or start a new product line.
- Drafting sales targets, sales plan and sales incentive.
- Increase marketing and promotional activities.
- Coordinate all the functional departments’ activities.
- To raise money from the market if there is any financial requirements.
Middle level management
- Implementation of the plans formulated by the top-level
- Hiring candidates with required qualifications as the job position demands.
- Theyshouldtrytouseavailableresourcesefficientlyandshouldtrytominimizethecostof product.
- Continuouslyevaluateallactivitiesandtakecorrectiveactionsforanydeviationsandreportthe top level management
- Interpretation of the plans and targets to the work force of the company.
- Assign the task depending on the efficiency & qualification of employees.
- Maintain the quality of work and reduce the wastage by efficient utilization of available resources.
- Make efforts to improve the loyalty of workers and communicate the grievances and feedback to the managers.
Question: Define coordination and state its two features.
Answer: Coordination-It is the force that binds all the functions of management. It is the common thread that runs through all activities such as purchase, production, sales, finance, etc. to ensure continuity in the working of the organization. Coordination is not a separate function of management. It is the essence of management. It is implicit and inherent in all functions of management.
Features of coordination:
- Coordination integrates group efforts by unifying diverse interest.
- Coordination ensures unity of action by acting as a binding force between departments.
Question: What is meant by ‘Management’? Explain its any three features that establish it as an Art.
Answer: Art refers to skillful and personal application of existing knowledge acquired through study, observation and experience. The features of art are as follows:
Existence of theoretical knowledge: In every art, Systematic and organized study material is available to acquire theoretical knowledge and experts in the respective fields apply these principles to their respective art forms.
Personalized application: The use of basic knowledge differs from person to person and thus, art is a very personalized concept.
Based on practice and creativity: Art involves creativity and practice of the experts. For e.g. the music created by musicians are different though the musical notes used are the same. Every manager has his own unique style of managing things and people. He/she uses his creativity in applying management techniques and his skills improve with regular application. Since all the features of art are present in management. So it can called as an art.
Question: 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).
Answer: 1. Coordination: because production, marketing and finance departmental efforts are not coordinated for achieving organizational objectives harmoniously. As a result, the company’s profits and market share are declining.
2. Importance of Coordination
- Growth in size:
- Functional differentiation:
Question: State various features of management.
Answer: The various features of management are:
- Management is all pervasive:
- Management is a goal-oriented process:
- Management is a continuous process:
- Management is a group activity:
- Management is an intangible force
Question: Define social objective .give examples of social objective.
Answer: Social objectives involve the creation of benefits for the society.
- Providing employment opportunities in rural areas
- Concern for the environment
- Socially responsible behavior
- Community development by opening schools and crèches for children (any two)
Question: Rishitosh Mukherjee 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 department for smooth functioning of the organisation. Therefore, he ensured that his department has the required number of employees and its cooperation with other departments in improved.
(a)Identify the level at which RishitoshMukerjee was working.
(b) Also, state three more functions required to be performed by RishitoshMukerjee at this level.
Answer: Rishitosh Mukherjee is working at Middle Level Management as he is the head of a department. The other functions performed by Rishitosh are:
Acts as a link between the top management and the workers at the lower level, Interpretation and implementation of policies and plans formulated by the top level management ,Assigns responsibilities to the workers and ensures proper working environment in their respective department.