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

Nature and Significance of Management NCERT Solutions for Class 12 BST

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

Nature and Significance of Management Class 12 Takshila Learning’s NCERT Solutions for Business Studies are an advanced and next stage of Class 11 NCERT Solutions in business studies. We provide the basic fundamentals of the subject in Class 11 and then move on to an advanced degree of concepts in Class 12. The business studies topics are related to our practical life and dealt with in an easy way for understanding.

 

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

 

NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management provides us with all-inclusive information on all concepts. As students would have to learn the basics about the subject in class 12, this curriculum for class 12 is a comprehensive study material, which explains the concepts in a great way.

Questions Covered In Nature and Significance of Management Class 12 NCERT Solutions

 

Short Answer Type:

  1. Define Management.

Ans: Management can be defined as the task or process of achieving the task that is required to achieve the goals of the organization in an efficient and effective manner.Process refers to management tasks. That is, planning, organizing, staffing, directing and controlling. On the other hand, effective means completing a given task and while doing the task, efficient means successfully completing the task with the lowest possible cost. Thus, management can be defined as a process of planning, organizing, staffing, directing and controlling so that the goals of the organization can be successfully achieved with minimal cost and resources.

  1. Name any two important characteristics of management.

Ans: The following are the two characteristics of management.

i. Pervasive: Management is comprehensive in size, characteristics, and for all organizations in the field.That is, all organizations, whether large or small, are working for economic or social interest and management is required in any field. For example, a corporate firm requires management as a non-profit organization. Likewise, a hotel requires more management as a hospital. In addition, management is practiced by organizations in all countries and regions. The only difference is how it is practiced by different organizations in different fields based on their culture and traditions.

 

ii. Continuous Process– Management is a continuous process. That is, the various tasks of management (planning, organizing, directing, staffing, and controlling) are carried out simultaneously by managers. However, the focus or priority of the manager may vary from day to day. While one day, manger mats devote more time towards planning, other days more time may be spent on control.

  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 in middle-level management, being the manager of the organization’s northern division. He and other management act as a link between top management and operational management. Its main function is to oversee the implementation of plans and policies formulated by the top management by directing and supervising the functions of the lower management.The following are his original works:(i) Explain the policies formulated by the top management.(ii) To ensure that every department under its department has the necessary personnel and staff to perform the prescribed work.(iii) Delegation of necessary duties to persons working in various departments.(iv) Encouraging and motivating personnel to achieve the goals.(v) To coordinate with the functions of other division heads.

  1. Why is management considered a multi-faced concept?

Ans: Management is called a multidimensional concept because it is a complex process involving different dimensions, not just one. There are three main dimensions of management.Me. Management of work: The performance of a certain task forms the basis of an organization. This work with management is explained in terms of objectives and goals and how to achieve them.ii. Managing people: As people have to work, managing people is another important dimension of management. It involves dealing with employees as an individual and as a group or teams. Their strengths are used with management and work on weaknesses to achieve the desired objectives.iii. Managing operations: Each organization includes a production process where the input is transformed into a product or service. This production process requires continuous management. Thus, we can say that management is a multidimensional process that covers different dimensions simultaneously.

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

Ans: Following are the basic characteristics according to which management can be seen as a profession.Me. Systematic Knowledge: Management is based on a systematic and well-defined body of knowledge consisting of principles and principles. This knowledge can be obtained through various colleges, institutes and books.ii. Professional Association: As in every profession, management is also affiliated with a professional association that regulates the functions of members. For example, AIMA (All India Management Association) in India controls the functioning of its member managers. However, each manager is under no obligation to be a member of the association.iii. Restrictions on admission: Although a specific qualification or degree requires a merger, however, professional knowledge is preferred in the context of management degrees and diplomas. To some extent, it restricts the entry of people into management as a profession.iv. Code of Conduct: Each profession follows a special code of conduct which serves as a guiding principle for the ethical behavior of its members. Through good management, production takes place in an effective and efficient manner and quality goods and services are provided to society at a reasonable price.

Long Answer Type:

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

Ans: 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: Management satisfies the following criteria for it to be called an art.

(a) Existing Literature: All arts such as music, dance represent a defined body of knowledge and literature. Similarly, there is also a lot of literature for theoretical knowledge and learning in management. Various theories and theories have been developed in management. Such as Henry Fayol’s Principles of Management, Taylor’s Scientific Management Theory.

 

(b) Dynamic Application: Art is the personal applicability of existing knowledge. That is, each person uses basic knowledge in their creative way. For example, every dance form has some basic steps. These steps are used by each dancer in their own creative way. In the same way, managers use the available principles and principles according to the situation in their own unique way. That is, managers use their creativity and imagination for the application of management knowledge.

 (c) Practice and Creativity: Art includes practice and innovation. Artists use existing literature according to their creativity and novelty. For example, two authors can describe a given situation based on their specific interpretations. Similarly, in management, a manager applies management principles and principles to different situations according to his creativity and imagination and sometimes devises new ways to address a situation.

 

Management as a Science: As a science, management fulfills the following criteria.

(a) Systematic Body of Knowledge: Science has a specified body of knowledge that is based on a cause-and-effect relationship. Similarly, management has its own principles and principles which have evolved over the years. Also, like other disciplines of science, management also has its own vocabulary.

 

(b) Theories Based on Experimentation: Theories and theories in science are based on continuous observation and experimentation. In the same way, theories of management have evolved over the years based on repeated observations and experiments. However, unlike science, no precise cause-and-effect relationship can be established in management. This is because management is primarily concerned with human and human behavior. Since human behavior is subject change, therefore, the results of these theories will also vary from one situation to another. Despite this, management meets this criterion of science to some extent because scholars are able to identify certain theories and theories that serve as guidelines in management.

 

(c) Universal Validity: In science, theories have universal validity. Theories and principles in management are also somewhat valid if not universal. Although the conditions of application of the principles and their consequences vary, they act as standards for actions in different situations. That is, these principles can be used for basic training of managers.

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

Ans: 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:

i. Systemised Knowledge: There is a systematic and well-defined body of knowledge in management. It is based on several theories and theories that develop over the years with constant experimentation and observation. Knowledge of management can be obtained through various colleges, institutes and books. Management as a course is offered by many colleges and professional institutions. For example, in India, the Indian Institute of Management (IIM) is the premier institution of management.

 

ii. Restriction to Entry: Management satisfies this criterion to some extent. Against other professions such as a doctor or lawyer, no specific qualification or degree is required to be a manager. That is, any person with any degree or qualification can be a manager. However, entry is prohibited as individuals with a professional management degree or diploma are preferred.

 

iii. Professional Association: A professional must be a member or be associated with a statutory body responsible for conveying the laws and authorities of that profession. For example, to practice Chartered Accountancy, a person must be a member of the Institute of Chartered Accountants of India. Similarly, management is also associated with a professional association that controls the actions of members. In India, AIMA (All India Management Association) is a consortium for managers. But, managers are not expected to be part of them.

  1. Code of Conduct:

Any professional has to follow the rules and regulations developed by the top authority which regulates the functions of that profession. There is a prescribed code of conduct, which the professional has to follow for smooth functioning. We also have a specific code of conduct in management, but it is not mandatory for managers to follow them. Unlike the profession where members who violate the rules are punished, No such penalty is awarded in management if managers do not follow the standards set by AIMA or AIPMA. However, other professions are equally served by society through management. Through effective and efficient management of the organization, quality products and services are provided at reasonable prices.Thus, it can be said that to some extent management meets the test of being called a profession.

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

Ans: Yes, coordination is really the essence of management. By coordination we mean a path through which group functions are connected. This forces the people of the organization and their activities to run the work smoothly. It is the force that unites the work and efforts of the people of the organization for the common purpose of the organization. Coordination combines the interrelated functions of management. It is found at every level of management. It begins with the stage of planning where goals and objectives are set for the organization. Then there is a need for coordination between the stage of planning and staffing so that the right type of people are hired for the execution of the plan. Direction and control tasks should also be coordinated with each other to realize the desired goals.

 

The following points highlight the importance of coordination in management.

(a) Harmonized Goals: In any organization, development is one of the important goals. With the growth of the organization, its size increases and the number of personnel also increases. However, more and more individuals mean more differences in thoughts and work habits, which can lead to disagreement among people. Also, each person will have their own personal goals which can be a hindrance in achieving organizational goals. Therefore, coordination is important so that individual and overall goals are synchronized in one direction.

 

(b) Allotted Work: Each task requires expertise to produce the expected results. For this, each organization hires a specialist for various tasks. Each expert views tasks in their own unique way and is usually reluctant to take any advice or suggestion form. This can cause vicissitudes or conflicts between different experts in the organization. Thus, coordination with an external body as a manager is necessary so that their opinions and ideas can be integrated.

 

(c) Interdependence of Divisions: An organization has various departments and sub-departments such as production, sales, finance, etc. Each department works independently and with its own policies and objectives. For example, the sales department may want more monetary incentives for its employees but the finance department may not accept such incentives because it may increase the organization’s costs. In this case, a conflict arises between the two departments. Thus, there is also a need for coordination here to synchronize the activities of each department to achieve the common goals of the organization.Therefore, we see that coordination is intrinsic and mandatory for management. This is the ‘essence’ of management.

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

Ans: Management is defined as a task or a process of performing the task that is necessary to achieve the goals of the organization in an efficient and effective manner. Here, two key words- efficient and effective play an important role.Effectiveness means completing the given task in the required time. In other words, it means doing the right things with a focus on the end result. This is a very important aspect of management as it helps in reaching the set goals. Efficiency, on the other hand, means completing tasks with the lowest possible cost and resources. Efficiency is said to increase if greater benefits are achieved by using fewer resources or even if the same benefits can be obtained by cutting down on resources. For an organization, both effectiveness and efficiency play an equally important role in achieving the goals. While on the one hand, being effective implies actually achieving goals, on the other hand, being efficient will reduce costs and, thus, increase profits. However, often one organization has to compromise on one while acquiring the other. That is, if the company focuses on effectiveness, it may have to compromise efficiency and vice versa. For example, suppose that in order to complete a given task, the manager decides to employ a greater number of workers. This would mean that he would have to pay a higher salary which in turn increases the total cost of production. In this situation, the manager can complete the allocated work on time, but the task will lack efficiency. On the other hand, if Manger continues to work with available workers so that costs do not increase, it will delay the project. That is, in this case the manager compromises on effectiveness while achieving efficiency.Therefore, it is necessary to maintain a balance between effectiveness and efficiency. Insisting on one without the other is not good for the organization.

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

Ans: ‘Robert L. Trivelli and M. In the words of Jean Newport ‘, management is defined as the process of planning, organizing, activating and controlling the operations of an organization to achieve the coordination of essential human and material resources in an effective and effective manner Can go Achievement of objectives Planning, organizing, directing, staffing, and controlling are the five basic tasks management must perform simultaneously. Additionally, these functions are interlinked and each is a function of each other. That is, no function can be completed without the other. For example, planning cannot take place until planning is done. Likewise, unless there is the right kind of staff, the direction will not be successful.

A detailed explanation of the functions of management is as follows:

(a) Planning: Planning means deciding what to do, who to do and how to do it. That is, it establishes the means to achieve the goal and devise the means to achieve it effectively and efficiently. This is a step for the management of any organization. It is a well-known phrase that well-planned planning is halved ’. In addition, planning helps in predicting situations and choosing the best among the various options to deal with the situation.

 (b) Organising: Once the plan is prepared, the next phase is being organized. Planning means what tasks and resources are required for the implementation of the plan. Duties and functions under organizing are grouped and allocated in various departments, defining authority and establishing a hierarchical structure in the organization. Proper organization leads to both effectiveness and efficiency in the organization.

 

(c) Staffing:

Any organization needs specialized personnel to accomplish its tasks. Staffing implies hiring the right kind of people with the necessary qualifications for the job. Staffing is also called human resource function and includes recruitment, training and development of people.  (d) Directing: Directing is a very important function of a manager. It serves to guide and guide the people working in the office. This involves motivating them in the right direction so that they can do their best to achieve the goals. There are two important aspects of direction – motivation and leadership. Motivation involves establishing the right environment for work. Leadership, on the other hand, means to act according to the instruction of the leader. This derives from praising and criticizing the work when necessary.

 (e) Controlling: Once the above works are done, it is necessary to control and check that the work is moving in the right direction. It involves measuring actual work against set standards and policies. It also ensures that the work is up to the mark and there are no twists or errors from the set targets. Control also takes care that if an error or discrepancy occurs, appropriate measures are taken to correct it. This ultimately helps to achieve the goals in time, effectively and efficiently.

Thus, we can say that the functions of management are interdependent and the manager performs these tasks simultaneously.

Multiple Choice

  1. Which is not a function of management of the following?

(a) planning

(b) staffing 

(c) cooperating

(d) controlling

Ans: Cooperating is not a function of management.

Management has mainly five functions – planning, organizing, staffing, directing and controlling. For the performance of these interrelated tasks, the activities of various departments, units and individuals should be synchronized. That is, different departments should cooperate with each other and work in a coordinated manner. Thus, cooperation is the means through which management is able to perform its tasks.

  1. Management is:

(a) an art

(b) a science

(c) both art and science

(d) neither

Ans: Management is both an art and a science.

Management is a science because it is based on various theories and theories that were developed over the years with constant experimentation and observations. It is also an art because a manager applies these principles and principles based on his or her own knowledge, creativity and skills.

  1. The following is not an objective of management:

(a) earning profits

(b) growth of the organisation

(c) providing employment

(d) policy making

Ans: Policymaking is not the objective of management. It is actually a process that involves setting goals and objectives for the organization and determining how to achieve the desired goals. That is, it can be said that policymaking is the path through which a management’s objectives, ie organizational objectives (such as profit making and organization growth), social objectives (eg providing employment) and personal objectives can be achieved.

  1. Policy formulation is the function of

(a) top level managers

(b) middle level managers

(c) operational management

(d) all of the above

Ans: Policy formulation is the function of the top level managers.

They are responsible for developing policies and goals for the organization. On the other hand, middle level managers interpret these policies in terms of plans and objectives and work towards implementing them with the help of operational management. Operational management directly oversees the actual work process according to the instructions of the middle management.

  1. Coordination is

(a) function of management

(b) the essence of management

(c) an objective of management

(d) none of the above

Ans: Coordination is the essence of management.

This is neither a task nor an organization’s purpose. Rather, it is internal to all the functions and functions of management. It is a process through which the activities of various departments and units are synchronized to achieve the common goals of the organization. It is only through coordination between various management functions that desired goals can be achieved.

 

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