Chapter 1- Nature & Significance Of Management

Question 1

Characteristics of management

Answer 1

1) management is a goal oriented process
2) management is all pervasive
3) management is multidimensional
4) management is a continuous process
5) management is a group activity
6) management is a dynamic function
7) management is an intangible force

Question 2

Management is a goal oriented process

Answer 2

• Every organisation has a set of basic goals
• they should be simple and clearly stated
• different organisations have different goals
• management unites the efforts of different individuals in the organisation towards achieving these goals

Question 3

Management is all pervasive

Answer 3

• Activities involved in management of enterprise are common to all
• how the activities are done is different
• differences arise due to difference in culture, tradition and history

Question 4

Management is multidimensional

Answer 4

Management of work- basic work, management translates this work in terms of goals and assigns means to achieve them
Management of people- greatest asset, 2 dimensions- 1) it implies dealing with employees as individuals with diverse needs and behaviour. 2) it implies dealing with individuals as a group of people
Management of operations- provide service or good, this requires the production process which entails the flow of input material and the technology to transform this into desired output, it interlinks above 2

Question 5

Management is a continuous process

Answer 5

The process of Management is a series of continuous composite but separate functions
These functions are performed simultaneously by the manager at all time
The task of a manager consists of an ongoing series of function

Question 6

Management is a group activity

Answer 6

Collection of individuals with different needs
Every member of the group has a different purpose for joining the organisation but as members they have to work towards achieving the common organisational goal
Requires teamwork and coordination of individual effort in a common direction
Management should also enable growth and development of team members as needs and opportunities change

Question 7

Management is a dynamic function

Answer 7

Has to adapt itself to the changing environment
Interacts with external environment which consists of various social economic and political factors
To be successful an organisation has to change itself and its goals according to the needs of the environment

Question 8

Management is an intangible force

Answer 8

Cannot be seen but its presence can be felt in the way an organisation functions
Noticeable in organisation where targets are met according to plan, employees are happy and satisfied and there is orderliness instead of chaos

Question 9

Objectives of management

Answer 9

1) organisational objective
2) social objective
3) personal objective

Question 10

Organisational objective

Answer 10

Responsible for setting and achieving objectives for the business
Has to achieve a variety of objectives in all areas considering interest of stakeholders
Main objective is to fulfill economic objective
Survival- earn enough revenue to cover costs
Profit- vital incentive, covers costs and risks of business
Growth- exploit growth potential, measured in terms of sales volume, increase in number of employees

Question 11

Social objective

Answer 11

It involves the creation of benefit for the society
Every organisation has a social obligation to fulfill
This implies consistently creating economic value for various constituents of the society
This includes using environmental friendly methods of production, Providing employment opportunities to the disadvantage section and providing basic amenities like schools and créches to its employees

Question 12

Personal objective

Answer 12

Organisation is made up of diverse individuals
They all become part of the organisation to satisfy their diverse needs
They vary from financial needs such as competitive salaries and perks social needs such as peer recognition and high-level needs such as personal growth and development
Management must reconcile personal goals with organisational objectives for harmony in the organisation

Question 13

Importance of Management

Answer 13

1) management helps in achieving group goals
2) management increases efficiency
3) management creates a dynamic organisation
4) management helps in achieving personal objectives
5) management helps in development of society

Question 14

Management helps In achieving group goals

Answer 14

Management is required not only for itself but also to achieve group goals.
the task of a manager is to provide a common direction to individual efforts in achieving the common organisational goal

Question 15

Management increases efficiency

Answer 15

The task of a manager is to reduce cost and increase productivity through better planning, organising, directing, staffing and controlling

Question 16

Management helps in achieving personal objectives

Answer 16

Manager motivate and lead his team in such a manner that individual members are able to achieve their personal goals while contributing to the overall organisational objectives through motivation and leadership team management helps individuals to develop team spirit cooperation and commitment to group success

Question 17

Management creates a dynamic organisation

Answer 17

All organisation have to function in an environment that is constantly changing. It is seen that individuals in an organisation generally resist change as it means moving from a familiar, secure environment to a newer, more challenging one. Management helps people to adapt to these changes so that the organisation is able to maintain its competitive edge

Question 18

Management helps in the development of the society

Answer 18

An organisation has multiple objectives to serve the purpose of different groups that constitute it. In the process of fulfilling these objective, the management helps in the development of the organisation which in turn helps in the development of society. It helps to provide good quality products and services, create employment opportunities, adopt new technology for the greater good of the people and leads the path towards growth and development

Question 19

Art

Answer 19

Art is the skillful and personalised application of already existing knowledge to obtain desired results

Question 20

Features of art

Answer 20

1) existence of theoretical knowledge
2) personalised application
3) based on practice and creativity

Question 21

Science

Answer 21

Science is a systematised body of knowledge that explains some general truth or the operations of general laws

Question 22

Features of science

Answer 22

1) systematised body of knowledge
2) principles based on experimentation and observation
3) universal validity

Question 23

Features of profession

Answer 23

1) well defined body of knowledge
2) restricted entry
3) professional association
4) ethical code of conduct
5) service motive

Question 24

Functions of top management

Answer 24

1) their basic task is to integrate diverse elements and coordinate the activities of different departments according to organisational objective
2) they are responsible for welfare and survival of the firm
3) they analyse business environment and its implications for the survival of the firm
4) they formulate overall organisational objective and strategies for their achievement
5) they are responsible for all the business activities and its impact on society

Question 25

Functions of middle management

Answer 25

1) they are responsible for implementing and controlling the plans and strategies developed by top management 2) they are responsible for the activities of first line managers 3) their main task is to carry out the plan formulated by the top management by interpreting, ensuring, assigning, motivating and cooperation

Question 26

Functions of lower level management

Answer 26

1) they directly oversee the efforts of the workforce 2) they play an imp role in the organisation as the interact with actual workforce and pass on information of middle management to workers 3) through their efforts quality of output is maintained, wastage of materials is minimised, safety standards is maintained 4) quality of workmanship and quantity of output depends on hard work, discipline and loyalty of workers

Question 27

Planning

Answer 27

Planning is the function of determining in advance what is to be done and who is to do it. This implies setting goals in advance and developing a way to achieve them effectively and efficiently

Question 28

Organising

Answer 28

Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan

Question 29

Staffing

Answer 29

Staffing simply stated is finding the right person for the fight job. It is also known as Human Resource function and involves activities like recruitment, selection, placement and training of personnel

Question 30

Directing

Answer 30

Directing involves leading, influencing and motivating the employees to perform the task assigned to them

Question 31

Controlling

Answer 31

Controlling is the management function of monitoring organisation performance towards attainment of organisational goals. The task of controlling involves establishing standards of performance, measuring current standards, comparing them with existing standards and taking corrective action where any deviation is found.

Question 32

Coordination

Answer 32

The process by which a manager synchronises the activities of different departments is known as coordination

Question 33

Features of coordination

Answer 33

1) coordination integrates group effort 2) coordination ensures unity of actions 3) coordination is a continuous process 4) coordination is an all pervasive function 5) coordination is the responsibility of all managers 6) coordination is a deliberate function

Question 34

Importance of coordination

Answer 34

1) growth in size 2) functional differentiation 3) specialisation