12/25/2018 Case Studies – (Chapter -1) Nature and Significance of Management, BST Class 12 Commerce Notes | EduRev

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Case Studies – (Chapter -1) Nature and Signi cance of

Management, BST Class 12
Business Studies(BST) Course Class 12- Notes & Imp Questions
Created by: Pj Commerce Academy (/47936…

COMMERCE : CASE STUDIES – (CHAPTER -1) NATURE AND

SIGNIFICANCE OF MANAGEMENT, BST CLASS 12

Case Studies – (Chapter -1) Nature and Significance of Management

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12/25/2018 Case Studies – (Chapter -1) Nature and Significance of Management, BST Class 12 Commerce Notes | EduRev

Q. 1. Dheerj 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 middle level management.

Functions: The main task of Dheeraj is to carry out the plans formulated by the top
managers. For this he need to:

1. Interest the policies framed by top management,

2. Ensure that his department has the necessary personnel, assign necessary duties and
responsibilities to them.
3. Motivate them for higher productivity to achieve desired objectives, and
4. Cooperate with other departments for smooth functioning of the organization.
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)

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Ans. Yes, the Prodcution 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.

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:
Specialization:

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

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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 both Ahmad and Ally by giving the following explanation:

Management is a profession. However, it is not a full-fledged profession like legal,

accounting or medical professions because it does not meet the exact criteria of a
profession.

The application of the features of a profession to management is examined below:

1. Ell-defined body of knowledge:

2. Restricted Entry:
3. Professional Association:
4. Ethical code of conduct:
5. Service motive:
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 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)

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Ans. The company wants to modify its existing product, CD players in the market because
of today’s dynamic business environment. For this, each level of management must divide
its task.

Functions of top management:

1. They must plan the technique of modification/modernization of the product. They may
plan to manufacture DVD players or Blue raw players, etc. to modernize the product.
2. They must organize and assemble necessary resources and coordinate the efforts of all
the departments towards modernization.
Functions of middle management:

1. They must implement the plans laid down by top management in their respective
departments or divisions.
2. They must interpret the plan and policies to their subordinates.
Functions of operational/supervisory management:

1. They must assign the tasks to workforce and supervise that the task is carried on in the
right direction.
2. They must maintain the quality of work and r educe the wastage by improving the
motivation and loyalty of workers.
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.

1. Coordination

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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.

Top management plans for the entire organization.

According to these plans, the organizational structure is developed and staffed.
In order to ensure that these plans are executed according to plans, directing is requires.
Any deviation between the actual and the standard performance is corrected at the stage
of controlling.

1. Coordination is a continuous process. It begins at the planning stage and continues till
controlling.
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. is fulfilling all the objectives – organizational
objectives, social objectives and personal objectives.

1. Organizational objectives
2. Social objectives

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3. Personal objectives
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.

1. 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.

Mr. Sanatan is working at the middle level management.

He assigns necessary duties and responsibilities to the personnel and motivates them to
achieve desired iobjectives.

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

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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.

1. Coordination
2. Features of coordination:
Coordination integrates group efforts by unifying diverse interest.
Coordination ensures unity of action by acting as a binding force between departments.
Coordination is a continuous process as it begins at planning stage and continues till
controlling.

3. Management is a group activity.

An organization is a group of different individuals who work together with team spirit and
coordination to achieve the goals of the organization.

Q. 11. Sanjana is the branch manager of ABC Handicrafts Pvt. The company’s
objective is to promote the sales of Indian handloom and handicraft products.
Its sells fabrics, furnishings, ready-mades and household items are made out of
traditional Indian fabrics. Sanjana decides quantities, variety, colour and
texture of all the above items and then allocates resources for their purchase
form different suppliers. She appoints a team of designers and crafts people in
the company, who developed some prints for bed covers in bright colour on
silk. Although they looked very impressive, they were more expensive than
they had planned to sell. Average customer could not afford to buy it. Praising

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their effort, Sanjaja 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 to keep costs under control.

Identify the functions of management which Sanjaja performs by quoting the

lines the above para. (5 marks)

Ans.

1. Planning: ‘Sanjana decides quantities, variety, colour and texture of all the above items…’
2. Organizing:’…allocates resources for their purchase form different suppliers.’
3. Staffing: ‘She appoints a team of designers and crafts people in the company…’
4. Directing: ‘Praising their effort, Sanjana suggested that they should keep the silk bed
covers for special occasions like Diwali and christman…’
5. Controlling: ‘…offer the cotton bed covers on a regular basis to keep costs under control.’
‘…they were more expensive than they had planned to sell.’

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.

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In order to survive, XYZ Power Ltd. earns enough revenues.

Company’s profits are sufficient to the cover the costs and the risks.
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.

Social objectives involve the creation of benefits for the society.

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.’

1. Values:
Providing employment opportunities in rural areas
Concern for the environment
Socially responsible behaviour
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.

1. The marketing manager, Nishtha helps in:

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1. Achieving the group goals by giving a common direction to the individual effort of her
subordinates in achieving the target sale of 2000 laptops in a month.
2. Increasing efficiency of employees by rewarding them.
She performs all the functions of management.
She plans the target sale of 2000 laptops per months’ – Planning
She allocates necessary resources to carry out the plan’ – Organizing
She works with them, guiding and motivating them to achieve the target sales’ – Directing
At the end of the month, after comparison of actual sales with the target sales she found
than actual sales exceeded the target sales’ - Controlling

1. Values:
Sense of achievement
Loyalty
Belongingness (any two)

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. 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.

Q. 15. Sujata works as a designer in n 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

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production in 20 days because in order to complete ithe 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. Yes, Sujata is efficient in her work as she has been able to get 1000 units of denim
jackets made @ Rs. 2000 per jacket.

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 form it.

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Ans. The various features of management highlighted in the above paragraph are stated
below:

1. Management is all pervasive:

2. Management is a goal-oriented process:
3. Management is a continuous process:
4. Management is a group activity:
5. Management is an intangible force:
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. The various objectives of management being fulfilled by Real Alliance Ltd are stated
below:

1. Organizational objectives:
Survival:
Growth:
Profit:

2. Personal objectives:
3. Social objectives:

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4. The two value that Real Alliance Ltd. wants to communicate to the society are:
5. Social welfare
6. Respect for their employees
Q. 18. 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, where is 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 organizational objective. 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.

In context of the above case:

Identify the various reasons that have made management so important by

quoting lines from the paragraph.

Ans. The various reasons mentioned in the above paragraph that have made management
so important are stated below:

1. Management increases efficiency as it leads to reduction in costs due to optimum

utilization of resources.
“As a result of her excellent managerial competence the company is able to reduce costs and
increase productivity.”

1. Management creates a dynamic organization so that it is able to incorporate the

corresponding changes in its working with any change in its business environment.

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“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.”

1. Management helps in achieving personal objectives of the employees in the organization.

“She motivates and leads her team in such a manner that individual members are able to
achieve personal goals while contributing to the overall organizational objective.”

1. Management helps in the development of society by contributing effectively towards it is

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.

Q. 19. Ramarjuna joins an IT from 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 head sin 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.

Ans. 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:

1. Existence of theoretical knowledge:

2. Personalized applications:

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3. Based on practice and creativity:

Q. 20. 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 s a discipline, but still it is not
considered to be a full-fledged profession for certain reasons.

In the context of the above case:

1. Explain the reasons because of which Dharam considers management as a

discipline.
2. Critically examine the various reasons because of which management is not
considered to be a full-fledged profession.
Ans.

1. 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.
2. Management is not considered to be a full-fledged profession because of the following
reasons:
Restricted entry:
Professional association:

Q. 21. 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 form the store. Whereas on asking, the store keeper
complains that there is no harmony in the working of the production

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department as a whole. Every day the workers approach him at the least
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
materials. 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:

1. 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.
2. State briefly and two points highlighting the importance of quality of
management identified in part (a).
Ans.

1. 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.

1. The two points highlighting the importance of coordination are stated below:
Growth in the size:
Functional differentiation:

Q. 22. 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.

Ans. Sridhar’s father is working as a section in-charge in a government office. He is

working at the lower level of management.

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He has to perform the following functions at this level of management:

1. He has to directly oversee the efforts of the workforce.

2. He has to serve as a link between the workers and middle level managers.
3. He has to ensure sufficient availability of resources and good quality of output.
4. He has to provide guidance and training to workers.
5. He has to ensure that good working conditions are provided to the workers.
Q. 23. Geetika is working in a private sector bank. One of her key function
relates to the formulation of the overall organizational 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.

Ans. 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:

1. She is responsible for the success and failure of the organization.

2. She is responsible for all the business activities and its impact on society.
3. She has to coordinate the activities of different departments in pursuit of common goals.
Q. 24. 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.

Ans. 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:

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

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Q. 25. Bhuvan argues that management is required in all kinds of organizations

where as Piyush feels that management is not required in non-business
organizations such as school, club, hospitals, etc. who is correct?

Ans. Bhuvan, because management is pervasive.

Q. 26. Mohan has retired from the post of a foreman in a factory. At what level
of management is he working?

Ans. Supervisory or operational level.

Q. 27. ‘Sonu Nigam’ the famous playback singer always spends time for practice
and adds his creativity in his singing.

Like Sonu Nigam, Mr. Rajiv, manager of Headlines Ltd. uses his creativity and
practice management principles under different situations to manage the
business. The employees are happy and satisfied as he every day reward
employees for their punctuality and efficiency.

1. Identify the nature of management highlighted above.

2. Name other two aspects of nature of management.
3. Identify the values followed by Mr. Rajiv.
Ans.

1. Nature of management highlighted above is “Management as an Art”

2. The other two aspects of nature of management are:
Management as Science.
Management as Profession.

3. Values:
4. Motivating employees for discipline and punctuality.
5. Good and responsible behavior by rewarding employees.
Q. 28. Bhuvan Ltd., a garment manufacturing Company set the target
production of 100 garments per month at the estimated cost of Rs. 200 per
garment. Mohan, a worker worked double shift and manufactured around 150

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garments but at the estimated cost of Rs. 230 per garment. On the other hand,
Ravi another worker focus on cost and handled resources very carefully so the
manufactured 90 garments but at the estimated cost of Rs. 190 per garment.
Third worker maintained the balance and achieved target of 100 garment at the
estimated cost of Rs. 200 per garment.

1. Identify the quality possessed by Ravi, Mohan and what they are lacking.
2. What quality is possessed by third worker?
3. Which worker is preferred by management?
Ans.

1. Mohan is effective but he lacks efficiency.

Ravi is efficient but he lacks effectiveness.

1. Third worker is effective as well as efficient.

2. Management prefer third worker as management always insist on achievement of goal
effectively as well as efficiently.
Q. 29. Management of Alpha Ltd. has installed a special recycling plant to
recycle the waste instead of dumping the waste in ground. It is also providing
employment opportunities to local residents. Company started a school nearby
for the children of their employees.

1. Identify the objectives company is fulfilling.

2. (ii) Quote the lines from above para which indicate those objective.
Ans.

1. Social and personal objectives

“Installed a recycle plant”:Social objective.

1. “Started a school for children of their employees”. Personal objectives.

Q. 30. Directors of Bhuvan Ltd. assigned the task of implementing the plans
and policies framed by the board to all the departmental heads. Departmental
head appointed supervisors, superintendent, executives, etc. so that work can

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be assigned to workers as per the plan supervisors kept a check on workers as

per the plan.

1. Identify the feature of management highlighted in above para.

2. Explain that feature.
Ans. 1. The feature highlighted in above para is “management is a group activity.”

Q. 31. Alpha Ltd. is a Company that manufacturers mobile phones and

accessories. Its profits are declining nowadays. The sales department blames
production department for low quality, the production department blames
purchase department for not supplying good quality parts.

1. What quality of management is lacking in the above case?

2. Explain the nature of the concept.
Ans. (a) Coordination.

Q. 32. A group of people believes that management is a systematic body of

knowledge that explain certain general truth and is based on logical
observation.

Identify and explain the nature of management discussed in above case.

Ans. Management as a Science.

Q. 33. Unique enterprises is able to achieve the target production of 5,000

units within the prescribed time; however to achieve this target they hired
extra workers on adhoc and spent around is 40,000 extra to pay the adhoc
workers sot that target production can be achieved on time.

1. Do you think unique enterprise is effective or efficient?

2. Was their decision to hire adhoc workers to achieve the target was correct?
3. Explain the concept of management highlighted above.
Ans.

1. Unique enterprise is effective but not efficient.

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2. No, the decision to hire adhoc workers and spending extra is not correct, this will reduce
the efficiency of enterprise.
3. The concept referred in this case is “Balance between effectiveness and efficiency.”
Q. 34. In an organization sales department wants to increase the sale by 20% so
sales department planned to offer extra discounts to customers. Finance
department raised objection on it as they sat it will result in loss of revenue and
company may face liquidity problem.

1. Name the importance of coordination referred here.

2. State other two importance of coordination.
Ans.

1. “Functional differentiation”
2. Other two importance:
1. Size (b) 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. Top level – Mr. Rajiv and Arun

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Middle level – Mr. John and Singh

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.

2. (i) Economic 9iik) Social
3. 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.

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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:

To reduce the labour cost 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 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:

Organizational objectives:
Social Objectives:

2. The two values that the company wanted to communicate to the society are:
3. Rural development
4. 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.

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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:
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

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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:
Planning:
Organizing:
Staffing:
Directing:
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

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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:
Restricted entry:
Professional association:

2. The two values that are reflected in this act of Ajay are:
3. Compassion
4. Responsibility.

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