Grade 12 Business Studies Solution
Nature of Management
Review Questions
1. What is management? Explain the characteristics.
The process of getting things done through others with the help of various activities such as planning, organizing, directing, controlling and may be studies as an activity, as a process, as a discipline and as a group is known as management. Its main motive is to gain economic objectives of the organization in systematic and efficient manner through the effort of subordinates. Management is also necessary for the creation of working environment in the organization.
The characteristics of management are as follows.
Goal Oriented: There is always certain predefined goal on an establishment of an organization. The efficient use of manpower and physical resources to achieve objectives is management. It mobilizes all the resources like materials, machines, money and manpower to achieve goal with limited resources. The primary objective of management is to maximize the efficiency and economy of human activities for achieving overall objectives of an organization.
Universal Activity: Management is essential where there is human activity. It is essential in all types of organizations like business, social, educational or political. The process of management may be different from one organization to another but its principles are same. The principles of management are changeable which can be modified as per the need, environment, time and situation. Thus, management is a universal activity.
Group Activity: Management represents team of people involved in various managerial and execution functions. It is not a sole proprietor working but a formal group of people working together to achieve common goals. Management is applicable where group effort is required to obtain a predefined goal. A group can easily and effectively attain the goals or objectives of the organization rather than the individual.
Both science and art: Management is both science and art. Management is based on some basic principles of universal application which proves that it is a science. Management is an art because the personal skills, efficiency and experience of manager and his subordinates determine the result of an organization. The art of management is considered as both a science and an art. So management is considered as both a science and an art.
Social process: Management has to consider not only the organizational objectives but also the social objectives. It also has to fulfill needs of the employee by remaining within the organizational resources and deal with other social elements in the best possible way. It utilizes human resources for the achievement of organizational goals. The activities of all human beings are directed, co-ordinated and regulated by management. So management can also be considered as a social process.
2. Management is a science. Justify this statement.
Science is a systematized body of knowledge and use of scientific method for observation. Its principles are developed on the basis of continual observation and experiment. These principles are exact and have universal application. Management also satisfies these principles and features of science. It also contains a systematized body of knowledge. It has now induced certain basic principles and elements in the form of process of management, which has universal application in each branch of human activity. That is why, management is a science.
Management is not an exact science like physics, chemistry, biology and physical science but it is a social science as it deals with people and their behavior. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. The value of scientific knowledge can be examined in any place at any time, and their result will be the same in all time like law of gravitation. In the similar manner, management principles are innovated on the basis of observation in various organizations. However, the observation of management principles may not give the hundred percent objectives or result because it’s a matter of human behavior which cannot be predicted accurately. One should have knowledge that different persons’ may have different behavior and feedback to the same method and system. There must be balance between authority and responsibility. Management focuses on the human behavior and uses scientific methods for observation. Management principles and systems are truth which is practically used for the achievement of the organizational objectives. Hence, Management is not an exact science but it is a social science.
3. What is management? Explain the functions of management.
The process of getting things done through others with the help of various activities such as planning, organizing, directing, controlling and may be studies as an activity, as a process, as a discipline and as a group is known as management. Its main motive is to gain economic objectives of the organization in systematic and efficient manner through the effort of subordinates. Management is also necessary for the creation of working environment in the organization.
The functions of management are explained below:
Planning: Planning is the art of predicting and deciding future activities to achieve long term and short term objectives. Planning is made to perform the work in cheapest way and helping to control the task. Planning is related to the future. While preparing plan, it is essential to consider the past and present facts. So, the planner must be well qualified, experienced, farsighted and able to decide the problems and best alternatives. The person who has the above qualifications can only prepare accurate plans.
Organizing: Organizing means to manage the resources like men, money. Time, material etc. and their proper allocation as per the need of time and work so that proper utilization and control of it is possible. It is related to rights and responsibility relationship. Organizing is the art of determining rights and responsibilities In clearly defined way that the activities of an organization can be carried out efficiently and effectively.
Staffing: Staffing is an executive task, which is related to determining manpower requirement, recruitment, selection and training the employees, promotion and transfer of them, proper remuneration and job satisfaction. Manpower is the key factor to run an organization effectively. Effective operation of an organization depends upon the efficiency of the staffs.
Directing: Directing is the act of giving order or suggestions or guidelines to the staffs for achieving the organizational goals. Directing is the process, which supports the staffs to perform their tasks. While directing to the staff, management should consider the basic principles of communication, good relations and leadership so that the management and staffs have good co-ordination and relations, which help to achieve organizational objectives.
Leading: Leading is the act of influencing the staffs toward the accomplishment of organizational objectives. The leading function mainly takes into consideration the people in the organization while making plans, policies, staffing and organizing. It is a very important skills and function of a manager.
4. What do you mean by top level management? Explain the functions of top level management.
Top level management consists of shareholders, board of directors, the chief executives, the managing director, the director, the general manager etc. They are the ultimate level of authority in the operation of the enterprises. They set the objectives, define the goals, establish the policy and judge the results. This level of management is responsible for welfare and development of the organization. The basic functions of the top level management are:
To set the objectives
To define the goals
To establish the policy
To provide the overall direction in the organization
To control effectively
To judge and evaluate the result
To assemble and utilize the resources for the attainment of goals.
5. What is administration? Distinguish between administration and management.
Administration is the part of management concerned with the procedures, which are to be carried out. Actually, administration is used as policy making function in business enterprises in which management is taken as policy execution function. It is that phase of business activity which relates to the overall determination of the major policies and objectives.
Generally, there is no any fundamental difference between management and administration. Some points of differences are:
According to the nature of functions which explains that management functions are operational or executive in nature whereas administration functions are determination, thinking and decision making in nature.
Administration is concerned with the policy making but management is concerned with the implementation of the policy.
The main function of administration are planning and organizing but motivating and controlling are the main functions of management.
The term ‘management’ is applicable in business and social and business institution whereas the term administration is applicable in government, culture and religious organization.
Decisions made by the administration are affected by the public opinion, government policies and ritual norms and values but decisions made by the management are affected by the opinion and beliefs of the manager.
The term ‘administration’ is used in government offices and public sector undertakings, but the term ‘management’ is used in private business sector.
6. Explain the four major functions of management.
The four functions management are explained below:
Planning: Planning is the art of predicting and deciding future activities to achieve long term and short term objectives. Planning is made to perform the work in cheapest way and helping to control the task. Planning is related to the future. While preparing plan, it is essential to consider the past and present facts. So, the planner must be well qualified, experienced, farsighted and able to decide the problems and best alternatives. The person who has the above qualifications can only prepare accurate plans.
Organizing: Organizing means to manage the resources like men, money. Time, material etc. and their proper allocation as per the need of time and work so that proper utilization and control of it is possible. It is related to rights and responsibility relationship. Organizing is the art of determining rights and responsibilities In clearly defined way that the activities of an organization can be carried out efficiently and effectively.
Staffing: Staffing is an executive task, which is related to determining manpower requirement, recruitment, selection and training the employees, promotion and transfer of them, proper remuneration and job satisfaction. Manpower is the key factor to run an organization effectively. Effective operation of an organization depends upon the efficiency of the staffs.
7. Explain the different level of management.
Levels of management indicate the arrangement of managerial position of an organization as well as it as the system of dividing the authority and responsibility among the various managerial positions. The level of management however depends on its size, nature of organization, range of production etc. Management hierarchy is divided into different levels and in each level a manager or head is appointed. Some eminent scholars have classified management broadly into three levels. They are:
The upper level/top level management
The middle level/intermediate level management
The first/lower level management
Top level management consists of shareholders, board of directors, the chief executives, the managing director, the director, the general manager etc. They are the ultimate level of authority in the operation of the enterprises. They set the objectives, define the goals, establish the policy and judge the results. The basic functions of the top level management are:
To set the objectives
To define the goals
To establish the policy
To provide the overall direction in the organization
To control effectively
Middle level of management is concerned with the task of implementing the policies and plans prepared by the top levels management. It consists of departmental heads, officers and sectional heads. This level is responsible for all the activities of lower level management. The basic functions of this level are:
To implement the task set by top level management
To run the organization effectively and efficiently
To co-operate for the smooth functioning of the organization
To co-ordinate between the different parts of the organization
To report and make suitable recommendation to the top level management
Lower level of management is also known as supervisory management. It consists of foremen, supervisors etc. They are responsible for the implementation and control of the operational plans developed by middle level managers. Actually, this level of management is responsible for the operational activities of an organization. The basic function of this level are:
To issue the orders and instructions to the workers
To direct and guide the workers about the work procedures
To provide ‘on the job training’ to the workers
To look after the proper maintenance of the tools
To build up a high group spirit among the workers
8. What functions are associated with middle and lower level management in an organization.
Middle level of management is concerned with the task of implementing the policies and plans prepared by the top levels management. It consists of departmental heads, officers and sectional heads. This level is responsible for all the activities of lower level management. The basic functions of this level are:
To implement the task set by top level management
To run the organization effectively and efficiently
To co-operate for the smooth functioning of the organization
To co-ordinate between the different parts of the organization
To report and make suitable recommendation to the top level management
Lower level of management is also known as supervisory management. It consists of foremen, supervisors etc. They are responsible for the implementation and control of the operational plans developed by middle level managers. Actually, this level of management is responsible for the operational activities of an organization. The basic function of this level are:
To issue the orders and instructions to the workers
To direct and guide the workers about the work procedures
To provide ‘on the job training’ to the workers
To look after the proper maintenance of the tools
To build up a high group spirit among the workers
9. Explain management as ‘science as well as art’.
Art reflects practical application of knowledge and it becomes perfect through knowledge and experiments. It is the knowledge which tells us how to accomplish the desired results. So, management is one of the most certain art as it requires vast knowledge. Art is the application of practical knowledge, personal skills and creativity for producing desired results. So, the management requires certain knowledge and skill to achieve the desired goal. It is an art of getting things done through and with people. It is also called an art because the managing requires certain skills which are the personal possession of the managers. So, management is an art.
Science is a systematized body of knowledge and use of scientific method for observation. Its principles are developed on the basis of continual observation and experiment. These principles are exact and have universal application. Management also satisfies these principles and features of science. It also contains a systematized body of knowledge. It has now induced certain basic principles and elements in the form of process of management, which has universal application in each branch of human activity. That is why, management is a science.
10. What is management? Explain the general principles of management.
The process of getting things done through others with the help of various activities such as planning, organizing, directing, controlling and may be studies as an activity, as a process, as a discipline and as a group is known as management. Its main motive is to gain economic objectives of the organization in systematic and efficient manner through the effort of subordinates. Management is also necessary for the creation of working environment in the organization.
The general principles of management are explained below:
Planning: Planning is the art of predicting and deciding future activities to achieve long term and short term objectives. Planning is made to perform the work in cheapest way and helping to control the task. Planning is related to the future. While preparing plan, it is essential to consider the past and present facts. So, the planner must be well qualified, experienced, farsighted and able to decide the problems and best alternatives. The person who has the above qualifications can only prepare accurate plans.
Organizing: Organizing means to manage the resources like men, money. Time, material etc. and their proper allocation as per the need of time and work so that proper utilization and control of it is possible. It is related to rights and responsibility relationship. Organizing is the art of determining rights and responsibilities In clearly defined way that the activities of an organization can be carried out efficiently and effectively.
Staffing: Staffing is an executive task, which is related to determining manpower requirement, recruitment, selection and training the employees, promotion and transfer of them, proper remuneration and job satisfaction. Manpower is the key factor to run an organization effectively. Effective operation of an organization depends upon the efficiency of the staffs.
Directing: Directing is the act of giving order or suggestions or guidelines to the staffs for achieving the organizational goals. Directing is the process, which supports the staffs to perform their tasks. While directing to the staff, management should consider the basic principles of communication, good relations and leadership so that the management and staffs have good co-ordination and relations, which help to achieve organizational objectives.
Leading: Leading is the act of influencing the staffs toward the accomplishment of organizational objectives. The leading function mainly takes into consideration the people in the organization while making plans, policies, staffing and organizing. It is a very important skills and function of a manager.
11. Describe and illustrate the different level management and their functions in an organization.
Levels of management indicate the arrangement of managerial position of an organization as well as it as the system of dividing the authority and responsibility among the various managerial positions. The level of management however depends on its size, nature of organization, range of production etc. Management hierarchy is divided into different levels and in each level a manager or head is appointed. Some eminent scholars have classified management broadly into three levels. They are:
The upper level/top level management
The middle level/intermediate level management
The first/lower level management
Top level management consists of shareholders, board of directors, the chief executives, the managing director, the director, the general manager etc. They are the ultimate level of authority in the operation of the enterprises. They set the objectives, define the goals, establish the policy and judge the results. The basic functions of the top level management are:
To set the objectives
To define the goals
To establish the policy
To provide the overall direction in the organization
To control effectively
Middle level of management is concerned with the task of implementing the policies and plans prepared by the top levels management. It consists of departmental heads, officers and sectional heads. This level is responsible for all the activities of lower level management. The basic functions of this level are:
To implement the task set by top level management
To run the organization effectively and efficiently
To co-operate for the smooth functioning of the organization
To co-ordinate between the different parts of the organization
To report and make suitable recommendation to the top level management
Lower level of management is also known as supervisory management. It consists of foremen, supervisors etc. They are responsible for the implementation and control of the operational plans developed by middle level managers. Actually, this level of management is responsible for the operational activities of an organization. The basic function of this level are:
To issue the orders and instructions to the workers
To direct and guide the workers about the work procedures
To provide ‘on the job training’ to the workers
To look after the proper maintenance of the tools
To build up a high group spirit among the workers