Grade 12 Business Studies Solution
Nature of Management
Question Answer
Short Answer Questions
1.Define “management”. Discuss management as an activity.
– 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.
– Management as an activity can be defined as the set of coherent activities of the manager and his subordinates performed for the achievement of organizational objectives for which manager has to perform different activities like communicating information, decision making and maintaining interpersonal relation. Manager must maintain close relation with subordinates and owner for the exchange of information related to subjects, situations and authorities. Along with communicating information, manager has to devote maximum of effort in decision making. This activity involves setting the goals of the organization, preparation of plan, determination of budget, direction, coordination and control. He has to motivate the employees by taking their personal problems in positive and careful manner. Thus, management is studied as an activity.
2.Discuss any seven features of management.
– Any seven features (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.
- 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. 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.
- 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.
- 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.
- A Profession: Management is also regarded as a kind of profession which needs specific knowledge for the achievement of goals. The development of competition in business world, the concept of professionalism is developed in management. The corporate business organizations are entrusted management function to professional managers.
- Intangible: Management is considered as intangible when one appreciated or condemns the result is produced by it. System of management cannot be seen but can be felt only. One can judge the effectiveness of management by showing its impact and result.
3.Discuss in brief the relationship between management and administration.
–The term management is used in social and business organizations whereas administration is used in government and business organizations. It is very difficult to differentiate clearly which function belongs to administration and which one to management. Administration is that phase of business activity which relates to the overall determination of the major policies and objectives. It is concentrated with the determination of overall corporate objectives, policies and strategies. Administration is a part of management concerned with the procedures which are to be carried out. In general sense, both management and administration are same concept. Both terms are used for the same purpose and related with determination of objectives and preparation of policies and implementation of them in practical field. In simple words, administration refers to the thinking process whereas management is the operating process. All the managers perform both thinking and executing managerial functions. Hence, According to the modern concept, management and administration are same.
4.Describe, in brief, some points of difference between management and administration.
– 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.
5.Discuss management as an art or a science.
– 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.
6.Management is not an exact science but it is social science”. Discuss.
–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.
7.“Management is not a profession but is forwarding towards it”. If you agree with this statement, give reasons in support of it.
–Modern management is gradually becoming a profession. A profession is an activity which involves earning of distinct intellectual quality. It is an occupation for which specialized skills and training is required. In other words, a profession needs organized and specialized knowledge, formal education and training. So, the management also needs organized and specialized knowledge, training and education to achieve the defined goals. Thus, the management can also be considered as a profession. The profession has the following features:
- Body of knowledge: Function of management is developed as specialized task, which is based on the principles and theories. Management is regarded as a separate discipline having specialized and organized body of knowledge.
- Formal education and training: An act can be profession if it has formal education and training. The formal education and training help the manager to attain its goal.
- Service motive: Generally a profession is motivated to serve to the community. Due to expert knowledge, the manager takes more responsibility to meet the interest of community. The management produces the goods and services by assembling and utilizing the resources.
- Professional association: Every profession creates legal association which helps to carry out the profession smoothly. The management creates the professional association which helps to exchange knowledge and experience regularly.
–Management fully satisfies some features of profession whereas some features satisfy partly. Comparatively, management is a new and growing knowledge. Thus, management is not recognized as fully profession but it is growing towards it.
8.What are the different levels of management? Point out the major functions of top level 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
- To judge and evaluate the result
- To assemble and utilize the resources for the attainment of goals.
9.Discuss, in brief, the various levels 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
Long Answer Questions
1.What do you mean by “management”? Discuss its main features.
– 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 main features (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.
- A Profession: Management is also regarded as a kind of profession which needs specific knowledge for the achievement of goals. The development of competition in business world, the concept of professionalism is developed in management. The corporate business organizations are entrusted management function to professional managers. It is also gradually becoming a profession because of established principles of management.
- Intangible: Management is considered as intangible when one appreciated or condemns the result is produced by it. System of management cannot be seen but can be felt only. One can judge the effectiveness of management by showing its impact and result. Management is also an unseen process but its results are seen.
- Multidisciplinary activity: Management is mix of knowledge from different disciplines like sociology, anthropology, psychology, statistics etc. Such knowledge is applied by the management for the successful operation of the organization. So it is a multi-disciplinary activity.
- Separate identity: Management is a method and art of getting the things from others that enjoys separate identity. The identity of the staffs is guided by the identity of the management. The identities of management and staffs are not interrelated. So, they are two separate entities.
2.Discuss management as an art, a science or a profession.
– Management as an 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 skill and creativity for producing desired results. So, the management satisfies the basic features of an art. The management requires certain knowledge and skill to achieve the desired goal. It is an art of getting things done through and with people. Success of any business depends on the allocation of task, responsibility and duty to the staffs by the government. Strong leadership is essential for getting the works from others which is an art of the manager. Manager also should take right decision at the right time considering the situation. Taking decision as per the situation is an art. He should also create good environment for work which is the outcome of positive motivation. Management is also taken as an art because the manager needs skills, which are the creativity of individuals. Thus, Management is an art.
– Management as a Science: 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. The results of such principles are same even though they are used in different places and situations. This principle is universally applicable and its validity can be predicted and verified. 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. Even though, management is not an exact science like physics, chemistry and biology but it deals with human beings and their behaviors so, it is a behavioral science.
– Management as a profession: Modern management is gradually becoming a profession. A profession is an activity which involves earning of distinct intellectual quality. It is an occupation for which specialized skills and training are required. In other words, a profession needs organized and specialized knowledge, formal education and training. So, the management also needs organized and specialized knowledge, training and education to achieve the defined goals. The management does not satisfy all the features of profession. There is not any restriction to any person for ensuring managerial task. There is not any qualification need to be a manager which has been clearly defined by the legislation of a country. So, management is not a profession like other profession even though it is taken as a profession because there is a social recognition to the management as a profession.
3.What are the different levels of management? Discuss the responsibility of each 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. In large organizations; it is not possible for a manager to manage all the organizational performance without distributing to subordinates. Hence, according to nature and size of the organization, management maybe divided into different levels. 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. 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.
– 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 develop and train the employees in the organization for functioning
- To issue instruction to the lower level management
- 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 supervise and control the functioning of the organization
- To plan the activities of the section
- 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
4.Discuss, in brief, the three concepts of management.
– The three concepts of management are discussed below:
- Management as a process: While looking as a process, it accomplishes the activities of planning, organizing, staffing, directing and controlling. Management performs all these staffing, directing and controlling. Management performs all these functions in a co-ordinated manner. So, we can say that management is the related functions of manager to utilize the materials and human resources for their productive use. It thus indicates that management is a process of doing the activities, which are performed by the organization or the manager to attain organizational goals of an organization through the work done by the staffs. It is known as a universal process which is used everywhere to perform functions of the organization for obtaining the pre-determined goals.
- Management as a discipline: Management as a discipline can be understood as a branch of knowledge of direction. The management is a specialized knowledge which gives idea regarding the study and use of certain principles laid down by the management. This way, management has come up as a separate discipline of study. In addition, Management is also developing as a distinct discipline due to the increasing size of organizations, specialization, competition, use of sophisticated technology and similar other challenges.
Management as a noun: While learning management as a noun, it refers to all the managerial staffs of an organization engaged in formulating plans, policies and supervision as well as controlling the task of subordinates. It comprises to the board of directors, management committee, managerial directors, managers, departmental heads etc. In short, management as a noun indicates all the people who direct the work of others.