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

Important Questions with Solutions of Class 12 Business Studies Chapter 1 – Nature and Significance of Management

1) Mention the management attributes not considered as a job profession!

Ans – Here is the list of management attributes that won’t be regarded as a profession,

• Restricted Access – To be an expert, you must qualify for an exam or have a desired educational degree. Meanwhile, to make management your dream career, a professional qualification/any degree isn’t mandatory.
• Legal Entity – Every job role is monitored by a legally authorized body like ICAI including for CA. Management also has associations like the All India Management Association (AIMA) but unlike others, they aren’t statutory bodies.
• Ethical Role of Conduct – A strict code of conduct is present in almost all professions. But it’s unavailable in management as there isn’t any specific code of conduct for managers that legally focuses on managerial positions.
• Service Reasoning – The basic idea of any job role is to offer clients with utmost care & dedication. Whereas, management doesn’t have any as it focuses on attaining the major goal of the firm – Profit Enhancement.

2) Define ‘Management’. Mention 3 salient features to depict management as an art.

Ans – Management is a way of accomplishing things to meet the desired company goals.

The 3 specifications for portraying this sector as an art include:

• Knowledge Of Theory: Art requires theory-based understanding. Management is the art of accomplishing things via individuals to attain certain outcomes by placing the available knowledge into operation.
• Personalized Application: Knowledge transfer varies from person to person & management is bound to be a standalone skill. 2 different people can opt for the same work but will always be unique in how they perform. For instance: 2 singers will always perform in 2 different ways.
• Depending Upon Creativity: Management is goal-centric & result-oriented. As for art, management needs determination, concurrent practice enhances your skills and boosts individual creativity.

3) How does management offer judgment & vision?

Ans – Management is a dynamic operation that reacts to changes in the internal & external surroundings. It assists firms to develop strategies to adapt to these changes and keep their competitive advantages. Management gives judgment & vision by allowing successful decision-making and establishing a concise future goal. This helps firms to handle uncertainty, capitalize on opportunities, and achieve long-term success.

4) What are the 4 key attributes of coordination?

Ans – The renowned features of coordination include:

• Integration of Group activities: Coordination brings people together to perform various activities. Whether working alone or staying in groups, to attain company goals ensuring that everyone is aligned and working toward the same goals.
• Based on Concurrent Process: Coordination is a continuous activity, instead of a one-time action vital at different management stages, from planning to execution much needed to accomplish effective outcomes.
• All-Pervasive Function: Coordination is essential for multiple activities, domains, and management levels. It assures that various company regions can work together to achieve the intended outcomes.
• Managerial Responsibility: Managers at different levels across departments must ensure activities are consistent with the broader organizational plans and policies. This collaborative effort is vital for the successful deployment of the valuable efforts.

All these characteristics can highlight the significance of teamwork in creating organizational integrity and efficiency.

5) Without proper management the hired resources will stay normal which cannot be transformed as a valuable asset to the company. “Would you agree on that”? Provide suitable reasons.

OR

“The firm’s success is majorly dependent on its top-tier management.” Mention 5 valid points to prove the above quote.

Ans – Yes, a company’s performance is mostly influenced by its management. Here are 5 top reasons to highlight the significance of qualified management:

• Accomplishing Group Objectives: Management encourages individual teamwork and team spirit, directing efforts toward common objectives. It motivates team members to do their best to achieve the business goals created by management itself.
• Optimum Resource Operation: Effective management ensures that resources like employees, money, elements, and devices are deployed in the desired proportions. It eliminates unnecessary expenses, leverages output, and enhances overall efficiency.
• Cost Reduction: By improving planning & control, management will increase efficiency and reduce pricing quotes. Management assists firms to remain at the top in the competitive marketplaces by eradicating waste & maintaining prices at a reasonable charge.
• Social Service: Management helps social development by raising living standards. It can be attained by offering high-quality products & services at cheaper rates, creating job opportunities, and deploying the latest technologies.
• Personal Goal Achievement: Management recognizes and combines individual goals with company goals. People join organizations for multiple reasons, including competitive salaries, recognition, and job stability. By connecting personal aims with organizational goals, management will improve organizational harmony.

6) A company that manufactures mobile phones is facing a fluctuation in market sales. What decisions and steps should each management stage take to address this issue?

Ans – To address the issue of sales decreasing and compete successfully against cloned versions of the items in the marketplace, each level of management must participate in the following manner:

A. Top Management:

• Analyze The Business Environment: They must examine market trends, profitable strategies, and customer preferences to locate desired changes.
• Create Desired Goals: Set clear objectives for the adjustments and build careful strategies and procedures to implement these changes.
• Resource Organization: Collect the physical and human resources required for the adjustments.
• Communication & Coordination: Ensure all departments get notice of the changes and that their operations are coordinated to match the latest goals.

B. Mid-Level Management:

• Market Insights & Feedback: Notify top-level management about possible changes based on market demand and customer expectations.
• Interpretation & Execution: Understand the plans and policies developed by top management and express them to lower-level management to ensure successful execution.
• Recruitment & Training: Hire, choose, and train workers to ensure they have the desired enhancement skills.
• Assign Responsibilities: For a smoother operation, allocate tasks to lower-level management.

C. Low-Level Management:

• Feedback On improvements: Offer feedback on the required improvements/new technologies based on their direct experiences with the manufacturing process.
• Implement Plans: Issue orders and instructions to the employees to carry out the changes as planned.
• Training & Guidance: Prepare employees to adapt to new production procedures and carry out the modified processes.
• Supervision & Efficiency: Closely manage the staff to ensure that tasks are completed properly by ensuring the quality and productivity of the modifications.
• Cohesive Collaboration: By working together and contributing at all levels, the firm may handle the issue of decreasing sales and improving its market position.

Understanding Class 12 Business Studies Chapter 1 – Nature and Significance of Management

What is management, and why is it important to the success of an organization? At its core, management is planning, organizing, leading, and controlling resources to accomplish a specific goal. Management is basically the art of properly coordinating activities and people to ensure that the objectives of an organization are duly accomplished efficiently and effectively. By studying the nature of management, you will develop an understanding of how businesses are structured and managed, operated, and adapt to changing situations.

Key Concepts in Management

• Planning: This involves setting what is to be achieved, strategizes how it will be achieved, and then states the activities that need to be undertaken to achieve the set goals.
• Organizing: This encompasses the aspects of bringing resources together, defining roles, and determining the channels of communication within an organization.
• Leading: This ascertains good management since employees’ motivation, teams, and vision are included.
• Controlling: This includes observing performance and comparing it to the actual plan and acting upon the results when the need arises.

The Importance of Management to Business

Why is management so crucial for the success of business and all other entities? That is because, in the absence of effective management, chaos will set in with inefficiencies, loss of opportunities, culminating in failure. In your study on the importance of management, you will learn why leadership, planning, and decision-making are part and parcel of every successful organization.

Benefits of Good Management

Better Efficiency: An effectively managed body will tend to be more productive due to proper allocation of resources and correct goal-setting.
Better Coordination: Efficiency in management ensures that there is smooth coordination within an organization in the attainment of shared goals.
Innovation and Adaptability: Good management fosters innovation, creativity, and ability to put up with changing market circumstances.