Jagran Josh brings to you accurate NCERT Solutions for Class 12 Business Studies Chapter 1: Nature and Significance of Management. Find the free download link for the complete NCERT Solutions of Business Studies Chapter 1 for Class 12. Solving NCERT questions can help students understand concepts in detail and perform better in upcoming CBSE Board Examinations 2024.
This chapter discusses basic concepts of management. Some important topics from the chapter are as follows:
- Effectiveness Vs Efficiency
- Characteristics of Management
- Objectives of Management
- Functions of Management
- Levels of Management
- Co-ordination, the essence of Management
The following NCERT Solutions have been prepared, keeping the Revised CBSE Syllabus 2024 in mind.
Find NCERT Solutions for Class 12 Business Studies Chapter 1, below.
Very Short Answer Type:
1.What is meant by management?
Answer. Management can simply be defined as the process of maintaining an environment among workers and the organization as a whole, to ensure the accomplishment of the goals and objectives of the company. No organization can become successful without efficient management. The smooth functioning of an organization takes place only with good management. The person responsible for keeping the management of a company in check is known as a Manager and the team supporting him/her is called the Management team.
2.Name any two important characteristics of management.
Answer. Management requires a plethora of skills and activities for it to be called efficient. But among them, two important characteristics of management are as follows:
a.Management is a goal-oriented process- An organization exists because it has some goals and objectives that it looks forward to accomplishing and fulfilling. The most basic characteristic of management is to ensure that these goals are fulfilled and that any obstacle that might create hindrance in accomplishing this task can be removed. Management ensures that the efforts of employees are properly utilized and focused on achieving the company’s goal.
b.Management is multidimensional- Management is referred to as a complex job. There are three basic dimensions of management. They are Management of work, Management of people, and management of operations. The most basic job of any company is to work, fulfill the demand, and achieve the goal it wants to achieve. Management aligns this goal with work and ensures that work is being done properly to achieve the main goal. People are a firm’s greatest asset. As a management team, your job is to deal with employees as individuals with different needs and behavior and also to deal with individuals as a group oriented towards achieving the company’s goal. This involves keeping employees happy and ensuring regulation of their work. In order to achieve the goals of the company, it has to undergo some operations, be it producing products or process of providing services. Management of these operations plays a crucial role in getting a positive outcome for the company.
3.Identify and state the force that binds all the other functions of management.
Answer. Coordination is the force that binds all the other functions of management. A manager has to perform five interrelated functions for the efficient functioning of an organization. To ensure that these functions are smoothly carried on and work goes on in continuity, coordination comes into the picture. Coordination starts from the initial stage of planning and continues till the end of the cycle. It is implicit and inherent to all the functions of management.
4.List any two indicators of growth of an organisation.
Answer. Two indicators of the growth of an organization are:
a. Profit- If a company is earning a profit on a regular basis, it can be said that the company is growing.
b. Expansion- If the number of employees in an organization is growing with time, it can act as an indicator of growth.
5.Indian Railways has launched a new broad gauge solar power train which is going to be a path-breaking leap towards making trains greener and more environmentally friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12, 00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.
Answer. Indian Railways has achieved the social objective of management, in this case. It is trying to create a benefit for the society by saving fuel, focusing on environment-friendly production and hence, it can be said that Indian Railways has achieved the social objective of management.
Short Answer Type:
1.Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organisation? What are her basic functions?
Answer. Ritu works at the middle management level in the organization. Middle management is the link between top and low-level managers. They act as subordinates to top management and superior managers to the low or first-line managers. She has to perform the following functions as part of middle management:
a. Implementing and controlling strategies and plans developed by top management.
b. They are responsible for all the activities of first-line managers.
c. Carry out plans made by the top management. This is also known as the most important task of middle management. In order to do so, the following tasks have to be performed: Interpret the policies made by top management, ensure that the department has enough personnel to perform the task, assign relevant duties to everyone, motivate them to achieve objectives, cooperate with other departments for smooth functioning of the organization.
2.State the basic features of management as a profession.
Answer. The basic features of management as a profession are:
a. Well-defined body of knowledge- Every profession is a or inspired by a well-defined body of knowledge and it works on instructions. In management, constant growth can be seen because of a systematic body of knowledge comprising well-defined principles. This knowledge can be acquired through different institutions and colleges built only for the purpose of management, such as the Indian Institute of Management.
b. Restricted entry- Each profession has a restriction on its entry which might consist of an educational degree, certain skills, or an examination of an individual. In management, any specific degree is not required. Anyone from any educational background can become a manager. However, professional knowledge and training can be considered as a required degree.
c. Professional Association- All professions are associated with an entity, board or regulatory authority whose function is to regulate entry, grant certificate of practise, formulate and enforce a code of conduct. For example, a lawyer has to associate himself/herself with Bar Council in India, in order to become a practicing personnel. In management, no such association is mandatory and it does not have any statutory backing.
d. Ethical Code of Conduct- Every profession is governed by a moral code of conduct which teaches individuals to behave a certain way and perform their duties with utmost sincerity and honesty. Ethical codes of conduct are legal guidelines laid down by the authorities or entities governing a certain profession. In management, the All India Management Association (AIMA) is the body responsible for laying down an ethical code of conduct for the field.
e. Service motive- The most basic objective of a firm is to serve its existing and potential clients through their committed and honest service. In management, its basic motive is to assist an organization in achieving its desired goal. It can be different for different organizations like it can be profit maximization for a business and service for a hospital.
3.Why is management considered to be a multi-dimensional concept?
Answer. Management stands out to be a complex activity that has three dimensions:
a. Management of work- The most basic function of any enterprise or any job is to work. Work can mean different things to different firms. For a hospital it can be treating their patients, for a parlor it can be providing service, for a factory it can be manufacturing goods, and so on. Management translates this work into goals to be achieved and assigns the means to achieve them. It can be done through decision-making, hiring employees, distributing tasks, preparing budgets, and more.
b. Management of people- Employees are an organization’s greatest asset. Even if an organization uses technology, it needs people to operate and analyze it. Getting work done by people is still one of the toughest tasks to do. Management of people also has two dimensions to it. It deals with employees as individuals who have diverse needs and behavior. It also deals with employees as a group of individuals focused on one task or many.
c. Management of operations- To achieve the desired goal of an organization, the smooth functioning of its operations is necessary. The process of Operation starts right from planning till the complete execution of the process. Management has to ensure that these operations are successfully executed with a positive outcome attached to them. This dimension is also concerned with the other two and their implications.
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