2nd PUC Business Studies Important Questions Chapter 1 Nature and Significance of Management

Karnataka 2nd PUC Business Studies Important Questions Chapter 1 Nature and Significance of Management

Question 1.
Which force consists of the essence of management?
Answer:
Co-ordination

Question 2.
‘Doing the task with minimum cost” name the term associated with management?
Answer:
Efficiency

Question 3.
In order to be successful, an organization must change its goals according to the needs of the environment. Which characteristics of management are highlighted in this statement?
Answer:
“Management is dynamic functioning”

Question 4.
Which function of management bridges the gap between where we stand today and where we want to reach?
Answer:
Planning

Question 5.
Name the function of management which establishes organization structure and establishes authority and responsibility relations?
Answer:
Organizing

Question 6.
In which functions of management standards are compared with actual, deviations are found out and corrective steps are taken?
Answer:
Controlling

Question 7.
Anything (-) management is equal to what?
Answer:
Zero / failure / Nothing

Question 8.
Departmental managers are included at which level of management?
Answer:
At middle management

Question 9.
Name the level of management the following Persons belong to.
1. Purchase managers.
2. CEO
3. Superintendent.
Answer:

1. Middle Level
2. Top-level
3. Supervisory Level

Question 10.
‘Survival profit and growth is essential to the target of any business’ which objectives of management are referred here?
Answer:
Organizational objectives

Question 11.
‘Every organization whether it is business or non-business should use environmental methods of production, give employment opportunities and provide basic amenities like schools and creches to employees’ name the objective of management indicated here?
Answer:
Social Objectives

Question 12.
The activities involved in managing an enterprise are common to all organizations whether social or political’ which characteristics of management is highlighted by this statement?
Answer:
Management is all-pervasive.

Question 13.
What isPODSCORB?
Answer:
Luther Gullick gave the keyword PODSCORB which stands for Planning, Directing, Staffing, Co-coordinating, Reporting, and budgeting.

Question 14.
How Management is an intangible force?
Answer:
The presence of management can be felt by seeking orderliness and coordination in the working environment.
e.g. if the inventory of finished products is increasing day by day it clearly indicates mismanagement of marketing and sales.

Question 15.
“Management is essential for the successful running of an enterprise”, How?
Answer:
Management increases efficiency.
Ensures optimum utilization of resources Management creates dynamic organization

Question 16.
Father of Mr. ‘Y’ acts as Vice President in ABC Ltd. Name the level of Management he is working on? Explain any two functions performed by him?
Answer:
Top-level of Management
Functions:

1. Determining the objectives of the enterprise
2. Assembling all the resources such as finance, fixed

Question 17.
Mr. Anil working as a ‘Sales department Head in XYZ Ltd. Name the level of Management he is working? Explain any two functions performed by him?
Answer:
The middle level of management
Functions:

1. Interpretation of policies framed by top management to lower level.
2. Recruiting & Selecting the employees for their department
3. Motivation the persons to perform to their best ability

Question 18.
Explain any 3 functions performed by the operational Level?
Answer:

1. Looking to the safety of workers.
2. To boost the morale of workers.
3. Representing the problems of workers before the middle-level management

Question 19.
‘Co-ordination’ is the essence of Management’ Explain.
Answer:

• Co-ordination is needed to perform all the functions of management
• Co-ordination is required at all the levels
• Coordination is the most important function of an organization.

Question 20.
“Management is a critical ingredient of a nation’s growth” Comment.
Answer:

• Management Helps in creating employment opportunities
• Management insists on providing Quality goods.
• Management helps in increasing GDP and leads to growth of nation.

Question 21.
Why Management is considered a Multi-dimensional function?
Answer:
Management of work Management of people Management of operation

Question 22.
“Management is Science as well as art”. Explain this statement.
Answer:
Management as a science

• Systematic body of Knowledge
• Principles are based on repeated experiments

Management as an Art.
Existence of theoretical knowledge

I. One Mark Questions and Answers

Question 1.
Mention any one function of management.
Answer:
Controlling.

Question 2.
Mention any one feature of management.
Answer:
Management is a goal-oriented process.

Question 3.
Name any one dimension of Management.
Answer:
Management of work.

Question 4.
Give an example for top-level management position.
Answer:
Chairman.

Question 5.
Give an example for middle-level management position.
Answer:
Production Manager.

Question 6.
Give an example for low-level management position.
Answer:
Supervisor.

Question 7.
State any one organizational objective of management.
Answer:
Survival.

Question 8.
State any one of the social objectives of management.
Answer:
Creation ofEmployment.

Question 9.
State any one personal objective of management.
Answer:
Personal growth and development.

Question 10.
Is management a Science or an Art or both?
Answer:
Both.

Question 11.
What is management?
Answer:
Management is what a manager does.

Question 12.
Is management essential for all forms of organization?
Answer:
Yes, it is essential for all forms of organizations.

Question 13.
The word management is derived from which language?
Answer:
The Italian word ‘Maneggiare’, means to handle.

Question 14.
What is the management of people?
Answer:
Getting things done through people.

Question 15.
Mention any one of organizational objectives.
Answer:
Profit.

Question 16.
Mention any one of the importances of management.
Answer:
Management helps people in achieving goals.

Question 17.
Mention any one level of management.
Answer:
Top ‘Administrative levels.

Question 18.
Mention anyone step in organizing.
Answer:
Assignment of duties.

Question 19.
Mention any one function of Staffing.
Answer:
Training and development.

Question 20.
Mention any one element of Directing.
Answer:
Motivation.

Question 21.
Mention any one step involved in controlling.
Answer:
Measurement of actual performance.

Question 22.
Mention any one feature of coordination.
Answer:
It ensures unity of action.

II. Two Marks Question and Answers

Question 1.
Expand POSDCCORB
Answer:
P- Planning,
O-Organising,
S – Staffing,
D – Directing,
C – Co-ordinating,
C – Controlling,
R-Reporting,
B – Budgeting.

Question 2.
Name any two functions of Management.
Answer:
Planning and Organising.

Question 3.
Mention any two organizational objectives of management.
Answer:
Earning profit and Increased growth.

Question 4.
Mention any two social objectives of Management.
Answer:
(a) Using environmentally friendly methods of production
(b) Provision of schools and hospitals for a better society.

Question 5.
Mention any two importances of Management.
Answer:
(a) It increases efficiency.
(b) It helps in the development of society.

Question 6.
What is Top Level Management?
Answer:
It is a level of management that is the ultimate source of authority that formulates the organizational goals, policies, and objectives.

Question 7.
What is Middle-Level Management?
Answer:
It is a level that is responsible for the coordination of activities between top-level and low-level management.

Question 8.
What do you mean by lower-level management?
Answer:
It is known as supervisory management as it is concerned with providing directions to operative employees.

Question 9.
What is Planning?
Answer:
Planning is the determination of courses of action to achieve desired goals. It includes identifying goals objectives, resources, and methods for the completion of tasks.

Question 10.
What is Organising?
Answer:
It is a process that brings together all the necessary resources to achieve organizational goals.

Question 11.
What is Staffing?
Answer:
It is a process of manning the organizational structure through proper selection, appraisal, and development of personnel.

Question 12.
What is the main purpose of staffing?
Answer:
The main purpose of staffing is to put the right person on the right job by proper manpower planning, recruitment, selection training, and development.

Question 13.
Mention the processes involved in Organising.
Answer:
(a) Identification of activities
(b) Classification
(c) Assigning the duties
(d) Creating responsibility
(e) Co-ordination authority and responsibility relationships

Question 14.
Mention the steps involved in staffing (any two).
Answer:
(a) Manpower Planning
(b) Training and Development.

Question 15.
What do you mean by direct?
Answer:
Directing is the art of getting things done by employees effectively by actuating organizational methods of work.

Question 16.
Mention the elements of Directing.
Answer:
a) Supervision
b) Motivation
c) Leadership activating
d) Communication

Question 17.
What is Controlling?
Answer:
It is a process that involves the collection of feedback of actual performance against the set standards and correction of deviations and monitoring.

Question 18.
Mention any 2 steps in Controlling.
Answer:
(a) Establishment of Standard Performance
(b) Measurement of Actual performance
(c) Corrective action.

Question 19.
What is Co-ordination?
Answer:
It is a process by which a manager integrates and unites the activities of different departments.

Question 20.
Explain the objectives of Management.
Answer:
Organizational Objectives
(a) Earning reasonable profit
(b) Long-run survival
(c) Goodwill and growth

Social Objectives
(a) Environmental-friendly methods of production
(b) Quality goods and service
(c) Creating employment
(d) Providing basic amenities to society

Personal Objective
(a) Fair remuneration
(b) Proper working conditions
(c) Training and development.

Question 21.
Mention the steps involved in Staffing.
Answer:
(a) Manpower planning.
(b) Recruitment.
(c) Selection and placement.
(d) Performance appraisal.
(e) Promotion and Transfer.

Question 22.
What is Management?
Answer:
Management is a process that consists of activities such as planning, organizing, directing, staffing, coordinating, controlling performance to determine and accomplish pre-determined objectives with the use of resources.
OR
Management means the process of dealing with or controlling things or people.

Question 23.
Define Management?
Answer:
According to Harold Koontz and Heinz Weihrich ‘Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims. ’

Question 24.
Mention any two features of Management.
Answer:
Management is a continuous process Management is a group activity.

Question 25.
State any two levels of management.
Answer:
(a) Top / Administrative level – CEG Chief Executive Officer
(b) Middle / Executory level – Production Manager
(c) Lower / Operative level – Foreman

III. Five Marks Questions and Answers

Question 1.
Briefly explain the five features of Management.
Answer:
(a) Management is Multidisciplinary.
(b) It is a goal-oriented process.
(c) It is a continuous process.
(d) Management is intangible in nature.
(e) Management is a group activity.
(f) Management is an art as well as a science.

Question 2.
Explain briefly the importance of management.
Answer:
(a) It helps in reaching individual as well as organizational goals.
(b) It increases efficiency.
(c) It helps in optimum utilization of resources.
(d) It helps in the reduction of costs.
(e) It helps in improving the standard of living of people.
(f) It helps in the development of society.

• Proper working conditions
  With safety measures, good ventilation light, toilets, and drinking water facilities.
• Training and development
  For the growth of individuals and to meet the next end needs of the organization.

Question 3.
Explain management as a profession.
Answer:
A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations. This is regulated by a representative body.
1. Specialised knowledge:
A profession must have a systematized body of knowledge that can be used for the development of professionals. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly, a manager must have devotion and involvement to acquire expertise in the principles of management.

2. Formal Education and Training: There are a number of institutions and universities to impart education and training for a profession. No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. But for managers, no minimum qualification and a course of study has been prescribed by law.

For example, MBA may be preferred but not necessary.

3. Social Obligations:
The profession is a source of livelihood. But professionals are primarily motivated by the desire to serve society. Their actions are influenced by social norms and values. Similarly, a manager is responsible not only to his owners but also to society. Therefore, he is expected to provide quality goods at reasonable prices to society.

4. Code of conduct:
Members of a profession have to abide by a code of conduct, which contains rules and regulations, norms of honesty, integrity, and special ethics. A code of conduct is enforced by a representative association to ensure self-discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn.

Question 4.
Explain briefly the features of coordination.
Answer:
(a) It ensures proper execution of work in accordance with plans.
(b) It is a continuous process.
(c) It is very much essential in all levels of management.
(d) It ensures that all managers coordinate deliberately.
(e) It is necessary for the smooth functioning of all management functions.

Question 5.
“Management is a Science” – Explain. Management is a Science, Science has the following characteristics, even management does.
Answer:
(a) Principles to be applied in different situations.
(b) Scientific development’ through observation and experimentation.
(c) It is a systematized body of knowledge.
(d) It contains facts and figures.
(e) Management deals with human beings. Therefore it falls in the area of social science.

Question 6.
“Management is an Art” – Explain.
Answer:
Management is an Art, an art has the following characteristics, even management does.
(a) It requires the application of practical knowledge.
(b) Each one has a distinguished approach towards his job.
(c) Every manager has a personalized application.
(d) Every manager has only one aim to create something new.
(e) Perfection in each step.
(f) And all the steps are goal-oriented. Hence we can say management is an Art.

IV. Ten Marks Questions and Answers

Question 1.
Explain the features of Management.
Answer:
(a) A Goal-oriented process
Every organization will have some predetermined goals, management helps in achieving them.

(b) It is a continuous process
It is a continuous process that involves planning, organizing, staffing, controlling, etc.

(c) It is intangible in nature Management cannot be seen but its presence can be felt at all levels.

(d) It is a group activity
All the members in an organization have to communicate and co-ordinate in order to attain the organizational objectives.

(e) It is an Art, as well as Science ‘ Management, has all the features of both art and science, the practice is an art and it is based on principles; hence it is both arts as well as science.

Question 2.
Explain the objectives of Management.
Answer:
(a) Organisational objectives.
The following are the organizational objectives of management.
(b) Earning reasonable profit
It is very much essential to meet day-to-day expenses and success.
(c) Longrun survival
It is the basic objective of every business management.
(d) Goodwill and growth
It can be measured in terms of increase in sales and production.

Social Objectives:
The following are the social objectives of management.
(a) Environment-friendly methods of production.
(b) Creating employment especially for underprivileged sections of society.
(c) Providing basic amenities to society Like schools, hospitals, parks, toilets, etc.,

Personal objectives
The following are the personal objectives of management.
(a) Fair remuneration to meet the financial needs of employees without discrimination.

Question 4.
Explain the functions of Management.
Answer:
The following are the management functions:
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
(e) Controlling

(a) Planning:
Planning is the determination of courses of action to achieve desired goals. It includes identification of goals objectives resources methods for completion of tasks.

(b) Organising:
It is a process that brings together all the necessary resources to achieve the organizational goals.

(c) Staffing:
It is a process of manning the organizational structure through proper selection, appraisal, and development of personnel.

(d) Directing:
It is the art of getting things done by employees effectively by actuating organizational methods of work.

(e) Controlling:
It is a process that involves the collection of feedback of actual performance against the set standards and correction of deviations and monitoring.

Question 5.
“Management is an Art and Science” Justify.
Answer:
Management is an Art, an art has the following characteristics, even management does.
(a) It requires the application of practical knowledge.
(b) Each one has a distinguished approach towards his job.
(c) Every manager has a personalized application.
(d) Every manager has only one aim to create something new.
(e) Perfection in each step.
(f) and all the steps are goal-oriented.

Hence we can say management is an Art. Management is a Science, Science has the following characteristics, even management does.
(a) Principles to be applied in different situations.
(b) Scientific development through observation and experimentation.
(c) It is a systematized body of knowledge.
(d) It contains facts and figures.
(e) Management deals with human beings. Therefore it falls in the area of social science.

Question 1.
Draw a neat diagram of Levels of Management.
Answer:

Exercises

Short Answer Type Questions

Question 1.
Define management.
Answer:
Management is defined as a process of getting things. Done with the aim of achieving goals effectively and efficiently, (or) It is a process of designing and maintaining an environment in which Individuals working in groups, can achieve selected objectives efficiently and effectively.

Question 2.
Name any two important characteristics of management.
Answer:
Pervasive and Multidimensional

Question 3.
Ritu is the manager of the Northern division of a large corporate house. At what level does she work in the organization? What are her basic functions?
Answer:
Ritu is working at the middle level. Her basic functions are (number of functions should be given according to the marks allotted for the question).

1. Interpreting the policies formed by the top-level management and acting as a link between top-level management and operative management
2. Assigning necessary duties to the employees.

Question 4.
Why is management considered a multi-faceted concept?
Answer:
Management is considered a multi-faceted concept because it is a complex activity that has three main dimensions. These are

1. Management of Work: All organizations perform some work e.g., producing or selling. A work is defined as the goals to be achieved
2. Management of People: The main asset of an organization is human resources. The resource has to be managed in such a manner that it helps to achieve the goals of the organization.
3. Management of Operations: All organizations either produce a product or provide a service This requires a production process which means using an operation to convert the inputs into the output. It is interlinked with both management of work and management of output.

Question 5.
Discuss the basic features of management as a profession.
Answer:
Basic features of management as a professional has the following features which are as follows:
1. Well-defined Body of Knowledge: All professionals are based on a well-defined body of knowledge that can be acquired through instruction

2. Professional Association: There are several associations of practicing managers in India, like the AIM A (All India Management Association) that has laid the code of conduct to regulate the activities of their members.

3. Service Motive: All business organizations aim to provide good quality product or service at a reasonable price thus serving the society Thus, we can say management does not meet the exact criteria of a profession but it has some features as a profession

Question 6.
Management is considered to be both an art and science. Explain.
Answer:
Art is the skillful and personal application of existing knowledge to achieve the desired goal. Managements considered art due to the following reasons
1. Existence of Theoretical Knowledge: All art subjects are based on theoretical
knowledge e.g., the written format is available on dancing. Music etc. same way there is a lot of literature available on management and Its branches – finance, marketing human resource, etc.

2. Personalised Application:
The use of this basic knowledge differs from one individual to the other. Two painters, two dancers, or two singers all use their knowledge in their own way same way two managers who have acquired the same knowledge may use it in their own different ways to get the work done.

3. Based on Practice and Creativity; All art is practical. It involves creative
practice. The more we practice it better we become at it. It also requires creativity. In the same way, a manager applies his acquired knowledge in a unique manner. More practice makes him a better manager and he also develops his own style of management.

Long Answer Type Questions

Question 1.
Management is an In-exact Science
Answer:
1. Systematised Body of Knowledge Science is a systematized body of knowledge and it is based on cause and effect relationship, e.g. Water evaporates on being heated in the same way management is a body of formalized knowledge. All managerial principles have cause an effect relationship

2. Principles Based on Experimentation: Scientific principles are first developed through observation and then tested through repeated, experimentation. Same way management principles are also propounded after observation and repeated experimentation

3. Universal Validity: All scientific Principal have universal validity. They give the same result wherever applied Principles of management do not have universal validity. They have to be adjusted and applied according to the need of the situation. Thus. Management is an in-exact science.

Question 2.
Do you think management has the characteristics of a full-fledged profession?
Answer:
No, management does not possess all the characteristics of a full-fledged profession. The reasons are as follows
1. Well-defined Body of Knowledge:
All professions are based on a well-defined body of knowledge that can be acquired through teaching-learning process. This feature of a profession is possessed by management as well. There is vast knowledge available on management in the form of definitions, concepts, theories, principles, etc.

2. Restricted Entry:
All professions have a restriction on the entry of their practitioners. They have to acquire a specific degree to be professional e.g., LLB for a lawyer, MBBS for a doctor t, etc. But a manager can be MBA qualified or not. ’

3. Professional Association:
All professions are affiliated to a professional association that regulates entry, grants certificate of practice, and formulates a code of conduct, e.g., all lawyers have to be a member of the Bar Council to practice law. It is not compulsory for all managers to be a member of AIMA.

4. Ethical Code of Conduct
All professions are bound by an ethical code of conduct that guides the behavior of their members. But as it is not compulsory for all managers to be members of AIMA, they all may not be aware of the prescribed code of conduct of AIMA.

5. Service Motive
All basic motives to serve their client’s interest, e.g., lawyers to get justice for their clients, doctors to treat the patients, etc. All managers also work in a manner whereby they show their effectiveness and efficiency in the form of good quality goods provided to the customer at a reasonable price. Thus, management possesses some characteristics of a profession but not all.

Question 3.
Coordination is the essence of management. Do you agree? Give reasons.
Answer:
Co-ordination plays a vital role as it binds all the other functions of management. It is the common thread of all activities such as purchase, production, sales, etc. that runs through.

Some of the basic features are as follows:

1. Integrates Group Efforts: Co-ordination brings unity to all. It gives a common focus to group efforts.
2. Ensures Unity of Actions: It acts as a binding force between departments and ensures that all action is aimed at achieving the goals of the organization.
3. It is a Continuous Process: Co-ordination is not a one-time function but a continuous process, ft begins at the planning stage and continues till controlling.
4. It is an All Pervasive Function: Co-ordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels.
5. It is the Responsibility of All Managers: All managers need to coordinate something or the other. A manager of the production department needs to coordinate the work within his department and also with the other departments at the same time.
6. It is a Deliberate Function: Whatever the managers are doing in an organization they are doing it knowingly. Coordination is one of the most important functions of all managers. Thus coordination is also done deliberately. Whatever the managers do, they do it deliberately to achieve the predetermined goals and objectives. Thus, we can say coordination is the essence of management after analyzing these points.

Question 4.
“A successful enterprise has to achieve its goals effectively and efficiently:’ Explain.
Answer:
“A successful enterprise has to achieve its goals effectively and efficiently”. Thus, management has to see that tasks are completed and goals are achieved with the minimum resources. Management is thus getting things done with the aim of achieving goals effectively and efficiently. Being effective or doing work effectively basically means finishing the given task. It is concerned with end result, it is achieved or not.

Efficiency means doing the work correctly and with minimum cost. If by using fewer resources more benefits are derived then efficiency has increased. It is thus essential for any organization to focus on efficiency as well as effectiveness. It is not only important to complete the work correctly but equally important to complete it with minimum cost. In the same manner, it is not only important to reduce cost but equally important to complete the work correctly.

Question 5.
Management is a series of continuous inter-related functions. Comment.
Answer:
Management is a series of continuous inter-related functions. Each one of them performed to guide and direct the efforts of others.
1. Planning:
Planning is the primary function that runs through all other functions. It is the process of thinking before doing. It bridges the gap between where we are and where we want to go.

2. Organising:
It is the process of defining the formal relationship among people and resources to accomplish the desired goals. It involves
(a) Identification and division of work
(b) Departmentalisation
(c) Assigning of duties
(d) Establishing reporting relationships

3. Staffing:
Organizational goals can be achieved only through human efforts. It is the duty of management to make the best possible use of this resource. Thus, placing the right person on the right job is very important. Staffing helps management to motivate, select and place the right person on the right job.

4. Directing:
Directing involves leading, influencing, and motivating employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best. Directing comprises of four elements; supervision, motivation, leadership, and communication

5. Controlling:
Controlling is the management function of monitoring organizational performance towards the attainment of organizational goals.

The task of controlling involves
(a) Establishing standards of performance
(b) Measuring current performance
(c) Comparing this with established standards
(d) Taking corrective action

Multiple Choice Questions

Question 1.
Which is not a function of management of the following?
(a) Planning
(b) Staffing
(c) Co-operating
(d) Controlling
Answer:
(c) Management has features of both art and science as it relies on practice, thus it art and it is based on the principles which are the outcome of science. Thus, it is science also.

Question 2.
Management is
(a) an art
(b) a science
(c) Both art and science
(d) one of the above
Answer:
(e) Management has features of both art and science as it relies on practice, thus it is art and is based on the principles which are the outcome of science. Thus, it is science also.

Question 3.
The following is not an objective of management
(a) earning projects
(b) growth of the organization
(c) providing employment
(d) policymaking
Answer:
(d) Policymaking is hot the objective of management.

Question 4.
Policy formulation is the function of
(a) top-level managers
(b) middle-level managers
(c) operational management
(d) All of these
Answer:
(a) Top-level managers focus on the determination of objectives and formulation of policies.

Question 5.
Co-ordination is
(a) function of management
(b) the essence of management
(c) an objective of management
(d) None of these
Answer:
(b) Co-ordination brings unity of action and integrates different activities. Thus, it is considered the essence of management.

Case Problems:

Question 1.
Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwaves, refrigerators, and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames the production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining return on investment and bad marketing.
Question: What quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?
Answer:
Co-ordination Is missing in company X. All the departments are not coordinating with each other and that is why they end up blaming each other for the poor performance.

To bring co-ordination, management should take the following steps

1. After the goals are established, it should be communicated to all departments well in advance to understand its importance and their role In helping to achieve it
2. Managers ensure that all departments coordinate with each other.
3. Wherever is the difference of interest? The managers should try and strike a balance so that they all work in the same direction.
4. Meetings between the departmental heads of production. Marketing. Finance etc. should be organized on regular basis and in routine to solve problems when they emerge.

Question 2.
A company wants to modify its existing product in the market due to decreasing sales. You can imagine any product about which you are familiar.
What decisions/steps should each level of management take to give effect to this decision?
Answer:
The three levels of management will work together towards the modification of the product with the motive of increasing sales.

The following are the three levels of management.

1. Top Management
2. Middle Management
3. Lower Management

Decisions Taken by Top Management for Increasing Sales

1. The direction of modification.
2. Drafting sales targets and various sales plans and sales incentives.
3. How to enhance the value of the product in qualitative terms?
4. Thinking of the financial requirements.
5. Marketing and promotional techniques are required for fastening the sales.

Decisions Taken by Middle-Level Management for Increasing Sales

1. Interpretation of the policies framed by top management to the lower level management.
2. Hiring necessary personnel with the required qualities and qualifications.
3. Assigning responsibility as per capability and establishing the supervisor-subordinate relationship.
4. Co-operating with the team members as well as first-line supervisors.
5. Taking the feedback and arranging the follow-up meeting.

Decisions Taken by Lower Level Management for Increasing Sales

1. Interpretation of planned targets to the actual workforce and laborers.
2. Helping and directing the workers regarding how to carry out the work.
3. Maintaining standards, quality control, and frequent checks
4. Minimization of wastage and motivating the workers so that they can deliver up to their maximum potential.
5. Communicating the grievances and feedback to the middle management and bringing in the changes if required

Question 3.
A firm plans in advance and has a sound organizational structure with efficient supervisory staff and control system. On several occasions, it finds that plans are not being adhered to, It leads to confusion and duplication of work.

These activities are meant to reinforce concepts and to make the i) learning joyful. They also aim to give pupils simulated experiences of the ii) managerial activities relevant to their level of understanding •Planning and controlling are interrelated.

If plans are not well drawn, whatsoever organization structure may be good, controlling can newer be successful. Hence, in order to maintain a balance

between planning and controlling, the following steps are needed:

• Plans should be laid down in simple and clear terms.
• Workers should be made aware of all the requirements of the organizational plans in simpler words.
• Plans in simpler words: Direct contacts should be tried to establish between workers and superiors to have a direct contact between them to avoid confusion and conflicts.

2nd PUC Business Studies Important Questions