Here we are providing Class 12 Business Studies Important Extra Questions and Answers Chapter 1 Nature and Significance of Management. Business Studies Class 12 Important Questions are the best resource for students which helps in class 12 board exams.

Class 12 Business Studies Chapter 1 Important Extra Questions Nature and Significance of Management

Nature and Significance of Management Important Extra Questions Short Answer Type

Question 1.
Distinguish between coordination and cooperation.

Co-ordination Cooperation
1. It is an orderly arrangement of a group effort to provide for unity of action. 1. It is a voluntary desire to help each other
2. Co-ordination includes cooperation, hence it is a wider term. 2. Co-operation is a narrow term as it is a part of co-ordination.
3. It is a deliberate effort made by the management to balance interrelated activities. 3. It is the voluntary effort made by a group of people depending on their mental needs or liking
4. It is a technique. 4. It is an attitude.

Question 2.
Write the characteristics of management and explain any two.
Characteristics The key features of management are –

  1. Goal-oriented process,
  2. all-pervasive,
  3. multidimensional,
  4. Continuous process,
  5. group activity
  6. dynamic function,
  7. tangible force.

1. Management is a goal-oriented process:  An organization has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated.

2. Management is all-pervasive: The activities involved in managing an enterprise are common to all organizations whether economic, social, or political Thus it is all-pervasive.

Question 3.
“Lack of proper management results in wastage of time money and efforts.” Do you agree with this statement? Give reasons in support of your answer. (2003)
Yes, the above-mentioned statement holds true as the reasons are as follows.

  1. Means to accomplishing goals:  Management is important because it helps in achieving group goals, increases efficiency, and creates a dynamic organization.
  2. Unified direction: Management motivates and directs the workforce by unifying goals with the group goals.
  3. Establishes sound industrial relations: The success of any organization depends upon its workforce. It is the only factor of production which is movable in nature. Effective management tries to build a feeling of team and loyalty towards the organization.
  4. It looks after for future uncertainties: An effective management prepares the organization for future contingencies and paved the way for its survival and growth. In the ‘ absence of this foresightedness, an organization may be forced to wind up its operations resulting in wastage of time, efforts, and resources.

Question 4.
State two objectives of management. (1993, 1996, 1998)
The main two objectives of management are –

  1. Maximization of profits at minimum cost.
  2. Optimum utilization of the given resources by the organization.

Question 5.
What is meant by Administration? (1992, 1999)
Administration means a determination of overall policies, the setting of major objectives, the identification of general-purpose, the laying out of broad programs, etc. It is determinative in nature.

Question 6.
Name any two activities undertaken at the top-level management. (1995, 2001, 2004)
The two main functions or activities of top-level management are.

  1. It does long-term planning and formulating suitable policies, organizing (determination of organization structure), and controlling.
  2. It maintains cordial relations with all outside parties like the shareholders, the government, etc.

Question 7.
State two functions of lower-level management. (1992-1994)
The main functions are as follows –

  1. It translates the intermediate plan of middle-level management into day to day operating plan.
  2. It gives directions to operating employees by assigning jobs, evaluating and correcting their performance and sends information and progress reports to higher management.

Nature and Significance of Management Important Extra Questions Long Answer Type

Question 1.
Do you think proper Management is an important part of an organization?
Explain the importance of management.
Yes, management is a universal activity that is integral to any organization. We now examine some of the reasons that have made management so important.

1. Management helps in achieving group goals: Management is required not for itself but for achieving the goals of the organization, the task of a manager is to give a common direction to all.

2. Management increases efficiency:  The aim of a manager is to reduce costs and increase productivity ” through better planning, organizing directing, staffing, and controlling the activities of the organization.

3. Management creates a dynamic organization: All organizations have to function in an environment that is constantly changing.

4. Management helps in achieving personal objectives: A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organizational objective.

5. Management helps in the development of society: An organization has multiple objectives to serve the purpose of the different groups that constitute it. In the process of fulfilling all these management helps in the development of the organization and through that it helps in the development of society. It helps to provide good ‘ quality products and services, creates employment opportunities, and leads the path towards growth and development.

Question 2.
Explain the level of management and their main functions.
Level of Management.
Class 12 Business Studies Important Questions Chapter 1 Nature and Significance of Management 1

Generally speaking, there are three levels in the hierarchy of an organization.

1. Top Management:
They consist of the senior-most executives of the organization by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president, and vice-president. Top management is a team consisting of managers from different functional levels. Their basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organization. They are responsible for the welfare and survival of the organization. Their job is complex and stressful.

2. Middle Management:
It is the link between top and lower-level management. They are subordinate to top managers and superior to the first-line managers. They are usually known as division heads, operation managers, or plant superintendent. They are responsible for implementing and controlling plans developed by top management. At the same time, they are responsible for all the activities of first-line management. Their main task is to carry out the plans formulated by the top management and at the same time, they are responsible for all the activities of first-line managers.

3. Operational Management:
Foreman and supervisors comprise the lower level in the organization. Supervisors directly oversee the efforts of the workforce. Their authority and responsibility are limited according to the plans drawn by the top management. They play a very important role in the organization since they interact with the actual workforce and pass on instructions of the middle management to the Workers. Through the quality of their efforts of output is maintained. Wastage of materials is minimized and safety standards are maintained.