644375458f16960018424d0a ## Nature and Significance of Management

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Kautilya 12th Batch


Nature and Significance of Management DPP-06

1. Dinesh is a Supervisor in Care India Pvt Ltd and (4) Management is multidimensional
Harish is working as Plant superintendent in the
same company. Name the managerial levels at 6. Mr. Rajesh has the responsibility to find the right
which Dinesh and Harish respectively are working? person for the right position at the right time.
(1) Both are working at top level of management Identify which function of management is Mr.
(2) Middle and Top level of management Rajesh concerned with?
(3) Operational level and Middle level of (1) Planning
management (2) Controlling
(4) Both are working at middle level of (3) Directing
management (4) Staffing

2. Manager of the Climax Ltd. achieved the target 7. Raj and Shyam work at the same level of
production, but at a higher production cost. In this management. Raj represents workers’ grievances to
case, the manager is _________ but not middle level management and Shyam ensures a
_________. safe and proper working environment for workers.
(1) Efficient, Honest At which level of management do Raj and Shyam
(2) Effective, Efficient perform their duties?
(3) Efficient, Effective (1) Top level management
(2) Middle level management
(4) None of these
(3) Supervisory level management
(4) None of the above
3. Profit is essential for covering cost and risk of the
business. Which management objective is discussed 8. Mahesh is a strategist for XYZ Ltd. The team is
here? planning to take the company to a large scale. One
(1) Social Objective of the organizational objectives of management is
(2) Personal Objective “growth” of a business. How can growth of a
(3) Organisational Objective business be measured?
(4) None of these (1) In terms of sales volume
(2) Increase in market share
(3) Increase in number of Employees
4. Climax Ltd. is engaged in manufacturing (4) All of the above
calculators. The firm decided to provide
employment to disadvantaged sections of society. 9. Smasung keeps on introducing new models of TV.
Which objective of management is discussed here? Which feature of management is highlighted in this?
(1) Individual Objective (1) Management is pervasive
(2) Social Objective (2) Management is a dynamic function
(3) Organisational Objective (3) management is multidimensional
(4) None of these (4) management is an intangible force

5. Identify the basic characteristic of management 10. Arshiya and Jiten are discussing how coordination is
required in the directing function of management?
involved in the statement: The activities involved in
(1) Between standards of actual and expected
managing an organization are common to all performance
organizations, whether economic, social or political? (2) Among orders, instructions and Suggestions
(1) Management is dynamic (3) Between superior and Subordinate
(2) Management is goal-oriented (4) Both 2 and 3
(3) Management is pervasive
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14. Your grandfather has retired as the Director of a


11. XYZ group of companies decided to donate 2% of manufacturing company. At what level of
its sales to “Child’s righ and You (CRY) NGO”, for management was he working? What functions do
improving the condition of children in India. This you think he was performing at that level? state any
initiative by the company was highly appreciated by three functions.
the public and their sales increased by 10%. identify
the objective depicted in the case. State two more 15. XYZ Ltd set up a factory for manufacturing solar
objectives also. lanterns in a village as there was no reliable supply
of electricity in rural areas. The revenue earned by
12. Managerial activities are performed in all types of the company was sufficient to cover the costs and
organisations in all departments and at all levels. the risks. demand kept on increasing and the
Which management character is highlighted company started increasing production to reach
here? higher sales. For this, they employed people from
villages as very few employment opportunities were
13. Ashita and Lakshita are employees working in available in that area. the company also decided to
Dazzling enterprises dealing in costume jewellery. open schools for the children of its employees.
The firm secured an urgent order for 1,000 Identify and explain the objectives of management
bracelets that were to be delivered within 4 days. discussed in the case study.
They were assigned the responsibility of producing
500 bracelets each at a cost of ₹ 100 per bracelet.
Ashita was able to produce the required number
within the stipulated time at the cost of ₹ 55,000
whereas, Lakshita was able to produce only 450
units at a cost of ₹ 90 per unit. State whether Ashita
and Lakshita are efficient and effective. Give
reasons to justify your answer.
3

Answer Key
1. (2) 8. (4)
Operational level and Middle level of All of the above
management
9. (2)
2. (3) Management is a dynamic function
Efficient, Effective
10. (4)
3. (3) both 2 and 3
Organisational Objective
11. (H & S)
4. (2)
Social Objective 12. (H & S)

5. (3) 13. (H & S)


Management is pervasive
14. (H & S)
6. (4)
Staffing 15. (H & S)

7. (3)
Supervisory level management
4

Hints & Solutions


1. (2) Supply the reasonable and quality products Adoption
Dinesh is working at Operational level and Harish as of the fair trade practices Contribution towards the
plant superintendent is working at Middle level of benefit of society Facilitating basic facilities like
management. hospitals, schools etc. Generate employment
opportunities for the backward or weaker section of
2. (3) society.
Effective means producting the desired result while Social Objective is correct
efficient means producing the desired result in teh
cost effective manner without waiting of the time, 5. (3)
energy or resources. Management is pervasive - management is a
So, in the given case Manager of Climax Ltd achieves universal concept. It is essential to all
the target of production but with higher cost so he is organizations whether big or small, business or
effective but not efficient as he produces the goods at non-business. It is common to all organizations
whether economic, social or political.
higher production cost.
Conclusion
6. (4)
Manager of Climax Ltd. achieved the target
Staffing is a managerial function of hiring and
production, but at a higher production cost. In this
developing the required employees to fill in various
case, the manager is effective but not efficient.
positions created by the organizing process. This is
also known as human resource function.
3. (3)
The organization objective mainly talks about the
7. (3)
profit of the organization that is essential for covering
Supervisory level of management
the cost and risk of the business.
Representing workers’ grievances to middle level
Profit is the most essential part of the business and management and ensuring a safe and proper
without the earning of sufficient profit, a business working environment are the functions of
could not be able to sustain. supervisory level management. This level is also
Thus, the main objective of every organization is the known as low level or operational level
generation of sufficient profit that is essential for management.
covering the cost and risk of the business.
8. (4)
Growth is one of the organizational objectives of the
4. (2)
management. Growth is measured in terms of sales
The objective of the business that is followed by the
volume, increase in number of employees, market
organization by Climax Ltd. in the given scenario is
share, number of products etc.
Social Objective.
Social Objective is the objective of business that
9. (2)
involves the welfare of the society. Every
Management is a dynamic function - management
organization, whether it is business or non-business ,
operates in a constantly changing environment.
has certain social obligations that need to be fulfilled.
management helps to adapt to these changes so that
It includes:
organization is able to maintain its competitive edge.
Use the eco-friendly method of production
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10. (4)
In directing, coordination is required among orders,
instructions and suggestions and between superior 14. (H & S)
and subordinates. For example – a manager instructs Working at the Director position of any company
the subordinates, motivates them and supervises means working at Top level management.
their work. Functions of top level management are as follows:
 He had to analyze the business environment
11. (H & S) and its implications for the survival of the
Social objective was depicted in the case. firm.
Explanation - Social objectives refer to those
 He had to integrate diverse elements and
objectives, which are desired to be achieved for the
benefit of the society. coordinate the activities of different
The other two types of objectives are : departments to the overall objectives.
1. Organizational Objectives  He had to formulate overall organizational
2. Personal Objectives. goals and strategies for their achievement.

12. (H & S) 15. (H & S)


The characteristic of management highlighted by Objectives of management discussed in the case
the above statement is 'Management is Pervasive',
study:
that is, management is required at all levels
Organizational objectives - At the time when the
of organization and in all kinds of organizations.
Whether it is a political, social, educational or a company was able to cover the costs and the risks, the
business organization, lack of management can company achieved the " Survival” organizational
lead to inefficiency and chaos. Therefore, objective of the management. These objectives are
management is an indispensable function required needed to achieve the economic goals of the
by every kind of organization at all levels. organization.
Social objectives - Providing employment
13. (H & S) opportunities, basic amenities like schools for the
Management is the process of completing a task with children of employees and introducing useful
the purpose of fulfilling the organization's goals in an products in the market made company fulfill social
efficient and effective manner. Effective implies objectives of management. social objectives are those
finishing the task at hand, and efficient means doing objectives which are desired for the benefit of the
it with the least amount of time and money. society.
Ashita was effective since she accomplished her
assignment on time, but she was inefficient because
they had to bear a high cost of Rs 55000.
On the other hand, Lakshita is not efficient and
effective because she was not able to produce the
required number of bracelets within the stipulated
time, and at a higher cost than Ashita.

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