Nature and Significance - Test Papers

 CBSE Test Paper - 01

Chapter - 1 Nature and Significance of Management

  1. Chief Marketing Officer and Managing Director is part of ________.
    1. Middle Management
    2. Operational Management
    3. Top Management
    4. None of these
  2. Which is not a separate function of management out of the following?
    1. Cooperating
    2. Planning
    3. Staffing
    4. Controlling
  3. ________ aims to help each other.
    1. Planning
    2. Staffing
    3. Coordination
    4. Cooperation
  4. Ankita is engaged in manufacturing chocolates and biscuits by using environmentally friendly methods of production. Which management objective is used here?
    1. Social objective
    2. Economic objective
    3. Organizational objective
    4. Individual objective
  5. Which of the following is not an objective of management:
    1. Earning profits
    2. Policy-making
    3. Growth of the organisation
    4. Providing employment
  6. State whether each of the following statement is True or False:
    1. Supervisory level managers are also known as divisional heads.
    2. Management is an intangible force.
    3. There are 3 levels of management in the hierarchy of an organization.
    4. Managers at lower levels spend more time in planning and organizing than top-level managers.
  7. Fill in the blanks with suitable words:
    1. Top level of management is responsible for ________ and ________ of the organization.
    2. Co-ordination act as a ________ force between various departments to ensure unity of action.
    3. Efficiency means doing the task correctly and with ________ cost.
    4. Management is a/an ________ force that cannot be seen but its presence can be felt.
  8. Match the following:
    (i) It ensures the continuity of business activities(a) Intangible
    (ii) It is an unseen force whose presence can be felt when an organisation functions(b) Personal objective
    (iii) Organisational objective is also known as(c) Survival
    (iv) Management must seek to satisfy the diverse needs of employees(d) Economic Objective
  9. ”Management consists of an ongoing series of function”. Which characteristics of management are highlighted by this statement?
  10. Clarify the terms efficiency and effectiveness in management.
  11. List any two social objectives of management.
  12. What is meant by management as a science? Explain with the help of any three features.
  13. Describe in brief any five functions of Top Level Management in an organization.
  14. The Marketing Manager of Surya Bulb Limited fixed the target for all his Sales Executives and gave them all the possible authorities to achieve it. They were asked to submit to him their performance report at the end of the month. All of them did the same. On the receipt of the report, the expected and actual results of the Sales Executives were compared. On this basis planning for the future was done. The Sales Executives also wrote in their report what the expectations of the customers from the company were. Majority of them had written that they (customers) wanted the company to cooperate in the construction of the Dharamshala going on in the city at that time. The Marketing Manager placed this demand of the customers before the Board of Directors. This was happily accepted.
    1. Identify the two functions of management described above by quoting the relevant lines.
    2. Which two values are being given to society?
  15. Define co-ordination. Enumerate the features of co-ordination?
  16. What is meant by ‘Management by People’?
  17. Coordination is the essence of management. Explain how.
  18. Ajay and Sanjay are childhood friends. Sanjay had lost his right hand in an accident in childhood. They meet after a long time in a restaurant. On being asked, Sanjay tells Ajay that he feels very discontented in managing his family business after the death of his father as it doesn't match with his areas of interest. Ajay knows that Sanjay possesses extraordinary skills in management although he hasn't acquired any professional degree in management. Therefore, he asks Sanjay to wind up his business in India and join him in his hotel business in Dubai as an Assistant Manager in the Sales and Marketing Division.
    In the context of the above case:
    1. Can Sanjay be deployed at the post of Assistant Manager in the Sales and Marketing Division though he hasn't acquired any professional degree in management? Explain by giving suitable justifications in support of your answer.
    2. List any two values that are reflected in this act of Ajay.

CBSE Test Paper - 01
Chapter - 1 Nature and Significance of Management


  1. (c) Top Management
    Explanation: Chairman, Chief Executive Officer, Chief Operating Officer, Managing Director, Board Of Director, President, Vice-President are senior-most executives in an organisation and part of top-level management.
  2. (a) Cooperating
    Explanation: Cooperating is not a separate function of management. Cooperating means work together for a common purpose or benefits. Cooperation can be there in all the functions of management. But it can not be considered as a separate function of management.
  3. (d) Cooperation
    Explanation: Cooperation is an act of working or acting together for a common purpose for the benefit it aims to help each other. It is more or less active assistance from a person, organisation etc.
  4. (a) Social objective
    Explanation: Social objective of management.
  5. (d) Providing employment
    Explanation: Providing employment is not objective of management.
    1. False
      Explanation: False, they are also known as first-line managers.
    2. True
    3. True
    4. False
      Explanation: False, top-level managers spend more time on planning & controlling.
    1. Survival, welfare
    2. Binding
    3. Minimum
    4. Intangible
  6. (i) - (c), (ii) - (a), (iii) - (d), (iv) - (b)
  7. A characteristic highlighted by the above statement is “Management is a continuous process” or management is a never-ending process. As it starts with planning and end at controlling when controlling ends planning starts again and it never stops.
  8. Efficiency refers to do the job in a cost-effective manner. Effectiveness refers to complete the job on time, no matter whatever is the cost.
    1. Using environmentally friendly methods of production.
    2. Providing basic amenities like schools and hospitals.
  9. Management as a Science: Science is a systematised body of knowledge which establishes the relationship between causes and their effects.
    Management is regarded as a Science because of the following features of management
    Though management has certain features of science. still, it is considered as an inexact science, because management principles may not produce the same results every time in all situations, due to the presence of the human element.
    1. The existence of a systematic body of knowledge: Like Science, management has its own theory and principles that have developed over a period of time, we can say, management has a systematised body of knowledge. It is organised and systematic study material for every field like for finance manager total financial material is available.
    2. Scientific methods of observation: Certain management principles are evolved from scientific methods of observation. The cause and effect relationship is the part of science and it is applicable in management also. Therefore, management principles are accurate and reliable as they are made after a lot of observation and experience but they are dealing with a human being and human behaviour which is not same in-universe. So this feature is partially present in management.
    3. Universally accepted principles: Certain management principles are universally valid like Newton's law of Gravity. The established principles of modern management have universal applicability. The principle of division of labour and specialisation. unity of command. etc are accepted everywhere but some principle is not universally accepted as they have to deal with human behaviour.
  10. Main functions of top-level management are:
    1. Formulation of organizational objectives as they form long as well as short-term both.
    2. Framing strategies and policies on how to achieve objective effectively and efficiently.
    3. Analyses of the business environment to make its future planning.
    4. Appointment of departmental heads to do work properly.
    5. Organizing business into various sections and departments to simplify the work.
      1. “The Market Manager of Surya............rights to achieve it” (Organizing)
      2. “On the receipt..............Sales Executives were compared” (Controlling).
      1. Community Development
      2. The accomplishment of Social Responsibility.
  11. Coordination is an orderly arrangement of group efforts to maintain harmony among individuals’ efforts towards the accomplishment of common goals of an organization. It is called the essence of management as it works as a thread work in a garland. It also linked all the function of management with each other without this the management can not perform work effectively.
    Features of co-ordination
    1. It integrates group efforts.
    2. It unifies the action.
    3. It is a continuous process.
    4. It is an all-pervasive function
    5. It is the responsibility of all managers.
    6. It is a deliberate function.
  12. Human resources or people are an organisation’s greatest asset. It involves getting work done through people. Managing people has two dimensions.
    1. It implies dealing with employees as an individual with diverse needs and behaviour.
    2. It also means dealing with individuals as a group of people.
    3. it integrates the effort of all the people in the organisation to achieve goals
  13. Coordination is a function that is inherent and pervasive. Coordination is not a separate function of management. It is the essence of management. Coordination is needed to perform all the functions of management They are:
    1. Coordination in planning: In planning, coordination is needed
      1. As a top-level plan to the whole organization and its synchronization overall plan of the organization with all the departments.
      2. Between objectives and available physical and human resources, e.g, coordination between the production department and sales department targets to complete the overall objective of the organization.
    2. Coordination in organizing: In organizing, coordination is required
      1. Between the resources of an organization and activities to be performed according to the plan of top-level management.
      2. Among authority, responsibility, and accountability, e.g. if a supervisor is given the responsibility to get the work done, he should also be given the authority to divide the work among his subordinates as per the requirement of the organization.
    3. Coordination in staffing: In staffing, coordination is needed
      1. Between the skills of the workers and the jobs assigned to them as it should be given to them according to their skills, e.g. a Chartered Accountant should be given work of financial nature.
      2. Between the efficiency of the workers and the compensation paid them as an efficient worker awarded with incentives and inefficient by the rules of an organisation.
    4. Coordination in directing: In directing, coordination is required
      1. Among orders, instructions, guidelines, and suggestions given by top-level to the middle level.
      2. Between superiors and subordinates. e.g. a manager instructs the subordinates, motivates, inspire also supervises them for their work.
    5. Coordination in controlling: In controlling, coordination is required
      1. To check the deviation between the standard and the actual performance.
      2. Between correction of deviations and achievement of objectives, e.g. If production target for workers is set as 80 units per hour, while they are able to produce only 60 units per hour, then there is a need to coordinate the plans with actual performance.
        Thus, coordination makes planning more purposeful, organization well-knit and control more effective. It is the key to the success of management as a thread work in a garland its work in management.
    6. Coordination is the essence of management: Management function revolves around making, arranging things, moving things in an organization in relation to the overall objective of the organisation. It is the most important function of an organization Thus, coordination can be considered as the core function of management as it binds all the function towards the goal of the organization and ensures that all the factors in the business work together smoothly.
    1. Yes, Sanjay can be deployed at the post of Assistant Manager in Sales and Marketing Division although he hasn’t acquired any professional degree in management as management is not considered to be a full-fledged profession because of the following reasons:
      • Well-defined Body of Knowledge All professions are based on a well-defined body of knowledge that can be acquired 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.
      • Restricted Entry All professions have a restriction or the entry of its practitioners. They have to acquire a specific degree to be professional e.g., LLB for a lawyer MBBS for a doctor etc. But a manager can be an MBA qualified or not.
      • Professional Association All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates a code of conduct e.g., all lawyers have to be a member of Bar Council to practice law. It is not compulsory for all managers to be a member of AIMA.
      • Ethical Code of Conduct All professions are bound by an ethical code of conduct which guides the behaviour of its 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.
      • Service Motive All basic motive 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.
    2. The two values that are reflected in this act of Ajay are:
      • Compassion
      • Responsibility.