NCERT Solutions for Class 12 Business Studies Chapter 1: Nature and Significance of Management

Hello Students. Are you Searching for Class 12 Business Studies NCERT Solutions of Chapter 1? If yes then you are in the right place. Here we have provided you with the Question and Answers of Chapter 1: Nature and Significance of Management. These solutions are written by expert teachers and are so accurate to rely on. These solutions can eliminate any lingering doubts you may have regarding the concepts.

Chapter1. Nature and Significance of Management
SubjectBusiness Studies
CategoryNCERT Solutions for Class 12

NCERT Solutions for Class 12 Business Studies can be a great tool for the students who have taken Business Studies stream for higher studies. These NCERT Class 12 Business Studies solutions are written by expert teachers and faculties to make your practice and revision easier. On this page, we have provided you with the complete solutions of Chapter 1: Nature and Significance of Management.

NCERT Solutions for Class 12 Business Studies Chapter 1

Nature and Significance of Management Solutions

Short Answer Questions

Q1) Define management.

Answer) The process of getting things done with the purpose of achieving goals efficiently and effectively is called as management. In other words, management can be defined as the process of planning, organising, staffing and controlling so as to achieve the goal of the organisation with minimal resource usage.

Q2) Name any two important characteristics of management.

Answer) Two important characteristics of management are pervasive and continuous process.

Q3) 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 is functioning as the middle level management in the organisation. She works as a link between the top-level management and workers. The following will be her basic functions:

  • Understanding the policies set by the top management.
  • Communicating with the top and low level of management.
  • Motivate employees to achieve productivity
  • Coordinate with cross functional heads to maintain transparency
  • Assigning tasks to various departments under control

Q4) Why is management considered a multi-faceted concept?

Answer) Management is considered as a multi-faceted concept because it is a complex activity that has three main dimensions. These are:

  • Management of Work- All organisations perform some work e.g., producing or selling. A work is defined as the goals to be achieved.
  • Management of People The main asset of an organisation is the human resources. This resource has to be managed in such a manner that it helps to achieve the goals of the organisations.
  • Management of Operations- All organisations 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.

Q5) Discuss the basic features of management as a profession.

Answer) Following are the basic features of management as a profession

  • Management is a systematic and well-defined body of knowledge which consists of various theories and guiding principles. Such knowledge can be obtained through books, enrolling in management courses.
  • Management is regulated by a professional association which looks at the functions of its members. In India AIMA or All India Management Association is the governing body for managers. Joining the organisation is not compulsory.
  • Professional knowledge is required criteria and is given preference over degrees. The lack of professional experience is a deterrent for people looking to choose as a profession.
  • Only through proper management the business will grow. The guiding principles will help in ensuring smooth functioning of the organisation. Quality goods and services can be made available with management.
Long Answer Questions

Q1) Management is considered to be both an art and science. Explain.

Answer) Management can be regarded as both an art as well as science from the following points

A. Management as Art

  • Management has a well-defined literature which is required for gathering knowledge in the theories and accelerate learning. There are many examples of management literature which is available such as Taylors Scientific Management Theory and Henry Fayol’s 14 principles of Management. These theories help in understanding the various concepts of management.
  • Management knowledge can be utilized by everyone in their own way, very much like arts where words can be expressed in form of writing differently by different poets, and music notes arranged by musicians to perform a musical piece, or the use of colours by a painter to draw vivid paintings. Similarly, managers use the various theories and principles in trying situations to make use of management knowledge.
  • Arts is all about expressing and innovating using creativity such as two artists will enact the same scene in two different ways. Similarly, two different managers will be managing the situation differently. Sometimes managers can come up with an innovative and fresh ideas to address the situation.

Management as Science

  • Science is a systematic discipline and management also shares similar characteristics. Like science, management also relies upon theories and principles to address issues that arise. Management has a separate vocabulary and terms which it uses to define certain processes.
  • Theories in science have been developed after a prolonged observation and repeated experiments, similarly to some extent management also bases its theories on regular observation and experiments, such theories will act as guidelines for management in the long run.
  • Scientific theories have universal validity, and in management also we see the principles are to some extent universally valid, and some can change as per situation. Such theories and principles can be used as basic information for training the managers.

Q2) 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 go as follows

  1. 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.
  2. 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.
  3. 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., ail 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.
  4. Ethical Code of Conduct All professions are bound by a 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.
  5. 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 where by 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.

Q3) Co-ordination is the essence of management. Do you agree? Give reasons.

Answer) Co-ordination is essential in management as it helps in binding together all other functions of the management. All the activities such as sales, purchase and production is based on coordination with management. Following points will help establish coordination as the essence of management.

  • Integrates Group Efforts Co-ordination brings unity to all. It gives a common focus to group efforts.
  • 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 organisation.
  • It is a Continuous Process Co-ordination is not a one time function but a continuous process. It begins at the planning stage and continues till controlling.
  • 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.
  • It is the Responsibility of All Managers All managers need to co-ordinate something or the other. A manager of production department needs to co-ordinate the work within his department and also with the other departments at the same time.

Q4) A successful enterprise has to achieve its goals effectively and efficiently:’ Explain.

Answer) Management is defined as the process of getting things done with the purpose of achieving goals efficiently and effectively. The terms effective and efficient are key terms in management and play an important role in the functioning of management.

Effectiveness refers to the process of completion of a given work in the time provided. It is the process of doing a task with primary focus on end result. It is considered a very important aspect of management which helps in achieving goals. Efficiency is the process of completing a given task with minimal use of resources and cost.

For an organisation to be successful, both these factors play a critical role to meet the objectives of the organisation. Effectiveness helps in achieving the defined goals while efficiency helps in achieving that with minimum resources and cost. Reducing the cost and resources brings profits for the organisation and also increases it. Therefore, it is very essential for an organisation to focus on both effectiveness and efficiency. It is important to complete the work in time along with minimum resources. Similarly, it is essential to reduce cost of production and finish the production at the decided time. Hence, successful companies need to be both efficient and effective at the same time in order to gain profits in the long run.

Q5) 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 which 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
    • Identification and division of work
    • Departmentalisation
    • Assigning of duties
    • Establishing reporting relationships
  3. Staffing- Staffing is the process of allotting specialised personnel for specialised work. In other words, hiring the right person for the job. It is a part of human resource and involves hiring and training of the people.
  4. Directing- It is one of the important functions of a manager which involves directing the human resources to work in an effective manner. It also involves providing motivation to the workers so as to drive productivity.
  5. Controlling Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. The task of controlling involves
    • Establishing standards of performance
    • Measuring current performance
    • Comparing this with established standards
    • Taking corrective action

That’s it. These were the solutions of NCERT Class 12 Business Studies Chapter 1 – Nature and Significance of Management. Our team hopes that you have found these solutions helpful for you. If you have any doubt related to this chapter then feel free to comment your doubts below. Our team will try their best to help you with your doubts.

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