Chapter I - Nature and Significance of Management

Question 1

Characteristics of Management

Answer 1

i. Management is a goal-oriented process.
ii. Management is all pervasive
iii. Management is multidimensional
a. management of work
b. management of people
c. management of operations
iv. Management is a continuous process
v. Management is a group activity
vi. Management is a dynamic function
vii. Management is an intangible force

Question 2

Objectives of Management

Answer 2

i. Organizational objectives
a. Survival
b. Profit
c. Growth
ii. Social objectives
= economic value + employment opportunities
iii. Personal objectives

Question 3

Importance of Management

Answer 3

i. Management helps in achieving group goals
ii. Management increases efficiency
iii. Management creates a dynamic organization
iv. Management helps in achieving personal objectives
v. Management helps in the development of the society.

Question 4

Nature of Management

Answer 4

i. Management as an Art
ii. Management as a Science
iii. Management as a Profession

Question 5

Management as an Art

Answer 5

i. The existence of theoretical knowledge
ii. Personalized application
iii. Based on practice and creativity

Question 6

Management as a Science

Answer 6

i. Systemized body of knowledge
ii. Principles based on practice and experimentation
iii. Universal validity

Question 7

Management as a Profession

Answer 7

i. Well defined body of knowledge
ii. Restricted entry
iii. Professional association
iv. Ethical code of conduct
v. Service motive

Question 8

Levels of Management

Answer 8

i. Top level management
= CEO, CFO, VP, etc.
ii. Middle level management
= head of sales, country sales manager, marketing manager, head of human resource, etc.
iii. Supervisory/Operational/Lower level management

Question 9

Functions of Management

Answer 9

i. Planning
ii. Organizing
iii. Staffing
iv. Directing
v. Controlling

Question 10

Characteristics of Coordination

Answer 10

i. Coordination integrates group efforts
ii. Coordination ensures unity of action
iii. Coordination is a continuous process
iv. Coordination is an all pervasive function
v. Coordination is the responsibility of all managers
vi. Coordination is a deliberate function

Question 11

Importance of Coordination

Answer 11

i. Growth in size
ii. Functional differentiation
iii. Specialisation

Question 12

Meaning/Definition of Management

Answer 12

It is defined as a process of getting things done with the aim of achieving goals effectively and afficiently.

Question 13

Meaning/Definition of Process

Answer 13

Process in definition means the primary functions or activities that a management performs in order to get things done. These functions are planning, organizing, staffing, directing and controlling.

Question 14

Meaning of Effectiveness

Answer 14

Effectiveness in management means doing the right task, completing activities and achieving goals.

Question 15

Meaning of Efficiency

Answer 15

Efficiency in management means completing the right task with less cost and using less resources.

Question 16

Meaning of coordination

Answer 16

It is the force that binds all other functions of management. It is the common thread that runs through all activities such as production, purchase, sales and finance to ensure continuity of the organization.