Chapter 1

NATURE AND SIGNIFICANCE OF MANAGEMENT

Definition of Management

“Management is the process of working with and through others to effectively achieve
organizational objectives by efficiently using limited resources in the changing
environment.” Kreitner

Group Activity –

• Management is an activity which is

necessary wherever there is a group
of people working in an organisation.
• People in organisations are
performing diverse tasks but they are
all working towards the same goal.
• Management aims at guiding their
efforts towards achieving a common Management is ‘Group Activity’.
objective — a goal. Together Everyone Achieves More as a Team
• Thus, management has to see that
tasks are completed and goals are achieved (i.e., effectiveness) with the least
amount of resources at a minimum cost (i.e., efficiency).

Meaning:

Management has been defined as a process of getting things done with the aim of
achieving goals effectively and efficiently.

Process - primary functions or activities that management performs to get things

done.
(Functions - planning, organising, staffing, directing and controlling.)

Being effective - FINISHING the given task.

Effectiveness is concerned with:
✓ the end result,
✓ doing the right task,
✓ completing activities,
✓ achieving goals,

Efficiency - doing the task CORRECTLY and with MINIMUM COST.

• It is COST-BENEFIT ANALYSIS and the relationship between inputs and
outputs.
• Efficiency increases if:
✓ less resources (i.e., the inputs) - more benefits (i.e., the outputs).
✓ Fewer resources and less costs - same benefit or outputs.
(Input resources are money, materials, equipment and persons.)

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Effectiveness versus
Efficiency

Effective but not

efficient Efficient but not
effective

Complete the given task but Cutting down cost but not
at a high cost. achieving the target
production

Example: Target production - Effects - the goods do not reach

5000 units / year. the market.
Double shifts due to power failure Demand declines.
Effect - higher production cost. Competitors enter the market.

• Effectiveness and efficiency are two sides of the same coin.

• It is important for management to achieve goals with minimum resources.
• Poor management is due to both inefficiency and ineffectiveness.

Basis Effectiveness Efficiency

It refers to achieving the It refers to doing the task correctly and with
Meaning
goals. minimum cost.
It focuses at the end It focuses at cost benefit analysis, i.e. getting
Focus
result of the task. maximum output with minimum resources.

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Characteristics of Management

(i) Management is a goal-oriented process:

• An organisation has a set of basic goals which are the basic reason for its
existence.
• These should be simple and clearly stated.
• Different organizations have different goals.
• e.g.
Goals

Retail Store Spastic Society

to increase sales to impart education to children

with special needs
• Management unites the efforts of different individuals in the organisation to
achieve these goals.

(ii) Management is all pervasive:

• The managing activities are common to all organisations whether economic,

social or political.
• e.g. a petrol pump needs to be managed as much as a hospital or a school.
• What managers do in India, the USA, Germany or Japan is the same.
• How they do it may be quite different due to the differences in culture, tradition
and history.

(iii) Management is multidimensional:

Management is a complex activity with three dimensions:

(a) Management of work:

✓ All organisations exist to perform some work.
✓ Management translates this work in terms of goals to be achieved and assigns
the means to achieve it.
✓ This is done in terms of
a) problems to be solved,
b) decisions to be made,
c) plans to be established,
d) budgets to be prepared,
e) responsibilities to be assigned and authority to be delegated.

(b) Management of people:

✓ Human resources are the greatest asset.
✓ “getting work done through people” is still a major task for the manager.
✓ Managing people has two dimensions:
(i) dealing with employees as individuals with diverse needs and behavior;
(ii) dealing with individuals as a group of people.
✓ The management achieves the goals by making their strengths effective and
their weaknesses irrelevant.
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(c) Management of operations:

✓ Organisation has some basic product or service to provide in order to survive.
✓ This requires a production process:
material and technology transforming output for consumption

✓ This is interlinked with both the management of work and the management of
people.

(iv) Management is a continuous process:

Planning Organising

• The process of management is a series of

continuous, composite, but separate functions.
• These functions are simultaneously performed by Controlling Staffing
all managers all the time.
• e.g. Samita Rai at Namchi Designer Candles
Directing
performs several different tasks in a single day.
Sometimes she spends more time in planning a
future exhibition and sometimes sorting out an employee’s problem.

(v) Management is a group activity:

• An organisation is a collection of diverse individuals with different needs.

• Every member of the group has a different purpose for joining the organisation.
• This requires team work and coordination of individual effort in a common
direction.
• At the same time management should enable all its members to grow and
develop.

(vi) Management is a dynamic function:

• An organization interacts with its external environment which consists of various

social, economic and political factors.
• To be successful, an organisation must change itself and its goals according to
the needs of the environment.
• e.g. McDonalds, made major changes in its menu to be able to survive in the
Indian market.

(vii) Management is an intangible force:

• Management cannot be seen but its presence can be felt in the way the
organization functions.
• The effect of management is noticeable where:
o targets are met according to plans,
o employees are happy and satisfied, and
o there is orderliness instead of chaos.

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Objectives of Management

Management seeks to achieve certain objectives which are the desired result of any
activity.
Objectives can be classified into:
✓ organisational objectives,
✓ social objectives and
✓ personal or individual objectives.

I. Organisational Objectives:

• Management is responsible for setting and achieving objectives for the

organisation.
• It has to achieve a variety of objectives in all areas considering the interest of all
stakeholders including:
o shareholders o customers
o employees o government
• The main objective of an organization is the optimum utilisation of human and
material resources.
• Thus, to meet the economic objectives of a business i.e. survival, profit and
growth.

1. Survival:

✓ Management must achieve the basic objective of survival of the organisation.

✓ It is possible only if it earns enough revenues to cover costs.

2. Profit:

✓ Management has to ensure that the organization makes a profit.

✓ Profit:
▪ provides a vital incentive for the successful operations of the enterprise.
▪ is essential for covering costs and business risks.

3. Growth:

✓ A business needs to grow to remain in the industry.

✓ Management must exploit fully the growth potential of the organisation.
✓ indicators of growth are increased:
a) sales volume
b) number of employees,
c) number of products or
d) capital investment, etc.

II. Social objectives:

• It involves the creation of benefit for society.

• Every organisation whether it is business or non-business, has a social
obligation to fulfill.
• This refers to creating economic value for various constituents of society.
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• This includes:
a) using environmental-friendly methods of production,
b) giving employment opportunities to the disadvantaged sections of society,
c) providing basic amenities like schools and crèches to employees.
d) supply of quality products at fair prices.
e) conducting business in lawful manner.
f) avoidance of anti-social and unfair practices.
• e.g. E-Choupal, created by ITC,
• Reputed companies like TISCO, Asian Paints, HCL, ITC etc. have taken social
responsibility as a basic element of the decision-making process.

III. Personal objectives:

• Organisations are made up of people who have different personalities,

backgrounds, experiences and objectives.
• They join the organisation to fulfill:
a) Financial needs - competitive salaries and perks,
b) Social needs - peer recognition.
c) Higher level needs - personal growth and development.
d) Good and Healthy working conditions.
• Management has to reconcile personal goals with organizational objectives for
harmony in the organisation.

Importance of Management

The reasons that have made management so important are as follows:

(i) Management helps in achieving group goals:

• Management is required to achieve the goals of the organisation.
• The task of a manager is to give a common direction to the individual efforts to
achieve overall goal of the organisation.

(ii) Management increases efficiency:

• The aim of a manager is to reduce costs and increase productivity through better
planning, organising, directing, staffing and controlling the activities of the
organisation.

(iii) Management creates a dynamic organisation:

• All organizations have to function in a constantly changing environment.
• Generally, individuals in an organisation resist moving from a familiar, secure
environment into a newer and more challenging one.
• Management helps people adapt to these changes to maintain organisation’s
competitive edge.

(iv) Management helps in achieving personal objectives:

• A manager motivates and leads his team so that individual members achieve
personal goals while contributing to the overall organizational objective.

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• Through MOTIVATION AND LEADERSHIP, the management develops TEAM

SPIRIT, COOPERATION and COMMITMENT to group success.

(v) Management helps in the development of society:

• Management helps in the development of society through development of the

organization.
• An organization has multiple objectives to serve the purpose of the different
groups that constitute it.
• It helps to:
o provide good quality products and services,
o create employment opportunities,
o adopt new technology for the greater good of the people and
o lead the path towards growth and development.

Nature of Management

A. Management as an Art

Meaning of Art
Art is the SKILLFUL and PERSONAL APPLICATION of EXISTING KNOWLEDGE to
achieve desired results.
It can be acquired through STUDY, OBSERVATION AND EXPERIENCE.

Features of an Art:
1. Existence of theoretical knowledge:
• There is existence of certain theoretical knowledge.
• Experts have derived certain basic principles which are applicable to a particular
form of art.
• e.g. literature on dancing, acting or music.

2. Personalised application:
• Art is a very personalized concept.
• The use of knowledge varies from individual to individual.
• For example, two dancers, two actors, or two writers will always differ in
demonstrating their art.

3. Based on practice and creativity:

• All art is practical.
• Art involves the creative practice of existing theoretical knowledge.
• e.g. all music is based on seven basic notes; however, the use of these notes
makes the composition of a musician unique.

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MANAGEMENT IS CONSIDERED AS AN ART BECAUSE

1. A manager practices the art of management in the day-to-day job of an

enterprise based on study, observation and experience.
There is a lot of literature available in various areas like marketing, finance and
human resources which the manager has to specialise in.

2. A manager applies the principles and scientific methods to a situation or problem

in his own unique manner (through a combination of practice, creativity,
imagination, initiative and innovation).

3. A manager is involved in the activities of the organisation, studies critical

situations and formulates his own theories for use in a given situation. This gives
rise to different styles of management.

CONCLUSION - From above discussion it can be concluded that management is an art

since, but it is not fine arts.

All management practices are based on the same set of principles; what distinguishes
a successful manager from a less successful one is the ability to put these principles
into practice.

B. Management as a Science

Meaning of Science:

It is a systematised body of knowledge that explains certain general truths or the

operation of general laws.

Features of Science:

(i) Systematised body of knowledge:

• Science is a systematic body of knowledge.

• Its principles are based on a cause-and-effect relationship.

• For example, the phenomenon of an apple falling from a tree towards the ground
is explained by the law of gravity.

(ii) Principles based on experimentation:

• Scientific principles are first developed through observation and then tested
through repeated experimentation under controlled conditions.

(iii) Universal validity:

• Scientific principles have universal validity and application.

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MANAGEMENT IS NOT AN EXACT SCIENCE BECAUSE IT DOES NOT HAVE

ALL FEATURES OF SCIENCE

1. Management has a systematized body of knowledge.

• Its theories and principles have been developed over a period of time, but it
also draws on other disciplines (such as Economics, Sociology, Psychology
and Mathematics.)
• It has its own vocabulary of terms and concepts.

2. The principles of management are based on repeated experimentation and

observation in different types of organisations.
• Since management deals with human beings and human behaviour, the
outcomes of these experiments are not accurately predicted.
• Therefore, management can be called an inexact science.

3. Principles of management are not as exact as the principles of science, so their

application and use is not universal.
• They have to be modified according to a given situation.
• However, they provide managers with certain standardised techniques
that can be used in different situations.

CONCLUSION - Based on the above features, we can say that management has some
characteristics of science.
It is more of social science/inexact science and not exact science like chemistry etc.

MANAGEMENT IS BOTH ART AND SCIENCE.

1. Management has features of both art and science.
2. The practice of management is an art.
3. However, managers can work better if their practice is based on the principles of
management.
4. These principles constitute the science of management.
5. Thus, Management as an art and a science are not mutually exclusive, but
complement each other.

C. Management as a Profession

Meaning of Profession:
Profession includes those activities, which require special knowledge and skill to be
applied by individuals in their occupation.

e.g., doctors are engaged in the medical profession and, lawyers in the legal
profession.

Features of Profession:
1. Well-defined body of knowledge:
• All professions are based on a well-defined body of knowledge that can be
acquired through instruction.

2. Restricted entry:
• The entry to a profession is restricted through an examination or through
acquiring an educational degree.
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• e.g., To become a C.A. one has to clear a specified examination conducted by

the ICAI (Institute of Chartered Accountants of India).

3. Professional association:
• All professions are affiliated to a professional association which:
✓ regulates entry,
✓ grants certificate of practice,
✓ formulates and enforces a code of conduct.
• e.g., to practice in India lawyers have to become members of the Bar Council.

4. Ethical code of conduct:

• All professions are bound by a code of conduct which guides the behaviour of its
members.
• e.g., All doctors take the oath of ethical practice when they enter the profession.

5. Service motive:
• The basic motive of a profession is to serve their client’s interests by rendering
dedicated and committed service.
• e.g. The lawyer ensures that his client gets justice.

MANAGEMENT AS PROFESSION
1. Management as a discipline based on a systematic body of knowledge with well
defined principles.
• This knowledge can be acquired at different colleges and professional
institutes (e.g. The Indian Institutes of Management (IIMs) in India) and
through a number of books and journals.
2. There is no restriction on anyone being appointed as manager in any business
enterprise
• Anyone can be called a manager irrespective of the educational qualifications
possessed.
• Unlike professions such as medicine or law, nowhere in the world is it
mandatory for a manager to possess any such specific degree.
• But now-a-days professional knowledge and training is considered to be a
desirable qualification.
Thus, management does not meet second criterion strictly.
3. There are several associations of practicing managers in India, like the AIMA (All
India Management Association) that has laid down a code of conduct to regulate
the activities of their members.
There is, however, no compulsion for managers to be members of such an
association nor does it have any statutory backing.
4. There is no specific or particular ethical code of conduct in management like
other professions.
5. The basic purpose of management is to help the organisation achieve its stated
goal. This may be profit-maximisation for a business enterprise and service for a
hospital.
If an organisation has a good management team that is efficient and effective it
automatically serves society by providing good quality products at reasonable
prices.
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CONCLUSION - Management does not meet the exact criteria of a profession.

However, it does have some of the features of a profession. It can be called as an
evolving profession, still in infancy stage.

Levels of Management
Management is a term used for certain functions performed by individuals in an
enterprise who are bound together in a hierarchy of relationships.

Hierarchy - The authority-responsibility relationship binds

individuals as superiors and subordinates and gives rise to
different levels in an organisation, which is called hierarchy.

There are three levels in the hierarchy of an organisation.

(i) Top Management:

• It is consisting of the senior-most executives of the organisation (Determinative
and Administrative). Top management is a team consisting of managers from
different functional levels, heading finance, marketing etc.
• They are usually referred to as:
 Chairman  Vice-President
 Chief executive officer  Board of Directors
 Chief operating officer  Managing Director
 President  General Manager

FUNCTIONS -
(i) Integrate various elements and coordinate
the activities of different departments 1) Determining objectives of the
business.
according to the overall objectives of the 2) Taking important decisions.
organisation. 3) Formulating broad policies of the
(ii) Responsible for the welfare and survival business.
of the organisation. 4) Assembling resources.
(iii) Analyse the business environment and its 5) Controlling the work performance.
6) Approving budgets.
implications for the survival of the firm.
(iv) Formulate overall organisational goals and strategies for their achievement.
(v) Responsible for all the activities of the business and for its impact on society.
The job of the top manager is complex and stressful, demanding long hours
and commitment to the organisation.

(ii) Middle Management:

• It is the link between top and lower-level managers.
• They are subordinate to top managers and superior to the first line managers.
• They are usually known as division heads. e.g.:
 Purchase Manager  Functional Managers
 Production Manager  Departmental Heads
 Finance Manager  Other Executive Officers.
 Plant Superintendent

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 • Middle management (Executory) is responsible for implementing and controlling
plans and strategies developed by top management.
• At the same time, they are responsible for all the activities of first line managers.

FUNCTIONS:
1) Interpreting and communicating the policies of the top-level management
2) Determining the organisational set up of their departments
3) Issuing instructions to lower-level managers
4) Motivating subordinates for higher productivity and rewarding them for their
outstanding performances.
5) Creating co-operation (co-operate with other departments for smooth functioning
of the organisation. At the same time, they are responsible for all the activities of
first line managers.)

(iii) Supervisory or Operational Management:

• It is consist of:
 Foremen  Section Officers
 Supervisors  Superintendent
 Inspectors  First Line or Operational Management etc.
 First Line Managers/ Line managers
• Supervisors directly oversee the efforts of the workforce.
• Supervisory management interacts with the actual work force and pass on
instructions of the middle management to the workers.
• Through their efforts:
o quality of output is maintained,
o wastage of materials is minimised and
o safety standards are maintained.
• The QUALITY OF WORKMANSHIP and the QUANTITY OF OUTPUT depends
on the hard work, discipline and loyalty of the workers.

FUNCTIONS:
1) Working as link between middle level management and workers (operative
working force).
2) Submitting worker’s grievances.
3) Ensuring proper working conditions.
4) Helping the middle level management.
5) Maintaining proper discipline and congenial atmosphere in the factory, so that
productive activities could be performed smoothly.
6) Ensuring safety of workers, machines, tools and equipments, etc.
7) Inviting suggestions.

Workers Operative Working Force/ Shop Floor/Platform

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Functions of Management

1. Planning
• It is the function of determining in advance what is to be done and who is to do it.
• This implies setting goals in advance
• and developing a way of achieving them efficiently and effectively.
• e.g. in an organisation the objective is to procurement and sell traditional Indian
handloom and handicraft items.
They sell fabrics, furnishings, readymades and household items made out of
traditional Indian fabrics.
The manager has to decide quantities, variety, colour and texture of all the
above and then allocate resources for their purchase from different suppliers or
for their in-house development.
2. Organising
• It is the management function of:
o assigning duties,
o grouping tasks,
o establishing authority and
o allocating resources required to carry out a specific plan.
• It determines what activities and resources are required.
• It decides:
o who will do a particular task,
o where it will be done, and
o when it will be done.
3. Staffing
• It ensures that the right people with the right qualifications are available at the
right places and times to accomplish the goals of the organisation.
• This is also known as the human resource function
• and it involves activities such as:

o recruitment, o placement and

o selection, o training of personnel.

e.g. - Infosys Technologies which develops software, needs systems analysts and
programmers.

4. Directing
• It involves leadership, supervision, motivation and communication with the
employees at work.
•
• A good manager directs through praise and criticism in such a way that it brings out
the best in the employee.

5. Controlling
• The task of controlling involves establishing standards of performance, measuring
current performance, comparing this with established standards and taking corrective
action to rectify any deviation.
• Here management must determine:
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o what activities and outputs are critical to success,

o how and where they can be measured and
o who should have the authority to take corrective action.

The various functions of a manager are usually discussed in the order given above, but
these functions are not carried out in isolation. The activities of a manager are interrelated.

Coordination — The Essence of Management

▪ The process by which a manager synchronises the activities of different departments is
known as coordination.
▪ Coordination is the force that binds all the other functions of management.
▪ It is the common thread that runs through all activities such as purchase, production,
sales, and finance to ensure continuity in the working of the organisation.
▪ Coordination is sometimes considered a separate function of management.
▪ It is however, the essence of management.
▪ Coordination is implicit and inherent in all functions of an organisation.
▪ The process of coordinating the activities of an organisation begins at the planning stage
itself.
▪ Top management plans for the entire organisation.
▪ According to these plans the organisational structure is developed and staffed.
▪ In order to ensure that these plans are executed according to plans directing is required.
▪ Any discrepancies between actual and realised activities are then taken care of at the
stage of controlling.
▪ It is through the process of coordination that a manager ensures the orderly
arrangement of individual and group efforts to ensure unity of action in the realisation of
common objectives.
▪ This provides the requisite amount, quality, timing and sequence of efforts which
ensures that planned objectives are achieved with a minimum of conflict.
▪ Like a thread in a garland, coordination is a part of all management functions.

Definitions of Coordination
Coordination is the orderly synchronising of efforts of subordinates to provide proper

amount, timing and quality of execution so that their united efforts lead to the stated

objectives, namely, the common purpose of the enterprise. Theo Haimann

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Characteristics of Coordination
(i) Coordination integrates group efforts:
• Coordination unifies unrelated or diverse
interests into purposeful work activity.
• It gives a common focus to group effort to
ensure that performance is as per plans.
(ii) Coordination ensures unity of action:
• The purpose of coordination is to secure
unity of action to achieve organisational goal.
• It acts as the binding force between
departments.
• e.g. The production and sales department
In the absence of coordination what results is
have to coordinate their work, so that chaos
production takes place according to the demand in the market.
(iii) Coordination is a continuous process:
• Coordination is not a one-time function but a continuous process.
• It begins at the planning stage and continues till controlling.

• e.g. A manager plans his winter collection in the month of June itself.
• He ensures adequate workforce and monitors production.
• His marketing department also has to be briefed in time to prepare their promotional
and advertising campaigns.
(iv) Coordination is an all pervasive function:
• Coordination is required at all levels of management because all departments are
interdependent.
• It integrates the efforts of different departments and different levels.
• E.g. The purchase department is responsible for procuring fabric in a garment store.
• This is the basis of the production department and finally sales can take place.
• If fabric purchased is of an inferior quality, sales will decline.
• Without coordination there is overlapping and chaos instead of harmony and
integration of activities.
(v) Coordination is the responsibility of all managers:
• Coordination is the function of every manager in the organisation.
• Top level managers need to coordinate with their subordinates to ensure that the
overall policies for the organisation are carried out.
• Middle level management coordinates with both the top level and first line managers.
• Operational level management coordinates the activities of its workers to ensure that
work is done according to plans.
(vi) Coordination is a deliberate function:
• A manager has to coordinate the efforts of different people in a conscious and
deliberate manner.
• Coordination gives a direction to the willing spirit among personnel.
• Cooperation in the absence of coordination may lead to wasted effort.
• Coordination without cooperation may lead to dissatisfaction among employees.

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Importance of Coordination
Coordination is important as it integrates the efforts of individuals, departments and
specialists.

(i) Growth in size:

• As organisations grow in size, the number of people employed by the organisation
also increases.
• All individuals differ in their habits of work, background, individual goals and
approaches to situations and relationships with others.
• It becomes necessary to ensure that all individuals work towards the common goals
of the organisation.
• Therefore, for organisational efficiency, it is important to harmonise individual goals
and organisational goals through coordination.

(ii) Functional differentiation:

• Functions of an organisation are divided into departments, divisions and sections.
• All these departments may have their own objectives, policies and their own style of
working.
• For example, the marketing department’s objective may be to increase sales by 10
per cent by offering discounts.
• But, the finance department may not approve of such discounts because of loss of
revenue.
• All departments and individuals have to depend on each other for information to
perform their activities.
• Coordination links the activities of various departments.

(iii) Specialisation:
• Modern organisations employ a number of specialists due to complexities of modern
technology and the diversity of tasks.
• Specialists usually think that they only are qualified to evaluate, judge and decide.
• They do not take advice or suggestions from others.
• This often leads to conflict amongst different specialists as well as others in the
organisation.
• Thus, coordination is required reconcile the differences in approach, interest or
opinion of the specialists.
Difference between Coordination and Cooperation
Basis Coordination Cooperation
Meaning It refers to orderly arrangement of group efforts to It refers to voluntary willingness of individuals to help
provide unity of action in order to achieve common each other.
objectives.
Nature It is the result of deliberate efforts of manager. It is the voluntary efforts of group of people.
Relations It arises out of both formal and informal relations. It arises out of informal relations.
Requirement It is essential when group of people work together It arises due to desire of people to work together.
for a common object.
Objective It aims to achieve business goals more efficiently. It aims to help to each other.
Scope Its scope is wider than the cooperation It has a narrow scope as it is a part of coordination.

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Test Yourself
1. Is the manager effective or efficient?
a) “Commitment Roadway” promised Mr. Deepak that goods would be delivered to his
customer in three days. They charged extra money for express delivery. However, the
goods were delivered after five days and as a result Mr. Deepak’s customer cancelled the
order.
b) Mr. Shenoy produced 500 T-shirts two days before time. He paid over time to his workers
to complete production before time.
c) Mr. Sagar, the sales manager of a company was given target to make sales of 1,000 units
in a month. He achieved the target but he gave more discounts to customers which
reduced profit margin of the company.
d) Tanishq is H.R. manager in Tip Top Ltd. He had to arrange for recruitment and selections
of 100 workers to meet an urgent order within a week. He was able appoint only 80 workers
in 15 days.
2. Anshul works as a salesman in “Super Fine Ltd.” Selling stationery items. He has been
given a target of selling 1000 units of a register in a month by offering maximum of 10%
discount to his customers. In order to meet his monthly sales target, on the last two days of
the month, he offers 15% discount to his customers.
Is Anshul effective in his work? Give reasons in support of your answer.
3. Identify the characteristics of management in the given statements:
a) This requires a production in which input are converted into desires output.
b) It replaces ‘I’ with ‘We’.
c) Management consists of ongoing series of functions.
d) Management translates this work in terms of goals to be achieved and assigns the
means to achieve it.
e) A petrol pump needs to be managed as much as a hospital or a school.
f) After every three months, Agamjot, sales manager offers new trade promotion schemes
to its distributers. He plans to introduce new varieties of products keeping in mind the
needs of a customer and promotional schemes from his competitors. This gives him an
added advantage over his competitors.
g) Management is performed in all types of organizations at all levels.
h) In an organization employees are happy and satisfied and no chaos exists.
i) Management sets targets and unites efforts of all individuals to achieve them.
j) KFC made major changes in its menu to be able to survive in the Indian market.
4. The production manager assigned a target of producing 1000 TV sets in the month of July
among the group of 10 workers. They manually decided to [produce 100 TV sets each.
Among 3 of the workers of the group fell sick. The other workers refused to divide his work
and concentrated only on the production of their own individual target. As a result, the
target production of 1000 TV sets could not be achieved.
Which characteristic of management is violated in the above paragraph?
5. Shenoy joined a company after completing graduation in management in a reputed
business school. During his induction training, he was informed that he would be working in
production department. The company wanted to achieve 30% increase in output in the next
quarter. His general manager, a man with decades of experience also said that
management is a complex activity. He expected Shenoy to make production plans, identify
incentive schemes for workers to make their strengths effective and ensure that there is no
disruption due to technical glitch. Shenoy realized very quickly that his job is a series of
continuous tasks. After one month, he was informed by the general manager that due to
increase in international demand, production targets have been raised.

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He called an urgent meeting of his supervisors and senior workers. He offered them an
opportunity to realize their potential and earn more by working overtime and in multiple
shifts. He was delighted that at the end of the quarter, he was able to meet the targets,
workers were happy and there was no chaos.
Identify and explain any four characteristics of management highlighted in the above
case.
6. Identify the objective of management from the following statements:
a) It is essential to meet the costs of business and also cover the business risks.
b) A company uses environment friendly methods of productions.
c) Management provides competitive salaries and perks.
d) Management provides peer recognition.
7. Shenoy, Manager Director of ‘Darjeeling Tea Ltd.’ decided that his company will serve the
society through earning a reasonable profit. For achieving this goal, he started a business
of tea. In order to attract tea consumer of the whole country, he gave his advertisement on
the television. The company had just started capturing the market when a survey report
was presented on a news channel. This report stated that the people have started liking
coffee more than tea and that it was useful for health also. The company had to
immediately change its business from that of tea to coffee. Shenoy saved the company
from suffering the possible heavy loss through his timely action. Identify the feature of
management highlighted in the above case.
8. Sagar is working as the General Manager in ‘Wadhwa food products ltd.’ He has got the
administrative qualities of a good manager as well as leadership qualities. He is running the
whole business successfully.
He divides the work among his workers on the basis of their respective capability and
interest. He also gives them authority to take decision.
He pays full attention to make them capable enough to participate in achieving the
objectives of the company. In his company people of several religions and castes are
working. Even then he has succeeded in integrating them in a group.
He knows that the success of his company depends upon the level of production. This is
the reason that he is keeping a special watch over this department.
Identify and explain the characteristic of management highlighted above by quoting the line.
9. ‘Premier Publications’ publishes quality books on various subjects. According to a scheme
of the company those employees who give standardization performance will be sent on a
free foreign trip for one week. Three managers of the company, namely Sandeep, Vijay and
Parveen got this lucky chance this year. All the three managers went on foreign trip. During
the visit, although they were in pleasure mood yet they remained closely associated with
the company. One evening they were busy in discussing as to what they can do, as
managers, for the company and the society. Their opinions in this respect were as follows:
Sandeep was of the view that, it is our duty towards the company that has offered us jobs,
to do something to develop it and enable it to earn profit continuously.
Vijay was of the view that we all, including the company, live in the society, As such, we
must take full care of the health and safety of the society. Not only that, it is also our duty to
supply good quality products at reasonable prices to the customers.
In the end, Parveen remarked that in running the organisation, contribution of the
employees is always the maximum. We should, therefore, satisfy their needs properly.
Thus, by expressing their views all the three realized their responsibilities towards the
company, society and employees.
Identify the objectives of management discussed in the above case.
10. Identify the importance of management from the given statements:
(i) Management helps to provide good quality products and services, creates employment
opportunities.
(ii) The aim of manager is to reduce costs and increase productivity.

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(iii) Management helps people adapt to the changes so that the organisation is able to
maintain its competitive edge.
(iv) A manger 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.
(v) The task of a manager is to give a common direction to the individual effort in
achieving the overall goal of the organisation.
11. Lakshay Wadhwa works as the cost and risk management head of a company in power
sector. As a result of his excellent managerial competence, the company is able to reduce
costs and increase productivity. The company belongs to infrastructure sectors wherein
regular amendments are made in the government regulations and policies. He holds
regular meetings to ensure that people in his department are not only aware of the related
changes but are also able to adopt these changes effectively. This helps the company to
maintain its competitive edge. He motivates and leads his team in such a manner that
individual members are able to achieve personal goals while contribution to the overall
organizational objectives. In the process of fulfilling his duties for the growth of the
organisation, he helps in providing competitive services, adopting new technology, creating
more employment opportunities, etc. for the greater good of the people at large.
Identify the various reasons highlighted above by quoting the lines that have made
management so important.
12. Identify the nature of management highlighted in the given statements:
(i) All management practices are based on the same set of principles; what distinguishes a
successful manager from a less successful one is the ability to put these principles into
practice.
(ii) There are several associations of practicing managers in India, like the AIMA (All India
Management Association) that hs laid down a code of conduct to regulate the activities
of their members
(iii) Management is a systematized body of knowledge that explains certain general truths.
13. Nischay joins an IT firm as a system analyst after completing his master in Computer
Science. As the nature of his work demands he has to work in very close coordination with
all the departmental heads in the firm, very soon Nischay realizes that each departmental
head has own individual style of working. They differ greatly in their day-to-day approach to
work. They tend to deal with a given situation, on issue or a problem through a combination
of their own experience, creativity, imagination, imitative and innovation.
(a) Identify the nature of management highlighted in the above case. (b) State its
features.
14. Hema is one of the most successful managers of her company, ‘Kobe Ltd.’ She uses her
creativity and initiative in handling challenging situations at work. The knowledge gained by
her during the student days at a renowned management institute as well as through her
observation and experience over the years is applied by Hema in a skillful manner in the
context of the realities of a given situation. She often reads books and other literature in
various fields of management to keep her knowledge updated.
(i) An aspect of the nature of management is being highlighted in the above description.
Identify the aspect.
(ii) Explain any three features of the aspect identified in part (i) .
15. Identify the levels of management highlighted below in the given statements:
(i) Entering into joint venture with a foreign company.
(ii) Harsh is a plant superintendent in Tifco Ltd.
(iii) Yash is responsible for appointing workers on daily wages.
(iv) Aditya decides whether to start a new product line or not.
(v) Mr. Shivam is representing problems of workers regarding safety issues.

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16. Ashutosh Goenka was working in ‘Axe Ltd.’ company manufacturing air purifiers. He found
that the profits have started declining from the last six months. Profit has an implication for
the survival of the firm, so he analysed the business environment to find out the reason for
his decline.
(a) Identify the level of management of which Ashutosh Goenkawa working.
(b) State three other functions being performed by Ashutosh Goenka.
17. Rishitosh Mukerjeehas recently joined AMV Ltd., a company manufacturing refrigerator.
He found that his department was under-staffed and other departments were not
cooperating with his department for smooth functioning of the organisation. Therefore, he
ensured that his department has the required number of employees and its cooperation
with other departments is improved.
(a) Identify the level at which Rishitosh Mukerjee was working.
(b) Also, state three more functions required to be performed any him as this level.
18. Payal is the branch manager of Unitech Handicrafts Pvt. Ltd. The company’s objective is
to promote the sales of Indian handloom and handicraft products. It sells fabrics,
furnishings, readymade and household items are made out of traditional Indian fabrics.
Payal decides quantities, variety, colour and texture of all the above items and then
allocates resources for their purchase from different suppliers. She appoints a team of
designers and crafts people in the company, who developed some prints for bed covers in
bright colours on silk. Although they looked very impressive, they were more expensive
than they had planned to sell. Average customer could not afford to buy it, praising their
effort, Payal suggested that they should keep the silk bed covers for special occasions like
Diwali and Christmas and offer the cotton bed covers on regular basis to keep costs under
control.
Identify the functions of management which Payal performs by quoting the lines from the
above case.
19. Shenoy Ltd. is a company which provides car services at home and on road. There are
different departments in this company like Production, Marketing, Finance and Human
Resource. The top management of company tries its level best to synchronise the
activities of different departments in the best possible manner. The result is the increased
efficiency and achievement of organizational goals. However, with the passing of time the
size of the company has grown and now there are many branches of this company. The
syncronisation has turned more important with the increase in the size of the company and
the number of employees. The departmental heads of the company are specialists in their
respective fields and the top management tries to work with them by respecting their on
the subject. Their ego clashes are avoided to ensure smooth functioning of the
organisation.
(a) Identify the concept of management highlighted in the above para.
(b) Also explain two points of importance of this concept highlighted in the above para
and quote the lines which help in their identification.

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