Subhash Dey's B.ST XII Textbook Part A

Topic-wise Content
(Strictly Based on Latest NCERT Books

and CBSE Papers Marking Scheme)
RECAP
Summary of the Topic
TOPIC-WISE
Objective Type Questions
(Answers at the end of the Chapter)
TOPIC-WISE
Case Studies
Analysing, Evaluating & Creating
Type Questions (with Answers)
DEFINITIONS
of
Key Terms
(used in the Chapter)
5 SELF-ASSESSMENT
TESTS
(with Hints/Answers given
at the end of the Chapter)
GLOSSARY
of
Key Terms
(at the end of the Book)
Chapter NOTES
for
CBSE Exam 2025
(Strictly Based on Latest NCERT Books
and CBSE Papers Marking Scheme)
Pictures and Cartoons
Based Questions
for
CBSE Examination 2025
(Strictly Based on the Pictures/Cartoons
given in Latest NCERT Books)
Competency
Based Questions
(Chapter-wise)
for
CBSE Examination 2025
Extracted from Latest CBSE Annual and
Compartment Papers
New Questions prepared from the
Latest NCERT Books
Assertion-Reasoning
and
Statements Based MCQs
(Chapter-wise)
(Strictly as per CBSE Standards and
Expectations for 2025 Examination)
Assertion-Reasoning and
Statements Based MCQs
force that binds all other functions and thus called the essence of
Chapter 1 Nature and Significance of Management management.
1. Assertion (A): Successful organisations do not achieve their goals by (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
chance but by following a deliberate process called ‘management’. the correct explanation of Assertion (A).
Reason (R): People in organisations are performing diverse tasks but (b) Both Assertion (A) and Reason (R) are true but Reason (R) is
they are all working towards the same goal. Management aims at not the correct explanation of Assertion (A).
guiding their efforts towards achieving a common objective — a goal. (c) Assertion (A) is true and Reason (R) is false.
(a) Both Assertion (A) and Reason (R) are true. (d) Assertion (A) is false and Reason (R) is true.
(b) Both Assertion (A) and Reason (R) are false. 8. Assertion (A): Management is a series of continuous interrelated
(c) Assertion (A) is true and Reason (R) is false. functions.
(d) Assertion (A) is false and Reason (R) is true. Reason (R): The process of management is a series of continuous,
2. Assertion (A): A successful enterprise has to achieve its goals interrelated, but separate functions (planning, organising, directing,
effectively and efficiently. staffing and controlling). These functions are simultaneously
Reason (R): It is important for management to achieve goals performed by all managers all the time.
(effectiveness) with minimum resources i.e., as efficiently as possible (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
while maintaining a balance between effectiveness and efficiency. the correct explanation of Assertion (A).
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is (b) Both Assertion (A) and Reason (R) are true but Reason (R) is
the correct explanation of Assertion (A). not the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is (c) Assertion (A) is true and Reason (R) is false.
not the correct explanation of Assertion (A). (d) Assertion (A) is false and Reason (R) is true.
(c) Assertion (A) is true and Reason (R) is false. 9. Assertion (A): Planning can prevent problems.
(d) Assertion (A) is false and Reason (R) is true. Reason (R): Planning can only predict the problems and prepare
3. Assertion (A): There is a kind of cost-benefit analysis involved and contingency plans to deal with then if and when they occur.
the relationship between inputs and outputs. (a) Both Assertion (A) and Reason (R) are true.
Reason (R): If by using less resources (i.e., the inputs) more benefits (b) Both Assertion (A) and Reason (R) are false.
are derived (i.e., the outputs) then effectiveness has increased. (c) Assertion (A) is true and Reason (R) is false.
(a) Both Assertion (A) and Reason (R) are true. (d) Assertion (A) is false and Reason (R) is true.
(b) Both Assertion (A) and Reason (R) are false. 10. Assertion (A): Management is concerned with the efficient use of
(c) Assertion (A) is true and Reason (R) is false. resources.
(d) Assertion (A) is false and Reason (R) is true. Reason (R): They reduce costs and ultimately lead to higher profits.
4. Assertion (A): Management is considered to be a multi- (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
dimensional/multi-faceted concept. the correct explanation of Assertion (A).
Reason (R): Management is a complex activity that has three main (b) Both Assertion (A) and Reason (R) are true but Reason (R) is
dimensions-management of work, management of people and not the correct explanation of Assertion (A).
management of operations. (c) Assertion (A) is true and Reason (R) is false.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is (d) Assertion (A) is false and Reason (R) is true.
the correct explanation of Assertion (A). 11. Assertion (A): Management is all pervasive.
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is Reason (R): The activities involved in managing an enterprise are
not the correct explanation of Assertion (A). common to all organisations whether economic, social or political.
(c) Assertion (A) is true and Reason (R) is false. (a) Assertion (A) is true and Reason (R) is false.
(d) Assertion (A) is false and Reason (R) is true. (b) Assertion (A) is false and Reason (R) is true.
5. Assertion (A): Coordination is a one-time function of the top (c) Both Assertion (A) and Reason (R) are true and Reason (R) is
management. the correct explanation of Assertion (A).
Reason (R): Coordination begins at the planning stage and (d) Both Assertion (A) and Reason (R) are true but Reason (R) is
continues till controlling. not the correct explanation of Assertion (A).
(a) Both Assertion (A) and Reason (R) are true. 12. Assertion (A): Management is multi-dimensional.
(b) Both Assertion (A) and Reason (R) are false. Reason (R): An organisation interacts with its external environment
(c) Assertion (A) is true and Reason (R) is false. which consists of various social, economic and political factors. In
(d) Assertion (A) is false and Reason (R) is true. order to be successful, an organisation must change itself and its
6. Assertion (A): Coordination is not an exclusive function of the top goals according to the needs of the environment.
management. (a) Assertion (A) is true and Reason (R) is false.
Reason (R): Coordination is the responsibility of all managers-top, (b) Assertion (A) is false and Reason (R) is true.
middle and operational levels. (c) Both Assertion (A) and Reason (R) are true and Reason (R) is
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
the correct explanation of Assertion (A). (d) Both Assertion (A) and Reason (R) are true but Reason (R) is
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).
not the correct explanation of Assertion (A). 13. Assertion (A): Management is a tangible force.
(c) Assertion (A) is true and Reason (R) is false. Reason (R): The effect of management is noticeable in an
(d) Assertion (A) is false and Reason (R) is true. organisation where targets are met according to plans, employees
7. Assertion (A): Coordination is the essence of management. are happy and satisfied, and there is orderliness instead of chaos.
Reason (R): Coordination is a process by which a manager (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
synchronises the activities of different departments. It is the the correct explanation of Assertion (A).
362 Business Studies XII Part-A by Subhash Dey
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is for community are included in personnel objectives of management.
not the correct explanation of Assertion (A). (a) Statement I is correct and Statement II is not correct.
(c) Assertion (A) is true and Reason (R) is false. (b) Statement II is correct and Statement I is not correct.
(d) Assertion (A) is false and Reason (R) is true. (c) Both the Statements I and II are correct.
14. Assertion (A): Coordination is an all pervasive function. (d) Both the Statements I and II are not correct.
Reason (R): Coordination is required at all levels of management 21. Assertion (A): Management increases efficiency.
due to the interdependent nature of activities of various Reason (R): The aim of a manager is to reduce costs and increase
departments. It integrates the efforts of different departments and productivity through better planning, organising, directing, staffing
different levels. and controlling the activities of the organisation.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is (a) Assertion (A) is true and Reason (R) is false.
the correct explanation of Assertion (A).
(b) Assertion (A) is false and Reason (R) is true.
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is
(c) Both Assertion (A) and Reason (R) are true but Reason (R) is
not the correct explanation of Assertion (A).
(c) Assertion (A) is true and Reason (R) is false. not the correct explanation of Assertion (A).
(d) Assertion (A) is false and Reason (R) is true. (d) Both Assertion (A) and Reason (R) are true and Reason (R) is
15. Assertion (A): Coordination is a deliberate function. the correct explanation of Assertion (A).
Reason (R): A manager has to coordinate the efforts of different 22. Assertion (A): Management helps in achieving personal objectives.
people in a conscious and deliberate manner. Reason (R): Management helps people adapt to these changes so
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is that the organisation is able to maintain its competitive edge.
the correct explanation of Assertion (A). (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is the correct explanation of Assertion (A).
not the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true but Reason (R) is
(d) Assertion (A) is false and Reason (R) is true. (c) Assertion (A) is true and Reason (R) is false.
16. Statement I: Coordination is the process of designing and (d) Assertion (A) is false and Reason (R) is true.
maintaining an environment in which individuals, working 23. Assertion (A): Management helps in achieving personal objectives.
together in groups, efficiently accomplish selected aims. Reason (R): Through motivation and leadership the management
Statement II: Management is balancing and keeping together the helps individuals to develop team spirit, cooperation and
team by ensuring suitable allocation of tasks to the various members commitment to group success.
and seeing that the tasks are performed with harmony among the (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
members themselves. the correct explanation of Assertion (A).
(a) Statement I is correct and Statement II is not correct.
(b) Statement II is correct and Statement I is not correct.
(c) Both the Statements I and II are correct.
(d) Both the Statements I and II are not correct. (c) Assertion (A) is true and Reason (R) is false.
17. Statement I: Management is concerned with the efficient use of (d) Assertion (A) is false and Reason (R) is true.
these resources, because they reduce costs and ultimately lead to 24. Assertion (A): Art is the skillful and personal application of existing
higher profits. knowledge to achieve desired results.
Statement II: Usually high efficiency is associated with high Reason (R): Science is a systematised body of knowledge that
effectiveness which is the aim of all managers. But undue emphasis explains certain general truths or the operation of general laws.
on high efficiency without being effective is also not desirable. (a) Both Assertion (A) and Reason (R) are true.
(a) Statement I is correct and Statement II is not correct. (b) Both Assertion (A) and Reason (R) are false.
(b) Statement II is correct and Statement I is not correct. (c) Assertion (A) is true and Reason (R) is false.
(c) Both the Statements I and II are correct. (d) Assertion (A) is false and Reason (R) is true.
(d) Both the Statements I and II are not correct. 25. Statement I: A manager applies these scientific methods and body
18. Assertion (A): Management is a group activity. of knowledge to a given situation, an issue or a problem, in his own
Reason (R): Management unites the efforts of different individuals unique manner.
in the organisation towards achieving these goals. Statement II: A manager applies this acquired knowledge in a
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is personalised and skillful manner in the light of the realities of a
the correct explanation of Assertion (A). given situation.
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is (a) Statement I is correct and Statement II is not correct.
not the correct explanation of Assertion (A). (b) Statement II is correct and Statement I is not correct.
(c) Assertion (A) is true and Reason (R) is false.
(d) Assertion (A) is false and Reason (R) is true.
(d) Both the Statements I and II are not correct.
19. Statement I: The main objective of any organisation should be
26. Assertion (A): Management can be called an inexact science.
to utilise human and material resources to he maximum possible
advantage, i.e., to fulfill the economic objectives of a business. Reason (R): Since management deals with human beings and
Statement II: The basic objective of any business is survival. human behaviour, the outcomes of these experiments are not
(a) Statement I is correct and Statement II is not correct. capable of being accurately predicted or replicated.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion (A).
(d) Both the Statements I and II are not correct.
20. Statement I: To remain in the industry, management must exploit (c) Assertion (A) is true and Reason (R) is false.
fully the growth potential of the organisation. (d) Assertion (A) is false and Reason (R) is true.
Statement II: Using environmental friendly methods of production, 27. Statement I: The practice of management is an art.
giving employment opportunities to the underpreviledged sections of Statement II: The principles of management constitute the science
society and providing basic amenities like schools and healthcare, etc., of management.
Assertion-Reasoning and Statements Based MCQs 363
(a) Statement I is correct and Statement II is not correct. Answer Key

(c) Both the Statements I and II are correct. 1. (a) 2. (a) 3. (c) 4. (a) 5. (d) 6. (a) 7. (a) 8. (a)
(d) Both the Statements I and II are not correct. 9. (d) 10. (a) 11. (c) 12. (d) 13. (d) 14. (a) 15. (a) 16. (d)
28. Statement I: Management as an art and a science are mutually 17. (c) 18. (b) 19. (c) 20. (b) 21. (d) 22. (b) 23. (a) 24. (a)
exclusive, but not complement each other. 25. (c) 26. (a) 27. (c) 28. (b) 29. (a) 30. (d) 31. (d) 32. (d)
Statement II: There is no restriction on anyone being designated 33. (b) 34. (b)
or appointed as manager in any business enterprise. Anyone can
be called a manager irrespective of the educational qualifications
possessed. Chapter 2 Principles of Management
(a) Statement I is correct and Statement II is not correct. 1. Assertion (A): Principles of management are mainly behavioural in
(b) Statement II is correct and Statement I is not correct. nature.
(c) Both the Statements I and II are correct. Reason (R): Management principles aim at influencing behaviour
(d) Both the Statements I and II are not correct. of human beings.
29. Statement I: The authority-responsibility relationship binds (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
individuals as superiors and subordinates and gives rise to different the correct explanation of Assertion (A).
levels in an organisation. (b) Both Assertion (A) and Reason (R) are true but Reason (R) is
Statement II: Middle management is a team consisting of managers not the correct explanation of Assertion (A).
from different functional levels, heading finance, marketing etc. (c) Assertion (A) is true and Reason (R) is false.
(a) Statement I is correct and Statement II is not correct. (d) Assertion (A) is false and Reason (R) is true.
(b) Statement II is correct and Statement I is not correct. 2. Assertion(A): The principles of management establish accurate
(c) Both the Statements I and II are correct. cause and effect relationships.
(d) Both the Statements I and II are not correct. Reason (R): The principles of management tell us if a particular
30. Statement I: Through the efforts of Top Management quality of principle was applied in a particular situation, what would be its
output is maintained, wastage of materials is minimised and safety likely effect.
standards are maintained. (a) Both Assertion (A) and Reason (R) are true but Reason (R) is
Statement II: Foremen and supervisors comprise the middle level not the correct explanation of Assertion (A).
in the hierarchy of the organisation. (b) Both Assertion (A) and Reason (R) are true and Reason (R) is
(a) Statement I is correct and Statement II is not correct. the correct explanation of Assertion (A).
(b) Statement II is correct and Statement I is not correct. (c) Assertion (A) is true and Reason (R) is false.
(c) Both the Statements I and II are correct. (d) Assertion (A) is false and Reason (R) is true.
(d) Both the Statements I and II are not correct. 3. Assertion(A): Prosperity for the employer cannot exist for a long
31. Assertion (A): Coordination ensures unity of action. time unless it is accompanied by prosperity for the employees and
Reason (R): Coordination unifies unrelated or diverse interests into vice versa.
purposeful work activity. It gives a common focus to group effort to Reason (R): Taylor emphasised that there should be complete
ensure that performance is as it was planned and scheduled. harmony between the management and workers. Both should
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is realise that each one is important.
the correct explanation of Assertion (A). (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is the correct explanation of Assertion (A).
not the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true but Reason (R) is
(d) Assertion (A) is false and Reason (R) is true. (c) Assertion (A) is true and Reason (R) is false.
32. Statement I: Management is multi-dimensional. (d) Assertion (A) is false and Reason (R) is true.
Statement II: The activities involved in managing an enterprise are 4. Assertion(A): There should be an almost equal division of work
common to all organisations whether economic, social or political. and responsibility between workers and management.
(a) Statement I is true and II is false Reason (R): Management should not close its ears to any constructive
(b) Statement II is true and I is false. suggestions made by the employees. They should be rewarded for
(c) Both the statements are false. their suggestions which results in substantial reduction in costs.
(d) Both the statements are true. (a) Both Assertion (A) and Reason (R) are true.
33. Assertion (A): The Supervisory Level performs the activities (b) Both Assertion (A) and Reason (R) are false.
according to the plans of Top and Middle level management. (c) Assertion (A) is true and Reason (R) is false.
Reason (R): The Supervisory Level motivates the employees and (d) Assertion (A) is false and Reason (R) is true.
boosts their morale. 5. Assertion (A): The intent of division of work is to produce more
(a) Both (A) and (R) are true and (R) is the correct explanation of (A). and better work for the same effort. Specialisation is the most
(b) Both (A) and (R) are true but (R) is not the correct explanation efficient way to use human effort.
of (A). Reason (R): In business work can be performed more efficiently if
(c) (A) is true but (R) is false. it is divided into specialised tasks; each performed by a specialist or
(d) (A) is false but (R) is true. trained employee. This results in efficient and effective output.
34. Assertion (A): Management is concerned with efficient use of (a) Both Assertion (A) and Reason (R) are true.
resources. (b) Both Assertion (A) and Reason (R) are false.
Reason (R): For management both efficiency and effectiveness (c) Assertion (A) is true and Reason (R) is false.
need to be balanced. (d) Assertion (A) is false and Reason (R) is true.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is 6. Assertion(A): Each group of activities having the same objective
the correct explanation of Assertion (A). must have one head and one plan.
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is Reason (R): All the units of an organisation should be moving
not the correct explanation of Assertion (A) towards different objectives through coordinated and focussed
(c) Assertion (A) is true but Reason (R) is False efforts.
(d) Assertion (A) is False but Reason (R) is True
Case Study Based MCQs
(Chapter-wise)
Case Study Based Multiple MCQs
(Based on new CBSE Question Paper Design)
(a) Tata Steel Thailand is one of the first 30 companies that

Chapter 1 Nature and Significance of Management joined UNICEF in Child Friendly Business in “The Children
CASE STUDY 1: Read the following text and answer question no. Sustainability Forum” to make a commitment to protecting
1-4 on the basis of the same: children’s rights.
Founded in 1868, by Jamsetji Nusserwanji ,Tata the Tata Group is (b) Tata Steel Europe’s Community Partnership Programme-
a global business conglomerate operating in over 100 countries across ‘Future Generations’, with sub-themes of education,
5 continents. His strong sense of values and spirit of innovation and environment, health and Well-being works across the UK,
entrepreneurship are a legacy that continues to guide Tata companies till assisting job and wealth creation by supporting small and
date. He had four goals in life: setting up an iron and steel company, medium businesses with finance and business premises.
a world-class learning institution, a unique hotel and a hydro-electric (c) They also play a constructive role in addressing climate
plant. Only the hotel became a reality during his lifetime, with the change – both by reducing carbon footprint, and by creating
inauguration of the Taj Mahal Hotel at Colaba waterfront in Mumbai high performance steels that lead to fuel-efficient vehicles and
on 3 December 1903 at the cost of 11 million (worth 11 billion in 2015 energy-efficient buildings.
prices). At that time it was the only hotel in India to have electricity. (d) All the above
He believed that satisfied workers create satisfied workers and in lieu of 4. Tata Steel has risen to the top because of __________.
this principle he paid all his workers gratuity, provident fund well before (a) Effective and Efficient Management
it was made mandatory. His management skills were clearly evident when (b) Coordination at all levels
minute details were chalked in planning and building the entire city of (c) Both (a) and (b)
Jamshedpur. The values and principles that have governed the business (d) Strong sense of values and spirit of innovation and
for a century are enshrined in the Tata Code of Conduct (TCOC). entrepreneurship
From an early foray into steel and automobiles, to staying abreast of CASE STUDY 2: Read the following text and answer question no.
the latest technologies, the Tata Group today has 29 publicly-listed Tata 5-8 on the basis of the same:
enterprises, which include Tata Steel, Tata Motors, Tata Consultancy Smita Rai is a 38-year old entrepreneur who grew up in a rural district
Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata called Namchi, South Sikkim. She was very good in art and craft
Teleservices, Titan, Tata Communications and Indian Hotels. The group particularly, Wax moulds. She loved to make candles, often she make
has a combined market capitalisation of around $103.51bn (2016-17). into toys and small pieces of art with wax and used it as a gift for her
Tata has a strong sense of social responsibility. They balance economic friends and relatives. She was loved and appreciated for these. Smita was
prosperity, environmental responsibility and social benefits for the never happy with the conditions of the women in her district as most
community. In India, they are a partner in progress with Odisha, and were poor and jobless, so she planned to do something to solve their
believe in taking their stakeholders forward in their journey of growth. problems because she knew that imparting skills for livelihood is needed
Tata Steel Thailand is one of the first 30 companies that joined UNICEF but she had no idea of how to implement her idea.
in Child Friendly Business in “The Children Sustainability Forum” to In August 2012, she met Abishek Lama, the Branch Manager of NEDFI,
make a commitment to protecting children’s rights. Tata Steel Europe’s Namchi Branch, a financial corporation which support local people with
Community Partnership Programme- ‘Future Generations’, with sub- skills development programs and also channelize them into revenue
themes of education, environment, health and Well-being works across generating activities. Smita got interested. “I love making candles, then,
the UK, assisting in job and wealth creation by supporting small and why not convert my hobby into a venture and involve these rural women
medium businesses with finance and business premises. also”, she thought. This led to the establishment of Namchi Designer
They also play a constructive role in addressing climate change – both Candles with the help of NEDFI, some financial institutions and
by reducing carbon footprint, and by creating high performance steels support from different stakeholders in various dimensions.
that lead to fuel-efficient vehicles and energy-efficient buildings. Their Since then, the women have never looked back, despite challenges.
Environmental Management Systems meeting the ISO 14001 standards The women also faced a lot of harassment but they could overcome all
at all of their main manufacturing sites. those troubles. Namchi Designer Candles has 100 per cent women as
Shaped by a lineage of sound and straightforward business principles, employees and they also produce varieties of candles. During Diwali,
the Tata Group is built on a foundation of trust and transparency. they produce customized candles meant for the occasion. These Diwali
Building such huge enterprises, sustaining and running them profitably themed candle has been a success in Sikkim as its demand increases on
are possible only through effective and efficient management and co- a yearly basis. Namchi Designer Candles has been receiving numerous
ordination at all levels. awards such as North East Women Entrepreneur of the year 2015-2016
11. Which of the following function must be performed by Jamsetji for Sikkim and Sreemanta Shankar Mission of Guwahati on 26th April
Nusserwanji? 2018 at New Delhi.
(a) Oversee the efforts of the workforce. A typical day in Smita’s life consists of a series of interrelated and
(b) Motivate personnel to achieve desired objectives. continuous functions. She has to plan a special festive collection for
(c) Welfare and survival of the organisation Diwali. This means organising more funds and recruiting more workers.
(d) All the above She also has to regularly communicate with her suppliers to ensure that
2. “He believed that satisfied workers create satisfied workers and in deadlines regarding delivery of goods are met. In the course of the day,
lieu of this principle he paid all his workers gratuity, provident fund she meets customers for a general feedback and any suggestions that they
well before it was made mandatory.” Which objectives have been may have.
fulfilled by the management of Tata Steel? The purchase, production and sales departmental efforts have to
(a) Organisational Objectives (b) Social Objectives be coordinated by Smita for achieving organisational objectives
(c) Personnel Objectives (d) Both (a) and (c) harmoniously. The purchase department is responsible for procuring
3. Which of the following highlights the social objectives fulfilled by fabric. This then becomes the basis of the activities of the production
the management of Tata Steel? department and finally sales can take place. If fabric purchased is of an
inferior quality or is not according to the specifications of the production thus, ensure that the organisation earns enough revenues to
department, further sales will also decline. cover costs.” Which of the following organisational objective is
5. “Smita was never happy with the conditions of the women in highlighted above?
her district as most were poor and jobless, so she planned to do (a) Survival (b) Profit
something to solve their problems because she knew that imparting (c) Growth (d) None of these
skills for livelihood is needed...” Which objectives of management 12. “The story of the dabbawallas begins in the kitchens of Mumbai.
does Smita Rai want to fulfill in her organisation? After they step out of their door, someone begins the time-
(a) Organisational Objectives (b) Social Objectives consuming process of preparing the worker a fresh, home-cooked
(c) Personnel Objectives (d) All of these lunch.” Which function of management is highlighted above?
6. At which level of management does Abishek Lama work at NEDFI? (a) Planning (b) Organising
(a) Top Level Management (b) Middle Level Management (c) Directing (d) Controlling
(c) Operational Management (d) All of these CASE STUDY 4: Read the following text and answer question no.
7. “She also has to regularly communicate with her suppliers to ensure 13-16 on the basis of the same:
that deadlines regarding delivery of goods are met.” Which function
Company X is facing a lot of problems these days. It manufactures white
of management is performed by Smita Rai?
goods like washing machines, microwave ovens, refrigerators and air
(a) Planning (b) Directing
conditioners. The company’s margins are under pressure and the profits
(c) Controlling (d) Both (a) and (c)
and market share are declining. The production department blames
8. “The purchase, production and sales departmental efforts have to
marketing for not meeting sales targets and marketing blames production
be coordinated by Smita for achieving organisational objectives
department for producing goods, which are not of good quality meeting
harmoniously.” Identify the characteristic of coordination discussed
customers expectations. The finance department blames both production
above.
and marketing for declining return on investment and bad marketing.
(a) Coordination integrates group efforts
13. What quality of management do you think the company is lacking?
(b) Coordination ensures unity of action
(a) Planning (b) Controlling
(c) Coordination is a continuous process
(c) Directing (d) Coordination
(d) Coordination is an all pervasive function
14. Which of the following characteristic of management is not
CASE STUDY 3: Read the following text and answer question no. fulfilled by the company?
9-12 on the basis of the same: (a) Management is a goal-oriented process
The Dabbawallas of Mumbai is the story of a SIX SIGMA business (b) Management is a group activity
enterprise. The success of the business lies in the complex yet well (c) Management is an intangible force
coordinated exercise that is carried out on the streets of Mumbai day (d) Management is all pervasive
after day. What is the secret behind the efficiency with which their 15. Why do these kinds of inter-departmental conflicts arise in
business is conducted? organisations?
The story of the dabbawallas begins in the kitchens of Mumbai. After (a) All the departments may have their own objectives, policies and
they step out of their door, someone begins the time-consuming process their own style of working.
of preparing the worker a fresh, homecooked lunch. What happens next (b) Each department is performing activities in isolation from
for demonstrates the coordination of the dabbawallas system. The first others.
dabbawalla picks up the tiffin from home and takes it to the nearest (c) Barriers between departments are becoming more rigid.
railway station. The second dabbawalla sorts out the dabbas at the (d) Both (b) and (c)
railway station according to destination and puts them in the luggage 16. What step(s) should the company management take to bring the
carriage. The third one travels with the dabbas to the railway stations company back on track?
nearest to the destinations. The fourth one picks up dabbas from the (a) Linking the activities of various departments through
railway station and drops them off at the offices. By mid-morning, coordination.
thousands of dabbawallas are bicycling through the streets of Mumbai, (b) The activity of each department needs to be focused on
ensuring a hot home cooked lunch for their customers. The whole tiffin attainment of common organisational goals.
distribution requires negligible technology. The dabbawallas rely on low (c) Managers need to reconcile differences in approach, timing,
capital and use cycles, wooden carriages and local trains to achieve their effort or interest.
target. The dabbawallas, thus, ensure that the organisation earns enough (d) All the above
revenues to cover costs. CASE STUDY 5: Read the following text and answer question no.
9. What is the secret of success of the business of the Dabbawallas as 17-20 on the basis of the same:
highlighted in the above case? Forex Ltd. is a private limited company with several branches all over
(a) Quality of management India. It promotes the sales of Indian handloom and handicraft products
(b) Division of work and specialisation while providing equitable employment to traditional artisans. Mr.
(c) Coordination Brijesh, a branch manager of the company plans his winter collection
(d) All of the above in the month of June itself. He has to ensure that there is adequate
10. “The first dabbawalla picks up the tiffin from home and takes it workforce and continuously monitor whether production is proceeding
to the nearest railway station. The second dabbawalla sorts out the according to plans. He also provides direction and motivation to his
dabbas at the railway station according to destination and puts employees. The purchase, production and sales departmental efforts
them in the luggage carriage. The third one travels with the dabbas are coordinated by Mr. Brijesh for achieving organisational objectives
to the railway stations nearest to the destinations. The fourth one harmoniously. The production and the sales department coordinate
picks up dabbas from the railway station and drops them off at the their work, so that production takes place according to the demand
offices.” Which characteristic of coordination is highlighted above? in the market. The purchase department is responsible for procuring
(a) Coordination integrates group efforts material. This then becomes the basis of the activities of the production
(b) Coordination ensures unity of action department and finally sales can take place.
(c) Coordination is a continuous process 17. “It promotes the sales of Indian handloom and handicraft products
(d) All of the above while providing equitable employment to traditional artisans.”
11. “The dabbawallas rely on low capital and use cycles, wooden Which of the following objectives of management are fulfilled by
carriages and local trains to achieve their target. The dabbawallas, Forex Ltd.?
Case Study Based Multiple MCQs 383
(a) Organisational Objectives (b) Social Objectives (a) Organisational Objectives (b) Social Objectives
(c) Personnel Objectives (d) All of these (c) Personnel Objectives (d) None of these
18. At which level of management is Mr. Brijesh working in Forex Ltd.? 26. “...new broad gauge solar power train which is going to be a path
(a) Top Level Management (b) Middle Level Management breaking leap towards making trains greener and more environment
(c) Operational Management (d) Supervisory Management friendly.” Identify the objective of management achieved by Indian
19. “He has to ensure that there is adequate workforce and Railways in the given line.
continuously monitor whether production is proceeding according (a) Organisational Objectives (b) Social Objectives
to plans.” Identify the functions of management highlighted in the (c) Personnel Objectives (d) All of these
above statement. 27. “The solar power DEMU (Diesel Electric Multiple Unit) has 6
(a) Planning and Controlling (b) Staffing and Planning trailer coaches and is expected to save about 21,000 liters of diesel
(c) Staffing and Directing (d) Staffing and Controlling and ensure a cost saving of `12,00,000 per year.”
20. “The purchase, production and sales departmental efforts are Identify the economic objective of management achieved by Indian
coordinated by Mr. Brijesh for achieving organisational objectives Railways in the given line.
harmoniously. The production and the sales department coordinate (a) Survival (b) Profit
their work, so that production takes place according to the demand (c) Growth (d) All of these
in the market.” 28. Which level of management is responsible for launching a new
Identify the characteristic of coordination highlighted above. broad gauge solar power train by the Indian Railways?
(a) Coordination is an all pervasive function. (b) (a) Top Management (b) Middle Management
Coordination ensures unity of action. (c) Operational Management (d) All of these
(c) Coordination is a continuous process. (d)
Both (a) and (b) CASE STUDY 8: Read the following text and answer question no.
29-32 on the basis of the same:
CASE STUDY 6: Read the following text and answer question no.
Mr. Araeb, the director of Shavez Ltd., dealing in costume jewellery,
21-24 on the basis of the same:
strongly believes that the members of an organisation should work towards
Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s fulfilling the common organisational goals. This requires team work and
objective is to promote the sales of Indian handloom and handicraft integration of efforts of all individuals, departments and specialists.
products. It sells fabrics, furnishings, ready-mades and household items
Ashita and Lakshita are employees working in Shavez Ltd. The firm secured
are made out of traditional Indian fabrics.
an urgent order for 1,000 bracelets that were to be delivered within 4 days.
Sana decides quantities, variety, colour and texture of all the above items They were assigned the responsibility of producing 500 bracelets each at a
and then allocates resources for their purchase form different suppliers. cost of `100 per bracelet. Ashita was able to produce the required number
She appoints a team of designers and crafts people in the company, who within the stipulated time at the cost of ` 55,000 whereas, Lakshita was
developed some prints for bed covers in bright colour on silk. Although able to produce only 450 units at a cost of ` 90 per unit.
the products looked very attractive and impressive, they were relatively 29. At which level of management is Mr. Araeb working in Shavez Ltd.?
expensive on the front of affordability for an average customer. (a) Top Management (b) Middle Management
Sana suggested that they should keep the silk bed covers for special (c) Operational Management (d) All of these
festive occasions and offer the cotton bed covers on a regular basis to 30. “This requires team work and integration of efforts of all
keep costs under control. individuals, departments and specialists.”
21. “She appoints a team of designers and crafts people in the company, Identify the concept of management discussed here.
who developed some prints for bed covers in bright colour on silk.” (a) Staffing (b) Efficiency
Which function of management is highlighted in this context? (c) Effectiveness (d) Coordination
(a) Controlling (b) Staffing 31. “... strongly believes that the members of an organisation should
(c) Planning (d) Directing work towards fulfilling the common organisational goals.” Identify
22. In the above case “company’s objective is to promote the sales of the characteristic of management which is reflected here.
Indian handloom and handicraft products.” The above line focuses (a) Management is a goal-oriented process.
on which feature of management? (b) Management is a group activity.
(a) Management is an intangible force. (c) Management is multi-dimensional.
(b) Management is a goal oriented process. (d) Management is a dynamic function.
(c) Management is pervasive in nature. 32. Which of the following statement is true?
(d) Management is a continuous process. (a) Ashita is effective but not efficient.
23. With reference to the above case, at which level of management (b) Lakshita is efficient but not effective.
Sana is working? (c) Both Ashita and Lakshita are effective and efficient.
(a) Lower level (b) Top level (d) Neither Ashita nor Lakshita is effective/efficient.
(c) Middle level (d) Shop floor
24. “Sana suggested that they should keep the silk bed covers for special CASE STUDY 9: Read the following text and answer question no.
festive occasions and offer the cotton bed covers on a regular basis 33-36 on the basis of the same:
to keep costs under control.” Fashion India Limited is a chain of ladies garments boutiques where
Which function of management is highlighted in this context? most of the work is done manually. Mr. Nityanand is responsible for
(a) Controlling (b) Staffing the welfare and survival of the organisation. He formulates overall
(c) Organising (d) Planning organisational goals and strategies for their achievement.
CASE STUDY 7: Read the following text and answer question no. Due to coming of international brands in India, the company is finding
25-28 on the basis of the same: it difficult to compete on two fronts—finishing and embroidery work.
Indian Railways has launched a new broad gauge solar power train which Mr. Gaur, the production manager of the company, realised that without
is going to be a path breaking leap towards making trains greener and modern machines it would not be possible for them to survive for long.
more environment friendly. The solar power DEMU (Diesel Electric The company purchased new hi-tech modern machines from Germany.
Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 During the production process, the manager observed that the quality
liters of diesel and ensure a cost saving of `12,00,000 per year. of production is not as per standard and very often production is
25. Which of the following objective of management is not highlighted disrupted due to break-down of machinery. The workers get frustrated
in the above case? by continuous rejection of output and started showing resistance towards
new technology. To increase the efficiency of the workers, the company CASE STUDY 11: Read the following text and answer questions
decided to train their workers on-the-job under the able guidance of number 41-46 on the basis of the same:
specialists. The workers who are able to pick the skills are promoted and Rani is working as a Chief Executive Officer (CEO) in ‘Alpha Ltd’.
made incharge of the not so trained groups. This created positive impact Vipul is working as a Production Manager in the same organisation
and everybody became keen to learn. Suggestions from the workers are though he does not possess any specific degree for this post. Pratap is also
valued and workers are encouraged to communicate freely. working in this organisation and constantly interacts with the workers
33. At which level of management is Mr. Nityanand working in and explains to them the plans drawn by middle level management and
Fashion India Limited? spends a lot of time correcting the work of Divesh, who is a new worker,
(a) Top Management (b) Middle Management and motivating him.
(c) Operational Management (d) None of the above 41. Identify the function that Rani would not have to perform as a
34. At which level of management is Mr. Gaur working in Fashion Chief Executive Officer:
India Limited? (a) Integrating diverse elements and coordinating activities of
(a) Top Management (b) Middle Management different departments to achieve overall objectives.
(c) Operational Management (d) None of these (b) Ensuring that wastage is minimised and safety standards are
35. “The workers who are able to pick the skills are promoted and made maintained.
incharge of the not so trained groups. This created positive impact (c) Analysing business environment and its implication for survival
and everybody became keen to learn.” Identify the importance of of organisation.
management highlighted here. (d) Formulating overall organisational goals and strategies for their
(a) Management helps in achieving group goals. achievement.
(b) Management increases efficiency. 42. Identify the level of management at which Vipul is working:
(c) Management creates a dynamic organisation. (a) Top level (b) Operational level
(d) Management helps in achieving personal objectives. (c) Middle level (d) Supervisory level
36. Which of the following point of importance is not discussed in the 43. In spite of not possessing any specific degree, Vipul is working as a
above case? Production Manager in ‘Alpha Ltd.’ This reflects that management
(a) Management helps in the development of society does not strictly meet one of the following criteria of a profession.
(b) Management increases efficiency Identify the criterion/feature:
(c) Management creates a dynamic organisation (a) Well-defined body of knowledge
(d) Management helps in achieving personal objectives (b) Restricted entry
(c) Service motive
CASE STUDY 10: Read the following text and answer question no. (d) Ethical code of conduct
37-40 on the basis of the same: 44. At which level of management is Pratap working?
Smita Rai is the director of Namchi Designer Candles, which has 100 (a) Top level (b) Middle level
per cent women as employees. They also produce varieties of candles. (c) Supervisory level (d) At both top and middle level
During Diwali, they produce customized candles meant for the occasion. 45. As a Prodution Manager, identify the function that Vipul would
Smita plans her dewali collection in the month of June itself. She has to not perform:
then ensure that there is adequate workforce and continuously monitor (a) Ensure that his department has the necessary number of
whether production is proceeding according to plans. Her marketing personnel.
department also has to be briefed in time to prepare their promotional (b) Interpret the policies framed by the Chief Executive Officer,
and advertising campaigns. Rani.
At Namchi Designer Candles, the production and sales department (c) Motivate the employees of his department to achieve the
coordinate their work, so that production takes place according to the desired objectives.
demand in the market. (d) Interacting with the actual workforce.
The purchase, production and sales departmental efforts have to 46. Identify the function that Pratap would have to perform in addition
be coordinated by Smita for achieving organisational objectives to those mentioned in the above case.
harmoniously. The purchase department is responsible for procuring (a) Maintaining quality of output and safety standards
fabric. This then becomes the basis of the activities of the production (b) Implementing the plans and strategies developed by Rani
department and finally sales can take place. If fabric purchased is of an (c) Cooperate with other departments for smooth functioning of
inferior quality or is not according to the specifications of the production the organisation
department, further sales will also decline. (d) Ensuring that his department has the necessary number of
37. At which level of management is Smita Rai working in Namchi personnel
Designer Candles?
(a) Top Management (b) Middle Management Answer Key
(c) Operational Management (d) All of these
38. “... continuously monitor whether production is proceeding 1. (d) 2. (c) 3. (d) 4. (c) 5. (b) 6. (b) 7. (d) 8. (d)
according to plans.” Identify the function of management 9. (c) 10. (d) 11. (a) 12. (a) 13. (d) 14. (b) 15. (d) 16. (d)
highlighted here. 17. (b) 18. (b) 19. (d) 20. (d) 21. (b) 22. (b) 23. (c) 24. (a)
(a) Planning (b) Organising 25. (c) 26. (b) 27. (b) 28. (a) 29. (a) 30. (d) 31. (b) 32. (a)/(b)
(c) Directing (d) Controlling 33. (a) 34. (b) 35. (d) 36. (a) 37. (a) 38. (d) 39. (c) 40. (d)
39. Identify the concept of management discussed in the above case. 41. (b) 42. (c) 43. (b) 44. (c) 45. (d) 46. (a)
(a) Efficiency (b) Effectiveness
(c) Coordination (d) All of these
40. Which of the following characteristic of coordination is highlighted
in the above case?
(a) Coordination is a continuous process.
(b) Coordination ensures unity of action.
(c) Coordination is an all pervasive function.
(d) All of these
Multiple Choice Questions
(Stand-alone, Matching,
Fill-ups, Case-Based)
(Chapter-wise)
MCQ
Multiple Choice Questions (MCQs)

(Stand-alone, Matching, Fill-ups, Case-Based)
C. Management (iii) The task of management is to make people work

Chapter 1 Nature and Significance of Management of operations towards achieving the organisation’s goals, by
1. The objective of management which consistently creates economic value making their strengths effective and their weaknesses
for various constituents of society is: irrelevant.
(a) Organisational objective (b) Social objective (a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) Personal objective (d) Both Social and Personal objective (c) (iii), (ii), (i) (d) (i), (iii), (ii)
2. Arnav has recently started a business to sell computers. He hired a 9. “Every member of an organisation has a different purpose for joining
shop in Nehru Place in New Delhi, where he assembles computers the organisation but as members of the organisation they work towards
and various components, supplies them as per order. He performs a fulfilling the common organisational goal. This requires team work and
series of composite but separate functions simultaneously and ensures coordination of individual effort in a common direction.” Identify the
that computers are delivered in time as per orders. These functions are characteristic of management highlighted above.
performed by all managers at all times. The feature of management (a) Management is a goal-oriented process.
highlighted above is: (b) Management is a group activity.
(a) Management is a continuous process. (c) Management is multi-dimensional.
(b) Management is pervasive. (d) Management is a dynamic function.
(c) Management is dynamic. 10. “An organisation interacts with its external environment which consists of
(d) Management is a group activity. various social, economic and political factors. In order to be successful, an
3. Management is essential for the following organisation(s): organisation must change itself and its goals according to the needs of the
(a) big or small (b) profit or non-profit environment.” Identify the characteristic of management highlighted above.
(c) services or manufacturing (d) All of these (a) Management is a goal-oriented process
4. Match the concept of management in Column I with their respective (b) Management is a group activity
definition in Column II: (c) Management is multi-dimensional
A. Effectiveness (i) Doing the task correctly and with minimum cost. (d) Management is a dynamic function
B. Efficiency (ii) Finishing the given task on time. 11. “Management is an intangible force that cannot be seen but its
presence can be felt in the way the organisation functions. The effect
C. Process (iii) The primary functions or activities that
of management is noticeable in an organisation where targets are met
management performs to get things done.
according to plans, employees are happy and satisfied, and there is
(a) (i), (ii), (iii) (b) (ii), (i), (iii) orderliness instead of chaos.” Identify the characteristic of management
(c) (iii), (ii), (i) (d) (i), (iii), (ii) highlighted above.
5. There is a kind of cost-benefit analysis involved and the relationship (a) Management is an intangible force
between inputs and outputs. Input resources are: (b) Management is a group activity
(a) money (c) Management is multi-dimensional
(b) materials and equipment (d) Management is a dynamic function
(c) persons required to do a particular task 12. “Management has to achieve a variety of objectives in all areas
(d) All of these considering the interest of all stakeholders including, shareholders,
6. At times, a business may concentrate more on producing goods with employees, customers and the government. The main objective of any
fewer resources i.e., cutting down cost but not achieving the target organisation should be to utilise human and material resources to the
production. Consequently, the goods do not reach the market and hence maximum possible advantage.” Identify the objectives of management
the demand for them declines and competitors enter the market. This is highlighted above.
a case of: (a) Organisational Objectives (b) Social Objectives
(a) being efficient but not effective (b) being effective but not efficient (c) Personnel Objectives (d) None of these
(c) being both effective and efficient (d) All of these 13. Match the objective of management in Column I with their respective
7. “A petrol pump needs to be managed as much as a hospital or a school. definition in Column II:
What managers do in India, the USA, Germany or Japan is the same.
A. Survival (i) Increase in the number of employees, the number of
How they do it may be quite different. This difference is due to the
products or the increase in capital investment, etc.
differences in culture, tradition and history.” Identify the characteristic of
B. Profit (ii) A vital incentive for the continued successful
management highlighted above.
operation of the enterprise.
(a) Management is a goal-oriented process
(b) Management is all pervasive C. Growth (iii) An organisation must earn enough revenues to cover
(c) Management is multi-dimensional costs.
(d) Management is a dynamic function (a) (i), (ii), (iii) (b) (ii), (i), (iii)
8. Match the dimension of management in Column I with their respective (c) (iii), (ii), (i) (d) (i), (iii), (ii)
definition in Column II: 14. Match the objective of management in Column I with their respective
definition in Column II:
A. Management (i) In a factory, a product is manufactured, in a garment
of work store a customer’s need is satisfied and in a hospital A. Organisational (i) Survival, profit and growth
a patient is treated. Management translates the goals Objectives
to be achieved and assigns the means to achieve it. B. Social (ii) Providing basic amenities like schools and
B. Management (ii) No matter what the organisation, it has some basic objectives healthcare, etc.
of people product or service to provide in order to survive C. Personnel (iii) Satisfying diverse needs of employees, e.g. financial
the flow of input material and the technology for objectives needs such as competitive salaries and perks, social
transforming this input into the desired output for needs such as peer recognition and higher level
consumption. needs such as personal growth and development.
(a) (i), (ii), (iii) (b) (ii), (i), (iii) conduct to regulate the activities of their members. There is, however,
(c) (iii), (ii), (i) (d) (i), (iii), (ii) no compulsion for managers to be members of such an association nor
15. “The aim of a manager is to reduce costs and increase productivity does it have any statutory backing.” Identify the characteristic of the
through better planning, organising, directing, staffing and controlling profession that Management does not fulfil in the statement being
the activities of the organisation.” discussed above.
Identify the point of importance of management highlighted above. (a) Ethical code of conduct (b) Restricted entry
(a) Management helps in achieving group goals. (c) Professional association (d) Service motive
(b) Management increases efficiency. 23. “Profit maximisation as the objective of management does not hold true
(c) Management creates a dynamic organisation. and is fast changing. Therefore, if an organisation has a good management
(d) Management helps in achieving personal objectives. team that is efficient and effective it automatically serves society by
16. “Through motivation and leadership the management helps individuals providing good quality products at reasonable prices.” Identify the
to develop team spirit, cooperation and commitment to group success.” characteristic of the profession that is not fully present in management.
Identify the point of importance of management highlighted above. (a) Ethical code of conduct (b) Restricted entry
(a) Management helps in achieving group goals. (c) Professional association (d) Service motive
(b) Management increases efficiency. 24. Management is a universal term used for certain functions performed
(c) Management creates a dynamic organisation. by individuals in an enterprise who are bound together in a hierarchy
(d) Management helps in achieving personal objectives. of relationships. Every individual in the hierarchy is responsible for
17. Which of the following is not a part of the importance of management – successful completion of a particular task. To be able to fulfill that
“Management helps in the development of society”? responsibility he is assigned a certain amount of authority or the right
(a) It creates employment opportunities. to take a decision. This authority-responsibility relationship binds
(b) It helps to provide good quality products and services. individuals as superiors and subordinates and gives rise to ________.
(c) It adopts new technology for the greater good of the people. (a) Characteristics of Management(b) Objectives of Management
(d) None of the above (c) Levels of Management (d) Importance of Management
18. “All management practices are based on the same set of principles; what 25. Match the levels of management in Column I with their designation in
distinguishes a successful manager from a less successful one is the ability Column II:
to put these principles into practice.” Identify the nature of management A. Top Management (i) Foreman
highlighted above. B. Middle Management (ii) Production Manager
(a) Management as a science C. Supervisory or Operational Management (iii) Vice-President
(b) Management as an art
(c) Management as a profession (a) (i), (ii), (iii) (b) (ii), (i), (iii)
(d) Management is both art and science (c) (iii), (ii), (i) (d) (i), (iii), (ii)
19. Match the features of management as an art in Column I with their 26. Match the levels of management in Column I with their function in
respective explanation in Column II: Column II:
A. Existence of (i) There is a lot of literature available in various A. Top Management (i) They directly oversee the efforts of the
theoretical areas of management like marketing, finance workforce.
knowledge and human resources which the manager has to B. Middle (ii) They cooperate with other departments for
specialise in. Management smooth functioning of the organisation.
B. Personalised (ii) A manager applies these scientific methods and C. Supervisory or (iii) They are responsible for all the activities of
application body of knowledge to a given situation, an issue Operational the business and for its impact on society.
or a problem, in his own unique manner. Management
C. Based on (iii) A manager is involved in the activities of the (a) (i), (ii), (iii) (b) (ii), (i), (iii)
practice organisation, studies critical situations and (c) (iii), (ii), (i) (d) (i), (iii), (ii)
and formulates his own theories for use in a given 27. Match the characteristics of coordination in Column I with their
creativity situation. This gives rise to different styles of explanation in Column II:
management A. Integrates (i) Coordination unifies unrelated or diverse
(a) (i), (ii), (iii) (b) (ii), (i), (iii) group efforts interests into purposeful work activity.
(c) (iii), (ii), (i) (d) (i), (iii), (ii) B. Ensures (ii) A manager has to coordinate the efforts of
20. Which of the following proves that management is not an exact science? unity of different people in a conscious and deliberate
(a) Management has its own theory and principles that have developed action manner.
over a period of time, but it also draws on other disciplines such as C. A deliberate (iii) It acts as the binding force between
Economics, Sociology, Psychology and Mathematics. Like all other function departments and ensures that all action
organised activity, management has its own vocabulary of terms and is aimed at achieving the goals of the
concepts. organisation.
(b) Since management deals with human beings and human behaviour, (a) (i), (ii), (iii) (b) (ii), (i), (iii)
the outcomes of these experiments are not capable of being accurately (c) (iii), (ii), (i) (d) (i), (iii), (ii)
predicted or replicated. 28. The primary reason for coordination is that ________.
(c) The application and use of principles of management is not universal. (a) It integrates the efforts of individuals, departments and specialists.
They have to be modified according to a given situation. (b) Departments and individuals in the organisation are interdependent,
(d) Both (b) and (c) i.e. they depend on each other for information and resources to
21. “Unlike professions such as medicine or law which require a practicing perform their respective activities.
doctor or lawyer to possess valid degrees, nowhere in the world is it (c) There is a need to harmonise individual goals and organisational
mandatory for a manager to possess any such specific degree.” Identify goals.
the characteristic of the profession that Management does not fulfil in (d) It is a continuous process
the statement being discussed above. 29. Mridul and his brother Rehan started a business of making handmade
(a) Ethical code of conduct (b) Restricted entry cards from waste material and named it ‘Fantasy. Their business started
(c) Professional association (d) Service motive flourishing. They formulated attainable and time-bound overall goals
22. “There are several associations of practising managers in India, like the and also framed strategies for the achievement of these goals. For this,
AIMA (All India Management Association) that has laid down a code of they gave permission to appoint the required people who would be
Multiple Choice Questions (MCQs) 401
responsible for implementing and controlling those strategies. On the dimensions: management of work, management of people and
basis of the functions highlighted above, identify the level at which the management of operations.
people will be appointed for implementing and controlling the strategies: (b) The activities involved in managing an enterprise are common to all
(a) Top-level (b) Middle-level organisations whether economic, social or political.
(c) Supervisory-level (d) (c) The process of management is a series of continuous, composite,
At all levels but separate functions (planning, organising, directing, staffing and
30. The Production Manager of RK Ltd. Kushagra is very popular among controlling). These functions are simultaneously performed by all
his subordinates, He believes in application of scientific principles of managers all the time.
management to his organisation to increase productivity. Moreover, (d) None of the above
he applies them in a personalised and a skilful manner in the light of 38. At which level of management are the managers responsible for the
the realities of a given situation. Being involved in the activities of the welfare and survival of the organisation?
organisation, he studies critical situation and formulates his own theories (a) Top Level Management (b) Middle Level Management
for a given situation. The nature of management discussed in the above (c) Operational Management (d) All of these
case is: 39. Which of the following statement best explains the “Management is an
(a) Management as a Science Art”?
(b) Management as an Art (a) Two managers deal with the same problem differently.
(c) Management as an Inexact Science (b) Management has drawn its knowledge from other disciplines also.
(d) Management as both an Art and a Science (c) No formal qualification is required for the appointment as a manager
31. Management is concerned with the efficient use of resources because in a company.
________. (d) Outcomes of managerial actions cannot be predicted accurately.
(a) they reduce costs. 40. At which level of management coordination takes place in an
(b) they lead to higher profits. organisation?
(c) Both (a) and (b) (a) Top Level Management (b) Middle Level Management
(d) they help in finishing the given task on time. (c) Operational Management (d) All of these
32. ________ function of management decides who will do a particular 41. Name the process of designing and maintaining an environment in
task, where it will be done, and when it will be done. which individuals working together in groups efficiently accomplish
(a) Planning (b) Organising selected aims.
(c) Directing (d) Controlling (a) Management (b) Coordination
33. The main task of the middle level managers is ________. (c) Organising (d) Directing
(a) to integrate diverse elements and coordinate the activities of different 42. In a company, the marketing department’s objective is to increase sales
departments according to the overall objectives of the organisation. by 10 per cent by offering discounts. But, the finance department does
(b) to carry out the plans formulated by the top managers. not approve of such discounts as it means loss of revenue. These kinds of
(c) to cooperate with other departments for smooth functioning of the conflict arise in organisations because of the lack of one of the concepts
organisation. of management. Identify the concept highlighted above.
(d) to directly oversee the efforts of the workforce. (a) Management (b) Directing
34. Supervisory management plays a very important role of the organisation (c) Organising (d) Coordination
since ________. 43. What is the role of middle management in an organisation?
(a) they interact with the actual workforce and pass on instructions of (a) To interact with the actual workforce and oversee their work.
the middle management to the workers. (b) To ensure the welfare and survival of the organisation.
(b) supervisors directly oversee the efforts of the workforce and the (c) To lay down the overall goals and strategies of the organisation.
quality and quantity of output depends on the hard (d) To implement the plans and strategies developed for the organisation.
work, discipline and loyalty of the workforce. 44. Which of the following statement is false?
(c) it is through their efforts that quality of output is maintained, wastage (a) Planning is the function of determining in advance what is to be
of materials is minimised and safety standards are maintained. done and who is to do it.
(d) All of the above (b) Planning cannot prevent problems.
35. Match the functions of management in Column I with their explanation (c) Efficiency means doing the task correctly and with minimum cost.
in Column II: (d) Coordination is the function of the top management.
A. Organising (i) Leading, influencing and motivating employees 45. “Any one can be called a manager irrespective of the educational
to perform the tasks assigned to them. qualification possessed.”
Identify the characteristic of the profession that Management does not
B. Staffing (ii) Recruitment and selection of the personnel. fulfil in the statement being discussed above.
C. Directing (iii) Assigning duties, grouping tasks, establishing (a) Ethical code of Conduct
authority and allocating resources required to carry (b) Professional Association
out a specific plan. (c) Restricted Entry
(a) (i), (ii), (iii) (b) (ii), (i), (iii) (d) Service Motive
(c) (iii), (ii), (i) (d) (i), (iii), (ii) 46. ‘Even where members of a department willingly cooperate and work, a
36. Match the following concepts of management in column I with their manager has to coordinate the efforts of different people in a conscious
explanations in column II: manner.’ Identify the characteristic of coordination discussed above.
(a) Coordination ensures unity of action
A. Coordination (i) The force that binds all the other functions of (b) Coordination is a deliberate function
management. (c) Coordination is a continuous process
B. Efficiency (ii) Doing the right task, completing activities and (d) Coordination is an all-pervasive function
achieving goals. 47. At times, a business may concentrate on producing goods with fewer
C. Effectiveness (iii) Doing the task correctly and with minimum resources but cannot achieve the targeted production. In such a case, the
cost. business is said to be:
(a) (i), (ii), (iii) (b) (i), (iii), (ii) (a) Effective but not efficient (b) Efficient but not effective
(c) (iii), (ii), (i) (d) (ii), (i), (iii) (c) Both effective and efficient (d) Neither effective nor efficient
37. Why is management considered a multi-faceted concept? 48. Which level of management is responsible for coordinating the activities of
(a) Because management is a complex activity that has three main different departments according to overall objectives of the organization?
(a) Top level (b) Middle level (a) Systematised body of knowledge
(c) Supervisory level (d) Both middle and supervisory level (b) Principles based on experimentation
49. Ram Murty, a Professor of Management conducted a class on (c) Universal validity
‘Management principles’ and explained to his students the significance (d) Based on practice and creativity
of Management Principles. In the next class, the Professor asked his 58. Umang was working as a ‘Production Manager’ at ‘LG Papers Ltd’. The
students to play roles of different managers. He gave them various company had launched new ecofriendly paper straws in the market.
situations and asked them to think like managers and provide solutions He was given a target of producing 5,000 straws a day, by the General
to the problems given in these situations. Each student applied the Manager. In spite of making the employees work overtime, Umang could
principles of management to the given situation in his own personalized not meet the target.
manner, depending upon his creativity. On investigation, it was found that the employees had not received the
The nature of management highlighted in the above case is: right training to manufacture these ecofriendly paper straws. So the
(a) Management as a Science employees were sent for special training.
(b) Management as an Art The function of management which helped Umang in identifying that
(c) Management both as an Art and as a Science he could not meet the target is:
(d) Management as a Profession (a) Planning (b) Organising
50. ‘The management gives a common direction to the individual effort in (c) Directing (d) Controlling
achieving the overall goal of the organization.’ 59. Which level of management is responsible for the welfare and survival of
Which point of importance of management is highlighted in this the organisation?
statement? (a) Top level of management (b) Middle level of management
(a) Helps in achieving personal objectives. (c) Supervisory level (d) Both (b) and (c)
(b) Helps in achieving group goals. 60. Identify the dimension of the characteristic of management- “it is
(c) Helps to increase efficiency. multidimensional”, which specifies that the task of management is to
(d) Helps to create a dynamic organization. make the strengths of human resources effective and their weaknesses
51. Which of the following features of a profession is fully satisfied by irrelevant towards achieving the organisation’s objectives.
Management? (a) Management of work (b) Management of people
(a) Service motive (b) Well defined body of knowledge (c) Management of operations (d) Management of goals
(c) Restricted entry (d) Ethical code of conduct 61. The Topper group is looking to make a foray into manufacturing
52. ‘SORT-IT Ltd.’ is a leading software development company. The of semiconductors and it has set up a business to seize the business
company is satisfying the diverse needs of its employees. Its employees opportunity and add to its prospects in the long run. The company
are given competitive salaries and perks. They have been given a has already pivoted into a number of new projects like electronics,
chance for their personal growth and development. For harmony in 5G network equipment, as well as semiconductors. Which economic
the organization, management has to reconcile personal goals with objective of management does the business seek to fulfill?
organizational objectives. Identify the objective of management being (a) Survival (b) Growth
met by ‘SORT-IT Ltd.’ (c) Profit (d) Efficiency
(a) Social (b) Personnel 62. “A manager in a conscious manner has to ensure that even where
(c) Organisational (d) Both Social and Personnel members of a department willingly cooperate, coordination gives
53. ‘It acts as the binding force between departments and ensures that direction to the willing spirit.” The characteristic of coordination being
all action are aimed at achieving the goals of the organization.’ The highlighted above is
statement highlights the following characteristic of co-ordination: (a) Coordination is the responsibility of all managers.
(a) Co-ordination is an all pervasive function. (b) Coordination is a deliberate function.
(b) Co-ordination is the responsibility of all managers. (c) Coordination integrates group efforts.
(c) Co-ordination is a continuous process. (d) Coordination is a continuous process
(d) Co-ordination ensures unity of action. 63. The production department at Karishmaa Ltd, a firm manufacturing
54. The process of designing and maintaining an environment in which readymade garments for men has an objective to increase production
individuals work together in groups, efficiently accomplishing selected by 10% but the Sales department does not approve of the increase in
aims, is known as: production, till changes are brought about in the product to incorporate
(a) Planning (b) Organising latest fashion. These kinds of conflicts bring to light the following
(c) Management (d) Efficiency importance of the force that can help to accomplish the linking of activities
55. ‘Bubbly Bee’ Enterprises recently launched its new range of balloons of various departments:
with inbuilt lights on the occasion of Diwali and set a target of 10% (a) Growth in size (b) Functional differentiation.
return on investment. The Managing Director, Sudhakar integrated the (c) Specialization (d) Efficiency
efforts of all the three departments i.e., Purchase, Production and Sales 64. Silico Ltd. has appointed the former Consulting executive of Shri Shakti
departments at different levels for achieving the target harmoniously. Ltd. Rajan Bahl as its Vice President. What will be his basic task?
The product was an instant hit and ‘Bubbly Bee’ Enterprises was able (a) To integrate diverse elements and coordinate activities of different
to achieve its target. The characteristic of coordination discussed in the departments.
above case is: (b) To carry out plans formulated by top managers.
(a) Coordination is a continuous process. (c) To oversee the efforts of the workforce.
(b) Coordination is multi-dimensional. (d) Help to maintain quality of output.
(c) Coordination requires ethical code of conduct. 65. Ravi joined a marketing firm as a Sales manager. On his first day in the
(d) Coordination is an all pervasive function. company, during the orientation programme, the CEO of the company
56. “The difference between successful and unsuccessful organisations is told Ravi that he will have to simultaneously perform the functions of
that successful organisations do not rely on chance but follow deliberate management planning, organising, staffing, directing, controlling) all the
process to synchronise the activities of different departments to ensure time. Which characteristic of management was the CEO referring to?
that planned objectives are achieved with a minimum of conflict.” (a) Management is a continuous process
The process mentioned above is: (b) Management is all pervasive
(a) Organising (b) Planning (c) Management is multidimensional
(c) Coordination (d) Management (d) Management is goal oriented
57. Which of the following features of science is fully satisfied by 66. ‘Alfanzo Ltd’ is achieving all its objectives in an effective and efficient
management? manner. It is earning enough revenue to cover costs and the risks of
Multiple Choice Questions (MCQs) 403
the business. Now the company wants to increase the sales volume, 75. In an organisation, coordination is the function of every manager. Top
the capital investment, the number of employees and the number of level managers need to coordinate with their subordinates to ensure that
products also. the overall plans of the organisation are duly carried out. Middle level
By doing this, the management wants to achieve its following objective: managers coordinate with both the top level and the supervisory level
(a) Survival (b) Profit managers. Supervisory level managers coordinate the activities of workers
(c) Personal (d) Growth to ensure that work proceeds according to plans. The characteristic of
67. KTX Group is rolling out an initiative to help create wealth for its coordination discussed in the above para is:
employees through the implementation of Employee Stock option. (a) Coordination is a continuous process
Through motivation and leadership the management will help (b) Coordination is a deliberate function.
individuals to develop team spirit, cooperation and commitment to (c) Coordination is the responsibility of all Managers.
the success of the group. The following importance of management is (d) Coordination integrates group efforts.
highlighted above: 76. Which of the following is not a function of middle level management?
(a) Management helps in achieving personal objectives (a) Analysing the business environment and its implications for survival
(b) Management helps in the development of society of the firm.
(c) Management creates a dynamic organisation (b) Interpreting the policies framed by top management.
(d) Management increases efficiency (c) Ensuring that their department has necessary personnel
68. ‘Coordination integrates the efforts of different departments and at (d) Motivating people in their department to achieve desired objectives.
different levels’. 77. The process that initiates implementation of plans by clarifying jobs and
Identify the characteristic of coordination highlighted in the above working relationships and effectively deploying resources for attainment
statement. of identified and desired results is known as:
(a) Coordination ensures unity of action. (a) Organising (b) Controlling
(b) Coordination is an all pervasive function. (c) Staffing (d) Planning
(c) Coordination is a deliberate function. 78. Management helps in providing good quality products and services,
(d) Coordination is the responsibility of all managers. creating employment opportunities, adopting new technology for
69. The process of defining and grouping the activities of the enterprise and the greater good of the people and leads the path towards growth and
establishing authority relationship among them is : development.
(a) Directing (b) Staffing This highlights the following point of importance of management:
(c) Management (d) Organising (a) Management helps in achieving group goals.
70. Management has its own vocabulary of terms and concepts. Managers (b) Management creates a dynamic organisation.
need to communicate with one another with the help of a common (c) Management helps in the development of society.
vocabulary for the better understanding of their work situation. (d) Management helps in achieving personal objectives.
Which characteristic of ‘Management as a Science’ is highlighted in the 79. Neeraj is the Director of ‘Tulip Public School’ having 2000 students.
above statement ? There are two Headmasters - one for Senior classes and another for Junior
(a) Principles based on experimentation classes. 50 teachers are under the supervision of the Senior Headmaster
(b) Systematised body of knowledge and 60 teachers under the supervision of the Junior Headmaster. No
(c) Universal validity teacher working under the supervision of the Senior Headmaster is
(d) Personalised application happy and satisfied, which is affecting the result of the Senior classes. On
71. ‘Alfanzo Ltd’ is achieving all its objectives in an effective and efficient the other hand the teachers working under the supervision of the Junior
manner. It is earning enough revenue to cover costs and the risks of Headmaster are performing their duties willingly and achieving their
the business. Now the company wants to increase the sales volume, objectives. All the teachers are happy and satisfied. The Director, Neeraj
the capital investment, the number of employees and the number can feel how nicely the Junior Headmaster was managing his classes.
of products also. By doing this, the management wants to achieve its The characteristic of management discussed above is:
following objective: (a) Management is a goal-oriented process
(a) Survival (b) Profit (b) Management is a dynamic function
(c) Personal (d) Growth (c) Management is an intangible force
72. Akash works as a production manager in ‘Elite Enterprises’ (d) Management is a continuous process
80. Different organisations have different goals. ‘Zeepo’ is an upcoming
manufacturing LED lights. Due to festive season, there is lot of demand
retail chain for providing consumer goods door-to-door, the objective of
for their lights. Akash was given the task of producing 100 units of LED
this organisation is to increase sales. ‘Allie’ is an educational organisation
lights @ `200 per unit within 5 days for an urgent order. Akash was able
working with an objective of providing education to under privileged
to achieve the target of 100 units of LED lights within 5 days @ `220
children of the society. Management of each of these organisations unite
per unit. Identify from the following whether Akash is:
the efforts of their employees towards achieving organisational goals.
(a) Efficient only (b) Effective only
The characteristic of management discussed above is:
(c) Both efficient and effective (d) Neither efficient nor effective
(a) Management is goal-oriented.
73. Which of the following features of ‘Management as an Art’ highlights
(b) Management is a continuous process.
that every manager applies his knowledge of principles in his own way to
(c) Management is a dynamic function
deal with a given situation?
(d) Management is an intangible force.
(a) Ethical code of conduct (b) Existence of theoretical knowledge
81. Project ‘Nanhi Kali’ run by Shivam and Sohan Ltd. was started in 1998
(c) Personalised application (d) Universal Validity
and is one of the largest programmes that enables underprivileged girls
74. The management of a bag manufacturing company has recently changed.
to complete 10 years of schooling. The project has impacted the lives of
Due to this, an improvement can be felt in the way company functions. over 5 lakh girls from low income group families across the country. The
Now, targets are met according to plans, whereas, earlier deadlines were objective achieved by Shivam and Sohan Ltd. by doing so is:
never given importance. Now there is orderliness, instead of chaos in the (a) Organizational objective (b) Social objective
organisation and the employees are happy and satisfied. (c) Personal objective (d) Both (a) and (c)
From the following identify the characteristic of management 82. Ashita works in a company where her basic task is to integrate diverse
which is highlighted in the above case: elements and co-ordinate the activities of different departments
(a) Management is dynamic. according to the overall objectives of the organisation. At which level of
(b) Management is a continuous process. management is Ashita working?
(c) Management is a group activity. (a) Top level management (b) Middle level management
(d) Management is an intangible force. (c) Supervisory level management (d) Both (b) and (c)
83. Match the features of planning given in Column I with their respective (b) Systematized body of knowledge
explanation given in Column II. (c) Based on practice and creativity
Column I Column II (d) Universal Validity
91. Raman and Vasudev were two employees who were embezzling an
A. Planning is a (i) Planning involves thorough examination
import-export company in Varanasi where they were working. The
mental exercise and evaluation of each alternative and
finance manager of the company Sampat Singh became suspicious of
choosing the most appropriate one
the two employees when he realized that their activities were not being
B. Planning is all- (ii) Planning is required at all levels of performed as per the plans. He installed a software program that could
pervasive. management as well as in all departments secretly log every single stroke of the suspects’ computer keys and send
of the organization an encrypted email report to the Cyber police. The police were able to
C. Planning involves (iii) Planning requires logical and systematic catch the two dishonest employees red handed and arrest them. Identify
decision-making. thinking rather than guess work or wishful the function of management being discussed above.
thinking (a) Staffing (b) Coordination
(a) A-(i), B-(ii), C-(iii) (b) A-(iii), B-(ii), C-(i) (c) Controlling (d) Organizing
(c) A-(ii), B-(iii), C-(i) (d) A-(i), B-(iii), C-(ii) 92. IND Dyechem Ltd. is a chemical manufacturing company producing
84. Identify the feature of Coordination illustrated in the picture. dyes and pigments both for domestic and international market. It
has enjoyed a considerable market share but lately, it has been facing
problems in terms of target sales and customer satisfaction. This is due
to the reason that new entrants have emerged with better technology and
competitive pricing. The Chairman of the company addressed this issue
in the departmental meeting. The production head, Mr. Kamble, advised
the Chairman to revamp the system and take immediate necessary
actions to rectify the problem so that sales are achieved as per the plans.
Identify the relevant function of management being discussed here.
(a) Organising (b) Staffing
(b) Controlling (d) Planning
93. Which of the following function of management measures the progress
(a) pervasive function (b) deliberate function of objectives and guides the organisation to keep it on the right track so
(c) continuous process (d) integrates group efforts that organizational goals might be achieved?
85. What aspect of the profession is exemplified in the scenario where Ayesha (a) Planning (b) Staffing
needs to register herself as a member of ICAI to become a Chartered (c) Directing (d) Controlling
Accountant? 94. ‘AN Stationery Ltd.’ is manufacturing various items of stationery like
(a) Service motive (b) Restricted entry pencils, erasers, gel-pens, ball-pens, etc. The Production Manager,
(c) Professional association (d) Ethical code of conduct Ghanshyam is very particular about the efficiency of production,
86. Identify the reason which makes management important in the light which he measures by 7 counting the number of pieces produced and
of the fact that it is generally seen that individuals in an organization number of defective pieces in a batch. By doing this he is performing an
resist change, as a change often means moving from a familiar, secure important function of management which is:
environment into a newer and a more challenging one. (a) Directing (b) Controlling
(a) Management helps in achieving group goals. (c) Organising (d) Planning
(b) Management creates a dynamic organization 95. ‘Whether the decisions have been translated into desired actions or not’
(c) Management increases efficiency can be confirmed by performing which of the following function of
(d) Management helps in the development of society. management?
87. Alo a mobility platform is in the process of laying off 400-500 employees (a) Planning (b) Organising
in a move aimed at driving cost efficiency. Which objective of management (c) Directing (d) Controlling
will the firm not be able to achieve by carrying out this process. 96. Himanshu is working as a ‘Marketing Manager’ in ‘Suvidit-Air-
(a) Efficiency (b) Social Conditioners’, a well known brand in the field of airconditioners.
(c) Profit (d) Survival Till last month the company was able to achieve its sales targets. But
88. Identify the point of significance of management illustrated in the this month Himanshu observed that targets were not being met and
picture. the number of air-conditioners sold was decreasing. He analysed the
situation and found that the new salesman appointed last month was not
good and for this he took necessary action.
Which of the following function of management helped Himanshu to
identify the decrease in sale
(a) Planning (b) Organising
(c) Directing (d) Controlling
97. Which of the following functions of management completes one cycle of
management process and improves planning in the next cycle?
(a) Organising (b) Staffing
(a) Management helps in achieving group goals (c) Directing (d) Controlling
(b) Management helps in achieving personal objectives 98. ‘Chartered Accountants are required to follow certain guidelines and
(c) Management helps in development of society regulations once they begin practising their profession.’
(d) Management increases efficiency Which characteristic of professions does the above sentence highlight?
89. Name the function of management that acts as a means for translating (a) service motive (b) restricted entry
plans into action. (c) ethical code of conduct (d) professional association
(a) Planning (b) Directing 99. Mr Khanna is the CEO of Plastics & Co. He is worried about the
(c) Organising (d) Controlling constant fights which are happening at the factory’s premises between
90. From the following which is not a relevant feature of management as the workers every day which delays work. To resolve the situation, he
science: hired Mr Kaustav, as the operational manager, who would be in charge
(a) Principles are based on the basis of experimentation of the day-to-day functions at the factory.
HOTS
(Higher Order Thinking Skills)
Based Open-Ended
Questions with Answers
(Chapter-wise)
HOTS (Higher Order Thinking Skills)
Based Open-Ended Questions (with Answers)
These functions are simultaneously performed by all managers

Chapter 1 Nature and Significance of Management all the time. The time spent by managers in different functions
Q.1 Successful organisations do not achieve their goals by chance however is different.
but by following a deliberate process called ‘management’. Q.7 “The main objective of any organisation should be to utilise
Discuss the statement. (6) human and material resources to the maximum possible
Ans. The given statement is justified. Management is essential for advantage, i.e., to fulfill the economic objectives of a business.”
all organisations big or small, profit or non-profit, services or Explain the statement. (3)
manufacturing. Management is necessary so that individuals make Ans. Management is responsible for setting and achieving objectives for
their best contribution towards group objectives. Management the organisation. These are survival, profit and growth. (explain)
is an activity which is necessary wherever there is a group of Q.8 Explain, giving reasons, whether the following statements are
people working in an organisation. People in organisations are true/false: (3)
performing diverse tasks but they are all working towards the (a) Coordination is a continuous function.
same goal. Management aims at guiding their efforts towards (b) Coordination is the function of the supervisory management.
achieving a common objective — a goal. (c) Planning cannot prevent problems.
The following points explain the importance of management in Ans. (a) True: Coordination begins at the planning stage and continues
any organisation: (explain five points) till controlling.
Q.2 “A successful enterprise has to achieve its goals effectively and (b) False: Coordination is the responsibility of all managers from
efficiently.” Explain. (3) top level to supervisory level of management.
Ans. The given statement is correct. Management is a process of (c) True: Planning can only predict them and prepare contingency
getting things done with the aim of achieving goals effectively plans to deal with then if and when they occur.
and efficiently. Management has to see that tasks are completed
and goals are achieved (i.e., effectiveness) with the least amount of Chapter 2 Principles of Management
resources at a minimum cost (i.e., efficiency). Q.1 “Depending upon how they are derived and how effective
Effectiveness in management is concerned with doing the right they are in explaining and predicting managerial behaviour,
task, completing activities and achieving goals.Efficiency means principles of management contribute towards the development
doing the task correctly and with minimum cost. of management both as a science and as an art.” Explain the
It is important for management to achieve goals (effectiveness) statement. (3)
with minimum resources i.e., as efficiently as possible while Ans. The given statement is true. Managerial principles are broad
maintaining a balance between effectiveness and efficiency. and general guidelines for decision-making and behaviour of
Q.3 “There is a kind of cost-benefit analysis involved and the relationship managers. They are formed by experience and collective wisdom
between inputs and outputs.” Explain. (3) of managers as well as experimentation.
Ans. The given statement is quite appropriate. Efficiency means doing Derivation of these principles may be said to be a matter of
the task correctly and with minimum cost. If by using less resources science and their creative application may be regarded as an art.
(i.e., the inputs) more benefits are derived (i.e., the outputs) then These principles lend credibility of a learnable and teachable
efficiency has increased. Efficiency is also increased when for the discipline to the practice of management.
same benefit or outputs, fewer resources are used and less costs are Q.2 “Principles of management are mainly behavioural in nature.”
incurred. Input resources are money, materials, equipment and Do you agree? Give reasons. (3)
persons required to do a particular task. Obviously, management Ans. The given statement is correct. Management principles aim at
is concerned with the efficient use of these resources, because they influencing behaviour of human beings. Therefore, principles of
reduce costs and ultimately lead to higher profits. management are mainly behavioural in nature. It is not that these
Q.4 Why is management considered to be a multi-dimensional/ principles do not pertain to things and phenomenon at all, it is
multi-faceted concept? (3) just a matter of emphasis. Moreover, principles enable a better
Ans. True; management is a multi-dimensional concept. Management understanding of the relationship between human and material
is a complex activity that has three main dimensions — resources in accomplishing organisational purposes. For example,
• Management of work while planning the layout of a factory, orderliness would require that
• Management of people workflows are matched by flow of materials and movement of men.
• Management of operations (explain) Q.3 “The principles of management establish accurate cause and
Q.5 “Coordination is a one-time function of the top management.” effect relationships.” Do you agree? Give reasons. (3)
Do you agree? Give reasons. (3) Ans. The given statement is not totally correct. The principles of
Ans. The given statement is false. management are intended to establish relationship between cause
• Coordination is a continuous process. and effect so that they can be used in similar situations in a large
• Coordination is the responsibility of all managers. (explain) number of cases. As such, they tell us if a particular principle
Q.6 “Management is a series of continuous interrelated functions.” was applied in a particular situation, what would be its likely
Comment. (6) effect. The principles of management are less than perfect since
Ans. The given statement is correct. The process of management is they mainly apply to human behaviour. In real life, situations are
a series of continuous, interrelated, but separate functions — not identical. So, accurate cause and effect relationships may be
planning, organising, directing, staffing and controlling. (explain) difficult to establish.

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These functions are simultaneously performed by all managers

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