BUSINESS STUDIES

CLASS-XII
NATURE AND SIGNIFICANCE OF MANAGEMENT
CH-1

Question 1:
Mega Ltd. manufactured water-heaters. In the first year of its operations, the revenue
earned by the company was just sufficient to meet its costs. To increase the revenue, the
company analyzed the reasons behind the less revenues. After analysis, the company
decided:

 To reduce the labour costs by shifting the manufacturing unit to a backward area
where labour was available at a very low rate.
 To start manufacturing solar water-heaters and reduce the production of electric
water-heaters slowly.
This will not only help in covering the risks but also help in meeting other objectives.
a) Identify and explain the objectives of management discussed above.

Question 2:
Jayant is working as Head Relationship Manager in the wealth management division of a
private sector bank. He has created an internal environment which is conducive to an
effective and efficient performance of his team of ten relationship management
executives. A typical day at work in Jayant’s life consists of a series of interrelated and
continuous functions. He decides the targets for his department which are in line with the
objectives of the organization as a whole. The future course of action for his team
members is laid out well in advance. The various resources required by the relationship
managers like an iPad with GPS system, account opening forms, details of account holder
etc. are made readily available to them. The executive are given sufficient authority to
carry out the work assigned to them. Jayant works in close coordination with the Human
Resource Management in order to ensure that he is able to create and maintain a
satisfactory and satisfied workforce in his department. Through constant guidance and
motivation, Jayant inspires them to realize their full potential. He offers them various types
of incentives from time to time keeping in view their divers individual needs. Moreover, he
keeps a close watch on their individual performances in order to ensure that they are in
accordance with the standards set and takes corrective actions whenever needed.
In context of the above case:
a. Identify the concept being referred to in the following line, “He has created an
internal environment which is conducive to an effective and efficient performance of
his team of ten relationship management executives”.
b. Identify and describe the various functions of the concept as identified in part (a) of
the question by quoting lines from the paragraph.

Question 3:
Ramarjuna joins an IT firm as a system analyst after completing his masters in Computer
Science. As the nature of his work demands he has to work in very close coordination with
all the departmental heads in the firm, very soon Ramarjuna realize that each
departmental head has own individual style of working. They differ greatly in their day-to-
day approach to work. They tend to deal with a given situation, an issue or a problem
through a combination of their own experience, creativity, imagination, initiation and
innovation.
In the context of the above case:
Identify and explain the nature of management highlighted in the above case.

Question 4:
Geetika is working in a private sector bank. One of her key function relates to the
formulation of the overall organizational goals and strategies of the bank. Identify the level
of management at which she is working? State any three other functions that she has to
perform at his level.

Questions 5:
XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote village as
there was no reliable supply of electricity in rural areas. The revenue earned by the
company was sufficient to cover the costs and the risks. As the demand of lanterns was
increasing day-by-day, the company decided to increase production to generate higher
sales. For this, they decided to employ people from nearby village as very few job
opportunities were available in that area. The company also decided to open schools and
crèches for the children of its employees.
a. Identify and explain the objectives of management discussed above.
b. State any two values which the company wanted to communicate to the society.

Questions 6:
Your grandfather has retired as the Director of a manufacturing company. At what level of
management was he working? What functions do you think he was performing at that
level? State any two,

Question 7:
Vaibhav Garments Ltd.’ s target is to produce 10,000 shirts per month at a cost of Rs. 150
per shirt. The production manager could achieve this target at the cost of Rs. 160 per
shirt. Do you think the production manager is effective? Give reasons for your answer.

Questions 8:
Mr. Nitin Singhania’s father has a good business of iron and steel. He wants to go to the
USA for his MBA but his father think that he should join the business. On the basis of
emerging trends, do you think that Mr. Singhania should send his son to the USA? Give any
three reasons in support of your answer.

Questions 9:
Sooraj Works as a salesman in a company selling pet accessories and food. He has been
given a target of selling 1200 units of food packets in a month by offering a maximum of
10% discount to his customers. In order to meet his monthly sales targets, on the last two
days of the month, he offers 15% discount to his customers.
In the context of the above case:
Is Sooraj effective in his work? Explain by giving a suitable reason in support of your answer.

Questions 10:
Sujata works as a designer in an export house. As per the terms of an order received by
the export houses, she has to get 1000 units of denim jackets made in 15 days @ Rs. 2000
per jacket. She is able to complete her target production in 20 days because in order to
complete the order in 15 days she would have made the workers work over time. As a
result, the cost of production per jacket may have increased by Rs. 100.
In the context of the above case:
In Sujata efficient in her work? Explain by giving a suitable reason in support of your
answer.

Question 11:
Anjua and Manju are good friends. Considering the fact that the activities involved in
managing an enterprises are common to all organizations, after completing their masters
in business management, both of them take up a job at managerial level in different
organizations as per their individual areas of interest. Ajua takes up a marketing job in a
retail company and strives to increase sales whereas Manju joins an NGO and works
diligently to realize its objective related to providing employment to specially abled
persons. Both of them have to perform a series of continuous, composite, but separate
functions. On some days, Anju may spend time in sorting out an employee’s problem. Both
Anju and Manju make conscious efforts to build a feeling of team spirit and coordination
among diverse individuals with different needs who work under them. The effect of their
management is noticeable in their respective departments as the targets are met
according to plans, employees are happy and satisfied, and there is orderliness in its
functioning rather than chaos.
In context of above case:
Identify the various features of management highlighted in the above paragraph by quoting
lines from it.
Questions 12:
Real Alliance Ltd. is a well-known cement company in India. It is able to earn adequate
revenues to cover costs. Its capital base, number of employees and production turnover
has increased manifolds over the years. The rate of profitability of the business is also
creditable. The employees of the company are happy and satisfied with their
remuneration, working conditions, promotion policy etc. as a part of its moral obligation,
the company has taken many initiatives for providing employment to specially abled
persons and promoting literacy in the villages adopted by it.
In the context of the above case:
a. Identify and explain the various types of objectives of management being fulfilled by
Real Alliance Ltd by quoting lines from the paragraph.
b. List any two values that Real Alliance Ltd. wants to communicate to the society.

Questions 13:
Esha works as the cost and risk management head of a company in power sector. As a
result of her excellent managerial competence, the company belongs to infrastructure
sector, wherein regular amendments are made in the government regulations and policies.
She holds regular meetings to ensure that people in the department are not only aware of
the related changes but are also able to adapt to these changes effectively. This helps the
company to maintain its competitive edge. She motivates and leads her team in such a
manner that individual members are able to achieve personal goals while contributing to
the overall organization objective. In the process of fulfilling her duties for the growth of
the organization, she helps in providing competitive services, adopting new technology,
creating more employment opportunities etc. for the greater good of the people at large.
In context of the above case:
Identify the various reasons that have made management so important by quoting lines
from the paragraph.

Questions 14:
Dharam is a well-known businessman in the field of publishing. He owes the success of his
business to his own education in business management and his team of certified
management consultants. Therefore, he decides to send both his children Danush and
Damini abroad to acquire ad degree in business management in their individual area of
expertise. He feels that all over the world there is marked growth in management as a
discipline, but still it is not considered to be a full-fledged profession for certain reasons.
In the context of the above case:
a. Explain the reasons because of which Dharam considers management as a discipline.
b. Critically examine the various reasons because of which management is not
considered to be a full-fledged profession.

Questions 15:
Kartik Joins a garments factory as a plant supervisor in Lucknow. He observes that the
output of some workers is very low as compared to the standards set for their
performance. On analyzing the reasons for the same, he finds out that a lot of time of the
workers is wasted in getting the requisite materials issued from the store. Whereas on
asking, the store keeper complains that there is no harmony in the working of the
production department as a whole. Everyday the workers approach him at the last minute
to procure different kinds of threads, laces, mirrors, buttons etc. if it is not available in the
store then he has to place an order with the purchases officer. As a result, a lot of time of
the workers is wasted. So, in order to integrate the various production activities,
henceforth, Kartik ensured that the store keeper is informed well three days in advance
about the requisite materials. Consequently, the store keeper is able to keep the materials
ready for the workers every morning in accordance with their requirements.
In context of the above case:
a. Identify and explain the quality of management that Kartik has introduced in the
working of the production department as a corrective measure to control the output
of the workers.
b. State briefly any two points highlighting the importance of quality of management
 identified in part (a).

Questions 16:
Sridhar’s father is working as a section in-charge in a government office. Identify the level
of management at which he is working? State any five functions that he has to perform at
this level.
Questions 17:
Arundhati has been promoted to the post of Marketing Division Head of soft drink
company. Identify the level of management at which she will be working henceforth. State
any four functions that she will have to perform as this level.

Questions 18:
Ajay and Sanjay are childhood friends. Sanjay had lost right hand in an accident in
childhood. They meet after a long time in a restaurant. On being asked, Sanjay tells Ajay
that he feels very discontented in managing his family business after the death of his
father as it doesn’t match with his areas of interest. Ajay knows that Sanjay possess
extraordinary skills in management although he hasn’t acquired any professional degree in
management. Therefore, he asks Sanjay to wind up his business in India and join him in his
hotel business in Dubai as an Assistant Manager in Sales and Marketing Division.
In context of the above case:
a. Can Sanjay be deployed at the post of Assistant Manager in Sales and
Marketing Division though he hasn’t acquired any professional degree in
management?
Explain by giving suitable justifications in support of your answer.
b. List any two values that are reflected in this act of Ajay.

Questions 19:
Rishitosh Mukerjee has recently joined AMV Ltd, a company manufacturing refrigerators. He
found that his department was under-staffed and other departments were not cooperating
with his department for smooth functioning of the organization. Therefore, he ensured that
his department has the required number pf employees and its cooperation with other
departments is improved.
a. Identify the level at which Rishitosh Mukerjee was working.
b. Also, state any one function required to be performed by Rishitosh Mukerjee.