BUSINESS STUDIES : CHAPTER : 1-NATURE & SIGNIFICANCE OF

MANAGEMENT –QUESTION BANK

ONE MARKS…
CASE STUDIES

1.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 executive” A typical day at work in Jay ant’s life consists of a series
of interrelated and continue 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, brochures, details of account holders etc. are made readily
available to them. The executives are given sufficient authority to carry out the
work assigned to them. Jayant works in close coordination with the Human
Resource Manager 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 diverse
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:

I. 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.”

II. Identify and describe the various functions of the concept as identified in part
(a) of the question by quoting lines from the paragraph.

2. Sooraj works as a salesman in a company selling pet accessories and food. He

has been given a target of selling 1200 units of the food packets in a month by
offering a maximum of 10% discount to his customers. In order to meet his
monthly sales target, on the last two days of the month, he offers 15% discount to
his customers. In the context of the above case, is Sooraj effective in his work?
Explain by giving a suitable reason in support of your answer.

3. Sujata works as a designer in an export house. As per the terms of an order

received by the export house, 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, is Sujata efficient in her
work? Explain by giving a suitable reason in support of your answer.

4. Anju and Manju are good friends. Considering the fact that the activities
involved in managing an enterprise 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.
Anju 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 especially abled persons. Both of them have to
perform a series of continuous, composite, but separate functions. On some days,
Anju may spend more time in planning a future display layout and on another day,
she 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 the above case: Identify the various
features of management highlighted in the above paragraph by quoting lines from
it.

5. 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 especially abled persons and promoting literacy in the
villages adopted by it. In the context of the above case: 1. Identify and explain the
various types of objectives of management being fulfilled by Real Alliance Ltd by
quoting lines from the paragraph. 2. List any two values that Real Alliance Ltd.
wants to communicate to the society

6. 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 is able to reduce
costs and increase productivity. 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 her 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 organizational 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.

7. 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
realizes that each departmental head has own individual style of working. They
differ greatly in their day-to-day approach to work. They tend to deal with a given
situation, an issue or a problem through a combination of their own experience,
creativity, imagination, initiative and innovation. In the context of the above case,
identify and explain the nature of management highlighted in the above case.

8. 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 a 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: 1. Explain
the reasons because of which Dharam considers management as a discipline. 2.
Critically examine the various reasons because of which management is not
considered to be a full-fledged profession.

9. Kartik joins a garment 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. Every day 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 purchase officer. As a result, a lot of time of the workers is wasted. So, in
order to integrate the various production activities, henceforth, Kartik ensures, that
the store keeper is informed well three days in advance about the requisite
material. 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: 1. 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. 2. State briefly any two points highlighting the
importance of quality of management identified in part (a)

10. 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 this level.

11. Arundhati has been promoted to the post of Marketing Division Head of a 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 at this level.

12. Ajay and Sanjay are childhood friends. Sanjay had lost his 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:
1. 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. 2. List any two
values that are reflected in this act of Ajay

13. Hema is one of the most successful managers of her company, ‗Kobe Ltd‘. She
uses her creativity and initiative in handling challenging situations at work. The
knowledge gained by her during her student days at a renowned management
institute as well as through her observation and experience over the years is applied
by Hema in a skilful manner in the context of the realities of a given situation. She
often reads books and other literature in various fields of management to keep her
knowledge updated(i) An aspect of the nature of management is being highlighted
in the above description. Identify the aspect. (ii) Explain any three features of the
aspect identified in part (i).

14. Das is the Managing Director of ‗Gamut Ltd. ‘manufacturing different

varieties of cheese. He has an efficient team working under him consisting of
Rajat- the Production manager, Vinay – the Marketing manager and Adit – the
Finance manager. They understand and interpret the policies made by Das, ensure
that their departments have adequate manpower, assign them the necessary duties
and motivate them to achieve the desired objectives. State one more function other
than those mentioned above, that this team may perform at the level they are
working

15. 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 of employees and its cooperation with other departments is improved. (a)
Identify the level at which Rishitosh Mukerjee was working. (b) Also, state three
more functions required to be performed by Rishitosh Mukerjee at this level.

16. Identify another function of the middle level highlighted in the given case A.
Formulate overall organisational goals and strategies B. Analyze the business
environment and its implication for the survival of the firm C. It with other
departments for smooth functioning of the organization D. Maintain quality of
output, minimize material wastage and maintain safety standards

17. 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.

18. Dheeraj is working as an Operations Manager in Tifco Ltd. Name the

managerial level at which he is working. State any four functions he will perform
as the Operations Manager in this company.
19. Vaibhav Garments Ltd/s target is to produce 10,000 shirts per month at a cost
of ?150 per shirt. The production manager could achieve this target at the cost of
?160 per shirt. Do you think the production manager is effective? Give reasons for
your answer.

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

21. Sujata works as a designer in an export house. As per the terms of an order
received by the export house, she has to get 1000 units of denim jackets made in 15
days @ ?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 ? 100. In the context of the above case: Is Sujata efficient in her
work? Explain by giving a suitable reason in support of your answer.

QUESTION NO. 22 TO 25 ARE BASED ON THE PARA GIVEN BELOW.

CHOOSE THE CORRECT OPTION GIVEN BELOW FOR EACH
QUESTION: Mayra Ltd. received a new order of 30,000 toys. Mr. Abhilash, the
production manager is expected to deliver goods in fifteen days otherwise the
contract will be null and void. To retain the customers, Abhilash outsourced the
production of 15,000 toys and delivered the order on time. The outsourcing of
production resulted in increase in cost by 50%. Mayra Ltd. uses environment
friendly methods ofproduction and disposes off the waste material by either
recycling it or using the same for landfill in such a manner that the aquatic life is
not disturbed."

22.Which concept of management is being adhered to here by Mr. Abhilash?

(a)Effectiveness (b) Efficiency (c) Both a. and b. (d) None of these

23 Which concept of management is being overlooked by Mr. Abhilash?

(a)Effectiveness (b) Efficiency (c) Both a. and b. (d) None of these
24 At which level of management is Mr. Abhilash working? (a)Top level (b)
Middle level (c) Lower level (d) Shop floor level

25. Which objective of management is fulfilled by Mayra Limited?

(a)Organisational (b) Personal (c) Social (d) None of these

QUESTION NO. 26 TO 28

Ankush Ltd is engaged in manufacturing of electrical appliances .Mr Ankush

found that the profits had started declining from the last 6 month. Profit has an
implementation for the survival of the firm, so he analysed the business
environment to find out the reason for the decline. Also the company has been
facing problem for the last few years because of the chaos between two
departments ie (production department and sales department).Sales department
blames Production department for delaying production. Production department
blames sales department for poor sales. The force that initiate two department is
missing. So Mr Ankush integrates the effort of these departments into a uniform
plan of action to active better organisational results. He also gives instructions to
his managers so that desired action may be taken to achieve the target on
time.Various incentive are also offered to them for achieving desired target on
time.

26.At which level of management is Mr Ankush working?

27. Which is the force that Is missing in the given paragraph?

28. Which function of management is highlighted in the lines "He also gives
instructions ….....Time"?

QUESTION NO. 29 TO 30

Joshimath Enterprises decides to have a meeting of all the key employees of

different departments in the organisation. The main motive is to tell the employees
to keep the target of 25% increase in sales as the main objective when they work
throughout the year. The meeting is full of ideas regarding the employees and
processes involved. Various plans are made to harness the potential of the
employees and streamline the processes. However with the passage of a few days
the external business environment checks the capability of the organisation to
adapt to the situations. The company successfully comes out at the end of the year
with flying colours. Read the above paragraph and answer the following questions.

29. ―The main motive is to tell the employees to keep the target of 25% increase
in sales as the main objective when they work throughout the year‖. Identify the
feature of management highlighted here:

30. However with the passage of a few days the external business environment
checks the capability of the organisation to adapt to the situations. Identify the
feature of management highlighted here: (i) Goal oriented process (ii)
Multidimension

PICTURE BASED QUESTIONS:

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